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Item 1. Financial Statements

2026-02-03 compared with 2025-11-04 · 239 added, 207 removed, 1586 unchanged (22% of the section changed)

3 unchanged sentences

(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

September 30,

2025 March 31,

13 unchanged sentences

Line of credit at fair value (Cost of $ 128,600 and $ 0 , respectively)

Notes payable, net

$ 128,961 $ —

Notes payable, net of unamortized deferred financing costs of $ 6,111 and $ 8,029 , respectively

442,877 455,709

Total borrowings

14 unchanged sentences

486,666 445,512

Cumulative net unrealized appreciation of investments

93,659 40,254

Cumulative net unrealized appreciation of other ( 353 ) —

Overdistributed net investment income

( 20,095 ) ( 5,325 )

Accumulated net realized (loss) gain in excess of distributions

( 20,962 ) 18,606

Total distributable earnings

Total distributable earnings (C)

108,702 53,535

5 unchanged sentences

(B) Refer to Note 9 — Commitments and Contingencies in the accompanying Notes to Consolidated Financial Statements for additional information.

(C) Refer to Note 2 — Summary of Significant Accounting Policies in the accompanying Notes to Consolidated Financial Statements for additional information.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.

2 unchanged sentences

(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

Three Months Ended September 30, Six Months Ended September 30,

Three Months Ended December 31, Nine Months Ended December 31,

2025 2024 2025 2024

49 unchanged sentences

31,571 20,210 67,027 45,248

NET INVESTMENT INCOME

NET INVESTMENT (LOSS) INCOME

$ ( 6,509 ) $ 1,161 $ 6,858 $ 20,866

5 unchanged sentences

3,481 — ( 26,457 ) 42,284

Other ( 1,301 ) — ( 1,301 ) —

Total net realized gain (loss)

14 unchanged sentences

BASIC AND DILUTED PER COMMON SHARE:

Net investment income

Net investment (loss) income

$ ( 0.16 ) $ 0.03 $ 0.18 $ 0.57

49 unchanged sentences

$ 535,843 $ 458,375

Net investment (loss) income $ ( 6,509 ) $ 1,161

Net realized gain on investments 3,481 —

Net realized loss on other ( 1,301 ) —

Net unrealized appreciation of investments 70,235 37,329

Net unrealized appreciation of other ( 8 ) —

Net increase in net assets from operations

65,898 38,490

DISTRIBUTIONS (A)

Distributions to common stockholders from net investment income ( $ 0.24 and $ 0.16 per share, respectively)

( 9,528 ) ( 5,870 )

Distributions to common stockholders from net realized gains ( $ 0.00 and $ 0.08 per share, respectively)

Net decrease in net assets from distributions

( 9,528 ) ( 8,817 )

CAPITAL ACTIVITY

Issuance of common stock

Discounts, commissions, and offering costs for issuance of common stock

( 44 ) ( 24 )

Net increase in net assets from capital activity

NET INCREASE IN NET ASSETS

59,565 31,678

NET ASSETS, DECEMBER 31

$ 595,408 $ 490,053

(A) Refer to Note 8 — Distributions to Common Stockholders in the accompanying Notes to Consolidated Financial Statements for additional information.

4 unchanged sentences

(IN THOUSANDS)

Six Months Ended September 30,

Nine Months Ended December 31,

CASH FLOWS FROM OPERATING ACTIVITIES

5 unchanged sentences

Principal repayments of investments

21,546 33,500

Net proceeds from the sale and recapitalization of investments

1 unchanged sentence

26,457 ( 42,305 )

Net realized loss on other 1,301 —

Net unrealized (appreciation) depreciation of investments

5 unchanged sentences

Changes in assets and liabilities:

Increase in interest receivable

( 605 ) ( 109 )

Decrease in due from administrative agent

Decrease in interest receivable

(Increase) decrease in due from administrative agent

Decrease (increase) in other assets, net

1 unchanged sentence

( 173 ) 1,403

Increase (decrease) in interest payable

Increase (decrease) in fees due to Adviser (A)

2,203 ( 3,991 )

Increase in interest payable

Increase in fees due to Adviser (A)

Decrease in fee due to Administrator (A)

( 135 ) ( 109 )

Decrease in other liabilities

( 31 ) ( 110 )

Net cash (used in) provided by operating activities ( 110,839 ) 75,484

Increase (decrease) in other liabilities

Net cash used in operating activities ( 118,425 ) ( 96,372 )

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issuance of common stock

Discounts, commissions, and offering costs for issuance of common stock ( 458 ) —

Proceeds from issuance of common stock, net of discounts, commissions, and offering costs

Proceeds from line of credit

2 unchanged sentences

( 150,000 ) ( 167,500 )

Deferred financing and offering costs

Repayment of notes payable ( 74,750 ) —

Proceeds from issuance of notes payable 60,000 126,500

Deferred financing costs

( 1,715 ) ( 4,597 )

1 unchanged sentence

( 47,605 ) ( 52,109 )

Net cash provided by (used in) financing activities

Net cash provided by financing activities

106,167 96,299

6 unchanged sentences

$ 26,227 $ 17,912

NON-CASH FINANCING ACTIVITY:

Distributions payable $ — $ 25,682

(A) Refer to Note 4 — Related Party Transactions in the accompanying Notes to Consolidated Financial Statements for additional information.

5 unchanged sentences

CONSOLIDATED SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2025

DECEMBER 31, 2025

(DOLLAR AMOUNTS IN THOUSANDS)

34 unchanged sentences

25,250 25,250 25,250

Sun State Nursery and Landscaping, LLC – Line of Credit, $ 1,760 available (SOFR+ 5.0 %, 10.0 % Cash, Due 5/2027) (J)

Sun State Nursery and Landscaping, LLC – Term Debt (SOFR+ 9.0 %, 13.5 % Cash, Due 5/2030) (J)

23 unchanged sentences

33,750 33,750 33,750

Printing and Publishing – 2.1 %

Home Concepts Acquisition, Inc.

– Line of Credit, $ 0 available (SOFR+ 6.0 %, 10.1 % Cash, Due 11/2025) (J)

Rowan Energy Inc.

– Term Debt (SOFR+ 9.0 %, 14.5 % Cash, Due 12/2030) (J)

25,790 25,790 25,790

Home Concepts Acquisition, Inc.

– Line of Credit, $ 400 available (SOFR+ 6.0 %, 10.1 % Cash, Due 11/2025) (J)

59,540 59,540

Printing and Publishing – 1.3 %

Home Concepts Acquisition, Inc.

1 unchanged sentence

12,000 12,000 7,873

14,000 11,325

Total Secured First Lien Debt $ 443,456 $ 407,810

2 unchanged sentences

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2025

DECEMBER 31, 2025

(DOLLAR AMOUNTS IN THOUSANDS)

62 unchanged sentences

11,233 11,233 57,965

Rowan Energy Inc.

– Preferred Stock (C)(J)

7,298 7,298 7,298

18,531 65,263

Printing and Publishing – 0.0 %

14 unchanged sentences

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2025

DECEMBER 31, 2025

(DOLLAR AMOUNTS IN THOUSANDS)

71 unchanged sentences

22,169 22,169 19,505

Home and Office Furnishings, Housewares, and Durable Consumer Products – 5.6 %

Old World Christmas, Inc.

– Preferred Stock (C)(J)

6,180 — 33,498

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.

1 unchanged sentence

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2025

DECEMBER 31, 2025

(DOLLAR AMOUNTS IN THOUSANDS)

2 unchanged sentences

Cost Fair Value

Home and Office Furnishings, Housewares, and Durable Consumer Products – 4.2 %

Old World Christmas, Inc.

– Preferred Stock (C)(J)

6,180 $ — $ 22,243

Leisure, Amusement, Motion Pictures, and Entertainment – 0.8 %

38 unchanged sentences

Dreyfus Treasury Obligations Cash Management Fund ( 3.43 % market yield) (R)

1,217 $ 1,217 $ 1,217

Total Cash Equivalents $ 25 $ 25

4 unchanged sentences

Additionally, under Section 55 of the Investment Company Act of 1940, as amended (the "1940 Act"), we may not acquire any non-qualifying assets unless, at the time such acquisition is made, qualifying assets represent at least 70 % of our total assets.

