GAIN
Financial ServicesGladstone Investment Corporation · Asset Management · $630M
What is Gladstone Investment Corporation?
Gladstone Investment Corporation is a business development company focused on lower middle market U.S. businesses. It provides debt and equity capital to mature, established companies — not startups — primarily in manufacturing, consumer products, and business services.
GAIN deploys capital into small and mid-sized U.S. companies through a combination of debt instruments and equity stakes. On the debt side, it offers senior loans, senior subordinated notes, and mezzanine financing. On the equity side, it acquires minority or majority ownership positions, often securing a board seat. The fund typically holds investments for around seven years, exiting through sales, recapitalizations, or IPOs. Target companies generally carry revenues and EBITDA within defined ranges suited to the lower middle market.
Founded in 2005 and headquartered in McLean, Virginia, Gladstone Investment operates as a publicly traded BDC.
- Senior secured loans and lines of credit
- Senior and junior subordinated debt securities
- Equity investments including LLC interests and warrants
- Buyout and debt refinancing transactions
- Board-level engagement in portfolio companies
Is GAIN a Good Stock to Buy?
UQS Score rates GAIN as Below Average overall, reflecting meaningful headwinds across several key pillars.
Among the five pillars, Quality stands out as the relative bright spot, suggesting the underlying portfolio maintains a degree of financial discipline. Valuation is rated Neutral, meaning the stock is not obviously mispriced relative to its fundamentals.
Moat, Growth, and Risk are all rated Weak — a combination that signals limited competitive differentiation, constrained earnings expansion potential, and elevated exposure to credit and market risks inherent in BDC lending.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does GAIN pay dividends?
Yes — Gladstone Investment Corporation pays a dividend.
GAIN pays a regular dividend, which is a hallmark of the BDC structure — these companies are required to distribute the majority of taxable income to shareholders. Income-focused investors often hold BDCs specifically for this distribution cadence. However, dividend sustainability depends heavily on portfolio credit quality and interest income generation, both of which carry risk in the lower middle market.
When does GAIN report earnings?
Gladstone Investment Corporation reports earnings on a quarterly cadence, consistent with U.S.-listed equities.
As a BDC, GAIN's quarterly results center on net investment income, net asset value per share, and portfolio credit quality rather than traditional revenue growth metrics. Performance can shift meaningfully with changes in interest rates and the health of its portfolio companies.
For the most recent quarter's results and updated portfolio details, visit Gladstone Investment's investor relations page directly.
GAIN Price History
+87.4% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Gladstone Investment Corporation?
Based on Gladstone Investment Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
GAIN Long-term Outlook
The UQS Growth and Risk pillars are both rated Weak, pointing to a challenging fundamental outlook. BDCs operating in the lower middle market face credit cycle sensitivity, and constrained new deal flow can limit income growth. The Neutral Valuation rating suggests the market has partially priced in these risks, but investors should weigh the income appeal against the underlying risk profile before drawing conclusions about future trajectory.
Growth drivers
- Rising interest rate environments can boost net investment income on floating-rate loans
- Successful portfolio exits via sale or IPO can generate realized gains
- Expansion into new lower middle market sectors or geographies
Key risks
- Credit deterioration among portfolio companies in an economic downturn
- Weak Moat rating signals limited pricing power and competitive differentiation
- BDC regulatory constraints limit flexibility in capital deployment
GAIN vs Peers
GAIN operates in a competitive landscape that includes other income-focused vehicles and specialty finance companies.
A Canadian split-share corporation offering preferred and capital shares tied to a basket of financial sector equities, rather than direct BDC-style lending.
Focuses on junior debt tranches of CLO vehicles, giving it a different risk and income profile compared to GAIN's direct middle market lending approach.
An asset management holding company with stakes in independent investment firms, operating at a different scale and business model than a direct-lending BDC.
Frequently Asked Questions
What does Gladstone Investment Corporation do?
Gladstone Investment is a business development company that provides debt and equity financing to lower middle market U.S. businesses. It targets mature, established companies in manufacturing, consumer products, and services — not startups. The fund typically holds investments for around seven years before exiting.
Does GAIN pay dividends?
Yes, GAIN pays a regular dividend. As a BDC, it is required to distribute most of its taxable income to shareholders, making dividend payments a core feature of the investment. The sustainability of those payments depends on portfolio performance and interest income.
When does GAIN report earnings?
Gladstone Investment reports on a quarterly cadence, standard for U.S.-listed companies. Exact dates vary each quarter. For the most current schedule, check the investor relations section of Gladstone Investment's official website.
Is GAIN a good stock to buy?
