Reading the tape
NASDAQ: GLAD
Gladstone Capital Corporation
Financial Services · Asset Management
Market Cap
$437.40M
52w High
$29.50
52w Low
$16.54
P/E
11.86
Volume
155.48K
Outstanding Shares
22.59M
Price vs Fundamentals
Why The Stock Is Moving
Likely fundamental deteriorationModerate confidence
Note: The most recent financial data is over 3 months old. Metrics shown may not reflect the latest reporting period.
1Y Price: -23.63%Revenue (TTM): -53.83%FCF (TTM): -143.02%P/FCF: 60th pct
What changed
The stock fell 23.63% over the last year. Revenue declined 53.83% over the trailing twelve months. Operating margin moved from 80.32% to 62.98%. Free cash flow declined 143.02% over the trailing twelve months.
What the market seems to be pricing
The market is reacting to weaker business momentum more than just compressing the valuation multiple. Even if the shares already screen cheap on P/FCF, investors are still discounting lower future earnings power.
What would invalidate this read
Operating margin stands at 62.98%. Revenue declined 53.83% — this read reverses if that trend stabilizes. Free cash flow fell 143.02% — a return toward positive territory would undermine the deterioration thesis. If margins and cash flow stabilize while the stock stays depressed, the gap shifts from fundamental damage toward pure multiple compression.
Company profile
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.
CEORobert L. Marcotte
SectorFinancial Services
IndustryAsset Management
Employees73
IPO dateAug 2, 2002
Valuation
Forward P/E—
EV/EBITDA6.99
Enterprise value$854.45M
Price / Book0.91
Stock splits
Apr 5, 2024↓ Reverse
Every 2 shares became 1
Profitability & growth
Standard profitability metrics can be misleading for financial/insurance companies. GAAP requires unrealized investment gains/losses in net income (affecting ROE), and margins are blended across diverse business segments.
Revenue growth-60.28%
Gross margin63.85%▲6.50%vs FY2024
Operating margin62.98%▼29.49%vs FY2024
ROE12.06%▼39.07%vs FY2024
Analyst consensus
RatingHold
Target price$21.67▲11.93%
2
Buy
8
Hold
4
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
May 6, 2026
Q2 FY26 · EPS est $0.49 · Revenue est $25.19M
View
Dividends
$1.78/shareMonthlyEx-div May 20, 2026 · in 15dStretchedGLAD pays a dividend with a 9.19% declared yield, growing at 2.67% annually, covered 0.8× by free cash flow.
Declared Yield
9.19%
Annual Div / Share
$1.78
5yr CAGR
+2.67%
Doubles every ~26.3yr
Payout Ratio
123.79%
Stretched
Dividend Growth Rate
3yr CAGR
-0.7%
5yr CAGR
+2.67%
10yr CAGR
+0.58%
Dividend Safety
2/10Stretched
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2026$1.78-19.6%
2025$2.21+19.0%
2024$1.86+2.4%
2023$1.82+14.3%
2022$1.59+1.9%
2021$1.56-4.3%
2020$1.63-3.0%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$92/yr
$8/mo
In 5 yrs
$105/yr+14%
$9/mo
In 10 yrs
$120/yr+30%
$10/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$92/yr $8/mo | $105/yr+14% $9/mo | $120/yr+30% $10/mo |
Yield-on-cost grows from 9.19% → 11.97% over 10yr
Analysis
Dividend Strengths
No strong strength signal stands out from the latest period pair.
Risks to Watch
High payout ratio
With 123.79% of earnings paid as dividends, there is limited retained earnings for reinvestment — and a dividend cut becomes more likely if earnings decline.
Dividend exceeds free cash flow
Free cash flow covers only 0.79× the dividend. The company is paying out more than it generates in cash, which is unsustainable without borrowing or asset sales.