As of September 30, 2025, our investments in Pyrotek Special Effects, Inc.

As of December 31, 2025, our investments in Pyrotek Special Effects, Inc.

("Pyrotek") and Gladstone Alternative Income Fund ("Gladstone Alternative") are considered non-qualifying assets under Section 55 of the 1940 Act.

Such non-qualifying assets represent 2.8 % of total investments, at fair value, as of September 30, 2025.

(B) Unless indicated otherwise, all cash interest rates are indexed to 30-day Secured Overnight Financing Rate ("SOFR"), which was 4.1 % as of September 30, 2025.

Such non-qualifying assets represent 2.5 % of total investments, at fair value, as of December 31, 2025.

(B) Unless indicated otherwise, all cash interest rates are indexed to 30-day Secured Overnight Financing Rate ("SOFR"), which was 3.7 % as of December 31, 2025.

If applicable, paid-in-kind interest rates are noted separately from the cash interest rate.

2 unchanged sentences

Due dates represent the contractual maturity date.

(D) Category percentages represent the fair value of each category and subcategory as a percentage of net assets as of December 31, 2025.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.

1 unchanged sentence

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

SEPTEMBER 30, 2025

DECEMBER 31, 2025

(DOLLAR AMOUNTS IN THOUSANDS)

(D) Category percentages represent the fair value of each category and subcategory as a percentage of net assets as of September 30, 2025.

(E) Unless indicated otherwise, all of our investments are valued using Level 3 inputs within the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 820, "Fair Value Measurements and Disclosures" ("ASC 820") fair value hierarchy.

15 unchanged sentences

(Q) The portfolio company changed its name from Ricardo Defense, Inc.

to Detroit Defense, Inc during the six months ended September 30, 2025.

to Detroit Defense, Inc during the nine months ended December 31, 2025.

(R) Valued using Level 1 inputs within the FASB ASC 820 fair value hierarchy.

332 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025

DECEMBER 31, 2025

(DOLLAR AMOUNTS IN TABLES IN THOUSANDS, EXCEPT PER SHARE DATA AND AS OTHERWISE INDICATED)

Gladstone Investment Corporation (“Gladstone Investment”) was incorporated under the General Corporation Law of the State of Delaware on February 18, 2005, and completed an initial public offering on June 22, 2005.

The terms “the Company,” “we,” “our” and “us” all refer to Gladstone Investment and its consolidated subsidiaries.

The terms “the Company,” “we,” “our” and “us” all refer to Gladstone Investment and its consolidated subsidiary.

We are an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”), and are applying the guidance of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies” (“ASC 946”).

8 unchanged sentences

We intend that our investment portfolio over time will consist of approximately 75.0 % in debt investments and 25.0 % in equity investments, at cost.

As of September 30, 2025, our investment portfolio was comprised of 71.1 % in debt investments and 28.9 % in equity investments, at cost.

As of December 31, 2025, our investment portfolio was comprised of 71.0 % in debt investments and 29.0 % in equity investments, at cost.

Gladstone Business Investment, LLC (“Business Investment”), a wholly-owned subsidiary of ours, was established on August 11, 2006 for the sole purpose of holding certain investments pledged as collateral under our line of credit.

9 unchanged sentences

Accordingly, we have not included in this quarterly report all of the information and notes required by GAAP for annual financial statements.

The accompanying Consolidated Financial Statements include our accounts and the accounts of our wholly-owned subsidiaries.

The accompanying Consolidated Financial Statements include our accounts and the accounts of our wholly-owned subsidiary.

All significant intercompany balances and transactions have been eliminated in consolidation.

2 unchanged sentences

In our opinion, all adjustments, consisting solely of normal recurring accruals, necessary for the fair statement of financial statements for the interim periods have been included.

The results of operations for the three and six months ended September 30, 2025 are not necessarily indicative of results that ultimately may be achieved for the fiscal year

The results of operations for the three and nine months ended December 31, 2025 are not necessarily indicative of results that ultimately may be achieved for the fiscal year

ending March 31, 2026 or any future interim period.

12 unchanged sentences

The following table provides a reconciliation of cash, cash equivalents and restricted cash in the Consolidated Statements of Assets and Liabilities to the total amount shown at the end of the applicable period in the Consolidated Statements of Cash Flows:

As of September 30, 2025

As of December 31, 2025

As of March 31, 2025

72 unchanged sentences

Generally, non-accrual loans are restored to accrual status when past-due principal and interest are paid and, in management’s judgment, are likely to remain current, or, due to a restructuring, the interest income is deemed to be collectible.

As of September 30, 2025, our loans to B+T Group Acquisition, Inc.

As of December 31, 2025, our loans to B+T Group Acquisition, Inc.

("B+T"), Diligent Delivery Systems ("Diligent") and Edge Adhesives Holdings, Inc.

5 unchanged sentences

Thus, the actual collection of PIK income may be deferred until the time of debt principal repayment.

As of September 30, 2025 and March 31, 2025, we did not have any loans with a PIK interest component.

As of December 31, 2025 and March 31, 2025, we did not have any loans with a PIK interest component.

Success Fee Income Recognition

34 unchanged sentences

The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement.

As of September 30, 2025 and March 31, 2025, all of our investments were valued using Level 3 inputs within the ASC 820 fair value hierarchy, except for our investment in money market funds, which was valued using Level 1 inputs, and our investment in Gladstone Alternative Income Fund ("Gladstone Alternative"), which was valued using NAV as a practical expedient.

Investments in funds measured using NAV as a practical expedient are not categorized within the fair value hierarchy.

As of December 31, 2025 and March 31, 2025, all of our investments were valued using Level 3 inputs within the ASC 820 fair value hierarchy, except for our investment in money market funds, which was valued using Level 1 inputs, and our investment in Gladstone Alternative Income Fund ("Gladstone Alternative"), which was valued using NAV as a practical expedient.

We transfer investments in and out of Level 1, 2 and 3 of the valuation hierarchy as of the beginning balance sheet date, based on changes in the use of observable and unobservable inputs utilized to perform the valuation for the period.

There were no transfers in or out of Level 1, 2 and 3 during the three and six months ended September 30, 2025 and 2024, respectively.

As of September 30, 2025 and March 31, 2025, our investments, by security type, at fair value were categorized as follows within the ASC 820 fair value hierarchy:

There were no transfers in or out of Level 1, 2 and 3 during the three and nine months ended December 31, 2025 and 2024, respectively.

As of December 31, 2025 and March 31, 2025, our investments, by security type, at fair value were categorized as follows within the ASC 820 fair value hierarchy:

Fair Value Measurements

3 unchanged sentences

Observable Inputs

As of September 30, 2025:

As of December 31, 2025:

Secured first lien debt

11 unchanged sentences

Cash equivalents 25 — — 25

Total Investments and Cash Equivalents as of September 30, 2025

Total Investments and Cash Equivalents as of December 31, 2025

$ 25 $ — $ 1,217,717 $ 1,222,817

18 unchanged sentences

$ 1,354 $ — $ 974,345 $ 980,674

(A) Includes our investment in Gladstone Alternative as of September 30, 2025 and March 31, 2025.

(A) Includes our investment in Gladstone Alternative as of December 31, 2025 and March 31, 2025.

Investments that are measured at fair value using NAV as a practical expedient have not been categorized in the fair value hierarchy.

The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented elsewhere in this Quarterly Report.

The following table presents our investments, valued using Level 3 inputs within the ASC 820 fair value hierarchy, and carried at fair value as of September 30, 2025 and March 31, 2025, by caption on our accompanying Consolidated Statements of Assets and Liabilities, and by security type:

The following table presents our investments, valued using Level 3 inputs within the ASC 820 fair value hierarchy, and carried at fair value as of December 31, 2025 and March 31, 2025, by caption on our accompanying Consolidated Statements of Assets and Liabilities, and by security type:

Total Recurring Fair Value Measurements

2 unchanged sentences

Valued Using Level 3 Inputs

September 30, 2025 March 31, 2025

December 31, 2025 March 31, 2025

Non-Control/Non-Affiliate Investments

8 unchanged sentences

Preferred equity 132,017 101,557

Common equity/equivalents — —

Common equity/equivalents (A)

Total Affiliate Investments 328,020 325,413

6 unchanged sentences

Total investments at fair value using Level 3 inputs $ 1,217,717 $ 974,345

In accordance with ASC 820, the following table provides quantitative information about our investments valued using Level 3 fair value measurements as of September 30, 2025 and March 31, 2025.

