Gladstone Capital Corp. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Gladstone Capital Corp. has submitted its quarterly 10-Q filing for the period ending December 31, 2023, detailing financial performance and investment activities.</b>

AI Summary

GLADSTONE CAPITAL CORP (GLAD) filed a Quarterly Report (10-Q) with the SEC on February 5, 2024. Gladstone Capital Corp. filed its 10-Q report for the period ending December 31, 2023. The filing covers the period from October 1, 2023, to December 31, 2023. Key financial data points and investment details are included in the report. The company's fiscal year ends on September 30. The report was filed on February 5, 2024.

Why It Matters

For investors and stakeholders tracking GLADSTONE CAPITAL CORP, this filing contains several important signals. This filing provides investors with an updated view of Gladstone Capital Corp.'s financial health and investment portfolio as of the end of the third quarter of its fiscal year. The 10-Q report is crucial for understanding the company's performance, asset allocation, and any changes in its debt structure or investment strategy during the reporting period.

Risk Assessment

Risk Level: medium — GLADSTONE CAPITAL CORP shows moderate risk based on this filing. The filing is a standard 10-Q, which provides a snapshot of financial performance and does not inherently indicate significant positive or negative shifts without further comparative analysis of the financial statements.

Analyst Insight

Review the detailed financial statements and investment schedules within the 10-Q to assess changes in portfolio composition, debt levels, and profitability compared to previous periods.

Key Numbers

• 2023-12-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-02-05 — Filing Date (FILED AS OF DATE)
• 0930 — Fiscal Year End (FISCAL YEAR END)
• 2023-10-01 — Quarter Start Date (Reporting Period)
• 2023-12-31 — Quarter End Date (Reporting Period)

Key Players & Entities

• GLADSTONE CAPITAL CORP (company) — FILER
• MD (location) — STATE OF INCORPORATION
• VA (location) — STATE
• 2023-12-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-02-05 (date) — FILED AS OF DATE
• 10-Q (form) — FORM TYPE
• Gladstone Capital Corp (company) — COMPANY CONFORMED NAME
• 1521 WESTBRANCH DRIVE (address) — BUSINESS ADDRESS STREET 1

Forward-Looking Statements

• Gladstone Capital Corp. will continue to show strong investment income growth in the next quarter. (Gladstone Capital Corp.) — medium confidence, target: 2024-03-31

FAQ

Industry Context

Gladstone Capital Corporation is a business development company (BDC) that invests in debt and equity of small and medium-sized businesses.

Regulatory Implications

As a BDC, Gladstone Capital Corp. is subject to regulations under the Investment Company Act of 1940 and the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the balance sheet for changes in total assets and total debt.
2. Review the income statement for revenue and net income trends.
3. Examine the footnotes for details on investments and related party transactions.

Key Dates

• 2023-12-31: Period End — End of the reporting quarter for the 10-Q filing.
• 2024-02-05: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing for the period ending December 31, 2023. Comparative data from the previous year's quarter will be available in subsequent filings or by referencing the prior year's 10-Q.

Key Financial Figures

• $0.001 — ange on Which Registered Common Stock, $0.001 par value per share GLAD The Nasdaq Sto

