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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 8, 2024
Gladstone Investment Corporation
(Exact Name of Registrant as Specified in its Charter)
Delaware
814-00704
83-0423116
(State or Other Jurisdiction
of Incorporation)		(Commission
File Number)		(IRS Employer
Identification No.)
1521 Westbranch Drive, Suite 100
McLean, Virginia
22102
(Address of Principal Executive Offices)(Zip Code)
Registrant's telephone number, including area code: (703) 287-5800
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)
Name of Each Exchange on Which
Registered
Common Stock, $0.001 par value per shareGAINThe Nasdaq Stock Market LLC
5.00% Notes due 2026GAINNThe Nasdaq Stock Market LLC
4.875% Notes due 2028GAINZThe Nasdaq Stock Market LLC
8.00% Notes due 2028GAINLThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


Item 2.02.    Results of Operations and Financial Condition.
On May 8, 2024, Gladstone Investment Corporation issued a press release announcing its financial results for its fourth quarter and fiscal year ended March 31, 2024. The text of the press release is included as an exhibit to this Current Report on Form 8-K. The information in this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01.     Financial Statements and Exhibits.
(d)     Exhibits.
Exhibit No.Description
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Gladstone Investment Corporation (Registrant)
May 8, 2024
By:/s/ Rachael Easton
Rachael Easton
Chief Financial Officer and Treasurer

image_1.jpg    
Gladstone Investment Corporation Reports Financial Results for its
Fourth Quarter and Fiscal Year Ended March 31, 2024
MCLEAN, VA, May 8, 2024: Gladstone Investment Corporation (Nasdaq: GAIN) (the "Company") today announced earnings for its fourth quarter and fiscal year ended March 31, 2024. Please read the Company's Annual Report on Form 10-K, filed today with the U.S. Securities and Exchange Commission (the "SEC"), which is available on the SEC's website at www.sec.gov or the investors section of the Company's website at www.gladstoneinvestment.com.
Summary Information: (dollars in thousands, except per share data (unaudited)):
March 31,
2024		December 31,
2023		$
Change		%
Change
For the quarter ended:
Total investment income$23,648 $23,081 $567 2.5 %
Total expenses, net(A)
18,325 13,337 4,988 37.4 %
Net investment income(A)
5,323 9,744 (4,421)(45.4)%
Net realized (loss) gain
(14,650)43,461 (58,111)NM
Net unrealized appreciation (depreciation)
31,911 (46,626)78,537 NM
Net increase in net assets resulting from operations(A)
$22,584 $6,579 $16,005 243.3 %
Net investment income per weighted-average common share(A)
$0.15 $0.28 $(0.13)(46.4)%
Adjusted net investment income per weighted-average common share(B)
$0.24 $0.26 $(0.02)(7.7)%
Net increase in net assets resulting from operations per weighted-average common share(A)
$0.63 $0.19 $0.44 231.6 %
Cash distribution per common share from net investment income$0.24 $0.43 $(0.19)(44.2)%
Cash distribution per common share from cumulative net realized gains(C)
$— $0.81 $(0.81)(100.0)%
Weighted-average yield on interest-bearing investments
14.3 %14.4 %(0.1)%(0.7)%
Total dollars invested
$936 $68,200 $(67,264)(98.6)%
Total dollars repaid and/or collected from sales
$500 $77,953 $(77,453)(99.4)%
Weighted-average shares of common stock outstanding - basic and diluted36,114,984 34,351,597 1,763,387 5.1 %
Total shares of common stock outstanding36,688,667 35,351,954 1,336,713 3.8 %
As of:
Total investments, at fair value
$920,504 $902,808 $17,696 2.0 %
Fair value, as a percent of cost
107.8 %103.9 %3.9 %3.7 %
Net assets
$492,711 $459,941 $32,770 7.1 %
Net asset value per common share
$13.43 $13.01 $0.42 3.2 %
Number of portfolio companies
24 25 (1)(4.0)%