(A) Excludes our investment in Gladstone Alternative as of December 31, 2025 and March 31, 2025 with a fair value of $ 5.1 million and $ 5.0 million, respectively, which was valued using NAV as a practical expedient.

In accordance with ASC 820, the following table provides quantitative information about our investments valued using Level 3 fair value measurements as of December 31, 2025 and March 31, 2025.

The table below is not intended to be all-inclusive, but rather provides information on the significant Level 3 inputs as they relate to our fair value measurements.

4 unchanged sentences

Input Range / Weighted-Average as of

September 30, 2025 March 31, 2025 September 30, 2025 March 31, 2025

December 31, 2025 March 31, 2025 December 31, 2025 March 31, 2025

Secured first

31 unchanged sentences

Changes in Level 3 Fair Value Measurements of Investments

The following tables provide our portfolio’s changes in fair value, broken out by security type, during the three and six months ended September 30, 2025 and 2024 for all investments for which the Adviser determines fair value using unobservable (Level 3) inputs.

The following tables provide our portfolio’s changes in fair value, broken out by security type, during the three and nine months ended December 31, 2025 and 2024 for all investments for which the Adviser determines fair value using unobservable (Level 3) inputs.

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

1 unchanged sentence

Equivalents Total

Three Months Ended September 30, 2025:

Fair value as of June 30, 2025

Three Months Ended December 31, 2025:

Fair value as of September 30, 2025

$ 593,979 $ 90,633 $ 365,278 $ 75,894 $ 1,125,784

5 unchanged sentences

Reversal of previously recorded depreciation upon realization (B)

19,104 — — — 19,104

New investments, repayments and settlements (C):

3 unchanged sentences

( 15,740 ) — — — ( 15,740 )

Fair value as of September 30, 2025

— — ( 3,481 ) — ( 3,481 )

Fair value as of December 31, 2025

$ 604,516 $ 90,273 $ 429,702 $ 93,226 $ 1,217,717

Debt Preferred

Equivalents Total

Six Months Ended September 30, 2025

Nine Months Ended December 31, 2025

Fair value as of March 31, 2025 $ 514,334 $ 103,580 $ 302,163 $ 54,268 $ 974,345

11 unchanged sentences

( 21,546 ) — — — ( 21,546 )

Transfers (D)

— — ( 3,481 ) — ( 3,481 )

Fair value as of September 30, 2025

Transfers (E)

— ( 10,616 ) 10,616 — —

Three Months Ended September 30, 2024:

Fair value as of June 30, 2024

Fair value as of December 31, 2025

$ 604,516 $ 90,273 $ 429,702 $ 93,226 $ 1,217,717

Three Months Ended December 31, 2024:

Fair value as of September 30, 2024

$ 469,480 $ 111,344 $ 228,528 $ 43,955 $ 853,307

Total gain (loss):

Net realized gain (loss) (A)

— — — 42,284 42,284

Net unrealized (depreciation)

2 unchanged sentences

Reversal of previously recorded (appreciation) depreciation upon realization (B)

— — — ( 38,028 ) ( 38,028 )

New investments, repayments and settlements (C) :

3 unchanged sentences

( 5,500 ) — — — ( 5,500 )

— — — ( 48,503 ) ( 48,503 )

Fair value as of September 30, 2024

Fair value as of December 31, 2024

$ 599,911 $ 108,743 $ 308,226 $ 50,350 $ 1,067,230

Six Months Ended September 30, 2024:

Nine Months Ended December 31, 2024:

Fair value as of March 31, 2024

13 unchanged sentences

— — — ( 48,503 ) ( 48,503 )

Fair value as of September 30, 2024

Fair value as of December 31, 2024

$ 599,911 $ 108,743 $ 308,226 $ 50,350 $ 1,067,230

(A) Included in net realized gain (loss) on investments on our accompanying Consolidated Statements of Operations for the respective three and six months ended September 30, 2025 and 2024.

(B) Included in net unrealized appreciation (depreciation) of investments on our accompanying Consolidated Statements of Operations for the respective three and six months ended September 30, 2025 and 2024.

(A) Included in net realized gain (loss) on investments on our accompanying Consolidated Statements of Operations for the respective three and nine months ended December 31, 2025 and 2024.

(B) Included in net unrealized appreciation (depreciation) of investments on our accompanying Consolidated Statements of Operations for the respective three and nine months ended December 31, 2025 and 2024.

(C) Includes increases in the cost basis of investments resulting from new portfolio investments, the amortization of discounts and other non-cash disbursements to portfolio companies, as well as decreases in the cost basis of investments resulting from principal repayments or sales, the amortization of premiums and acquisition costs, and other cost-basis adjustments.

(D) Transfers represent secured second lien debt of PSI Molded Plastics, Inc.

(D) The three and nine months ended December 31, 2025 includes $ 3.5 million of proceeds from the equity distribution recognized as realized gain from Old World Christmas, Inc.

(E) Transfers represent secured second lien debt of PSI Molded Plastics, Inc.

("PSI Molded") with a total cost basis of $ 10.6 million, which was converted to preferred equity in June 2025.

Investment Activity

During the six months ended September 30, 2025, the following significant transactions occurred:

During the nine months ended December 31, 2025, the following significant transactions occurred:

• In May 2025, we invested $ 49.5 million in a new portfolio company, Smart Chemical Solutions, LLC ("Smart Chemical"), in the form of $ 35.7 million of secured first lien debt and $ 13.8 million of preferred equity.

Chemical, headquartered in Midland, Texas, is a provider of production chemicals for onshore oil and gas operators throughout the United States.

Smart Chemical, headquartered in Midland, Texas, is a provider of production chemicals for onshore oil and gas operators throughout the United States.

• In May 2025, we invested $ 12.8 million in a new portfolio company, Sun State Nursery and Landscaping, LLC ("Sun State"), in the form of $ 9.8 million of secured first lien debt and $ 3.1 million of preferred equity.

7 unchanged sentences

Hobbs, restructuring our previously outstanding first lien term loans and line of credit with an aggregate total cost basis of $ 49.9 million, which resulted in a realized loss of $ 29.9 million.

• In December 2025, we invested $ 33.1 million in a new portfolio company, Rowan Energy Inc.

(“Rowan”), in the form of $ 25.8 million of secured first lien debt and $ 7.3 million of preferred equity.

Rowan, headquartered in Oklahoma, specializes in advanced frac sand filtration, completion-equipment deployment and field-operations support.

Investment Concentrations

As of September 30, 2025, our investment portfolio consisted of investments in 28 portfolio companies located in 20 states and Canada across 16 different industries with an aggregate fair value of approximately $ 1.1 billion.

Our investments in SFEG Holdings, Inc., The E3 Company, LLC, Detroit Defense, Inc., Dema/Mai Holdings, Inc.

and Brunswick Bowling Products, Inc.

represented our five largest portfolio investments at fair value and collectively comprised $ 437.4 million, or 38.7 %, of our total investment portfolio at fair value as of September 30, 2025.

The following table summarizes our investments by security type as of September 30, 2025 and March 31, 2025:

September 30, 2025 March 31, 2025

As of December 31, 2025, our investment portfolio consisted of investments in 29 portfolio companies located in 20 states and Canada across 16 different industries with an aggregate fair value of approximately $ 1.2 billion.

Our investments in SFEG Holdings, Inc., The E3 Company, LLC, Schylling, Inc., Global GRAB Technologies, Inc., and Detroit Defense, Inc., represented our five largest portfolio investments at fair value and collectively comprised $ 463.9 million, or 37.9 %, of our total investment portfolio at fair value as of December 31, 2025.