UQS Score rates GAIN as Below Average overall. While the Quality pillar shows relative strength and Valuation is Neutral, the Moat, Growth, and Risk pillars are all rated Weak. Investors should weigh the regular dividend income against the elevated risk profile before making a decision.
Is GAIN overvalued?
The UQS Valuation pillar for GAIN is rated Neutral, suggesting the stock is neither clearly cheap nor obviously expensive relative to its fundamentals. For the full valuation metrics and pillar detail, a UQS Pro account provides the complete breakdown.
How does GAIN compare to its competitors?
GAIN focuses on direct debt and equity lending to lower middle market companies, which differs from peers like Eagle Point Income Company, which targets CLO debt tranches, and Affiliated Managers Group, which operates as an asset management holding company. Each carries a distinct risk and income profile.
What is GAIN's market cap bracket?
GAIN is classified as a small-cap stock. This places it in a segment of the market that can offer higher income yields but also carries greater liquidity and volatility risk compared to larger financial companies.
Who founded Gladstone Investment Corporation?
Gladstone Investment Corporation was founded in 2005. It is part of the broader Gladstone Companies family, led by David Gladstone, who has been a prominent figure in business development company investing. For full founding details, the company's official history is publicly available.
Is GAIN a long-term quality investment?
As a long-term quality indicator, GAIN's UQS profile presents a mixed picture. The Quality pillar shows some resilience, but Weak ratings across Moat, Growth, and Risk suggest structural challenges that long-term investors should carefully consider alongside the dividend income appeal.
What is the main competitive advantage of Gladstone Investment?
GAIN's primary edge lies in its established relationships within the lower middle market and its ability to offer flexible capital structures combining debt and equity. However, the UQS Moat pillar is rated Weak, indicating this advantage may not be strongly differentiated from peers in the BDC space.
What sector does GAIN belong to?
GAIN operates in the Financial Services sector, specifically as a business development company. BDCs are a regulated category of closed-end investment funds that provide financing to smaller U.S. businesses and are required to distribute most of their income to shareholders.
Is GAIN a growth stock or value stock?
Based on UQS pillar labels, GAIN leans toward neither category cleanly. The Growth pillar is rated Weak, making it difficult to classify as a growth stock. With a Neutral Valuation rating, it sits in a middle ground — more commonly held for income generation than capital appreciation.
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Pro Analysis
GAIN — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 22, 2026 | 52.1 | 88.0 | 23.0 | 51.5 | 29.6 | 64.3 | +6.9 |
| May 14, 2026 | 45.2 | 88.2 | 23.0 | 39.5 | 26.6 | 37.0 | +4.6 |
| May 12, 2026 | 40.6 | 75.0 | 23.0 | 20.3 | 23.4 | 56.7 | +4.4 |
| May 9, 2026 | 36.2 | 75.0 | 23.0 | 0.0 | 23.4 | 54.8 | -4.1 |
| May 7, 2026 | 40.3 | 75.0 | 23.0 | 20.3 | 23.4 | 54.7 | 0.0 |
| May 3, 2026 | 40.3 | 75.0 | 23.0 | 20.3 | 23.4 | 54.6 | -0.1 |
| Apr 26, 2026 | 40.4 | 75.0 | 23.0 | 20.3 | 23.4 | 55.3 | 0.0 |
| Apr 25, 2026 | 40.4 | 75.0 | 23.0 | 20.3 | 23.4 | 55.8 | -0.2 |
| Apr 23, 2026 | 40.6 | 75.0 | 23.0 | 20.3 | 23.4 | 57.1 | -0.1 |
| Apr 21, 2026 | 40.7 | 75.0 | 23.0 | 20.3 | 23.4 | 57.5 | +0.1 |
GAIN — Pillar Breakdown
Quality
— 88.1/100 (25%)Gladstone Investment Corporation demonstrates outstanding capital efficiency and profitability, placing it among the highest-quality businesses in the market.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Free cash flow relative to market value.
Growth
— 51.5/100 (20%)Gladstone Investment Corporation shows steady but unspectacular growth, typical for mature companies.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 29.6/100 (15%)Gladstone Investment Corporation presents elevated risk with concerns around leverage or financial stability.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 64.3/100 (15%)Gladstone Investment Corporation trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
Enterprise value multiple relative to sector median.
Moat
— 23/100 (25%)Gladstone Investment Corporation operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for GAIN.
Score Composition
Financial Data
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How is the GAIN UQS Score Calculated?
The UQS (Unified Quality Score) for Gladstone Investment Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Gladstone Investment Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Gladstone Investment Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.