1

March 31,
2024		March 31,
2023		$
Change		%
Change
For the year ended:
Total investment income$87,306 $81,543 $5,763 7.1 %
Total expenses, net(A)
65,529 44,543 20,986 47.1 %
Net investment income(A)
21,777 37,000 (15,223)(41.1)%
Net realized gain
30,256 10,753 19,503 181.4 %
Net unrealized appreciation (depreciation)
33,272 (12,206)45,478 NM
Net increase in net assets resulting from operations(A)
$85,305 $35,547 $49,758 140.0 %
Net investment income per weighted-average common share(A)
$0.63 $1.11 $(0.48)(43.2)%
Adjusted net investment income per weighted-average common share(B)
$1.00 $1.10 $(0.10)(9.1)%
Net increase in net assets resulting from operations per weighted-average common share(A)
$2.47 $1.07 $1.40 130.8 %
Cash distribution per common share from net investment income$1.08 $0.92 $0.16 17.4 %
Cash distribution per common share from cumulative net realized gains(C)
$1.12 $0.49 $0.63 128.6 %
Weighted-average yield on interest-bearing investments
14.4 %13.0 %1.4 %10.8 %
Total dollars invested
$183,924 $133,756 $50,168 37.5 %
Total dollars repaid and/or collected from sales
$80,228 $87,833 $(7,605)(8.7)%
Weighted-average shares of common stock outstanding - basic and diluted34,466,724 33,311,785 1,154,939 3.5 %
Total shares of common stock outstanding36,688,667 33,591,505 3,097,162 9.2 %
As of:
Total investments, at fair value
$920,504 $753,543 $166,961 22.2 %
Fair value, as a percent of cost
107.8 %104.6 %3.2 %3.0 %
Net assets
$492,711 $439,742 $52,969 12.0 %
Net asset value per common share
$13.43 $13.09 $0.34 2.6 %
Number of portfolio companies
24 25 (1)(4.0)%
NM = Not Meaningful
(A)Inclusive of $3.5 million, or $0.09 per weighted-average common share, of capital gains-based incentive fees accrued during the three months ended March 31, 2024 and ($0.6 million), or ($0.02) per weighted-average common share, of capital gains-based incentive fees reversed during the three months ended December 31, 2023, respectively; and $12.7 million, or $0.37 per weighted-average common share, of capital gains-based incentive fees accrued during the year ended March 31, 2024 and ($0.3 million), or $(0.01) per weighted-average common share, of capital-gains based incentive fees reversed during the year ended March 31, 2023, respectively. These fees were accrued/(reversed) in accordance with United States generally accepted accounting principles ("GAAP"), where such amounts were not contractually due under the terms of the investment advisory agreement for the respective periods. Also see discussion under Non-GAAP Financial Measure - Adjusted Net Investment Income below.
(B)See Non-GAAP Financial Measure - Adjusted Net Investment Income, below, for a description of this non-GAAP measure and a reconciliation from Net investment income to Adjusted net investment income, including on a weighted-average per share basis. The Company uses this non-GAAP financial measure internally in analyzing financial results and believes it is useful to investors as an additional tool to evaluate ongoing results and trends for the Company.
(C)Estimates of tax characterization made on a quarterly basis may not be representative of the actual tax characterization of distributions for the full year. Estimates made on a quarterly basis are updated as of each interim reporting date.
Highlights for the Quarter: During the quarter ended March 31, 2024, the following significant events occurred:
•Portfolio Activity:

◦Recognized a $14.7 million realized loss on our preferred and common equity investments and related first and second lien debt investments in The Mountain Corporation (“The Mountain”) upon its liquidation and dissolution.
2

•Distributions and Dividends:
◦Paid $0.08 per common share to common stockholders in each of January, February, and March 2024.
•At-the-market (“ATM”) program activity:

◦Sold 1,336,713 shares of our common stock under our common stock ATM program at a weighted-average gross price of $14.41 per share and raised approximately $18.9 million in net proceeds. These sales were above our then-current estimated NAV per share.