The following table summarizes our investments by security type as of December 31, 2025 and March 31, 2025:

December 31, 2025 March 31, 2025

Cost Fair Value Cost Fair Value

7 unchanged sentences

$ 1,058,898 100.0 % $ 1,222,792 100.0 % $ 939,066 100.0 % $ 979,320 100.0 %

Investments at fair value consisted of the following industry classifications as of September 30, 2025 and March 31, 2025:

September 30, 2025 March 31, 2025

Investments at fair value consisted of the following industry classifications as of December 31, 2025 and March 31, 2025:

December 31, 2025 March 31, 2025

Fair Value Percentage of

4 unchanged sentences

Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) 144,712 11.9 % 105,432 10.8 %

Leisure, Amusement, Motion Pictures, and Entertainment 84,102 7.4 % 78,460 8.0 %

Oil and Gas 124,804 10.2 % 69,589 7.1 %

Leisure, Amusement, Motion Pictures, and Entertainment 104,103 8.5 % 78,460 8.0 %

Buildings and Real Estate 71,450 5.8 % 69,320 7.1 %

3 unchanged sentences

Mining, Steel, Iron and Non-Precious Metals 36,882 3.0 % 41,010 4.2 %

Printing and Publishing 11,325 1.0 % 11,681 1.2 %

Cargo Transport 9,933 0.8 % 12,624 1.3 %

Telecommunications 8,241 0.7 % 7,585 0.8 %

Printing and Publishing 7,873 0.6 % 11,681 1.2 %

Other < 2.0% 11,718 1.0 % 11,468 1.2 %

1 unchanged sentence

Investments at fair value were included in the following geographic regions of the U.S.

and Canada as of September 30, 2025 and March 31, 2025:

September 30, 2025 March 31, 2025

and Canada as of December 31, 2025 and March 31, 2025:

December 31, 2025 March 31, 2025

Location Fair Value Percentage of

11 unchanged sentences

Investment Principal Repayments

The following table summarizes the contractual principal repayment and maturity of our investment portfolio by fiscal year, assuming no voluntary prepayments, as of September 30, 2025:

For the remaining six months ending March 31, 2026

The following table summarizes the contractual principal repayment and maturity of our investment portfolio by fiscal year, assuming no voluntary prepayments, as of December 31, 2025:

For the remaining three months ending March 31, 2026

For the fiscal years ending March 31:

2 unchanged sentences

Investments in equity securities 307,000

Total cost basis of investments held as of September 30, 2025:

Total cost basis of investments held as of December 31, 2025:

Receivables from Portfolio Companies

3 unchanged sentences

We write off accounts receivable when we have exhausted collection efforts and have deemed the receivables uncollectible.

As of September 30, 2025 and March 31, 2025, we had gross receivables from portfolio companies of $ 2.4 million and $ 2.3 million, respectively.

As of September 30, 2025 and March 31, 2025, the allowance for uncollectible receivables was $ 1.4 million and $ 1.7 million, respectively.

As of December 31, 2025 and March 31, 2025, we had gross receivables from portfolio companies of $ 2.2 million and $ 2.3 million, respectively.

As of December 31, 2025 and March 31, 2025, the allowance for uncollectible receivables was $ 1.4 million and $ 1.7 million, respectively.

RELATED PARTY TRANSACTIONS

2 unchanged sentences

Our Board of Directors, including a majority of the directors who are not parties to the Advisory Agreement or interested persons of either party, approved the Advisory Agreement.

One of our executive officers, David Gladstone (our chairman and chief executive officer) serves as a director and executive officer of the Adviser, which, as of September 30, 2025, is 100 % indirectly owned by Mr.

One of our executive officers, David Gladstone (our chairman and chief executive officer) serves as a director and executive officer of the Adviser, which, as of December 31, 2025, is 100 % indirectly owned by Mr.

David Dullum (our president) is also the executive vice president of private equity (buyouts) of the Adviser.

2 unchanged sentences

The following table summarizes the base management fees, loan servicing fees, incentive fees, and associated non-contractual, unconditional, and irrevocable credits reflected in our accompanying Consolidated Statements of Operations :

Three Months Ended September 30, Six Months Ended September 30,

Three Months Ended December 31, Nine Months Ended December 31,

2025 2024 2025 2024

35 unchanged sentences

however, pursuant to the terms of the Advisory Agreement, a small percentage of certain of such fees was retained by the Adviser in the form of reimbursement, at cost, for tasks completed by personnel of the Adviser, primarily related to the valuation of portfolio companies.

For the three and six months ended September 30, 2025, these credits totaled $ 130 thousand and $ 239 thousand, respectively.

For the three and six months ended September 30, 2024, these credits totaled $ 77 thousand and $ 152 thousand, respectively.

For the three and nine months ended December 31, 2025, these credits totaled $ 0.1 million and $ 0.4 million, respectively.

For the three and nine months ended December 31, 2024, these credits totaled $ 0.2 million and $ 0.3 million, respectively.

Loan Servicing Fee

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The entire portfolio’s aggregate unrealized capital depreciation, if any, equals the sum of the deficit between the fair value of each investment security as of the applicable calculation date and the original cost of such investment security.

As of September 30, 2025, no capital gains-based incentive fees were contractually due to the Adviser.

As of December 31, 2025, no capital gains-based incentive fees were contractually due to the Adviser.

For the year ended March 31, 2025, $ 4.9 million of capital gains-based incentive fees were contractually due and paid to the Adviser.

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If such amount is negative, then there is no accrual for such period and prior period accruals are reversed, as appropriate.

During the three and six months ended September 30, 2025, we recorded an accrual of capital gains-based incentive fees of $ 4.9 million and $ 4.7 million, respectively.

During the three and six months ended September 30, 2024, we recorded an accrual of capital gains-based incentive fees of $ 1.6 million and a reversal of capital gains-based incentive fees of $ 2.2 million, respectively.

As of September 30, 2025 and March 31, 2025, we had accrued capital gains-based incentive fees of $ 44.0 million and $ 39.3 million, respectively.

During the three and nine months ended December 31, 2025, we recorded an accrual of capital gains-based incentive fees of $ 14.7 million and $ 19.4 million, respectively.

During the three and nine months ended December 31, 2024, we recorded an accrual of capital gains-based incentive fees of $ 7.5 million and $ 5.3 million, respectively.

As of December 31, 2025 and March 31, 2025, we had accrued capital gains-based incentive fees of $ 58.8 million and $ 39.3 million, respectively.

Transactions with the Administrator

We reimburse the Administrator pursuant to the Administration Agreement for our allocable portion of the Administrator’s expenses incurred while performing services to us, which are primarily rent and salaries and benefits expenses of the Administrator’s employees, including our chief financial officer and treasurer, chief valuation officer, chief compliance officer, and co-general counsels and co-secretaries, and their respective staffs.

We reimburse the Administrator pursuant to the Administration Agreement for our allocable portion of the Administrator’s expenses incurred while performing services to us, which are primarily rent and salaries and benefits expenses of the Administrator’s employees, including our chief financial officer and treasurer, chief valuation officer, chief compliance officer, chief administrative officer and co-general counsels and co-secretaries, and their respective staffs.

One of our executive officers, David Gladstone (our chairman and chief executive officer) serves as a member of the board of managers and executive officer of the Administrator, which is 100 % indirectly owned and controlled by Mr.

LiCalsi, our co-general counsel and co-secretary, also serves in the same roles for the Administrator (in addition to serving as president of the Administrator).

LiCalsi, our chief administrative officer, co-general counsel and co-secretary, also serves in the same roles for the Administrator (in addition to serving as president of the Administrator).

Hellmold, our co-general counsel and co-secretary, also serves in the same roles for the Administrator.

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On July 10, 2025, our Board of Directors, including a majority of the directors who are not parties to the Administration Agreement or interested persons of either party, approved the annual renewal of the Administration Agreement through August 31, 2026.

Administration fees for the three and six months ended September 30, 2025 were $ 0.5 million and $ 1.0 million, respectively.

Administration fees for the three and six months ended September 30, 2024 were $ 0.6 million and $ 1.1 million, respectively.

