GLADSTONE INVESTMENT CORPORATION\DE
For the period ended Dec 31, 2025. Filed Feb 3, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2025 · Filed Feb 3, 2026
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Item 2. Results of Operations
RESULTS OF OPERATIONS
Comparison of the Three Months Ended December 31, 2025 to the Three Months Ended December 31, 2024
| For the Three Months Ended December 31, | ||||
|---|---|---|---|---|
| 2025 | 2024 | Change | % Change | |
| INVESTMENT INCOME | ||||
| Interest income | $22,835 | $20,528 | $2,307 | 11.2% |
| Dividend and success fee income | 2,227 | 843 | 1,384 | 164.2% |
| Total investment income | 25,062 | 21,371 | 3,691 | 17.3% |
| EXPENSES | ||||
| Base management fee | 5,920 | 4,872 | 1,048 | 21.5% |
| Loan servicing fee | 3,102 | 2,405 | 697 | 29.0% |
| Incentive fee | 14,749 | 9,353 | 5,396 | 57.7% |
| Administration fee | 497 | 405 | 92 | 22.7% |
| Interest expense | 9,495 | 6,385 | 3,110 | 48.7% |
| Amortization of deferred financing costs and discounts | 972 | 691 | 281 | 40.7% |
| Other | 1,203 | 1,355 | (152) | (11.2)% |
| Expenses before credits from Adviser | 35,938 | 25,466 | 10,472 | 41.1% |
| Credits to fees from Adviser | (4,367) | (5,256) | 889 | (16.9)% |
| Total expenses, net of credits to fees | 31,571 | 20,210 | 11,361 | 56.2% |
| NET INVESTMENT (LOSS) INCOME | (6,509) | 1,161 | (7,670) | NM |
| REALIZED AND UNREALIZED GAIN (LOSS) | ||||
| Net realized gain on investments | 3,481 | — | 3,481 | NM |
| Net realized loss on other | (1,301) | — | (1,301) | NM |
| Net unrealized appreciation | 70,227 | 37,329 | 32,898 | 88.1% |
| Net realized and unrealized gain | 72,407 | 37,329 | 35,078 | 94.0% |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $65,898 | $38,490 | $27,408 | 71.2% |
| WEIGHTED-AVERAGE SHARES OF COMMON STOCK OUTSTANDING | ||||
| Basic and diluted | 39,678,402 | 36,727,873 | 2,950,529 | 8.0% |
| BASIC AND DILUTED PER COMMON SHARE: | ||||
| Net investment (loss) income | $(0.16) | $0.03 | $(0.19) | NM |
| Net increase in net assets resulting from operations | $1.66 | $1.05 | $0.61 | 58.1% |
NM - Not meaningful
Investment Income
Total investment income increased $3.7 million, or 17.3%, for the three months ended December 31, 2025, as compared to the prior year period, primarily due to an increase in interest income and dividend and success fee income.
Interest income from our investments in debt securities increased $2.3 million, or 11.2%, for the three months ended December 31, 2025, as compared to the prior year period. Generally, the level of interest income from investments is directly related to the weighted-average principal balance of our interest-bearing investment portfolio outstanding during the period, multiplied by the weighted-average yield.
The weighted-average principal balance of our interest-bearing investment portfolio during the three months ended December 31, 2025 was $698.9 million, compared to $579.7 million for the prior year period. This increase was primarily due to the origination of $222.9 million of new debt investments and $26.5 million of follow-on debt investments in existing portfolio companies after September 30, 2024, partially offset by $117.1 million of pay-offs, restructurings, or write-offs of debt investments after September 30, 2024 and their respective impact on the weighted-average principal balance when considering the timing of new investments, pay-offs, restructurings, write-offs, and accrual status changes, as applicable. We had no collections of past due interest during the three months ended December 31, 2025 and 2024.
The weighted-average yield on our interest-bearing investments, excluding cash and cash equivalents and receipts recorded as dividend and success fee income, was 12.9% for the three months ended December 31, 2025, compared to 14.0% for the prior year period. The weighted-average yield may vary from period to period, based on the current stated interest rate on interest-bearing investments, coupled with any collection of past due interest during the period.
