Gladstone Capital Corporation (GLAD) Stock

Gladstone Capital Corporation (GLAD) is a Financial Services stock trading at $18.79 (as of 2026-07-24), with a market capitalization of $424.52M and a trailing P/E of 11.4. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Gladstone Capital Corporation is a business development company specializing in lower middle market, growth capital, add on acquisitions, change of control, buy & build strategies, debt refinancing, debt investments in senior term loans, revolving loans, secured first and second lien term loans, senior subordinated loans, unitranche loans, junior subordinated loans, and mezzanine loans and equity investments in the form of common stock, preferred stock, limited liability company interests, or warrants. It operates as a business development company. The fund also makes private equity investments in acquisitions, buyouts and recapitalizations, and refinancing existing debts. It targets small and medium-sized companies in United States. It is industry agnostic and seeks to invest in companies engaged in the business services, light and specialty manufacturing, niche industrial products and services, specialty consumer products and services, energy services, transportation and logistics, healthcare and education services, specialty chemicals, media and communications and aerospace and defense. The fund seeks to invest between $7 million and $30 million in companies that have between $20 million and $150 million in sales and EBITDA between $3 million and $25 million. It prefers to acquire minority stakes. It seeks to exit its investments through strategic acquisitions by other industry participants or financial buyers, initial public offerings of common stock, or other capital market transactions.

Understand Gladstone Capital Corporation: how it makes money

Gladstone Capital Corporation is a business development company that makes lower middle-market debt investments (including senior and mezzanine loans) and equity-related investments (including common or preferred stock, LLC interests, and warrants), aiming to generate returns from its investment portfolio and distributions to common shareholders.

Profitability is driven by investment income scaled by leverage, because the portfolio is built around interest-bearing investments and floating-rate exposure (floating-rate investments in excess of floating-rate liabilities), while gross leverage as a percentage of net assets indicates how much leverage amplifies those returns.

Business quality (Solid): The provided data supports an investor read-through focused on distributions and leverage, but it does not include reportable segment revenue detail.

Valuation: At 8× earnings, GLAD trades 27% below the Asset Management average (10×). Note: one-time items can distort reported P/E.

Bull case

  • Cash distributions support shareholder yield: In the latest quarter, cash distributions per common share were 0.45 USD_per_share (monthly distribution per common share 0.15 USD_per_share).
  • Ongoing portfolio activity and liquidity events: The company reported exits and prepayments of 0.17 USD_B and investments in six new portfolio companies of 0.11 USD_B during the quarter.

Bear case

  • Leverage risk: Gross leverage as a percentage of net assets was 91.8 percent, which can increase downside sensitivity if investment performance weakens.
  • Repricing and refinancing sensitivity tied to floating rates: The company tracks floating-rate investments in excess of floating-rate liabilities at 0.41 USD_B, indicating earnings may be affected by changes in floating-rate conditions.
Valuation — source: SEC EDGAR (first-party)
Price$18.79
Market Cap$424.52M
P/E Ratio11.4
Price / Book0.88
Price / Sales4.53
DCF Value (model)$36.45
DCF Upside vs Price94.0%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$89.12M
Net Margin64.2%
Revenue Growth (YoY)-7.8%
Valuation vs Sector & Industry
Stock P/E11.4
Sector P/E (Financial Services)8.9
Industry P/E (Asset Management)8.9
vs Sector28.4%
vs Industry28.1%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderVAN ECK ASSOCIATES CORP ($5.66M)
Institutional Holders Tracked10
Congressional Trades (recent)3
Company
SectorFinancial Services
IndustryAsset Management
CEODavid John Gladstone
Employees73
CountryUS
IPO Date2002-08-02

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GLAD earnings history · GLAD institutional & insider holders · GLAD KPIs & operating metrics · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-07-24.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.