Administration fees for the three and nine months ended December 31, 2025 were $ 0.5 million and $ 1.5 million, respectively.

Administration fees for the three and nine months ended December 31, 2024 were $ 0.4 million and $ 1.5 million, respectively.

Transactions with Gladstone Securities, LLC

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Any such fees paid by portfolio companies to Gladstone Securities do not impact the fees we pay to the Adviser or the non-contractual, unconditional, and irrevocable credits against the base management fee.

During the three and six months ended September 30, 2025, the fees received by Gladstone Securities from our portfolio companies totaled $ 0.7 million and $ 1.3 million, respectively.

During the three and six months ended September 30, 2024, the fees received by Gladstone Securities from our portfolio companies totaled $ 0.2 million for each period.

During the three and nine months ended December 31, 2025, the fees received by Gladstone Securities from our portfolio companies totaled $ 0.3 million and $ 1.6 million, respectively.

During the three and nine months ended December 31, 2024, the fees received by Gladstone Securities from our portfolio companies totaled $ 1.7 million and $ 1.9 million, respectively.

Investment in Affiliated Fund

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Amounts due to related parties on our accompanying Consolidated Statements of Assets and Liabilities were as follows:

As of September 30,

As of December 31,

As of March 31,

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Total related party fees due $ 61,854 $ 44,584

(A) Includes a capital gains-based incentive fee of $ 44.0 million and $ 39.3 million as of September 30, 2025 and March 31, 2025, respectively, recorded in accordance with GAAP requirements, and which was not contractually due under the terms of the Advisory Agreement.

(A) Includes a capital gains-based incentive fee of $ 58.8 million and $ 39.3 million as of December 31, 2025 and March 31, 2025, respectively, recorded in accordance with GAAP requirements, and which was not contractually due under the terms of the Advisory Agreement.

Refer to Note 4 — Related Party Transactions — Transactions with the Adviser — Incentive Fee for additional information, including capital gains-based incentive fee payments made.

Co-investment expenses as of both September 30, 2025 and March 31, 2025 were $ 0.1 million.

Co-investment expenses as of both December 31, 2025 and March 31, 2025 were $ 0.1 million.

These amounts are generally settled in the quarter subsequent to being incurred and have been included in Other assets, net on the accompanying Consolidated Statements of Assets and Liabilities.

Revolving Line of Credit

As of September 30, 2025, our Credit Facility had a total commitment amount of $ 270.0 million with an "accordion" feature that permits us to increase the size of the facility to $ 300.0 million.

We, through our wholly-owned subsidiary, Business Investment, have entered into the Credit Facility with KeyBank, as administrative agent, joint lead arranger and lender, Fifth Third Bank as managing agent, joint lead arranger and lender, City National Bank, as lender, the Adviser, as servicer, and certain other lenders party thereto.

As of December 31, 2025, the maximum size of the facility was $ 300.0 million.

The Credit Facility includes customary terms, covenants, events of default and constraints on borrowing availability based on collateral tests for a credit facility of its size and nature.

The Credit Facility has a revolving period end date of October 30, 2026 and a final maturity date of October 30, 2028 (at which time all principal and interest will be due and payable if the Credit Facility is not extended by the revolving period end date).

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The following tables summarize noteworthy information related to our Credit Facility:

As of September 30, 2025

As of December 31, 2025

As of March 31, 2025

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$ 171,400 $ 270,000

For the Three Months Ended September 30,

For the Six Months Ended September 30,

For the Three Months Ended December 31,

For the Nine Months Ended December 31,

2025 2024 2025 2024

Weighted-average borrowings outstanding $ 80,175 $ 41,921 $ 74,837 $ 55,792

Effective interest rate (B)

Weighted-average interest rate (B)

9.7 % 11.8 % 10.0 % 11.1 %

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$ 457 $ 406 $ 1,377 $ 1,067

(A) Availability is subject to various constraints, characteristics and applicable advance rates based on collateral quality under our Credit Facility, which equated to an adjusted availability of $ 172.3 million and $ 270.0 million as of September 30, 2025 and March 31, 2025, respectively.

(A) Availability is subject to various constraints, characteristics and applicable advance rates based on collateral quality under our Credit Facility, which equated to an adjusted availability of $ 171.4 million and $ 270.0 million as of December 31, 2025 and March 31, 2025, respectively.

(B) Excludes the impact of deferred financing costs and includes unused commitment fees.

Among other things, our Credit Facility contains a performance guaranty that requires us to maintain:

(i) a minimum net worth of the greater of $ 210.0 million or $ 210.0 million plus 50 % of all equity and subordinated debt raised, minus 50 % of any equity or subordinated debt redeemed or retired after November 16, 2016, which equated to $ 432.4 million as of September 30, 2025;

(ii) asset coverage with respect to senior securities representing indebtedness of at least 150 % (or such percentage as may be set forth in Section 18 of the 1940 Act, as modified by Section 61 of the 1940 Act);

and (iii) our status as a BDC under the 1940 Act and as a RIC under the Code.

As of September 30, 2025, and as defined in the performance guaranty of our Credit Facility, we had a net worth of $ 991.8 million, asset coverage on our senior securities representing indebtedness of 193.2 %, calculated in compliance with the requirements of Sections 18 and 61 of the 1940 Act, and an active status as a BDC and RIC.

As of September 30, 2025, we were in compliance with all covenants under our Credit Facility.

As of December 31, 2025, and as defined in the performance guaranty of our Credit Facility, we had a net worth of $ 1.0 billion, asset coverage on our senior securities representing indebtedness of 201.1 %, calculated in compliance with the requirements of Sections 18 and 61 of the 1940 Act, and an active status as a BDC and RIC.

As of December 31, 2025, we were in compliance with all covenants under our Credit Facility.

We elected to apply the fair value option of ASC Topic 825, “ Financial Instruments ,” to the Credit Facility, which was consistent with our application of ASC 820 to our investments.

Generally, the fair value of our Credit Facility is determined using a yield analysis, which includes a DCF calculation and also takes into account the assumptions the Valuation Team believes market participants would use, including the estimated remaining life, counterparty credit risk, current market yield and interest rate spreads of similar securities as of the measurement date.

As of September 30, 2025, the discount rate used to determine the fair value of our Credit Facility was 30-day Term SOFR, with a 0.35 % floor, plus a margin of 2.90 % per annum, plus an unused commitment fee of 0.75 %.

As of December 31, 2025, the discount rate used to determine the fair value of our Credit Facility was 30-day Term SOFR, with a 0.35 % floor, plus a margin of 2.90 % per annum, plus an unused commitment fee of 0.75 %.

As of March 31, 2025, the discount rate used to determine the fair value of our Credit Facility was 30-day Term SOFR, with a 0.35 % floor, plus a margin of 3.25 % per annum, plus an unused commitment fee of 1.0 %.

Generally, an increase or decrease in the discount rate used in the DCF calculation may result in a corresponding decrease or increase, respectively, in the fair value of our Credit Facility.

As of each of September 30, 2025 and March 31, 2025, our Credit Facility was valued using Level 3 inputs and any changes in its fair value are recorded in Net unrealized appreciation (depreciation) of other on our accompanying Consolidated Statements of Operations.

The following tables provide relevant information and disclosures about our Credit Facility as of September 30, 2025 and March 31, 2025 and for the three and six months ended September 30, 2025 and 2024, as required by ASC 820:

As of each of December 31, 2025 and March 31, 2025, our Credit Facility was valued using Level 3 inputs and any changes in its fair value are recorded in Net unrealized appreciation (depreciation) of other on our accompanying Consolidated Statements of Operations.