As of December 31, 2025, our loans to B+T Group Acquisition, Inc. ("B+T"), Diligent Delivery Systems ("Diligent") and Edge Adhesives Holdings, Inc. ("Edge") were on non-accrual status, with an aggregate debt cost basis of $40.3 million. As of December 31, 2024, certain of our loans to B+T, Diligent, Edge and J.R. Hobbs were on non-accrual status, with an aggregate debt cost basis of $90.0 million.
As of December 31, 2025 and March 31, 2025, SFEG Holdings, Inc. ("SFEG") represented 11.8% and 10.8% of the total investment portfolio at fair value, respectively.
Dividend and success fee income for the three months ended December 31, 2025 increased $1.4 million, or 164.2%, from the prior year period. During the three months ended December 31, 2025, dividend and success fee income consisted of $1.2 million of success fee income and $1.0 million of dividend income. During the three months ended December 31, 2024, dividend and success fee income consisted of $0.8 million of success fee income.
Expenses
Total expenses, net of any non-contractual, unconditional, and irrevocable credits from the Adviser, increased $11.4 million, or 56.2%, during the three months ended December 31, 2025, as compared to the prior year period, primarily due to an increase in incentive fees, interest expense and base management fees, and a decrease in fee credits from the Adviser.
In accordance with GAAP, during the three months ended December 31, 2025, we recorded a $14.7 million capital gains-based incentive fee compared to a $7.5 million capital gains-based incentive fee during the three months ended December 31, 2024. The capital gains-based incentive fee is a result of the net impact of net realized gains and net unrealized appreciation (depreciation) on investments during the respective periods. The income-based incentive fee decreased by $1.9 million, for the three months ended December 31, 2025, as compared to the prior year period, primarily due to an increase in net assets, which drives the hurdle rate, and a decrease in pre-incentive fee net investment income.
The base management fee, loan servicing fee, incentive fee, and their related non-contractual, unconditional, and irrevocable credits are computed quarterly, as described under“Transactions with the Adviser”in Note 4 —Related Party Transactions in the accompanying Notes to Consolidated Financial Statements and are summarized in the following table:
| Three Months Ended December 31, | ||
|---|---|---|
| 2025 | 2024 | |
| Average total assets subject to base management fee(A)(B) | $1,184,000 | $974,400 |
| Multiplied by prorated annual base management fee of 2.0% | 0.5% | 0.5% |
| Base management fee(C) | $5,920 | $4,872 |
| Credits to fees from Adviser - other(C) | (1,265) | (2,851) |
| Net base management fee | $4,655 | $2,021 |
| Loan servicing fee(C) | $3,102 | $2,405 |
| Credits to base management fee - loan servicing fee(C) | (3,102) | (2,405) |
| Net loan servicing fee | $— | $— |
| Incentive fee – income-based | $— | $1,887 |
| Incentive fee – capital gains-based(D) | 14,749 | 7,466 |
| Total incentive fee(C) | $14,749 | $9,353 |
| Credits to fees from Adviser - other(C) | — | — |
| Net total incentive fee | $14,749 | $9,353 |
(A)Average total assets subject to the base management fee is defined in the Advisory Agreement as total assets, including investments made with proceeds of borrowings, less any uninvested cash or cash equivalents resulting from borrowings, valued at the end of the applicable quarters within the respective periods and adjusted appropriately for any share issuances or repurchases during the periods.
(B)Excludes our investment in Gladstone Alternative valued at the end of the applicable quarters within the respective periods.
(C)Reflected as a line item on our Consolidated Statements of Operations.
(D)The capital gains-based incentive fees are recorded in accordance with GAAP and do not necessarily reflect amounts contractually due under the terms of the Advisory Agreement.
Interest expense increased $3.1 million, or 48.7%, during the three months ended December 31, 2025, as compared to the prior year period, primarily due to the issuance of the 6.875% 2028 Notes in November 2025 and the 7.785% 2030 Notes in December 2024 and increased borrowings on our Credit Facility, partially offset by the redemption of the 8.00% 2028 Notes in December 2025 and a decrease in the effective interest rate. The weighted-average balance outstanding under our Credit Facility during the three months ended December 31, 2025 was $80.2 million, compared to $41.9 million in the prior year period. The effective interest rate on our Credit Facility, excluding the impact of deferred financing costs, during the three months ended December 31, 2025 was 9.7%, as compared to 11.8% in the prior year period. The decrease in the effective interest rate on the Credit Facility was primarily a result of lower interest rates on the drawn portion of our Credit Facility, partially offset by an increase in the drawn portion of the Credit Facility during the three months ended December 31, 2025.
