📊 GLAD Key Takeaways
Is Gladstone Capital Corp. (GLAD) a Good Investment?
Gladstone Capital exhibits critical liquidity stress with only $216K in cash reserves against $17.2M in negative operating cash flow, raising severe sustainability concerns. Flat net income, declining EPS despite stable earnings, and persistently weak returns (4.3% ROE, 2.3% ROA) indicate the company is generating insufficient returns on its substantial $925M asset base to cover financing costs and fund operations. The combination of cash depletion, negative cash generation, and stagnant profitability signals deteriorating financial health.
Fundamentals show flat profitability (net income $5.45M, EPS down 4.1% YoY) and very weak returns on capital (ROE 1.1%, ROA 0.6%), alongside negative operating cash flow. While leverage is moderate at 0.42x and equity is sizable, limited cash and unclear interest coverage raise liquidity and earnings-quality concerns.
Gladstone Capital Corp. Key Strengths (GLAD)
- Moderate leverage with debt-to-equity of 0.41x provides some financial flexibility
- Stockholders' equity of $482.6M offers accounting cushion against liabilities
- No insider selling activity suggests management has not abandoned confidence entirely
- Positive net income despite flat growth
- Moderate leverage (Debt/Equity 0.42x) with sizable equity base
- Large asset base ($922.81M) to support income generation
GLAD Stock Risks: Gladstone Capital Corp. Investment Risks
- Critically low cash position of $216K is unsustainable relative to $17.2M annual cash burn rate
- Negative operating cash flow indicates the business model is not self-sustaining
- Weak returns on equity (4.3%) and assets (2.3%) suggest portfolio or lending performance deterioration
- EPS declining 4.1% despite flat net income reveals shareholder dilution from new equity issuance
- Flat net income growth with large asset base indicates business stagnation or portfolio underperformance
- Very low ROE/ROA indicating inefficient capital deployment
- Negative operating cash flow and minimal cash balance
- Interest coverage and margin profile unclear due to missing operating data
Key Metrics to Watch
- Cash and equivalents balance (critical to track liquidity runway)
- Operating cash flow trajectory (must turn positive)
- Return on equity and return on assets trend (improvement essential)
- Debt service coverage and interest expense burden
- Portfolio quality and defaults in investment portfolio
- Operating cash flow
- ROE
Gladstone Capital Corp. (GLAD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
GLAD Profit Margin, ROE & Profitability Analysis
GLAD vs Market Sector: How Gladstone Capital Corp. Compares
How Gladstone Capital Corp. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Gladstone Capital Corp. Stock Overvalued? GLAD Valuation Analysis 2026
Based on fundamental analysis, Gladstone Capital Corp. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Gladstone Capital Corp. Balance Sheet: GLAD Debt, Cash & Liquidity
GLAD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Gladstone Capital Corp.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $1.88 reflects profitable operations.
GLAD Revenue Growth, EPS Growth & YoY Performance
Gladstone Capital Corp. Dividends, Buybacks & Capital Allocation
GLAD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Gladstone Capital Corp. (CIK: 0001143513)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GLAD
What is the AI rating for GLAD?
Gladstone Capital Corp. (GLAD) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 66% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GLAD's key strengths?
Claude: Moderate leverage with debt-to-equity of 0.41x provides some financial flexibility. Stockholders' equity of $482.6M offers accounting cushion against liabilities. ChatGPT: Positive net income despite flat growth. Moderate leverage (Debt/Equity 0.42x) with sizable equity base.
What are the risks of investing in GLAD?
Claude: Critically low cash position of $216K is unsustainable relative to $17.2M annual cash burn rate. Negative operating cash flow indicates the business model is not self-sustaining. ChatGPT: Very low ROE/ROA indicating inefficient capital deployment. Negative operating cash flow and minimal cash balance.
What is GLAD's revenue and growth?
Gladstone Capital Corp. reported revenue of N/A.
Does GLAD pay dividends?
Gladstone Capital Corp. pays dividends, with $20.3M distributed to shareholders in the trailing twelve months.
Where can I find GLAD SEC filings?
Official SEC filings for Gladstone Capital Corp. (CIK: 0001143513) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GLAD's EPS?
Gladstone Capital Corp. has a diluted EPS of $1.00.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is GLAD's fundamental grade?
Based on our AI fundamental analysis in June 2026, Gladstone Capital Corp. has a C grade with 66% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is GLAD stock overvalued or undervalued?
Valuation metrics for GLAD: ROE of 4.3% (sector avg: 15%), net margin of N/A (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is GLAD's AI grade for 2026?
Our dual AI analysis gives Gladstone Capital Corp. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GLAD's free cash flow?
Gladstone Capital Corp.'s operating cash flow is $-17.2M, with capital expenditures of N/A.
How does GLAD compare to other Market stocks?
Vs Default sector averages: Net margin N/A (avg: 12%), ROE 4.3% (avg: 15%), current ratio N/A (avg: 1.8).