The following tables provide relevant information and disclosures about our Credit Facility as of December 31, 2025 and March 31, 2025 and for the three and nine months ended December 31, 2025 and 2024, as required by ASC 820:

Level 3 – Borrowings

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Statements of Assets and Liabilities Using Significant Unobservable Inputs (Level 3)

September 30, 2025 March 31, 2025

December 31, 2025 March 31, 2025

Credit Facility $ 128,961 $ —

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Credit Facility

Three Months Ended September 30, 2025:

Fair value at June 30, 2025

Three Months Ended December 31, 2025:

Fair value at September 30, 2025

Borrowings 125,300

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Unrealized appreciation 8

Fair value at September 30, 2025

Six Months Ended September 30, 2025

Fair value at December 31, 2025

Nine Months Ended December 31, 2025

Fair value at March 31, 2025

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Unrealized appreciation 361

Fair value at September 30, 2025

Fair value at December 31, 2025

Fair Value Measurements of Borrowings Using Significant Unobservable Inputs (Level 3)

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Credit Facility

Three Months Ended September 30, 2024:

Fair value at June 30, 2024

Three Months Ended December 31, 2024:

Fair value at September 30, 2024

Borrowings 144,200

Repayments ( 61,600 )

Fair value at September 30, 2024

Six Months Ended September 30, 2024

Fair value at December 31, 2024

Nine Months Ended December 31, 2024

Fair value at March 31, 2024

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Repayments ( 167,500 )

Fair value at September 30, 2024

The fair value of the collateral under our Credit Facility was $ 1.0 billion and $ 764.7 million as of September 30, 2025 and March 31, 2025, respectively.

Fair value at December 31, 2024

The fair value of the collateral under our Credit Facility was $ 1.1 billion and $ 764.7 million as of December 31, 2025 and March 31, 2025, respectively.

Notes Payable

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In May 2023, we completed a public offering of 8.00 % Notes due 2028 with an aggregate principal amount of $ 74.8 million (the “ 8.00 % 2028 Notes”), which resulted in net proceeds of approximately $ 72.3 million after deducting underwriting discounts, commissions and offering costs borne by us.

The 8.00 % 2028 Notes are traded under the ticker symbol “GAINL” on Nasdaq.

The 8.00 % 2028 Notes will mature on August 1, 2028 and may be redeemed in whole or in part at any time or from time to time at the Company’s option.

The 8.00 % 2028 Notes bear interest at a rate of 8.00 % per year, which is payable quarterly in arrears.

The indenture relating to the 8.00 % 2028 Notes contains certain covenants, including (i) an inability to incur additional debt or issue additional debt or preferred securities unless the Company’s asset coverage meets the threshold specified in the 1940 Act after such borrowing, (ii) an inability to declare any dividend or distribution (except a dividend payable in our stock) on a class of our capital stock or to purchase shares of our capital stock unless the Company’s asset coverage meets the threshold specified in the 1940 Act at the time of (and giving effect to) such declaration or purchase, and (iii) if, at any time, we are not subject to the reporting requirements of the Exchange Act, we will provide the holders of the 8.00 % 2028 Notes and the trustee with audited annual consolidated financial statements and unaudited interim consolidated financial statements.

The 8.00 % 2028 Notes are recorded at the aggregate principal amount, less underwriting discounts, commissions, and offering costs, on our accompanying Consolidated Statements of Assets and Liabilities .

Total underwriting discounts, commissions, and offering costs related to this offering were $ 2.5 million, which have been recorded as discounts to the aggregate principal amount on our accompanying Consolidated Statements of Assets and Liabilities and are being amortized over the period ending August 1, 2028, the maturity date.

On December 16, 2025, we voluntarily redeemed 100 % of the issued and outstanding 8.00 % 2028 Notes.

The 8.00 % 2028 Notes would have otherwise matured on August 1, 2028.

We incurred a loss on extinguishment of debt of $ 1.3 million, which was recorded in Realized loss on other in our accompanying Consolidated Statements of Operations and which was primarily comprised of unamortized deferred offering costs at the time of redemption.

7.875 % Notes due 2030

In December 2024 , we completed a public offering of 7.875 % Notes due 2030 with an aggregate principal amount of $ 126.5 million (the " 7.875 % 2030 Notes"), which resulted in net proceeds of approximately $ 122.4 million after deducting

underwriting discounts, commissions and offering costs borne by us.

The 7.875 % 2030 Notes are traded under the ticker symbol “GAINI” on Nasdaq.

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Total underwriting discounts, commissions, and offering costs related to this offering were $ 4.1 million, which have been recorded as discounts to the aggregate principal amount on our accompanying Consolidated Statements of Assets and Liabilities and are being amortized over the period ending February 1, 2030, the maturity date.

The following tables summarize our 5.00 % 2026 Notes, 4.875 % 2028 Notes, 8.00 % 2028 Notes and 7.875 % 2030 Notes as of September 30, 2025 and March 31, 2025:

As of September 30, 2025:

6.875 % Notes due 2028

In November 2025 , we completed an offering of 6.875 % Notes due 2028 with an aggregate principal amount of $ 60.0 million (the " 6.875 % 2028 Notes"), which resulted in net proceeds of approximately $ 58.8 million after deducting underwriting discounts, commissions and offering costs borne by us.

The 6.875 % 2028 Notes will mature on November 1, 2028 and may be redeemed in whole or in part at any time prior to August 1, 2028 at par plus a "make-whole" premium and thereafter at par plus accrued and unpaid interest thereon to the redemption date.

The 6.875 % 2028 Notes bear interest at a rate of 6.875 % per year , payable semi-annually in arrears.

The indenture relating to the 6.875 % 2028 Notes contains certain covenants, including (i) an inability to incur additional debt or issue additional debt or preferred securities unless the Company’s asset coverage meets the threshold specified in the 1940 Act after such borrowing, (ii) an inability to declare any dividend or distribution (except a dividend payable in our stock) on a class of our capital stock or to purchase shares of our capital stock unless the Company’s asset coverage meets the threshold specified in the 1940 Act at the time of (and giving effect to) such declaration or purchase, and (iii) if, at any time, we are not subject to the reporting requirements of the Exchange Act, we will provide the holders of the 6.875 % 2028 Notes and the trustee with audited annual consolidated financial statements and unaudited interim consolidated financial statements.

The 6.875 % 2028 Notes are recorded at the aggregate principal amount, less underwriting discounts, commissions, and offering costs, on our accompanying Consolidated Statements of Assets and Liabilities .

Total underwriting discounts, commissions, and offering costs related to this offering were $ 1.2 million, which have been recorded as discounts to the aggregate principal amount on our accompanying Consolidated Statements of Assets and Liabilities and are being amortized over the period ending November 1, 2028, the maturity date.

The following tables summarize our 5.00 % 2026 Notes, 4.875 % 2028 Notes, 6.875 % 2028 Notes, 8.00 % 2028 Notes and 7.875 % 2030 Notes as of December 31, 2025 and March 31, 2025:

As of December 31, 2025:

Description Ticker

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7.875 % 2030 Notes

GAINL May 31, 2023 August 1, 2028 8.00 % 2,990,000 $ 25.00 74,750

7.875 % 2030 Notes

GAINI December 17, 2024 February 1, 2030 7.875 % 5,060,000 $ 25.00 126,500

6.875 % 2028 Notes

N/A November 10, 2025 November 1, 2028 6.875 % 60,000 $ 1,000.00 60,000

Notes payable, gross (B)

15,619,500 448,988

Unamortized Discounts ( 6,760 )

Unamortized deferred financing costs ( 6,111 )

Notes payable, net (C)

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18,549,500 463,738

Unamortized Discounts ( 8,029 )

Unamortized deferred financing costs ( 8,029 )

Notes payable, net (C)

(A) The 5.00 % 2026 Notes, the 4.875 % 2028 Notes and the 8.00 % 2028 Notes can be redeemed at our option at any time.

(A) The 5.00 % 2026 Notes and the 4.875 % 2028 Notes can be redeemed at our option at any time.

The 7.875 % 2030 Notes can be redeemed at our option at any time on or after February 1, 2027.

(B) As of September 30, 2025 and March 31, 2025, asset coverage on our senior securities representing indebtedness, calculated pursuant to Sections 18 and 61 of the 1940 Act, was 193.2 % and 204.4 %, respectively.

The 6.875 % 2028 Notes can be redeemed at our option at any time prior to August 1, 2028 at par plus a "make-whole" premium and thereafter at par plus accrued and unpaid interest thereon to the redemption date.

(B) As of December 31, 2025 and March 31, 2025, asset coverage on our senior securities representing indebtedness, calculated pursuant to Sections 18 and 61 of the 1940 Act, was 201.1 % and 204.4 %, respectively.