Other expenses decreased $0.2 million, or 11.2%, during the three months ended December 31, 2025, as compared to the prior year period, due to a decrease in tax expense, partially offset by an increase in professional fees.
Realized and Unrealized Gain (Loss)
The realized gains (losses) and unrealized appreciation (depreciation) across our investments for the three months ended December 31, 2025 and 2024 were as follows:
| Portfolio Company | Realized Gain (Loss) on Investments | Unrealized Appreciation (Depreciation) | Reversal of Unrealized (Appreciation) Depreciation | Net Gain (Loss) |
|---|---|---|---|---|
| Schylling, Inc. | $— | $27,680 | $— | $27,680 |
| Old World Christmas, Inc. | 3,481 | 11,255 | — | 14,736 |
| SFEG Holdings, Inc. | — | 14,174 | — | 14,174 |
| ImageWorks Display and Marketing Group, Inc. | — | 9,969 | — | 9,969 |
| The E3 Company, LLC | — | 8,660 | — | 8,660 |
| Global GRAB Technologies, Inc. | — | 4,239 | — | 4,239 |
| Mason West, LLC | — | 3,949 | — | 3,949 |
| Galaxy Technologies Holdings, Inc. | — | 3,158 | — | 3,158 |
| UPB Acquisition, Inc. | — | 2,578 | — | 2,578 |
| Phoenix Door Systems, Inc. | — | 2,416 | — | 2,416 |
| Ginsey Home Solutions, Inc. | — | 2,306 | — | 2,306 |
| PSI Molded Plastics, Inc. | — | 1,796 | — | 1,796 |
| Educators Resource, Inc. | — | (847) | — | (847) |
| Smart Chemical Solutions, LLC | — | (1,314) | — | (1,314) |
| Home Concepts Acquisition, Inc. | — | (1,451) | — | (1,451) |
| Pyrotek Special Effects, Inc. | — | (1,678) | — | (1,678) |
| Sun State Nursery and Landscaping, LLC | — | (1,742) | — | (1,742) |
| Dema/Mai Holding, Inc. | — | (2,041) | — | (2,041) |
| Detroit Defense, Inc. | — | (3,020) | — | (3,020) |
| Nielsen-Kellerman Acquisition Corp. | — | (4,288) | — | (4,288) |
| Horizon Facilities Services, Inc. | — | (5,321) | — | (5,321) |
| Other, net (<$1.0 million, net) | — | (243) | — | (243) |
| Total | $3,481 | $70,235 | $— | $73,716 |
| Portfolio Company | Realized Gain (Loss) on Investments | Unrealized Appreciation (Depreciation) | Reversal of Unrealized (Appreciation) Depreciation | Net Gain (Loss) |
|---|---|---|---|---|
| Nocturne Luxury Villas, Inc. | $— | $13,680 | $— | $13,680 |
| The E3 Company, LLC | — | 11,895 | — | 11,895 |
| SFEG Holdings, Inc. | — | 8,445 | — | 8,445 |
| Schylling, Inc. | — | 4,773 | — | 4,773 |
| ImageWorks Display and Marketing Group, Inc. | — | 3,269 | — | 3,269 |
| UPB Acquisition, Inc. | — | 2,063 | — | 2,063 |
| J.R. Hobbs Co. - Atlanta, LLC | — | 1,635 | — | 1,635 |
| Brunswick Bowling Products, Inc. | — | 1,488 | — | 1,488 |
| Old World Christmas, Inc. | — | 1,350 | — | 1,350 |
| Ginsey Home Solutions, Inc. | — | 1,189 | — | 1,189 |
| The Maids International, LLC | — | 1,101 | — | 1,101 |
| Mason West, LLC | — | (1,671) | — | (1,671) |
| Horizon Facilities Services, Inc. | — | (1,725) | — | (1,725) |
| Galaxy Technologies Holdings, Inc. | — | (2,051) | — | (2,051) |
| PSI Molded Plastics, Inc. | — | (2,707) | — | (2,707) |
| Educators Resource, Inc. | — | (6,008) | — | (6,008) |
| Other, net (<$1.0 million, net) | — | 603 | — | 603 |
| Total | $— | $37,329 | $— | $37,329 |
Net Realized Gain (Loss) on Investments
During the three months ended December 31, 2025, we recorded net realized gains on investments of $3.5 million, due to the equity distribution recognized as realized gain from Old World Christmas, Inc. ("Old World"). During the three months ended December 31, 2024, we did not record any net realized gains or losses on investments.