•Financing activity:

◦Amended our credit facility, increasing the size from $135.0 million to $200.0 million.
Fourth Quarter Results: Net investment income for the quarter ended March 31, 2024 was $5.3 million, or $0.15 per weighted-average common share, compared to net investment income for the quarter ended December 31, 2023 of $9.7 million, or $0.28 per weighted-average common share. This change was a result of an increase in total expenses, net of credits, partially offset by an increase in total investment income, quarter over quarter.
Total investment income for the quarters ended March 31, 2024 and December 31, 2023 was $23.6 million and $23.1 million, respectively. The quarter over quarter increase was primarily due to a $0.8 million increase in dividend and success fee income, the timing of which can be variable. This increase was partially offset by a $0.3 million decrease in interest income, primarily due to a decrease in weighted-average principal balance of our interest-bearing investment portfolio outstanding.
Total expenses, net of credits, for the quarters ended March 31, 2024 and December 31, 2023 was $18.3 million and $13.3 million, respectively. The quarter over quarter increase was primarily due to a $4.1 million increase in the capital gains-based incentive fees in the current quarter, as a result of the net impact of realized and unrealized gains and losses, as well as a $1.3 million decrease in credits to fees from Adviser, partially offset by a $0.3 million decrease in other expenses.
Net asset value per common share as of March 31, 2024 was $13.43 compared to $13.01 as of December 31, 2023. The quarter over quarter increase was primarily due to $31.9 million, or $0.88 per common share, of net unrealized appreciation of investments, and $5.3 million, or $0.15 per common share, of net investment income, partially offset by $14.7 million, or $0.41 per common share, of realized losses on investments and $8.7 million, or $0.24 per common share, of distributions paid to common stockholders.
Highlights for the Year: During the year ended March 31, 2024, the following significant events occurred:
•Portfolio Activity:
◦Invested $61.3 million in two new portfolio companies, through a combination of secured first lien debt and preferred equity;
◦Recapitalized our investment in one portfolio company, investing an additional $2.5 million in the form of secured first lien debt. In connection with this investment, we received gross proceeds of $2.2 million, including $1.9 million of dividend income and $0.3 million of realized gains;
◦In addition to amounts invested in conjunction with the recapitalization discussed above, invested an aggregate of $120.2 million in various existing portfolio companies to fund add-on acquisitions, through secured first lien debt, secured second lien debt, preferred equity, and common equity;

◦Exited our investments in one portfolio company, which resulted in success fee income of $1.4 million, repayment of our debt of $27.5 million at par, and realized gains of $43.5 million; and
◦Recognized a $14.7 million realized loss on our preferred and common equity investments and related first and second lien debt investments in The Mountain upon its liquidation and dissolution.
3

•Distributions and Dividends:
◦Paid $0.08 per common share to common stockholders each month from April 2023 through March 2024; and
◦Paid an aggregate of $1.24 per common share of supplemental distributions to common stockholders during the year ended March 31, 2024.
•At-the-market (“ATM”) program activity:
◦Sold 3,097,162 shares of our common stock under our common stock ATM program at a weighted-average gross price of $14.37 per share and raised approximately $43.7 million in net proceeds. These sales were above our then-current estimated NAV per share.

•Financing Activities
◦Issued publicly-traded 8.00% Notes due 2028 (Nasdaq: GAINL) (“8.00% 2028 Notes”) with a total principal amount of $74.8 million.
Fiscal Year End Results: Net investment income for the year ended March 31, 2024 was $21.8 million, or $0.63 per weighted-average common share, compared to net investment income for the year ended March 31, 2023 of $37.0 million, or $1.11 per weighted-average common share. This change was a result of an increase in total expenses, net of credits, partially offset by an increase in total investment income, year over year.
Total investment income for the years ended March 31, 2024 and 2023 was $87.3 million and $81.5 million, respectively. The year over year increase was primarily due to a $21.5 million increase in interest income, partially offset by a $15.8 million decrease in dividend and success fee income, related to fees that did not reoccur in the current fiscal year, as the timing of such fee income can be variable. The increase in interest income was primarily due to an increase in the weighted-average principal balance of our interest-bearing investments, due to the additional debt investments made during the year, as well as an increase in the weighted-average yield on interest-bearing investments, resulting from an increase in SOFR.
Total expenses, net of credits, for the years ended March 31, 2024 and 2023 was $65.5 million and $44.5 million, respectively. The year over year increase was primarily due to an $13.0 million increase in the capital gains-based incentive fees in the current year, as a result of the net impact of realized and unrealized gains and losses, as well as an $8.2 million increase in interest expense, primarily due to the 8.00% 2028 Notes issued in May 2023 and increased rates and borrowings outstanding in our credit facility, and a $2.7 million increase in the base management fee. These amounts were partially offset by a $1.8 million increase in credits to fees from adviser and a $0.5 million decrease in professional fees.
Net asset value per common share as of March 31, 2024 was $13.43 compared to $13.09 as of March 31, 2023. The year over year increase was primarily due to $33.3 million, or $0.96 per common share, of net unrealized appreciation of investments, $30.3 million, or $0.88 per common share, of realized gains on investments, and $21.8 million, or $0.63 per common share, of net investment income, partially offset by $76.1 million, or $2.20 per common share, of distributions paid to common stockholders.
Subsequent Events: After March 31, 2024, the following significant events occurred:
•Distributions and dividends: In April 2024, our Board of Directors declared the following monthly distributions to common stockholders:
Record DatePayment DateDistribution per Common Share
April 19, 2024April 30, 2024$0.08 
May 17, 2024May 31, 20240.08 
June 19, 2024June 28, 20240.08 
Total for the Quarter:$0.24 

4

Non-GAAP Financial Measure - Adjusted Net Investment Income: On a supplemental basis, the Company discloses Adjusted net investment income, including on a per share basis, which is a financial measure that is calculated and presented on a basis of methodology other than in accordance with GAAP. Adjusted net investment income represents net investment income, excluding capital gains-based incentive fees. The Company uses this non-GAAP financial measure internally in analyzing financial results and believes that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends for the Company. The Company's investment advisory agreement provides that a capital gains-based incentive fee is determined and paid annually with respect to realized capital gains (but not unrealized appreciation) to the extent such realized capital gains exceed realized capital losses and unrealized depreciation on investments for such year. However, under GAAP, a capital gains-based incentive fee is accrued if realized capital gains and unrealized appreciation of investments exceed realized capital losses and unrealized depreciation of investments. Refer to Note 4 - Related Party Transactions in our Annual Report on Form 10-K for further discussion. The Company believes that Adjusted net investment income is a useful indicator of operations exclusive of any capital gains-based incentive fees, as net investment income does not include realized or unrealized investment activity associated with the capital gains-based incentive fee.
The following table provides a reconciliation of net investment income (the most comparable GAAP measure) to Adjusted net investment income for the periods presented (dollars in thousands, except per share amounts; unaudited):
For the quarter ended
March 31, 2024December 31, 2023
Amount
Per Share
Amount
Amount
Per Share
Amount
Net investment income
$5,323 $0.15 $9,744 $0.28 
Capital gains-based incentive fee
3,452 0.09 (615)(0.02)
Adjusted net investment income
$8,775 $0.24 $9,129 $0.26 
Weighted-average shares of common stock outstanding - basic and diluted36,114,984 34,351,597 
For the year ended
March 31, 2024March 31, 2023
Amount
Per Share
Amount
Amount
Per Share
Amount
Net investment income
$21,777 $0.63 $37,000 $1.11 
Capital gains-based incentive fee
12,711 0.37 (296)(0.01)
Adjusted net investment income
$34,488 $1.00 $36,704 $1.10 
Weighted-average shares of common stock outstanding - basic and diluted34,466,724 33,311,785 
Adjusted net investment income may not be comparable to similar measures presented by other companies, as it is a non-GAAP financial measure that is not based on a comprehensive set of accounting rules or principles and therefore may be defined differently by other companies. In addition, Adjusted net investment income should be considered in addition to, not as a substitute for, or superior to, financial measures determined in accordance with GAAP.
Conference Call: The Company will hold its earnings release conference call on Thursday, May 9, 2024, at 8:30 a.m. Eastern Time. Please call (866) 424-3437 to enter the conference call. An operator will monitor the call and set a queue for any questions. A replay of the conference call will be available through May 16, 2024. To hear the replay, please dial (877) 660-6853 and use the playback conference number 13744827. The replay will be available beginning approximately one hour after the call concludes. The event will be archived and available for replay on the investors section of the Company's website at www.gladstoneinvestment.com.
About Gladstone Investment Corporation: Gladstone Investment Corporation is a publicly traded business development company that seeks to make secured debt and equity investments in lower middle market businesses in the United States in connection with acquisitions, changes in control and recapitalizations. Information on the business activities of all the Gladstone funds can be found at www.gladstonecompanies.com.
5

To obtain a paper copy of our Annual Report on Form 10-K, filed today with the SEC, please contact the Company at 1521 Westbranch Drive, Suite 100, McLean, VA 22102, ATTN: Investor Relations. The financial information above is not comprehensive and is without notes, so readers should obtain and carefully review the Company's Form 10-K for the year ended March 31, 2024, including the notes to the consolidated financial statements contained therein.
Investor Relations Inquiries: Please visit ir.gladstoneinvestment.com. or (703) 287-5893.
SOURCE: Gladstone Investment Corporation
Forward-looking Statements:
The statements in this press release regarding potential future distributions, earnings and operations of the Company are “forward-looking statements.” These forward-looking statements inherently involve certain risks and uncertainties in predicting future results and conditions. Although these statements are based on the Company’s current plans that are believed to be reasonable as of the date of this press release, a number of factors could cause actual results and conditions to differ materially from these forward-looking statements, including those factors described from time to time in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or otherwise, except as required by law.
6
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Cover
May 08, 2024
Document Information [Line Items]  
Document Type 8-K
Document Period End Date May 08, 2024
Entity Registrant Name GLADSTONE INVESTMENT CORPORATIONDE
Entity Incorporation, State or Country Code DE
Entity File Number 814-00704
Entity Tax Identification Number 83-0423116
Entity Address, Address Line One 1521 Westbranch Drive
Entity Address, Address Line Two Suite 100
Entity Address, City or Town McLean
Entity Address, State or Province VA
Entity Address, Postal Zip Code 22102
City Area Code 703
Local Phone Number 287-5800
Written Communications false
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Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001321741
Amendment Flag false
Common Stock, $0.001 par value per share  
Document Information [Line Items]  
Title of 12(b) Security Common Stock, $0.001 par value per share
Trading Symbol GAIN
Security Exchange Name NASDAQ
5.00% Notes due 2026  
Document Information [Line Items]  
Title of 12(b) Security 5.00% Notes due 2026
Trading Symbol GAINN
Security Exchange Name NASDAQ
4.875% Notes due 2028  
Document Information [Line Items]  
Title of 12(b) Security 4.875% Notes due 2028
Trading Symbol GAINZ
Security Exchange Name NASDAQ
8.00% Notes due 2028  
Document Information [Line Items]  
Title of 12(b) Security 8.00% Notes due 2028
Trading Symbol GAINL
Security Exchange Name NASDAQ
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