The fair value, based on the last reported closing prices, of the 5.00 % 2026 Notes, 4.875 % 2028 Notes, 8.00 % 2028 Notes and 7.875 % 2030 Notes as of September 30, 2025 was $ 128.7 million, $ 127.6 million, $ 76.7 million and $ 129.2 million, respectively.

The fair value, based on the last reported closing prices, of the 5.00 % 2026 Notes, 4.875 % 2028 Notes, 8.00 % 2028 Notes and 7.875 % 2030 Notes as of March 31, 2025 was $ 127.5 million , $ 125.0 million , $ 77.5 million and $ 128.5

million , respectively.

The fair value, based on the last reported closing prices, of the 5.00 % 2026 Notes, 4.875 % 2028 Notes and 7.875 % 2030 Notes as of December 31, 2025 was $ 128.7 million, $ 128.4 million and $ 129.7 million, respectively.

We consider the closing prices of the 5.00 % 2026 Notes, 4.875 % 2028 Notes, 8.00 % 2028 Notes and 7.875 % 2030 Notes to be Level 1 inputs within the ASC 820 hierarchy.

The fair value, based on a DCF analysis, of the 6.875 % 2028 Notes as of December 31, 2025 was $ 60.0 million.

We consider the 2028 Notes to be Level 3 within the ASC 820 fair value hierarchy.

REGISTRATION STATEMENT AND COMMON EQUITY OFFERINGS

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The registration statement permits us to issue, through one or more transactions, up to an aggregate of $ 450.0 million in securities, consisting of common stock, preferred stock, subscription rights, debt securities, and warrants to purchase common stock, preferred stock, or debt securities, including through concurrent, separate offerings of such securities.

As of September 30, 2025, we have the ability to issue up to an additional $ 282.6 million of the securities registered under the registration statement.

As of December 31, 2025, we have the ability to issue up to an additional $ 219.3 million of the securities registered under the registration statement.

Common Equity Offerings

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as a Sales Agent for the 2024 Common Stock ATM Program.

As of September 30, 2025, we had remaining capacity to sell up to an additional $ 34.1 million of common stock under the 2024 Common Stock ATM Program.

As of December 31, 2025, we had remaining capacity to sell up to an additional $ 30.8 million of common stock under the 2024 Common Stock ATM Program.

In August 2022, we entered into equity distribution agreements with Oppenheimer & Co.

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as a 2022 Sales Agent for the 2022 Common Stock ATM Program.

We did not sell any shares under the 2022 Common Stock ATM Program, which terminated in connection with our entry into the 2024 Common Stock ATM Program on May 14, 2024, during the six months ended September 30, 2024.

During the three months ended September 30, 2025, we sold 2,238,361 shares of our common stock under the 2024 Common Stock ATM Program, with a weighted-average gross price of $ 14.10 per share and a weighted-average net price of $ 13.90 per share after deducting commissions and offering costs borne by us, raising approximately $ 31.6 million and $ 31.1 million of gross and net proceeds, respectively.

We did not sell any shares under the 2022 Common Stock ATM Program, which terminated in connection with our entry into the 2024 Common Stock ATM Program on May 14, 2024, during the nine months ended December 31, 2024.

During the three months ended December 31, 2025, we sold 230,930 shares of our common stock under the 2024 Common Stock ATM Program, with a weighted-average gross price of $ 14.03 per share and a weighted-average net price of $ 13.83 per share after deducting commissions and offering costs borne by us, raising approximately $ 3.2 million and $ 3.2 million of gross and net proceeds, respectively.

These sales were above our then current NAV per share.

During the six months ended September 30, 2025, we sold 2,753,656 shares of our common stock under the 2024 Common Stock ATM Program, with a weighted-average gross price of $ 14.12 per share and a weighted-average net price of $ 13.93 per share after deducting commissions and offering costs borne by us, raising approximately $ 38.9 million and $ 38.4 million of gross and net proceeds, respectively.

During the nine months ended December 31, 2025, we sold 2,984,586 shares of our common stock under the 2024 Common Stock ATM Program, with a weighted-average gross price of $ 14.12 per share and a weighted-average net price of $ 13.92 per share after deducting commissions and offering costs borne by us, raising approximately $ 42.1 million and $ 41.5 million of gross and net proceeds, respectively.

These sales were above our then current NAV per share.

During the three and six months ended September 30, 2024, we did not sell any shares under the 2024 Common Stock ATM Program.

During the three and nine months ended December 31, 2024, we sold 148,714 shares of our common stock under the 2024 Common Stock ATM Program, with a weighted-average gross price of $ 13.64 per share and a weighted-average net price of $ 13.48 per share after deducting commissions and offering costs borne by us, raising approximately $ 2.0 million and $ 2.0 million of gross and net proceeds, respectively.

These sales were above our then current NAV per share.

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER WEIGHTED-AVERAGE COMMON SHARE

The following table sets forth the computation of basic and diluted net increase in net assets resulting from operations per weighted-average common share for the three and six months ended September 30, 2025 and 2024:

Three Months Ended September 30, Six Months Ended September 30,

The following table sets forth the computation of basic and diluted net increase in net assets resulting from operations per weighted-average common share for the three and nine months ended December 31, 2025 and 2024:

Three Months Ended December 31, Nine Months Ended December 31,

2025 2024 2025 2024

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Estimates made on a quarterly basis are updated as of each interim reporting date.

If we determined the tax characterization of cash distributions paid to common stockholders during the current calendar year as of September 30, 2025, 51.3 % would be from ordinary income and 48.7 % would be from capital gains.

The tax characterization of cash distributions paid to common stockholders during the calendar year ended December 31, 2025 was 51.3 % from ordinary income and 48.7 % from capital gains.

We paid the following cash distributions to our common stockholders for the six months ended September 30, 2025 and 2024:

For the Six Months Ended September 30, 2025 :

The tax characterization of cash distributions paid to common stockholders during the calendar year ended December 31, 2024 was 52.9 % from ordinary income and 47.1 % from capital gains.

We paid the following cash distributions to our common stockholders for the nine months ended December 31, 2025 and 2024:

For the Nine Months Ended December 31, 2025 :

Declaration Date

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July 10, 2025 September 22, 2025 September 30, 2025 0.08

Six Months Ended September 30, 2025 $ 1.02

For the Six Months Ended September 30, 2024 :

October 14, 2025 October 24, 2025 October 31, 2025 0.08

October 14, 2025 November 17, 2025 November 26, 2025 0.08

October 14, 2025 December 22, 2025 December 31, 2025 0.08

Nine Months Ended December 31, 2025 $ 1.26

For the Nine Months Ended December 31, 2024 :

Declaration Date

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July 9, 2024 September 20, 2024 September 30, 2024 0.08

Six Months Ended September 30, 2024 $ 0.48

September 17, 2024 October 4, 2024 October 15, 2024 0.70 (A)

October 8, 2024 October 22, 2024 October 31, 2024 0.08

October 8, 2024 November 20, 2024 November 29, 2024 0.08

October 8, 2024 December 20, 2024 December 31, 2024 0.08

Nine Months Ended December 31, 2024 $ 1.42

(A) Represents a supplemental distribution to common stockholders.

Aggregate cash distributions to our common stockholders declared and paid were $ 38.1 million for the six months ended September 30, 2025.

Aggregate cash distributions to our common stockholders declared was $ 43.3 million, of which $ 17.6 million was paid during the six months ended September 30, 2024, and $ 25.7 million was paid in October 2024.

Aggregate cash distributions to our common stockholders declared and paid were $ 47.6 million and $ 52.1 million for the nine months ended December 31, 2025 and 2024, respectively.

For the fiscal year ended March 31, 2025, Investment Company Taxable Income exceeded distributions declared and paid, and, in accordance with Section 855(a) of the Code, we elected to treat $ 36.7 million of the first distributions paid subsequent to fiscal year-end, as having been paid in the prior year.

In addition, for the fiscal year ended March 31, 2025, net capital gains exceeded distributions declared and paid, and, in accordance with Section 855(a) of the Code, we elected to treat $ 18.7 million of the first distributions paid subsequent to fiscal year-end as having been paid in the prior year.

