What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2026-05-12 compared with 2025-05-13 · 398 added, 353 removed, 1553 unchanged (33% of the section changed)

23 unchanged sentences

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of assets and liabilities, including the consolidated schedules of investments, of Gladstone Investment Corporation and its subsidiaries (the “Company”) as of March 31, 2025 and 2024, and the related consolidated statements of operations, of changes in net assets and of cash flows for each of the three years in the period ended March 31, 2025, including the related notes and financial statement schedule listed in the index appearing under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”).

We have audited the accompanying consolidated statements of assets and liabilities, including the consolidated schedules of investments, of Gladstone Investment Corporation and its subsidiary (the “Company”) as of March 31, 2026 and 2025, and the related consolidated statements of operations, changes in net assets and cash flows for each of the three years in the period ended March 31, 2026, including the related notes and financial statement schedule listed in the index appearing under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of March 31, 2026 and 2025, and the results of its operations, changes in its net assets and its cash flows for each of the three years in the period ended March 31, 2026 in conformity with accounting principles generally accepted in the United States of America.

We have also previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated statements of assets and liabilities, including the consolidated schedules of investments, of the Company as of March 31, 2024, 2023, and 2022, and the related consolidated statements of operations, changes in net assets and cash flows for the years ended March 31, 2023 and 2022 (none of which are presented herein), and we expressed unqualified opinions on those consolidated financial statements.

In our opinion, the information set forth in the Senior Securities table of the Company for each of the ten years in the period ended March 31, 2025, appearing on Item 5 of this Form 10-K, is fairly stated, in all material respects, in relation to the consolidated financial statements from which it has been derived.

In our opinion, the information set forth in the Senior Securities table of the Company for each of the five years in the period ended March 31, 2026 is fairly stated, in all material respects, in relation to the consolidated financial statements from which it has been derived.

Basis for Opinion

11 unchanged sentences

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

Our procedures included confirmation of securities owned as of March 31, 2025 and 2024 by correspondence with the custodian, portfolio company investees, and an escrow agent.

Our procedures included confirmation of securities owned as of March 31, 2026 and 2025 by correspondence with the custodian, agent banks, and portfolio company investees.

We believe that our audits provide a reasonable basis for our opinion.

3 unchanged sentences

Valuation of Level 3 Investments

As described in Notes 2 and 3 to the consolidated financial statements, the Company held $974.3 million of total level 3 investments at fair value as of March 31, 2025.

As described in Notes 2 and 3 to the consolidated financial statements, the Company held $1.3 billion of total level 3 investments at fair value as of March 31, 2026.

Management uses significant unobservable inputs in estimating the fair value of its level 3 investments, including (i) with respect to investments valued using a total enterprise value, portfolio company earnings before interest, taxes, depreciation and amortization (“EBITDA”) and EBITDA multiples, revenue and revenue multiples, or a discounted cash flow analysis using estimated risk-adjusted discount rates;

17 unchanged sentences

Control investments (Cost of $ 17,409 and $ 17,409 , respectively)

Cash and cash equivalents

Restricted cash and cash equivalents

Cash equivalents 25

Restricted cash

Interest receivable

4 unchanged sentences

Line of credit at fair value (Cost of $ 23,900 and $ 0 , respectively)

Notes payable, net

Notes payable, net of unamortized deferred financing costs of $ 8,460 and $ 8,029 , respectively

540,528 455,709

16 unchanged sentences

486,717 445,512

Cumulative net unrealized appreciation of investments 40,254 66,214

Overdistributed net investment income

( 5,325 ) ( 19,562 )

Accumulated net realized gain in excess of distributions

Total distributable earnings

Total distributable earnings (C)

181,468 53,535

5 unchanged sentences

(B) Refer to Note 10 — 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.

38 unchanged sentences

Total expenses, net of credits to fees 102,829 65,567 65,529

NET INVESTMENT INCOME

NET INVESTMENT (LOSS) INCOME

$ ( 3,752 ) $ 28,095 $ 21,777

4 unchanged sentences

Control investments — — ( 13,768 )

Total net realized gain 63,184 30,256 10,753

Other ( 1,301 ) — —

Total net realized gain (loss) ( 27,595 ) 63,184 30,256

Net unrealized appreciation (depreciation):

3 unchanged sentences

Other ( 46 ) — ( 29 )

Total net unrealized (depreciation) appreciation ( 25,960 ) 33,272 ( 12,206 )

Net realized and unrealized gain (loss) 37,224 63,528 ( 1,453 )

Total net unrealized appreciation (depreciation) 216,100 ( 25,960 ) 33,272

Net realized and unrealized gain 188,505 37,224 63,528

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

1 unchanged sentence

BASIC AND DILUTED PER COMMON SHARE:

Net investment income

Net investment (loss) income

$ ( 0.10 ) $ 0.76 $ 0.63

12 unchanged sentences

$ 499,084 $ 492,711 $ 439,742

Net investment income $ 28,095 $ 21,777 $ 37,000

Net realized gain on investments 63,184 30,256 10,753

Net unrealized (depreciation) appreciation of investments ( 25,960 ) 33,301 ( 12,235 )

Net unrealized (appreciation) depreciation of other — ( 29 ) 29

Net investment (loss) income $ ( 3,752 ) $ 28,095 $ 21,777

Net realized (loss) gain on investments ( 26,294 ) 63,184 30,256

Net realized loss on other ( 1,301 ) — —

Net unrealized appreciation (depreciation) of investments 216,146 ( 25,960 ) 33,301

Net unrealized appreciation of other ( 46 ) — ( 29 )

Net increase in net assets from operations

14 unchanged sentences

41,550 2,005 43,725

TOTAL INCREASE (DECREASE) IN NET ASSETS

TOTAL INCREASE IN NET ASSETS

169,141 6,373 52,969

11 unchanged sentences

$ 184,753 $ 65,319 $ 85,305

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:

Adjustments to reconcile net increase in net assets resulting from operations to net cash (used in) provided by operating activities:

Purchase of investments

4 unchanged sentences

3,644 76,025 52,228

Net realized gain on investments

Net realized loss (gain) on investments

26,294 ( 63,184 ) ( 30,256 )

Net unrealized depreciation (appreciation) of investments

Net realized loss on other

Net unrealized (appreciation) depreciation of investments

( 216,146 ) 25,960 ( 33,301 )

Net unrealized appreciation (depreciation) of other — 29 ( 29 )

Amortization of premiums, discounts, and acquisition costs, net

Net unrealized appreciation of other 46 — 29

Amortization of deferred financing costs and discounts

1 unchanged sentence

Bad debt expense, net of recoveries

( 202 ) 1,601 1

Changes in assets and liabilities:

Decrease (increase) in interest receivable

(Increase) decrease in interest receivable

( 1,305 ) 761 ( 4,589 )

Decrease in due from administrative agent

536 472 2,507

Increase in other assets, net

Decrease (increase) in other assets, net

559 ( 436 ) ( 181 )

Increase (decrease) in accounts payable and accrued expenses

(Decrease) increase in accounts payable and accrued expenses

( 44 ) 559 ( 54 )

1 unchanged sentence

1,509 1,414 1,156

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

Increase in fees due to Adviser (A)

36,586 2,380 12,375

1 unchanged sentence

Increase in other liabilities

Net cash provided by (used in) operating activities 16,308 ( 69,938 ) ( 4,504 )

Net cash (used in) provided by operating activities ( 101,608 ) 16,308 ( 69,938 )

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issuance of common stock

2,029 44,508 5,492

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

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

41,637 2,005 43,899

3 unchanged sentences

( 271,500 ) ( 281,100 ) ( 210,500 )

Proceeds from issuance of notes payable

Deferred financing costs from line of credit

( 333 ) ( 763 ) ( 1,906 )

Deferred financing and offering costs

Repayment of notes payable ( 74,750 ) — —

Proceeds from issuance of notes payable, net of deferred offering costs

155,547 122,335 72,178

1 unchanged sentence

( 57,162 ) ( 60,951 ) ( 76,061 )

Net cash (used in) provided by financing activities

Net cash provided by (used in) financing activities

88,839 ( 4,374 ) 69,910

NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS

NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

( 12,769 ) 11,934 ( 28 )

CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF YEAR

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR

15,154 3,220 3,248

CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS, END OF YEAR

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR

$ 2,385 $ 15,154 $ 3,220

5 unchanged sentences

For the year ended March 31, 2026:

• In March 2024, we recognized a $ 14.7 million realized loss on our preferred and common equity investments and related first and second lien debt investments in The Mountain Corporation ("The Mountain") upon its liquidation and dissolution.