Filing Documents

• glad-20231231.htm (10-Q) — 3429KB
• key-gladxamendmentno5.htm (EX-10.7) — 11KB
• glad-20231231x10qex311.htm (EX-31.1) — 8KB
• glad-20231231x10qex312.htm (EX-31.2) — 8KB
• glad-20231231x10qex321.htm (EX-32.1) — 4KB
• glad-20231231x10qex322.htm (EX-32.2) — 4KB
• key-gladxamendmentno5001.jpg (GRAPHIC) — 237KB
• key-gladxamendmentno5002.jpg (GRAPHIC) — 213KB
• key-gladxamendmentno5003.jpg (GRAPHIC) — 255KB
• key-gladxamendmentno5004.jpg (GRAPHIC) — 37KB
• key-gladxamendmentno5005.jpg (GRAPHIC) — 55KB
• key-gladxamendmentno5006.jpg (GRAPHIC) — 53KB
• key-gladxamendmentno5007.jpg (GRAPHIC) — 37KB
• 0001143513-24-000002.txt (&nbsp;) — 15517KB
• glad-20231231.xsd (EX-101.SCH) — 73KB
• glad-20231231_cal.xml (EX-101.CAL) — 66KB
• glad-20231231_def.xml (EX-101.DEF) — 461KB
• glad-20231231_lab.xml (EX-101.LAB) — 765KB
• glad-20231231_pre.xml (EX-101.PRE) — 559KB
• glad-20231231_htm.xml (XML) — 3039KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) Consolidated Statements of Assets and Liabilities as of December 31 , 202 3 and September 30, 202 3 2 Consolidated Statements of Operations for the three months ended December 31, 202 3 and 202 2 3 Consolidated Statements of Changes in Net Assets for the three months ended December 31 , 202 3 and 202 2 4 Consolidated Statements of Cash Flows for the three months ended December 31 , 202 3 and 202 2 5 Consolidated Schedules of Investments as of December 31, 202 3 and September 30, 202 3 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 18 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 41 Overview 41 Results of Operations 45 Liquidity and Capital Resources 48 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 55 Item 4.

Controls and Procedures

Controls and Procedures 55 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 56 Item 1A.

Risk Factors

Risk Factors 56 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 56 Item 3. Defaults Upon Senior Securities 56 Item 4. Mine Safety Disclosures 56 Item 5. Other Information 56 Item 6. Exhibits 56

SIGNATURES

SIGNATURES 59 1 Table of Contents

Financial information

Part I. Financial information Item I Financial Statements (Unaudited) GLADSTONE CAPITAL CORPORATION CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED) December 31, 2023 September 30, 2023 ASSETS Investments, at fair value: Non-Control/Non-Affiliate investments (Cost of $ 709,308 and $ 671,397 , respectively) $ 708,506 $ 663,544 Affiliate investments (Cost of $ 16,746 and $ 16,746 , respectively) 10,716 10,421 Control investments (Cost of $ 33,580 and $ 34,126 , respectively) 30,763 30,850 Cash and cash equivalents 1,498 1,306 Restricted cash and cash equivalents 95 95 Interest receivable, net 6,158 6,100 Due from administrative agent 4,184 2,936 Deferred financing costs, net 1,220 1,335 Other assets, net 3,417 2,911 TOTAL ASSETS $ 766,557 $ 719,498 LIABILITIES Line of credit at fair value (Cost of $ 85,000 and $ 47,800 , respectively) $ 85,000 $ 47,800 Notes payable, net of unamortized deferred financing costs of $ 3,641 and $ 3,886 , respectively 253,359 253,114 Accounts payable and accrued expenses 1,065 1,006 Interest payable 4,323 2,956 Fees due to Adviser (A) 2,995 3,872 Fee due to Administrator (A) 572 479 Other liabilities 1,315 1,576 TOTAL LIABILITIES $ 348,629 $ 310,803 Commitments and contingencies (B) NET ASSETS Common stock, $ 0.001 par value per share, 44,000,000 and 44,000,000 shares authorized, respectively, and 43,508,897 and 43,508,897 shares issued and outstanding, respectively $ 44 $ 44 Capital in excess of par value 481,480 481,480 Cumulative net unrealized appreciation (depreciation) of investments ( 9,649 ) ( 17,454 ) Under (over) distributed net investment income 5,907 4,741 Accumulated net realized losses ( 59,854 ) ( 60,116 ) Total distributable loss ( 63,596 ) ( 72,829 ) TOTAL NET ASSETS $ 417,928 $ 408,695 NET ASSET VALUE PER COMMON SHARE $ 9.61 $ 9.39 (A) Refer to Note 4— Related Party Transactions in the accompanying Note

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View this 10-Q filing on SEC EDGAR