Net Realized Gain (Loss) on Other
During the three months ended December 31, 2025, we recorded net realized losses on other of $1.3 million, due to the unamortized deferred offering costs written off upon the redemption of our 8.00% 2028 Notes. During the three months ended December 31, 2024, we did not record any net realized gains or losses on other.
Net Unrealized Appreciation (Depreciation) of Investments
Net unrealized appreciation of investments of $70.2 million for the three months ended December 31, 2025 was primarily due to increased performance of certain of our portfolio companies and an increase in transaction multiples used to estimate the fair value of certain of our portfolio companies. These increases were partially offset by decreased performance of certain of our portfolio companies.
Net unrealized appreciation of investments of $37.3 million for the three months ended December 31, 2024 was primarily due to an increase in the performance of certain of our portfolio companies and an increase in transaction multiples used to estimate the fair value of certain of our portfolio companies. These increases were partially offset by decreased performance of certain of our other portfolio companies.
Across our entire investment portfolio, we recorded net unrealized appreciation of$74.5 million on ourequity positions and net unrealized depreciation of $4.2 million on our debt investmentsfor thethree months ended December 31, 2025. As of December 31, 2025, the fair value of our investment portfolio exceeded our cost basis by $163.9 million, compared to September 30, 2025, when the fair value of our investment portfolio exceeded our cost basis by $93.7 million. This resulted in net unrealized appreciation of$70.2 million for thethree months ended December 31, 2025. Our entire portfolio was fair valued at 115.5% of cost as of December 31, 2025.
Comparison of the Nine Months Ended December 31, 2025 to the Nine Months Ended December 31, 2024
| For the Nine Months Ended December 31, | ||||
|---|---|---|---|---|
| 2025 | 2024 | Change | % Change | |
| INVESTMENT INCOME | ||||
| Interest income | $67,152 | $62,149 | $5,003 | 8.1% |
| Dividend and success fee income | 6,733 | 3,965 | 2,768 | 69.8% |
| Total investment income | 73,885 | 66,114 | 7,771 | 11.8% |
| EXPENSES | ||||
| Base management fee | 16,457 | 13,937 | 2,520 | 18.1% |
| Loan servicing fee | 8,706 | 6,821 | 1,885 | 27.6% |
| Incentive fee | 19,747 | 7,797 | 11,950 | 153.3% |
| Administration fee | 1,450 | 1,478 | (28) | (1.9)% |
| Interest expense | 27,625 | 19,264 | 8,361 | 43.4% |
| Amortization of deferred financing costs and discounts | 2,792 | 1,951 | 841 | 43.1% |
| Other | 3,258 | 4,968 | (1,710) | (34.4)% |
| Expenses before credits from Adviser | 80,035 | 56,216 | 23,819 | 42.4% |
| Credits to fees from Adviser | (13,008) | (10,968) | (2,040) | 18.6% |
| Total expenses, net of credits to fees | 67,027 | 45,248 | 21,779 | 48.1% |
| NET INVESTMENT INCOME | 6,858 | 20,866 | (14,008) | (67.1)% |
| REALIZED AND UNREALIZED GAIN (LOSS) | ||||
| Net realized gain on investments | (26,457) | 42,305 | (68,762) | NM |
| Net realized loss on other | (1,301) | — | (1,301) | NM |
| Net unrealized appreciation (depreciation) | 123,279 | (15,725) | 139,004 | NM |
| Net realized and unrealized gain (loss) | 95,521 | 26,580 | 68,941 | 259.4% |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $102,379 | $47,446 | $54,933 | 115.8% |
| WEIGHTED-AVERAGE SHARES OF COMMON STOCK OUTSTANDING | ||||
| Basic and diluted | 38,349,549 | 36,701,783 | 1,647,766 | 4.5% |
| BASIC AND DILUTED PER COMMON SHARE: | ||||
| Net investment income | $0.18 | $0.57 | $(0.39) | (68.4)% |
| Net increase in net assets resulting from operations | $2.67 | $1.29 | $1.38 | 107.0% |
NM = Not Meaningful
Investment Income
Total investment income increased $7.8 million, or 11.8%, for the nine months ended December 31, 2025, as compared to the prior year period, primarily due to an increase in interest income and dividend and success fee income.
Interest income from our investments in debt securities increased $5.0 million, or 8.1%, for the nine months ended December 31, 2025, as compared to the prior year period. Generally, the level of interest income from investments is directly related to the weighted-average principal balance of our interest-bearing investment portfolio outstanding during the period, multiplied by the weighted-average yield.
The weighted-average principal balance of our interest-bearing investment portfolio during the nine months ended December 31, 2025 was $670.0 million, compared to $576.1 million for the prior year period. This increase was primarily due to the origination of $222.9 million of new debt investments, $46.5 million of follow-on debt investments in existing portfolio companies and $20.0 million of loans returned to accrual status, partially offset by $145.1 million of pay-offs, restructurings, or write-offs of debt investments and $30.8 million of existing loans placed on non-accrual status after March 31, 2024, and their respective impact on the weighted-average principal balance when considering the timing of new investments, pay-offs, restructurings, write-offs, and accrual status changes, as applicable. During the nine months ended December 31, 2025, we collected $1.8 million in past due interest from portfolio companies that were previously on non-accrual status, including $1.5 million from SFEG and $0.3 million from J.R. Hobbs. We had no collections of past due interest during the nine months ended December 31, 2024.
The weighted-average yield on our interest-bearing investments, excluding cash and cash equivalents and receipts recorded as dividend and success fee income, was 13.2% for the nine months ended December 31, 2025, compared to 14.3% for the prior year period. The weighted-average yield may vary from period to period, based on the current stated interest rate on interest-bearing investments, coupled with any collection of past due interest during the period.
As of December 31, 2025, our loans to B+T, Diligent and Edge were on non-accrual status, with an aggregate debt cost basis of $40.3 million. As of December 31, 2024, our loans to B+T, Diligent, Edge, and J.R. Hobbs were also on non-accrual status, with an aggregate debt cost basis of $90.0 million.
As of December 31, 2025 and March 31, 2025, SFEG represented 11.8% and 10.8% of the total investment portfolio at fair value, respectively.
Dividend and success fee income for the nine months ended December 31, 2025 increased $2.8 million, or 69.8% from the prior year period. During the nine months ended December 31, 2025, dividend and success fee income consisted of $4.7 million of dividend income and $2.0 million of success fee income. During the nine months ended December 31, 2024, dividend and success fee income consisted of $2.5 million of success fee income and $1.4 million of dividend income.
Expenses
Total expenses, net of any non-contractual, unconditional, and irrevocable credits from the Adviser, increased $21.8 million, or 48.1%, during the nine months ended December 31, 2025, as compared to the prior year period, primarily due to an increase in incentive fees, interest expense and base management fee, partially offset by a decrease in other expense and an increase in fee credits from the Adviser.
In accordance with GAAP, we recorded a $19.4 million capital gains-based incentive fee during the nine months ended December 31, 2025, compared to a $5.3 million capital gains-based incentive fee recorded during the nine months ended December 31, 2024. The capital gains-based incentive fee was a result of the net impact of net realized gains and net unrealized appreciation (depreciation) on investments during the respective periods. The income-based incentive fee decreased by $2.2 million for the nine months ended December 31, 2025, as compared to the prior year period, primarily due to an increase in net assets, which drives the hurdle rate, partially offset by a decrease in pre-incentive fee net investment income.
The base management fee, loan servicing fee, incentive fee, and their related non-contractual, unconditional, and irrevocable credits are computed quarterly, as described under“Transactions with the Adviser”in Note 4 —Related Party Transactions in the accompanying Notes to Consolidated Financial Statements and are summarized in the following table:
| Nine Months Ended December 31, | ||
|---|---|---|
| 2025 | 2024 | |
| Average total assets subject to base management fee(A) | $1,097,133 | $929,133 |
| Multiplied by prorated annual base management fee of 2.0% | 1.5% | 1.5% |
| Base management fee(B) | $16,457 | $13,937 |
| Credits to fees from Adviser - other(B) | (4,302) | (4,147) |
| Net base management fee | $12,155 | $9,790 |
| Loan servicing fee(B) | $8,706 | $6,821 |
| Credits to base management fee - loan servicing fee(B) | (8,706) | (6,821) |
| Net loan servicing fee | $— | $— |
| Incentive fee – income-based | $310 | $2,481 |
| Incentive fee – capital gains-based(C) | 19,437 | 5,316 |
| Total incentive fee(B) | $19,747 | $7,797 |
| Credits to fees from Adviser - other(B) | — | — |
| Net total incentive fee | $19,747 | $7,797 |
(A)Average total assets subject to the base management fee is defined in the Advisory Agreement as total assets, including investments made with proceeds of borrowings, less any uninvested cash or cash equivalents resulting from borrowings, valued at the end of the applicable quarters within the respective periods and adjusted appropriately for any share issuances or repurchases during the periods.
(B)Reflected as a line item on our Consolidated Statements of Operations.
(C)The capital gains-based incentive fees are recorded in accordance with GAAP and do not necessarily reflect amounts contractually due under the terms of the Advisory Agreement.
Interest expense increased $8.4 million, or 43.4%, during the nine months ended December 31, 2025, as compared to the prior year period, primarily due to interest expense related to the issuance of the 6.875% 2028 Notes in November 2025 and the 7.785% 2030 Notes in December 2024 and increased borrowings on the Credit Facility, partially offset by a decrease in the effective interest rate and the redemption of the 8.00% 2028 Notes in December 2025. The weighted-average balance outstanding on the Credit Facility during the nine months ended December 31, 2025 was $74.8 million as compared to $55.8 million in the prior year period. The effective interest rate on the Credit Facility, excluding the impact of deferred financing costs, during the nine months ended December 31, 2025 was 10.0%, as compared to 11.1% in the prior year period. The decrease in the effective interest rate on the Credit Facility was primarily a result of lower interest rates on the drawn portion of our Credit Facility, partially offset by an increase in the drawn portion of the Credit Facility during the nine months ended December 31, 2025.
Other expenses decreased $1.7 million, or 34.4%, during the nine months ended December 31, 2025, as compared to the prior year period, due to an decrease in bad debt expense and tax expense, partially offset by an increase in professional fees.
Realized and Unrealized Gain (Loss)
The realized gains (losses) and unrealized appreciation (depreciation) across our investments for the nine months ended December 31, 2025 and 2024 were as follows:
| Portfolio Company | Realized Gain (Loss) on Investments | Unrealized Appreciation (Depreciation) | Reversal of Unrealized (Appreciation) Depreciation | Net Gain (Loss) |
|---|---|---|---|---|
| SFEG Holdings, Inc. | $— | $39,280 | $— | $39,280 |
| Schylling, Inc. | — | 36,345 | — | 36,345 |
| The E3 Company, LLC | — | 22,126 | — | 22,126 |
| ImageWorks Display and Marketing Group, Inc. | — | 14,873 | — | 14,873 |
| Old World Christmas, Inc. | 3,481 | 9,959 | — | 13,440 |
| Mason West, LLC | — | 5,783 | — | 5,783 |
| Global GRAB Technologies, Inc. | — | 4,239 | — | 4,239 |
| Dema/Mai Holding, Inc. | — | 2,131 | — | 2,131 |
| J.R. Hobbs Co. - Atlanta, LLC | (29,938) | 12,337 | 19,104 | 1,503 |
| Home Concepts Acquisition, Inc. | — | (1,408) | — | (1,408) |
| Sun State Nursery and Landscaping, LLC | — | (1,742) | — | (1,742) |
| Pyrotek Special Effects, Inc. | — | (2,200) | — | (2,200) |
| Diligent Delivery Systems | — | (2,691) | — | (2,691) |
| Brunswick Bowling Products, Inc. | — | (2,742) | — | (2,742) |
| Nielsen-Kellerman Acquisition Corp. | — | (2,917) | — | (2,917) |
| Smart Chemical Solutions, LLC | — | (3,009) | — | (3,009) |
| Horizon Facilities Services, Inc. | — | (3,243) | — | (3,243) |
| Detroit Defense, Inc. | — | (4,817) | — | (4,817) |
| The Maids International, LLC | — | (5,129) | — | (5,129) |
| PSI Molded Plastics, Inc. | — | (6,441) | — | (6,441) |
| Educators Resource, Inc. | — | (6,581) | — | (6,581) |
| Other, net (<$1.0 million, net) | — | 383 | — | 383 |
| Total | $(26,457) | $104,536 | $19,104 | $97,183 |
| Portfolio Company | Realized Gain (Loss) | Unrealized Appreciation (Depreciation) | Reversal of Unrealized (Appreciation) Depreciation | Net Gain (Loss) |
|---|---|---|---|---|
| Nocturne Luxury Villas, Inc. | $— | $18,668 | $— | $18,668 |
| The E3 Company, LLC | — | 17,103 | — | 17,103 |
| SFEG Holdings, Inc. | — | 8,139 | — | 8,139 |
| Schylling, Inc. | — | 7,804 | — | 7,804 |
| Old World Christmas, Inc. | — | 6,084 | — | 6,084 |
| UPB Acquisition, Inc. | — | 5,049 | — | 5,049 |
| ImageWorks Display and Marketing Group, Inc. | — | 3,932 | — | 3,932 |
| Ginsey Home Solutions, Inc. | — | 3,574 | — | 3,574 |
| J.R. Hobbs Co. - Atlanta, LLC | — | 2,984 | — | 2,984 |
| The Maids International, LLC | — | 2,352 | — | 2,352 |
| Dema/Mai Holdings, Inc. | — | 1,272 | — | 1,272 |
| Diligent Delivery Systems | — | (986) | — | (986) |
| Home Concepts Acquisition, Inc. | — | (1,238) | — | (1,238) |
| B+T Group Acquisition, Inc. | — | (2,303) | — | (2,303) |
| Edge Adhesives Holdings, Inc. | — | (2,402) | — | (2,402) |
| Nth Degree Investment Group, LLC | 42,284 | (7,195) | (38,028) | (2,939) |
| PSI Molded Plastics, Inc. | — | (4,474) | — | (4,474) |
| Educators Resource, Inc. | — | (5,507) | — | (5,507) |
| Mason West, LLC | — | (10,285) | — | (10,285) |
| Horizon Facilities Services, Inc. | — | (19,888) | — | (19,888) |
| Other, net (<$1.0 million, net) | 21 | (384) | 4 | (359) |
| Total | $42,305 | $22,299 | $(38,024) | $26,580 |
Net Realized Gain (Loss)
During the nine months ended December 31, 2025, we recorded net realized losses on investments of $26.5 million, due to the realized loss from the restructuring of J.R. Hobbs, partially offset by the equity distribution recognized as realized gain from Old World. During the nine months ended December 31, 2024, we recorded net realized gains on investments of $42.3 million, due to the realized gain from the exit of Nth Degree Investment Group, LLC ("Nth Degree").
Net Realized Gain (Loss) on Other
During the nine months ended December 31, 2025, we recorded net realized losses on other of $1.3 million, due to the unamortized deferred offering costs written off upon the redemption of our 8.00% 2028 Notes. During the nine months ended December 31, 2024, we did not record any net realized gains or losses on other.
Net Unrealized Appreciation (Depreciation) on Investments
Net unrealized appreciation of investments of $123.6 million for the nine months ended December 31, 2025 was primarily due to the increased performance of certain of our portfolio companies, an increase in transaction multiples used to estimate the fair value of certain of our portfolio companies and the reversal of previously recorded unrealized depreciation related to our investment in J.R. Hobbs upon its restructure. These increases were partially offset by decreased performance of certain of our portfolio companies.
Net unrealized depreciation of investments of $15.7 million for the nine months ended December 31, 2024 was primarily due to the reversal of unrealized appreciation of Nth Degree upon exit and decreased performance of certain of our portfolio companies. These decreases were partially offset by an increase in transaction multiples used to estimate the fair value of certain of our portfolio companies and increased performance of certain of our portfolio companies.
Across our entire investment portfolio, we recorded net unrealized appreciation of $110.7 million on ourequity positions and appreciation of $13.0 million on our debt positions, for thenine months ended December 31, 2025. As of December 31, 2025, the fair value of our investment portfolio exceeded the cost basis by$163.9 million, as compared to March 31, 2025, when the fair value of our investment portfolio exceeded the cost basis by$40.3 million, representing net unrealized appreciation of$123.6 million for thenine months ended December 31, 2025. Our entire portfolio had a fair value of 115.5% of cost as of December 31, 2025.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.