For the three months ended September 30, 2025, we recorded $ 2.2 thousand of net adjustments for estimated permanent book-tax differences to reflect tax character, which increased Accumulated net realized (loss) gain in excess of distributions and decreased Overdistributed net investment income and Capital in excess of par value on our accompanying Consolidated Statements of Assets and Liabilities .

For the three months ended September 30, 2024, we recorded $ 0.6 million of net adjustments for estimated permanent book-tax differences to reflect tax character, which decreased Capital in excess of par value and increased Overdistributed net investment income on our accompanying Consolidated Statements of Assets and Liabilities .

For the six months ended September 30, 2025, we recorded $ 0.3 million of net adjustments for estimated permanent book-tax differences to reflect tax character, which increased Accumulated net realized (loss) gain in excess of distributions and decreased Overdistributed net investment income and Capital in excess of par value on our accompanying Consolidated Statements of Assets and Liabilities .

For the six months ended September 30, 2024, we recorded $ 0.8 million of net adjustments for estimated permanent book-tax differences to reflect tax character, which increased Overdistributed net investment income and decreased Accumulated net realized gain in excess of distributions and Capital in excess of par value on our accompanying Consolidated Statements of Assets and Liabilities .

For the three months ended December 31, 2025, we recorded $ 82 thousand of net adjustments for estimated permanent book-tax differences to reflect tax character, which increased Total distributable earnings and decreased Capital in excess of par value on our accompanying Consolidated Statements of Assets and Liabilities .

For the three months ended December 31, 2024, we recorded $ 0.4 million of net adjustments for estimated permanent book-tax differences to reflect tax character, which increased Total distributable earnings and decreased Capital in excess of par value on our accompanying Consolidated Statements of Assets and Liabilities .

For the nine months ended December 31, 2025, we recorded $ 0.4 million of net adjustments for estimated permanent book-tax differences to reflect tax character, which increased Total distributable earnings and decreased Capital in excess of par value on our accompanying Consolidated Statements of Assets and Liabilities .

For the nine months ended December 31, 2024, we recorded $ 1.2 million of net adjustments for estimated permanent book-tax differences to reflect tax character,

which decreased Capital in excess of par value and increased Total distributable earnings on our accompanying Consolidated Statements of Assets and Liabilities .

We may distribute our net long-term capital gains, if any, in cash or elect to retain some or all of such gains, pay taxes at the U.S.

11 unchanged sentences

When loss contingencies are not both probable and estimable, we do not establish reserves.

Based on current knowledge, we do not believe that loss contingencies, if any, arising from pending investigations, litigation or regulatory matters will have a material adverse effect on our financial condition, results of operation or cash flows.

Additionally, based on our current knowledge, we do not believe such loss contingencies are both probable and estimable and, therefore, as of September 30, 2025 and March 31, 2025, we had no established reserves for such loss contingencies.

Additionally, based on our current knowledge, we do not believe such loss contingencies are both probable and estimable and, therefore, as of December 31, 2025 and March 31, 2025, we had no established reserves for such loss contingencies.

Escrow Holdbacks

2 unchanged sentences

We establish reserves and holdbacks against escrow amounts if we determine that it is probable and estimable that a portion of the escrow amounts will not ultimately be released or received at the end of the escrow period.

Reserves and holdbacks against escrow amounts were $ 1.0 million as of September 30, 2025 and March 31, 2025.

Reserves and holdbacks against escrow amounts were $ 1.1 million and $ 1.0 million as of December 31, 2025 and March 31, 2025, respectively.

Financial Commitments and Obligations

1 unchanged sentence

Since these line of credit commitments have expiration dates and we expect many will never be fully drawn, the total line of credit commitment amounts do not necessarily represent future cash requirements.

We estimate the fair value of the combined unused line of credit commitments as of September 30, 2025 and March 31, 2025 to be insignificant.

The following table summarizes the principal balances of unused line of credit as of September 30, 2025 and March 31, 2025, which are not reflected as liabilities in the accompanying Consolidated Statements of Assets and Liabilities:

September 30, 2025 March 31, 2025

We estimate the fair value of the combined unused line of credit commitments as of December 31, 2025 and March 31, 2025 to be insignificant.

The following table summarizes the principal balances of unused line of credit as of December 31, 2025 and March 31, 2025, which are not reflected as liabilities in the accompanying Consolidated Statements of Assets and Liabilities:

December 31, 2025 March 31, 2025

Unused line of credit commitments

2 unchanged sentences

FINANCIAL HIGHLIGHTS

Six Months Ended September 30,

Nine Months Ended December 31,

Per Common Share Data:

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Discounts, commissions and offering costs

( 0.02 ) 0.00

Net accretive effect of equity offering (D)

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Senior Securities Data :

Total borrowings, at cost

Total borrowings, at cost at end of period

$ 577,588 $ 555,238

8 unchanged sentences

For further information on the estimated character of our distributions to common stockholders, including changes in estimates, as applicable, refer to Note 8 — Distributions to Common Stockholders .

(D) During the six months ended September 30, 2025, the accretive effect is a result of issuing common stock at a price above the then current NAV per share.

(D) During the nine months ended December 31, 2025, the accretive effect is a result of issuing common stock at a price above the then current NAV per share.

(E) Represents the impact of the different share amounts (weighted-average basic common shares outstanding for the corresponding period and actual common shares outstanding at the end of the period) in the Per Common Share Data calculations and rounding impacts.

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(H) Ratio of net expenses to average net assets is computed using total expenses, net of any non-contractual, unconditional, and irrevocable credits of fees from the Adviser.

Had we not received any non-contractual, unconditional, and irrevocable credits of fees from the Adviser, the ratio of expenses to average net assets - annualized would have been 17.53 % and 12.83 % for the six months ended September 30, 2025 and 2024, respectively.

(I) Had we not received any non-contractual, unconditional, and irrevocable credits of fees from the Adviser, the ratio of net investment income to average net assets - annualized would have been 1.88 % and 5.84 % for the six months ended September 30, 2025 and 2024, respectively.

Had we not received any non-contractual, unconditional, and irrevocable credits of fees from the Adviser, the ratio of expenses to average net assets - annualized would have been 20.44 % and 23.77 % for the nine months ended December 31, 2025 and 2024, respectively.

(I) Had we not received any non-contractual, unconditional, and irrevocable credits of fees from the Adviser, the ratio of net investment income to average net assets - annualized would have been ( 1.57 )% and 4.18 % for the nine months ended December 31, 2025 and 2024, respectively.

UNCONSOLIDATED SIGNIFICANT SUBSIDIARIES

1 unchanged sentence

Further, in accordance with ASC 946, we are precluded from consolidating any entity other than another investment company, except that ASC 946 provides for the consolidation of a controlled operating company that provides substantially all of its services to the investment company or its consolidated subsidiaries.

We did not have any unconsolidated subsidiaries that met any of the significance conditions under Rule 1-02(w)(2) of the SEC’s Regulation S-X as of or during the six months ended September 30, 2025 and 2024.

We did not have any unconsolidated subsidiaries that met any of the significance conditions under Rule 1-02(w)(2) of the SEC’s Regulation S-X as of or during the nine months ended December 31, 2025 and 2024.

SUBSEQUENT EVENTS

Distributions and Dividends

• In October 2025, our Board of Directors declared the following monthly distributions to common stockholders:

• In January 2026, our Board of Directors declared the following monthly distributions to common stockholders:

Payment Date Distribution per Common Share

October 24, 2025 October 31, 2025 $ 0.08

November 17, 2025 November 26, 2025 0.08

December 22, 2025 December 31, 2025 0.08

January 23, 2026 January 30, 2026 $ 0.08

February 18, 2026 February 27, 2026 0.08

March 23, 2026 March 31, 2026 0.08

Total for the Quarter:

Subsequent to September 30, 2025, we sold 55,414 shares of our common stock under our 2024 Common Stock ATM program at a weighted-average gross price of $ 14.02 per share and raised approximately $ 0.8 million in net proceeds.

All of these sales were above our then-current NAV per share.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements