GLADSTONE INVESTMENT CORPORATION\DE

RESULTS OF OPERATIONS

Comparison of the Three Months Ended June 30, 2026 to the Three Months Ended June 30, 2025

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Investment Income

Total investment income increased $4.8 million, or 20.4%, for the three months ended June 30, 2026, as compared to the prior year period, primarily due to an increase in dividend and success fee income and interest income.

Interest income from our investments in debt securities increased $1.0 million, or 4.7%, for the three months ended June 30, 2026, 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 June 30, 2026 was $705.5 million, compared to $610.0 million for the prior year period. 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 June 30, 2026, compared to 14.1% 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. We had no collections of past due interest during the three months ended June 30, 2026. During the three months ended June 30, 2025, we collected $1.5 million in past due interest from SFEG Holdings, Inc. ("SFEG") that was previously on non-accrual status.

As of June 30, 2026, our loans on non-accrual status were $40.3 million at cost and $12.2 million at fair value, which represent 5.5% and 1.8% of all debt investments in our portfolio at cost and fair value, respectively. As of June 30, 2025, our loans on non-accrual status were $90.3 million at cost and $51.7 million at fair value, which represent 12.6% and 7.9% of all debt investments in our portfolio at cost and fair value, respectively.

As of June 30, 2026 and March 31, 2026, SFEG represented 17.3% and 19.8% of the total investment portfolio at fair value, respectively.

Dividend and success fee income for the three months ended June 30, 2026 increased $3.8 million, or 199.6%, from the prior year period. During the three months ended June 30, 2026, dividend and success fee income consisted of $5.6 million of success fee income and $0.1 million of dividend income. During the three months ended June 30, 2025, dividend and success fee income consisted of $1.1 million of dividend income and $0.8 million of success fee income.

Expenses

Total expenses, net of any non-contractual, unconditional, and irrevocable credits from the Adviser, decreased $2.0 million, or 14.0%, during the three months ended June 30, 2026, as compared to the prior year period, primarily due to a decrease in incentive fees, partially offset by an increase in base management fees and interest expense.

In accordance with GAAP, during the three months ended June 30, 2026, we recorded a $5.6 million reversal of previously accrued capital gains-based incentive fee compared to a $0.2 million reversal during the three months ended June 30, 2025. The capital gains-based incentive fee is a result of the net impact of net realized gains (losses) and net unrealized appreciation (depreciation) on investments during the respective periods.

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:

(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 accompanying 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 on borrowings increased $1.4 million, or 16.0%, during the three months ended June 30, 2026, as compared to the prior year period, primarily due to increased borrowings on our Credit Facility and the issuance of the 6.875% 2028 Notes in November 2025 and the 7.125% 2031 Notes in February 2026, partially offset by the redemption of the 8.00% 2028 Notes in December 2025, redemption of the 5.00% 2026 Notes in May 2026 and a decrease in the effective interest rate on the Credit Facility. The weighted-average balance outstanding on our Credit Facility during the three months ended June 30, 2026 was $116.7 million, compared to $36.3 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 June 30, 2026 was 8.2%, as compared to 14.0% 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 and a decrease in unused commitment fees on the undrawn portion of the Credit Facility during the three months ended June 30, 2026.

Realized and Unrealized Gain (Loss)

The realized gains (losses) and unrealized appreciation (depreciation) across our investments for the three months ended June 30, 2026 and 2025 were as follows:

Net Realized Gain (Loss) on Investments

During the three months ended June 30, 2026, we recorded net realized losses on investments of $9.0 million, due to the realized loss from the restructuring of Home Concepts Acquisition, Inc. During the three months ended June 30, 2025, we did not record any net realized gains or losses on investments.

Net Unrealized Appreciation (Depreciation) on Investments

Net unrealized depreciation on investments of $18.8 million for the three months ended June 30, 2026 was primarily due to the decreased performance of certain of our portfolio companies. These decreases were partially offset by increased performance of certain of our portfolio companies and changes in economic conditions that led to an increase in transaction multiples used to estimate the fair value of certain of our portfolio companies.

Net unrealized depreciation on investments of $1.0 million for the three months ended June 30, 2025 was primarily due to a decrease in the performance of certain of our portfolio companies. These decreases were partially offset by increased performance of certain of our other portfolio companies and changes in economic conditions that led to an increase in transaction multiples used to estimate the fair

value of certain of our portfolio companies.

Across our entire investment portfolio, we recorded net unrealized depreciation of$24.8 million on ourequity investments and net unrealized appreciation of $6.0 million on our debt investmentsfor thethree months ended June 30, 2026. As of June 30, 2026, the fair value of our investment portfolio exceeded the cost basis by $237.6 million, compared to March 31, 2026, when the fair value of our investment portfolio exceeded the cost basis by $256.4 million. This resulted in net unrealized depreciation of$18.8 million for thethree months ended June 30, 2026. Our entire portfolio had a fair value of 122.7% of cost as of June 30, 2026.