• In September 2025, we restructured our existing first lien term loans and line of credit to J.R.

– Atlanta, LLC with an aggregate total cost basis of $ 49.9 million into a new $ 20.0 million first lien term loan, which resulted in a realized loss of $ 29.9 million.

For the year ended March 31, 2024:

• In August 2022, in conjunction with a refinancing at Ginsey Home Solutions, Inc.

("Ginsey"), there was a $ 5.1 million payment made by Ginsey to extinguish our secured borrowing liability.

• In December 2022, we replaced our previously outstanding secured second lien term loan and second lien delayed draw term loan to The Mountain with a total aggregate cost basis of $ 13.2 million with a new $ 3.2 million secured second lien term loan, which resulted in a realized loss of $ 10.0 million.

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

4 unchanged sentences

Company and Investment (A)(B)(D)(E)

Principal/Shares/ Units (F)(H)

Principal/Shares/

Cost Fair Value

2 unchanged sentences

Aerospace and Defense – 16.1 %

Ricardo Defense, Inc.

(K) – Term Debt (SOFR+ 9.0 %, 13.3 % Cash, Due 12/2029) (J)

Detroit Defense, Inc.

(K) – Term Debt (SOFR+ 9.0 %, 13.0 % Cash, Due 12/2029) (J)(Q)

$ 61,305 $ 61,305 $ 61,305

Global GRAB Technologies, Inc.

– Term Debt (SOFR+ 9.0 %, 13.5 % Cash, Due 7/2030) (J)

46,500 46,500 46,500

107,805 107,805

Buildings and Real Estate – 5.7 %

2 unchanged sentences

38,250 38,250 38,250

Chemicals, Plastics, and Rubber - 5.3 %

Smart Chemical Solutions, LLC (K) – Term Debt (SOFR+ 9.0 %, 13.5 % Cash, Due 5/2030) (J)

35,660 35,660 35,660

Diversified/Conglomerate Manufacturing – 0.9 %

6 unchanged sentences

Diversified/Conglomerate Services – 5.2 %

Horizon Facilities Services, Inc.

– Term Debt (SOFR+ 0.5 %, 6.0 % Cash, Due 6/2026) (J)

57,700 57,700 29,634

Mason West, LLC – Term Debt (SOFR+ 10.0 %, 13.7 % Cash, Due 7/2027) (J)

25,250 25,250 25,250

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

9,520 9,520 9,520

34,770 34,770

Healthcare, Education, and Childcare – 4.5 %

20 unchanged sentences

33,750 33,750 33,750

Printing and Publishing – 2.3 %

Home Concepts Acquisition, Inc.

– Line of Credit, $ 0 available (SOFR+ 6.0 %, 10.3 % 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, $ 0 available (SOFR+ 6.0 %, 10.3 % 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 8,379

14,400 11,681

Total Secured First Lien Debt $ 377,906 $ 374,285

9 unchanged sentences

Cargo Transport – 0.1 %

Diligent Delivery Systems – Term Debt (SOFR+ 9.0 %, 13.3 % Cash, Due 9/2025) (G)(I)

Diligent Delivery Systems – Term Debt (SOFR+ 9.0 %, 12.7 % Cash, Due 1/2027) (G)(J)

13,000 13,000 512

Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 10.9 %

SFEG Holdings, Inc.

Diversified/Conglomerate Services – 2.5 %

Horizon Facilities Services, Inc.

– Term Debt (SOFR+ 0.5 %, 6.0 % Cash, Due 6/2028) (J)

57,700 57,700 16,545

Total Secured Second Lien Debt $ 93,340 $ 92,964

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

GLADSTONE INVESTMENT CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

March 31, 2026

1 unchanged sentence

Company and Investment (A)(B)(D)(E)

Principal/Shares/ Units (F)(H)

Principal/Shares/

Cost Fair Value

Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 8.2 %

SFEG Holdings, Inc.

– Term Debt (SOFR+ 7.0 %, 12.5 % Cash, Due 10/2028) (J)

$ 54,644 $ 54,644 $ 54,644

Total Secured Second Lien Debt $ 151,040 $ 97,397

Preferred Equity – 45.6 %

Aerospace and Defense – 5.6 %

Ricardo Defense, Inc.

(K) – Preferred Stock (C)(J)

Detroit Defense, Inc.

(K) – Preferred Stock (C)(J)(Q)

17,388 $ 17,388 $ 12,572

Global GRAB Technologies, Inc.

– Preferred Stock (C)(J)

21,100 21,100 25,022

38,488 37,594

Buildings and Real Estate – 4.6 %

2 unchanged sentences

21,000 21,000 30,737

Chemicals, Plastics, and Rubber – 1.1 %

Smart Chemical Solutions, LLC (K) – Preferred Stock (C)(J)

13,843 13,843 7,327

Diversified/Conglomerate Services – 3.5 %

3 unchanged sentences

11,206 11,206 19,235

Sun State Nursery and Landscaping, LLC – Preferred Stock (C)(J)

3,059 3,059 3,718

14,265 22,953

Healthcare, Education, and Childcare – 1.7 %

17 unchanged sentences

11,233 11,233 58,570

Rowan Energy Inc.

– Preferred Stock (C)(J)

7,298 7,298 7,495

18,531 66,065

Printing and Publishing - 0.0 %

18 unchanged sentences

– Common Stock (C)(J)

Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 10.2 %

SFEG Holdings, Inc.

– Common Stock (C)(J)

18,721 30,746 50,788

Total Common Equity/Equivalents $ 44,597 $ 54,268

Total Non-Control/Non-Affiliate Investments $ 562,371 $ 648,589

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

GLADSTONE INVESTMENT CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

March 31, 2026

1 unchanged sentence

Company and Investment (A)(B)(D)(E)

Principal/Shares/ Units (F)(H)

Principal/Shares/

Cost Fair Value

Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 30.5 %

SFEG Holdings, Inc.

– Common Stock (C)(J)

18,721 $ 30,746 $ 204,048

Total Common Equity/Equivalents $ 44,597 $ 207,495

Total Non-Control/Non-Affiliate Investments $ 711,741 $ 983,959

AFFILIATE INVESTMENTS (M) – 48.6 %

4 unchanged sentences

$ 22,000 $ 22,000 $ 22,000

- Atlanta, LLC – Line of Credit, $ 0 available (SOFR+ 6.0 %, 10.3 % Cash, Due 6/2025) (G)(J)

5,000 5,000 3,036

- Atlanta, LLC - Term Debt (SOFR+ 6.0 %, 10.3 % Cash, Due 6/2025) (G)(J)

16,500 16,500 10,019

- Atlanta, LLC – Term Debt (SOFR+ 10.3 %, 14.6 % Cash, Due 6/2025) (G)(J)

26,000 26,000 15,788

- Atlanta, LLC – Term Debt (SOFR+ 6.0 %, 10.3 % Cash, Due 6/2025) (G)(J)

- Atlanta, LLC – Term Debt (SOFR+ 6.0 %, 10.0 % Cash, Due 9/2030) (J)

20,000 20,000 20,000

4 unchanged sentences

Nielsen-Kellerman Acquisition Corp.

(K) – Line of Credit, $ 2,820 available (SOFR+ 5.0 %, 10.0 % Cash, Due 12/2025) (J)

1,070 1,070 1,070

Nielsen-Kellerman Acquisition Corp.

(K) – Term Debt (SOFR+ 8.5 %, 13.5 % Cash, Due 12/2029) (J)

48,082 48,082 48,082

49,152 49,152

Home and Office Furnishings, Housewares, and Durable Consumer Products – 5.7 %

4 unchanged sentences

Pyrotek Special Effects, Inc.

(P) – Line of Credit, $ 500 available (SOFR+ 5.0 %, 10.0 % Cash, Due 11/2026) (J)

2,500 2,500 2,500

Pyrotek Special Effects, Inc.

(P) – Term Debt (SOFR+ 8.0 %, 13.0 % Cash, Due 11/2029) (J)

20,120 20,120 20,120

22,620 22,620

Mining, Steel, Iron and Non-Precious Metals – 1.6 %

8 unchanged sentences

(K) – Line of Credit, $ 0 available (SOFR+ 2.0 %, 7.0 % Cash, Due 12/2026) (G)(J)

1,050 1,050 1,050

B+T Group Acquisition, Inc.

5 unchanged sentences

PSI Molded Plastics, Inc.

– Term Debt (SOFR+ 1.0 %, 7.0 % Cash, Due 1/2028) (J)

– Line of Credit, $ 600 available (SOFR+ 1.0 %, 7.0 % Cash, Due 2/2028) (J)

$ 1,400 $ 1,400 $ 1,400

PSI Molded Plastics, Inc.

– Term Debt (SOFR+ 1.0 %, 7.0 % Cash, Due 2/2028) (J)

Total Secured Second Lien Debt $ 1,800 $ 1,800

$ 10,616 $ 10,616

Preferred Equity – 18.2 %

18 unchanged sentences

GLADSTONE INVESTMENT CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

March 31, 2026

1 unchanged sentence

Company and Investment (A)(B)(D)(E)

Principal/Shares/ Units (F)(H)

Principal/Shares/

Cost Fair Value

8 unchanged sentences

Mining, Steel, Iron and Non-Precious Metals – 4.0 %

UPB Acquisition, Inc.

– Preferred Stock (C)(J)

UPB Acquisition, Inc – Preferred Stock (C)(J)

6,000 6,000 26,713

27 unchanged sentences

Total Control Investments $ 17,409 $ 613

TOTAL INVESTMENTS – 196.2 % (Q)

TOTAL INVESTMENTS – 195.9 % (R)

$ 1,052,848 $ 1,309,248

CASH EQUIVALENTS - 0.0 %

Dreyfus Treasury Obligations Cash Management Fund ( 3.30 % market yield) (S)

Total Cash Equivalents $ 25 $ 25

TOTAL INVESTMENTS AND CASH EQUIVALENTS - 195.9 %

$ 1,052,873 $ 1,309,273

(A) Certain of the securities listed are issued by affiliate(s) of the indicated portfolio company.

The majority of the securities listed, totaling $ 764.7 million at fair value, are pledged as collateral to our revolving line of credit, as described further in Note 5— Borrowings in the accompanying Notes to Consolidated Financial Statements .

The majority of the securities listed, totaling $ 1.2 billion at fair value, are pledged as collateral to our revolving line of credit, as described further in Note 5— Borrowings in the accompanying Notes to Consolidated Financial Statements .

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 March 31, 2026, 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 2.1 % of total investments, at fair value, as of March 31, 2026.

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

GLADSTONE INVESTMENT CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

March 31, 2026

(DOLLAR AMOUNTS IN THOUSANDS)

(B) Unless indicated otherwise, all cash interest rates are indexed to 30-day Secured Overnight Financing Rate ("SOFR"), which was 3.7 % as of March 31, 2026.

1 unchanged sentence

Certain securities are subject to an interest rate floor.

The cash interest rate is the greater of the floor or reference rate plus a spread.

The cash interest rate is the greater of the floor or the reference rate plus a spread.

Due dates represent the contractual maturity date.

1 unchanged sentence

(D) Category percentages represent the fair value of each category and subcategory as a percentage of net assets as of March 31, 2026.

(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.

Refer to Note 3— Investments in the accompanying Notes to Consolidated Financial Statements for additional information.

(F) Where applicable, aggregates all shares of a class of stock owned without regard to specific series owned within such class (some series of which may or may not be voting shares) or aggregates all warrants to purchase shares of a class of stock owned without regard to specific series of such class of stock such warrants allow us to purchase.

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

GLADSTONE INVESTMENT CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

MARCH 31, 2025

(DOLLAR AMOUNTS IN THOUSANDS)

(G) Debt security is on non-accrual status.

(H) Represents the principal balance, presented in thousands, for debt investments and the number of shares/units held for equity investments.

(H) Represents the principal balance, presented in thousands, for debt investments, the cash balance, presented in thousands, for cash equivalents, and the number of shares/units held for equity investments.

Warrants are represented as a percentage of ownership, as applicable.

(I) Fair value was based on an internal yield analysis or on estimates of value submitted by a third-party valuation firm.

Refer to Note 3— Investments in the accompanying Notes to Consolidated Financial Statements for additional information.

(I) Reserved.

(J) Fair value was based on the total enterprise value of the portfolio company, which is generally allocated to the portfolio company’s securities in order of their relative priority in the capital structure.

Refer to Note 3— Investments in the accompanying Notes to Consolidated Financial Statements for additional information.

(K) One or more of our affiliated funds, Gladstone Capital Corporation and Gladstone Alternative Income Fund, co-invested with us in this portfolio company pursuant to an exemptive order granted by the U.S.

(K) One or more of our affiliated funds, Gladstone Capital Corporation and Gladstone Alternative, co-invested with us in this portfolio company pursuant to an exemptive order granted by the U.S.

Securities and Exchange Commission.

4 unchanged sentences

(P) This portfolio company is headquartered in Ontario, Canada.

(Q) Cumulative gross unrealized appreciation for federal income tax purposes is $ 183.3 million;

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

to Detroit Defense, Inc.

during the year ended March 31, 2026.

(R) Cumulative gross unrealized appreciation for federal income tax purposes is $ 428.5 million;

cumulative gross unrealized depreciation for federal income tax purposes is $ 173.7 million.

Cumulative net unrealized appreciation is $ 38.5 million, based on a tax cost of $ 940.9 million.

Cumulative net unrealized appreciation is $ 254.8 million, based on a tax cost of $ 1.1 billion.

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

Refer to Note 3— Investments in the accompanying Notes to Consolidated Financial Statements for additional information.

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

4 unchanged sentences

Company and Investment (A)(B)(D)(E)

Principal/Shares/

Principal/Shares/ Units (F)(H)

Cost Fair Value

1 unchanged sentence

Secured First Lien Debt – 60.3 %

Aerospace and Defense – 12.3 %

Ricardo Defense, Inc.

(K) – Term Debt (SOFR+ 9.0 %, 13.3 % Cash, Due 12/2029) (J)

$ 61,305 $ 61,305 $ 61,305

Buildings and Real Estate – 7.7 %

31 unchanged sentences

36,750 36,750

Hotels, Motels, Inns, and Gaming Total – 13.2 %

Nocturne Luxury Villas, Inc.

– Line of Credit, $ 0 available (SOFR+ 8.0 %, 13.3 % Cash, Due 6/2025) (J)

4,000 4,000 4,000

Nocturne Luxury Villas, Inc.

– Term Debt (SOFR+ 10.5 %, 14.5 % Cash, Due 6/2026) (J)(P)

61,100 61,100 61,100

65,100 65,100

Leisure, Amusement, Motion Pictures, and Entertainment – 5.6 %

3 unchanged sentences

Oil and Gas – 6.8 %

The E3 Company, LLC – Line of Credit, $ 1,000 available (SOFR+ 5.5 %, 10.8 % Cash, Due 2/2025) (J)

1,000 1,000 1,000

The E3 Company, LLC – Term Debt (SOFR+ 9.0 %, 13.5 % Cash, Due 9/2028) (J)

33,750 33,750 33,750

34,750 34,750

Printing and Publishing – 2.3 %

3 unchanged sentences

Home Concepts Acquisition, Inc.

– Line of Credit, $ 0 available (SOFR+ 6.0 %, 10.3 % Cash, Due 11/2025) (J)

Home Concepts Acquisition, Inc.

– Term Debt (SOFR+ 9.0 %, 13.3 % Cash, Due 5/2028) (J)

12 unchanged sentences

Cargo Transport – 2.5 %

Diligent Delivery Systems – Term Debt (SOFR+ 9.0 %, 14.3 % Cash, Due 9/2024) (Q)

Diligent Delivery Systems – Term Debt (SOFR+ 9.0 %, 13.3 % Cash, Due 9/2025) (G)(I)

13,000 13,000 12,624

Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 10.9 %

SFEG Holdings, Inc.

– Term Debt (SOFR+ 7.0 %, 12.5 % Cash, Due 10/2028) (J)

54,644 54,644 54,644

Total Secured Second Lien Debt $ 93,340 $ 92,964

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

GLADSTONE INVESTMENT CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2025

1 unchanged sentence

Company and Investment (A)(B)(D)(E)

Principal/Shares/

Principal/Shares/ Units (F)(H)

Cost Fair Value

Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) – 11.1 %

SFEG Holdings, Inc.

– Term Debt (SOFR+ 7.0 %, 12.5 % Cash, Due 10/2028) (J)

$ 54,644 $ 54,644 $ 54,644

Total Secured Second Lien Debt $ 93,340 $ 93,340

Preferred Equity – 40.2 %

Aerospace and Defense – 3.5 %

Ricardo Defense, Inc.

(K) – Preferred Stock (C)(J)

17,388 $ 17,388 $ 17,388

Buildings and Real Estate – 6.2 %

Dema/Mai Holdings, Inc.

– Preferred Equity (C)(J)

– Preferred Stock (C)(J)

21,000 21,000 31,070

17 unchanged sentences

16,236 60,947

Hotels, Motels, Inns, and Gaming – 2.5 %

Nocturne Luxury Villas, Inc.

– Preferred Stock (C)(J)

6,600 6,600 12,266

Leisure, Amusement, Motion Pictures, and Entertainment – 4.1 %

17 unchanged sentences

Cargo Transport – 0.0 %

Diligent Delivery Systems – Common Stock Warrants (C)(Q)

Diligent Delivery Systems – Common Stock Warrants (C)(J)

Diversified/Conglomerate Manufacturing – 0.0 %

9 unchanged sentences

18,721 30,746 50,788

Personal and Non-Durable Consumer Products (Manufacturing Only) – 0.0 %

Funko Acquisition Holdings, LLC (K) – Common Units (C)(O)

Total Common Equity/Equivalents $ 44,597 $ 54,268

2 unchanged sentences

GLADSTONE INVESTMENT CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2025

1 unchanged sentence

Company and Investment (A)(B)(D)(E)

Principal/Shares/

Principal/Shares/ Units (F)(H)

Cost Fair Value

16 unchanged sentences

100,498 80,883

Electronics – 9.9 %

Nielsen-Kellerman Acquisition Corp.

(K) – Line of Credit, $ 2,820 available (SOFR+ 5.0 %, 10.0 % Cash, Due 12/2025) (J)

1,070 1,070 1,070

Nielsen-Kellerman Acquisition Corp.

(K) – Term Debt (SOFR+ 8.5 %, 13.5 % Cash, Due 12/2029) (J)

48,082 48,082 48,082

49,152 49,152

Home and Office Furnishings, Housewares, and Durable Consumer Products – 7.6 %

2 unchanged sentences

38,000 38,000 38,000

Mining, Steel, Iron and Non-Precious Metals Total – 3.7 %

Utah Pacific Bridge & Steel, Ltd.

Leisure, Amusement, Motion Pictures, and Entertainment – 4.5 %

Pyrotek Special Effects, Inc.

(P) – Line of Credit, $ 500 available (SOFR+ 5.0 %, 10.0 % Cash, Due 11/2026) (J)

2,500 2,500 2,500

Pyrotek Special Effects, Inc.

(P) – Term Debt (SOFR+ 8.0 %, 13.0 % Cash, Due 11/2029) (J)

20,120 20,120 20,120

22,620 22,620

Mining, Steel, Iron and Non-Precious Metals – 3.0 %

UPB Acquisition, Inc.

– Term Debt (SOFR+ 10.0 %, 14.3 % Cash, Due 7/2026) (J)

2 unchanged sentences

B+T Group Acquisition, Inc.

(K) – Line of Credit, $ 0 available (SOFR+ 2.0 %, 7.3 % Cash, Due 12/2026) (J)

(K) – Line of Credit, $ 0 available (SOFR+ 2.0 %, 7.0 % Cash, Due 12/2026) (G)(J)

3,080 3,080 3,080

B+T Group Acquisition, Inc.

(K) – Line of Credit, $ 394 available (SOFR+ 2.0 %, 7.3 % Cash, Due 6/2025) (J)

(K) – Line of Credit, $ 120 available (SOFR+ 2.0 %, 7.0 % Cash, Due 6/2025) (G)(J)

B+T Group Acquisition, Inc.

(K) – Term Debt (SOFR+ 2.0 %, 7.3 % Cash, Due 12/2026) (J)

(K) – Term Debt (SOFR+ 2.0 %, 7.0 % Cash, Due 12/2026) (G)(J)

14,000 14,000 3,575

5 unchanged sentences

$ 10,616 $ 10,616 $ 10,616

Diversified/Conglomerate Services – 5.1 %

Nth Degree, Inc.

– Term Debt (SOFR+ 8.5 %, 13.8 % Cash, Due 6/2029) (I)

25,000 25,000 25,000

Total Secured Second Lien Debt

13 unchanged sentences

6,640 6,640 8,410

24,309 21,331

Electronics – 4.5 %

Nielsen-Kellerman Acquisition Corp.

(K) – Preferred Stock (C)(J)

22,169 22,169 22,421

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

GLADSTONE INVESTMENT CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2025

(DOLLAR AMOUNTS IN THOUSANDS)

Company and Investment (A)(B)(D)(E)

Principal/Shares/ Units (F)(H)

Cost Fair Value

Home and Office Furnishings, Housewares, and Durable Consumer Products – 4.7 %

2 unchanged sentences

6,180 $ — $ 23,539

Leisure, Amusement, Motion Pictures, and Entertainment – 1.4 %

Pyrotek Special Effects, Inc.

(P) – Preferred Stock (C)(J)

7,060 7,060 7,260

Mining, Steel, Iron and Non-Precious Metals – 5.2 %

Utah Pacific Bridge & Steel, Ltd.

UPB Acquisition, Inc.

– Preferred Stock (C)(J)

5 unchanged sentences

Total Preferred Equity $ 100,390 $ 101,557

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

GLADSTONE INVESTMENT CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

MARCH 31, 2024

(DOLLAR AMOUNTS IN THOUSANDS)

Company and Investment (A)(B)(D)(E)

Principal/Shares/

Cost Fair Value

Common Equity/Equivalents – 1.0 %

Diversified/Conglomerate Services – 10.4 %

Nth Degree Investment Group, LLC – Common Stock (C)(J)

Finance – 1.0 %

Gladstone Alternative Income Fund – Common Equity (C)(O)

500,000 $ 5,000 $ 4,975

18 unchanged sentences

Total Control Investments $ 17,409 $ 343

TOTAL INVESTMENTS – 186.8 % (R)

TOTAL INVESTMENTS – 196.2 % (Q)

$ 939,066 $ 979,320

CASH EQUIVALENTS - 0.3 %

Dreyfus Treasury Obligations Cash Management Fund ( 3.97 % market yield) (R)

1,354 $ 1,354 $ 1,354

Total Cash Equivalents $ 1,354 $ 1,354

TOTAL INVESTMENTS AND CASH EQUIVALENTS - 196.5 %

$ 940,420 $ 980,674

(A) Certain of the securities listed are issued by affiliate(s) of the indicated portfolio company.

1 unchanged sentence

Additionally, under Section 55 of 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 March 31, 2024, our investment in Funko Acquisition Holdings, LLC ("Funko") was considered a non-qualifying asset under Section 55 of the 1940 Act and represented less than 0.1 % of total investments, at fair value.

As of March 31, 2025, our investments in Pyrotek and Gladstone Alternative are considered non-qualifying assets under Section 55 of the 1940 Act.

Such non-qualifying assets represent 3.6 % of total investments, at fair value, as of March 31, 2025.

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

GLADSTONE INVESTMENT CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

March 31, 2025

(DOLLAR AMOUNTS IN THOUSANDS)

(B) Unless indicated otherwise, all cash interest rates are indexed to 30-day SOFR, which was 4.3 % as of March 31, 2025.

9 unchanged sentences

(G) Debt security is on non-accrual status.

(H) Represents the principal balance, presented in thousands, for debt investments and the number of shares/units held for equity investments.

Warrants are represented as a percentage of ownership, as applicable.

3 unchanged sentences

Refer to Note 3— Investments in the accompanying Notes to Consolidated Financial Statements for additional information.

(K) One of our affiliated funds, Gladstone Capital Corporation, co-invested with us in this portfolio company pursuant to an exemptive order granted by the U.S.

(K) One or more of our affiliated funds, Gladstone Capital Corporation and Gladstone Alternative, co-invested with us in this portfolio company pursuant to an exemptive order granted by the U.S.

Securities and Exchange Commission.

2 unchanged sentences

(N) Control investments, as defined by the 1940 Act, are those where we have the power to exercise a controlling influence over the management or policies of the portfolio company, which may include owning, with the power to vote, more than 25.0% of the issued and outstanding voting securities.

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

GLADSTONE INVESTMENT CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)

MARCH 31, 2024

(DOLLAR AMOUNTS IN THOUSANDS)

(O) Our investment in Funko was valued using Level 2 inputs within the ASC 820 fair value hierarchy.

Our common units in Funko are convertible into class A common stock in Funko, Inc.

upon meeting certain requirements.

Fair value was based on the closing market price of shares of Funko, Inc.

as of the reporting date, less a discount for lack of marketability.

is traded on the Nasdaq Global Select Market under the trading symbol “FNKO.” Refer to Note 3— Investments in the accompanying Notes to Consolidated Financial Statements for additional information.

(P) Debt security is subject to an interest rate ceiling.

(Q) Fair value was based on the expected exit or payoff amount, where such event has occurred or is expected to occur imminently.

(R) Cumulative gross unrealized appreciation for federal income tax purposes is $ 180.5 million;

(O) Fair value was based on net asset value, provided by the underlying fund, as a practical expedient.

(P) This portfolio company is headquartered in Ontario, Canada.

(Q) Cumulative gross unrealized appreciation for federal income tax purposes is $ 183.3 million;

cumulative gross unrealized depreciation for federal income tax purposes is $ 144.9 million.

Cumulative net unrealized appreciation is $ 38.5 million, based on a tax cost of $ 940.9 million.

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

Refer to Note 3— Investments 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

MARCH 31, 2026

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

(DOLLAR AMOUNTS IN TABLES IN THOUSANDS, EXCEPT SHARE AND 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”).

15 unchanged sentences

Refer to Note 4 — Related Party Transactions for more information regarding these arrangements.

On March 20, 2026, the Board of Directors appointed David Dullum as the Company’s Chief Executive Officer, effective immediately.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 unchanged sentences

Management believes it has made all necessary adjustments so that our accompanying Consolidated Financial Statements are presented fairly and that all such adjustments are of a normal recurring nature.

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

All significant intercompany balances and transactions have been eliminated.

Our 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.

Consolidation

In accordance with Article 6 of Regulation S-X, we do not consolidate portfolio company investments.

Under the investment company rules and regulations pursuant to the American Institute of Certified Public Accountants Audit and Accounting Guide for Investment Companies, codified in 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.

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.

Use of Estimates

1 unchanged sentence

Actual results may differ from those estimates.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation in the Consolidated Financial Statements and the accompanying Notes to Consolidated Financial Statements .

Reclassifications did not impact net increase (decrease) in net assets resulting from operations, total assets, total liabilities or total net assets, or Consolidated Statements of Changes in Net Assets and Consolidated Statements of Cash Flows classifications.

Cash and Cash Equivalents

1 unchanged sentence

Cash and cash equivalents are carried at cost, which approximates fair value.

We place our cash with financial institutions, and at times, cash held in checking accounts may exceed the Federal Deposit Insurance Corporation insured limit.

We place our cash with financial institutions, and at times, cash held in cash and restricted cash deposits held at financial institutions, which at times may exceed the Federal Deposit Insurance Corporation insured limit.

We seek to mitigate this concentration of credit risk by depositing funds with major financial institutions.

We held $ 1.8 million and $ 1.9 million of cash equivalents in Dreyfus Treasury Obligations Cash Management Fund as of March 31, 2025 and 2024, respectively.

Investments in money market funds represent Level 1 investments within the GAAP fair value hierarchy.

Restricted Cash and Cash Equivalents

Restricted cash and cash equivalents are generally cash and cash equivalents held in escrow received as part of an investment exit.

Restricted cash and cash equivalents are carried at cost, which approximates fair value.

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 March 31, 2026

As of March 31, 2025

Cash $ 1,132 $ 12,944

Cash equivalents 25 1,354

Restricted cash 1,228 856

Total cash, cash equivalents and restricted cash $ 2,385 $ 15,154

Restricted Cash

Restricted cash is generally cash held in escrow received as part of an investment exit.

Restricted cash is carried at cost, which approximates fair value.

Classification of Investments

5 unchanged sentences

Accounting Recognition

We record our investments at fair value in accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) and the 1940 Act.

We record our investments at fair value in accordance with FASB ASC Topic 820, “Fair Value Measurement” (“ASC 820”) and the 1940 Act.

Investment transactions are recorded on the trade date.

4 unchanged sentences

In accordance with the 1940 Act, our Board of Directors has the ultimate responsibility for reviewing the good faith fair value determination of our investments for which market quotations are not readily available based on our Policy and for overseeing the Valuation Designee.

Such review and oversight includes receiving written fair value determinations and supporting materials provided by the Valuation Designee, in coordination with the Administrator and with the oversight by the Company's chief valuation officer (collectively, the “Valuation Team”).

Such review and oversight includes receiving written fair value determinations and supporting materials provided by the Valuation Designee and with the oversight by the Company's chief valuation officer (collectively, the “Valuation Team”).

The Valuation Committee of our Board of Directors (comprised entirely of independent directors) meets to review the valuation determinations and supporting materials, discusses the information provided by the Valuation Team, determines whether the Valuation Team has followed the Policy, and reviews other facts and circumstances, including current valuation risks, conflicts of interest, material valuation matters, appropriateness of valuation methodologies, back-testing results, price challenges/overrides, and ongoing monitoring and oversight of pricing services.

12 unchanged sentences

The Valuation Team evaluates such information for incorporation into our TEV, including review of all inputs provided by the independent valuation firm.

The Valuation Team then presents a determination to our Valuation Committee as to the fair value.

The Valuation

Team then presents a determination to our Valuation Committee as to the fair value.

Our Valuation Committee reviews the determined fair value and whether it is reasonable in light of the Policy and other relevant facts and circumstances.

9 unchanged sentences

Once the TEV is determined for a portfolio company, the Valuation Team generally allocates the TEV to the portfolio company’s securities based on the facts and circumstances of the securities, which typically results in the allocation of fair value to securities based on the order of their relative priority in the capital structure.

Generally, the Valuation Team uses TEV to value our equity

investments and, in the circumstances where we have the ability to effectuate a sale of a portfolio company, our debt investments.

Generally, the Valuation Team uses TEV to value our equity investments and, in the circumstances where we have the ability to effectuate a sale of a portfolio company, our debt investments.

When there is equity value or sufficient TEV to cover the principal balance of our debt securities, the fair value of our senior secured debt generally equals or approximates cost.

12 unchanged sentences

• Investments in Funds — For equity investments in other funds for which we cannot effectuate a sale of the fund, the Valuation Team generally determines the fair value of our invested capital at the net asset value (“NAV”) provided by the fund.

Any invested capital that is not yet reflected in the NAV provided by the fund is valued at par value.

The Valuation Team may also determine fair value of our investments in other investment funds based on the capital accounts of the underlying entity.

ASC 820 permits an entity holding investments in certain entities that either are investment companies, or have attributes similar to an investment company, and calculate NAV per share or its equivalent for which the fair value is not readily determinable, to measure the fair value of such investments on the basis of that NAV per share, or its equivalent, without adjustment.

In addition to the valuation techniques listed above, the Valuation Team may also consider other factors when determining the fair value of our investments, including:

18 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 March 31, 2025, our loans to B+T Group Acquisition, Inc., Diligent Delivery Systems, Edge Adhesives Holdings, Inc.

("Edge"), and J.R.

As of March 31, 2026, our loans to B+T Group Acquisition, Inc.

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

("Edge") were on non-accrual status, with an aggregate debt cost basis of $ 40.3 million, or 5.4 % of the cost basis of all debt investments in our portfolio, and an aggregate fair value of $ 9.1 million, or 1.4 % of the fair value of all debt investments in our portfolio.

As of March 31, 2025, our loans to B+T, Diligent, Edge and J.R.

– Atlanta, LLC (“J.R.

Hobbs”) were on non-accrual status, with an aggregate debt cost basis of $ 90.2 million, or 13.1 % of the cost basis of all debt investments in our portfolio, and an aggregate fair value of $ 50.9 million, or 8.2 % of the fair value of all debt investments in our portfolio.

As of March 31, 2024, our loans to Edge and J.R.

Hobbs were on non-accrual status, with an aggregate debt cost basis of $ 59.1 million, or 9.0 % of the cost basis of all debt investments in our portfolio, and an aggregate fair value of $ 29.7 million, or 4.8 % of the fair value of all debt investments in our portfolio.

Paid-in-kind (“PIK”) interest, computed at the contractual rate specified in the loan agreement, is added to the principal balance of the loan and recorded as interest income.

12 unchanged sentences

Related Party Fees

We are party to the Advisory Agreement with the Adviser, which is indirectly owned and controlled by our chairman and chief executive officer.

We are party to the Advisory Agreement with the Adviser, which is indirectly owned by our chairman.

In accordance with the Advisory Agreement, we pay the Adviser fees as compensation for its services, consisting of a base management fee and an incentive fee.

Additionally, we pay the Adviser a loan servicing fee as compensation for its services as servicer under the terms of the Fifth Amended and Restated Credit Agreement dated April 30, 2013, as amended from time to time (the "Credit Facility").

We are also party to the Administration Agreement with the Administrator, which is indirectly owned and controlled by our chairman and chief executive officer, whereby we pay separately for administrative services.

We are also party to the Administration Agreement with the Administrator, which is indirectly owned and controlled by our chairman, whereby we pay separately for administrative services.

Refer to Note 4 — Related Party Transactions for additional information regarding these related party fees and agreements.

12 unchanged sentences

We are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized benefits will change materially in the next twelve months.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740):

Improvements to Income Tax Disclosures” which was issued to enhance the transparency and decision usefulness of income tax disclosures.

The new guidance is effective for annual periods beginning after December 15, 2024.

We have adopted ASU 2023-09 effective as of March 31, 2026 and concluded the application of this guidance did not have a material on our consolidated financial statements.

Distributions

14 unchanged sentences

This is an “opt in” dividend reinvestment plan, meaning that common stockholders may elect to have their cash distributions automatically reinvested in additional shares of our common stock.

Common stockholders who do not so elect will receive their

distributions in cash.

Common stockholders who do not so elect will receive their distributions in cash.

Any distributions reinvested under the plan will be taxable to a common stockholder to the same extent, and with the same character, as if the common stockholder had received the distribution in cash.

5 unchanged sentences

In November 2023, the FASB issued Accounting Standards Update 2023-07, “Segment Reporting - Improvements to Reportable Segment Disclosures” ("ASU 2023-07") to improve reportable segments disclosure requirements.

The ASU requires existing annual segment disclosures to also be disclosed on an interim basis and also requires additional disclosures around significant segment expenses and disclosures to identify the title and position of the chief operating decision maker (“CODM”).

ASU 2023-07 requires existing annual segment disclosures to also be disclosed on an interim basis and also requires additional disclosures around significant segment expenses and disclosures to identify the title and position of the chief operating decision maker (“CODM”).

The standard is effective for fiscal years beginning after December 15, 2023, and interim periods thereafter.

5 unchanged sentences

Recent Accounting Pronouncements

In June 2022, the FASB issued Accounting Standards Update 2022-03, “Fair Value Measurement (Topic 820):

Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” (“ASU 2022-03”), which clarifies the measurement and presentation of fair value for equity securities subject to contractual restrictions that prohibit the sale of the equity security.

ASU 2022-03 is effective for annual reporting periods beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption permitted.

Our early adoption of ASU 2022-03 did not have a material impact on our financial position, results of operations or cash flows.

In December 2025, the FASB issued ASU 2025-11, “Interim Reporting (Topic 270):

Narrow-Scope Improvements” ("ASU 2025-11"), which improves the navigability of required interim disclosures and clarifies when that guidance is applicable.

Additionally, ASU 2025-11 provides additional guidance on what disclosures should be provided in interim reporting periods.

ASU 2025-11 is effective for interim reporting periods within annual periods beginning after December 15, 2027.

The Company is currently assessing the impact of this guidance;

however, the Company does not expect a material impact on our consolidated financial statements.

In December 2025, the FASB issued ASU 2025-12, “Codification Improvements” ("ASU 2025-12"), which facilitates codification updates for a broad range of topics arising from technical corrections, unintended application of the codification, clarifications, and other minor improvements.

ASU 2025-12 is effective for fiscal years beginning after December 15, 2026.

The Company is currently assessing the impact of this guidance;

however, the Company does not expect a material impact on our consolidated financial statements.

In accordance with ASC 820, the fair value of our investments is determined to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between willing market participants on the measurement date.

7 unchanged sentences

When a determination is made to classify our investments within Level 3 of the valuation hierarchy, such determination is based upon the significance of the unobservable factors to the overall fair value measurement.

However, Level 3 financial instruments typically include, in addition to the unobservable, or Level 3, inputs, observable inputs (or components that are

actively quoted and can be validated to external sources).

However, Level 3 financial instruments typically include, in addition to the unobservable, or Level 3, inputs, observable inputs (or components that are actively quoted and can be validated to external sources).

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 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 Gladstone Alternative Income Fund ("Gladstone Alternative"), which was valued using NAV as a practical expedient.

As of March 31, 2024, all of our investments were valued using Level 3 inputs within the ASC 820 fair value hierarchy, except for our investment in Funko Acquisition Holdings, LLC (“Funko”), which was valued using Level 2 inputs.

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

As of March 31, 2026 and 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.

16 unchanged sentences

Investments measured at NAV (A)

Total Investments at March 31, 2025

Total Investments

$ — $ — $ 1,304,243 $ 1,309,248

Cash equivalents

Total Investments and Cash Equivalents as of March 31, 2026

$ 25 $ — $ 1,304,243 $ 1,309,273

Fair Value Measurements

12 unchanged sentences

— — 974,345 974,345

Investments measured at NAV

Total Investments at March 31, 2024

Investments measured at NAV (A)

Total Investments

— — 974,345 979,320

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

Cash equivalents

Total Investments and Cash Equivalents as of March 31, 2025

$ 1,354 $ — $ 974,345 $ 980,674

(A) Includes our investment in Gladstone Alternative as of March 31, 2026 and 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 Annual Report.

(B) Fair value was determined based on the closing market price of shares of Funko, Inc.

(our units in Funko can be converted into common shares of Funko, Inc.) at the reporting date less a discount for lack of marketability, as our investment was subject to certain restrictions.

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 March 31, 2026 and 2025, by caption on our accompanying Consolidated Statements of Assets and Liabilities, and by security type:

10 unchanged sentences

304,782 200,606

Common equity/equivalents (A)

Common equity/equivalents

207,495 54,268

5 unchanged sentences

Secured second lien debt

10,616 45,363

Preferred equity

122,167 101,557

Common equity/equivalents (B)

Common equity/equivalents (A)

Total Affiliate Investments

8 unchanged sentences

$ 1,304,243 $ 974,345

(A) Excludes our investment in Funko with a fair value of $ 18 thousand as of March 31, 2024, which was valued using Level 2 inputs.

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

(A) Excludes our investment in Gladstone Alternative as of March 31, 2026 and 2025 with a fair value of $ 5.0 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 March 31, 2026 and 2025.

17 unchanged sentences

$ 3,637 – $ 24,234 /

12,624 25,000 Yield Analysis Discount Rate 20.7 % – 20.7 % /

13.8 % – 13.8 % /

— 12,624 Yield Analysis Discount Rate N/A 20.7 % – 20.7 % /

Preferred equity 426,949 302,163 TEV EBITDA multiple 3.6 x – 8.7 x /

6 unchanged sentences

$ 6,690 – $ 102,791 /

Common equity/equivalents (A)(B)

Common equity/equivalents

207,495 54,268 TEV EBITDA multiple 5.0 x – 10.3 x /

3 unchanged sentences

Total $ 1,304,243 $ 974,345

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

(B) Fair value as of March 31, 2024 excludes our investment in Funko with a fair value of $ 18 thousand, which was valued using Level 2 inputs.

Fair value measurements can be sensitive to changes in one or more of the valuation inputs.

Changes in discount rates, EBITDA, or EBITDA multiples (or revenue or revenue multiples), each in isolation, may change the fair value of certain of our investments.

Generally, an increase/(decrease) in market yields, discount rates or a (decrease)/increase in EBITDA or EBITDA multiples (or revenue or revenue multiples) may result in a (decrease)/increase in the fair value of certain of our investments.

Generally, an increase/(decrease) in market yields or discount rates or a (decrease)/increase in EBITDA or EBITDA multiples (or revenue or revenue multiples) may result in a (decrease)/increase in the fair value of certain of our investments.

Changes in Level 3 Fair Value Measurements of Investments

8 unchanged sentences

Total gain (loss):

Net realized gain (loss) (A)

Net realized (loss) gain (A)

( 29,938 ) — 3,481 — ( 26,457 )

2 unchanged sentences

( 3,127 ) ( 21,958 ) 68,870 153,227 197,012

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

Reversal of previously recorded depreciation upon realization (B)

19,104 — — — 19,104

32 unchanged sentences

$ 514,334 $ 103,580 $ 302,163 $ 54,268 $ 974,345

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

(A) Included in net realized (loss) gain on investments on our accompanying Consolidated Statements of Operations for the respective years ended March 31, 2026 and 2025.

(B) Included in net unrealized (depreciation) appreciation of investments on our accompanying Consolidated Statements of Operations for the respective years ended March 31, 2026 and 2025.

(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.

Includes $ 0.3 million of proceeds from the recapitalization of Old World Christmas, Inc.

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

("PSI Molded") with a total cost basis of $ 16.4 million and $ 9.8 million, which was converted to preferred equity in January 2025.

Transfers represent preferred equity of SFEG Holdings, Inc.

("SFEG") with a total cost basis and fair value of $ 4.8 million and $ 8.6 million, respectively, which was converted to common equity in October 2023.

Investment Activity

During the fiscal year ended March 31, 2025, the following significant transactions occurred:

• In May 2024, our remaining shares in Funko were sold representing an exit of our investment in Funko, and resulting in a return of our equity cost basis of $ 21 thousand and a realized gain of $ 2 thousand.

• In July 2024, we invested an additional $ 18.5 million through secured first lien debt in Nocturne Luxury Villas, Inc.

("Nocturne") to fund an add-on acquisition.

• In September 2024, we exited our investment in Nth Degree Investment Group, LLC, which resulted in success fee income of $ 0.1 million, a realized gain on our preferred equity of $ 42.3 million and the repayment of our debt investment of $ 25.0 million at par.

• In November 2024, we invested $ 27.2 million in a new portfolio company, Pyrotek Special Effects, Inc.

("Pyrotek"), in the form of $ 20.1 million of secured first lien debt and $ 7.1 million of preferred equity.

Pyrotek, headquartered in Ontario, Canada, is a leading provider of special effects services and solutions for the live entertainment industry.

• In December 2024, we invested $ 5.0 million in Gladstone Alternative, one of our affiliated funds, through common equity.

Gladstone Alternative is a registered, non-diversified, closed-end management investment company that operates as an interval fund.

• In December 2024, we invested $ 71.3 million in a new portfolio company, Nielsen-Kellerman Acquisition Corp.

("Nielsen-Kellerman"), in the form of $ 49.1 million of secured first lien debt and $ 22.2 million of preferred equity.

Nielsen-Kellerman, headquartered in Boothwyn, Pennsylvania, designs, manufactures, and distributes a wide range of rugged, waterproof environmental measurement and sports performance instruments.

• In December 2024, we invested $ 78.7 million in a new portfolio company, Ricardo Defense, Inc.

("Ricardo"), in the form of $ 61.3 million of secured first lien debt and $ 17.4 million of preferred equity.

Ricardo, headquartered in Troy, Michigan, with operations in California, Texas and Alabama and overseas, develops engineering and product solutions for U.S.

Army vehicle and logistics programs.

• In January 2025, we restructured our investment in PSI Molded.

As a result of the restructuring, we converted debt with a cost basis of $ 16.4 million into preferred equity.

• In February 2025, we invested an additional $ 3.0 million through secured first lien debt in Pyrotek to fund an add-on acquisition.

• In February 2025, we recapitalized our existing investment in Educators Resource, Inc.

and invested an additional $ 10.0 million in the form of secured first lien debt.

In connection with this recapitalization, we received dividend income of $ 1.8 million.

• In March 2025, we exited our investment in Nocturne, which resulted in success fee income of $ 3.5 million, a realized gain on our preferred equity of $ 19.8 million and the repayment of our debt investment of $ 85.6 million at par.

Includes $ 3.5 million of proceeds from the equity distribution recognized as realized gain from Old World Christmas, Inc.

Transfers include (1) 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 and (2) secured first lien debt of Horizon Facilities Services, Inc.

with a total cost basis of $ 57.7 million and fair value of $ 26.4 million, which was converted to secured second lien debt in March 2026.

Transfers represent secured second lien debt of PSI Molded with a total cost basis of $ 16.4 million and $ 9.8 million, which was converted to preferred equity in January 2025.

Investment Concentrations

As of March 31, 2025, our investment portfolio consisted of investments in 25 portfolio companies located in 19 states or countries across 16 different industries with an aggregate fair value of $ 979.3 million.

Our investments in SFEG, Ricardo, Brunswick Bowling Products, Inc., Nielsen-Kellerman and The E3 Company, LLC represented our five largest portfolio investments at fair value, and collectively comprised $ 401.7 million, or 41.0 %, of our total investment portfolio at fair value as of March 31, 2025.

As of March 31, 2026, 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 $ 1.3 billion.

Our investments in SFEG Holdings, Inc., The E3 Company, LLC, Schylling, Inc., Brunswick Bowling Products, Inc., and Detroit Defense, Inc., represented our five largest portfolio investments at fair value, and collectively comprised $ 582.6 million, or 44.5 %, of our total investment portfolio at fair value as of March 31, 2026.

The following table summarizes our investments by security type as of March 31, 2026 and 2025:

15 unchanged sentences

Total Investments

Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) $ 258,692 19.8 % $ 105,432 10.8 %

Diversified/Conglomerate Services 189,148 14.4 % 170,360 17.4 %

Home and Office Furnishings, Housewares, and Durable Consumer Products 159,236 16.3 % 160,038 17.3 %

Aerospace and Defense 174,542 13.4 % 107,869 10.9 %

Machinery (Non-Agriculture, Non-Construction, and Non-Electronic) 105,432 10.8 % 92,781 10.1 %

Leisure, Amusement, Motion Pictures, and Entertainment 78,460 8.0 % 39,350 4.3 %

Electronics 71,573 7.2 % — — %

Home and Office Furnishings, Housewares, and Durable Consumer Products 166,553 12.7 % 159,236 16.3 %

Oil and Gas 125,605 9.6 % 69,589 7.1 %

Leisure, Amusement, Motion Pictures, and Entertainment 105,339 8.0 % 78,460 8.0 %

Buildings and Real Estate 68,987 5.3 % 69,320 7.1 %

Electronics 62,723 4.8 % 71,573 7.2 %

Chemicals, Plastics, and Rubber 49,715 3.8 % 11,612 1.2 %

Healthcare, Education, and Childcare 41,630 3.2 % 51,501 5.3 %

Mining, Steel, Iron and Non-Precious Metals 37,713 2.9 % 41,010 4.2 %

Cargo Transport 12,624 1.3 % 13,500 1.5 %

Printing and Publishing 8,379 0.6 % 11,681 1.2 %

Chemicals, Plastics, and Rubber 11,612 1.2 % 20,363 2.2 %

Hotels, Motels, Inns, and Gaming — — % 77,366 8.4 %

Telecommunications 7,942 0.6 % 7,585 0.8 %

Diversified/Conglomerate Manufacturing 6,763 0.5 % 6,493 0.7 %

Other < 2.0% 5,517 0.4 % 17,599 1.8 %

10 unchanged sentences

South $ 649,436 49.6 % $ 317,294 32.4 %

Midwest 227,415 23.2 % 141,925 15.4 %

West 227,294 17.3 % 222,062 22.7 %

Midwest 216,726 16.6 % 227,415 23.2 %

Northeast 193,837 14.8 % 182,669 18.7 %

3 unchanged sentences

The geographic region indicates the location of the headquarters for our portfolio companies.

A portfolio company may have additional business locations in other geographic regions.

A portfolio company may have additional business locations or investments in other geographic regions.

Investment Principal Repayments

16 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.

On January 24, 2025, the Company entered into the Advisory Agreement, which was approved by the Company’s stockholders at a stockholders’ meeting on January 4, 2024, as a result of a change of control of the Adviser pursuant to the previously disclosed voting trust agreement.

There are no changes to the terms, including the fee structure and services to be provided, of the prior Advisory Agreement, other than the date and term of 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 March 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.

Michael LiCalsi, our general counsel and secretary (who also serves as the Administrator’s president, general counsel and secretary), is also the executive vice president of administration, general counsel, and secretary of our Adviser.

David Gladstone (our chairman) serves as chairman, chief executive officer and president of the Adviser, which, as of March 31, 2026, is 100 % indirectly owned by Mr.

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

Michael LiCalsi, our chief administrative officer, co-general counsel and co-secretary, also serves in the same roles for the Adviser.

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

John Sateri, our chief investment officer, also serves in the same role for the Adviser.

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 :

38 unchanged sentences

The Adviser non-contractually, unconditionally, and irrevocably credits 100 % of any fees received for such services against the base management fee that we would otherwise be required to pay to the Adviser;

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.

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 years ended March 31, 2026, 2025, and 2024, these credits totaled $ 0.5 million, $ 0.4 million, and $ 0.3 million, respectively.

Loan Servicing Fee

The Adviser also services the loans held by our wholly-owned subsidiary, Business Investment (the borrower under the Credit Facility), in return for which the Adviser receives a 2.0 % annual fee based on the monthly aggregate outstanding balance of loans pledged under our Credit Facility.

Since Business Investment is a consolidated subsidiary of ours, coupled

with the fact that the total base management fee paid to the Adviser pursuant to the Advisory Agreement cannot exceed 2.0 % of total assets (less any uninvested cash or cash equivalents resulting from borrowings) during any given calendar year, we treat payment of the loan servicing fee pursuant to the Credit Facility as a pre-payment of the base management fee under the Advisory Agreement.

The Adviser also services the loans held by our wholly-owned subsidiary, Business Investment (the borrower under our Credit Facility), in return for which the Adviser receives a 2.0 % annual fee based on the monthly aggregate outstanding balance of loans pledged under the Credit Facility.

Since Business Investment is a consolidated subsidiary of ours, coupled with the fact that the total base management fee paid to the Adviser pursuant to the Advisory Agreement cannot exceed 2.0 % of total assets (less any uninvested cash or cash equivalents resulting from borrowings) during any given calendar year, we treat payment of the loan servicing fee pursuant to the Credit Facility as a pre-payment of the base management fee under the Advisory Agreement.

Accordingly, these loan servicing fees are 100 % non-contractually, unconditionally, and irrevocably credited back to us by the Adviser.

13 unchanged sentences

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.

For the years ended March 31, 2025 and 2024, capital gains-based incentive fees of $ 4.9 million and $ 1.1 million, respectively, were contractually due and paid to the Adviser.

For the year ended March 31, 2026, no capital gains-based incentive fees were contractually due and paid to the Adviser.

For the years ended March 31, 2025 and 2024, capital gains-based incentive fees of $ 4.9 million and $ 1.1 million, respectively, were contractually due and paid to the Adviser.

In accordance with GAAP, accrual of the capital gains-based incentive fee is determined as if our investments had been liquidated at their fair values as of the end of the reporting period.

1 unchanged sentence

There can be no assurance that any such unrealized capital appreciation will be realized in the future.

Accordingly, a GAAP accrual is calculated at the end of the reporting period based on (i) cumulative aggregate realized capital gains since our inception, plus (ii) the entire portfolio’s aggregate unrealized capital appreciation, if any, less (iii) cumulative aggregate realized capital losses since our inception, less (iv) the entire portfolio’s aggregate unrealized capital depreciation, if any.

Accordingly, a GAAP accrual is calculated at the end of

the reporting period based on (i) cumulative aggregate realized capital gains since our inception, plus (ii) the entire portfolio’s aggregate unrealized capital appreciation, if any, less (iii) cumulative aggregate realized capital losses since our inception, less (iv) the entire portfolio’s aggregate unrealized capital depreciation, if any.

If such amount is positive at the end of a reporting period, a capital gains-based incentive fee equal to 20.0 % of such amount, less the aggregate amount of capital gains-based incentive fees accrued in all prior years, is recorded, regardless of whether such amount is contractually due under the terms of the Advisory Agreement.

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

During the years ended March 31, 2025, 2024 and 2023, we recorded/(reversed) capital gains-based incentive fees of $ 7.4 million, $ 12.7 million and $( 0.3 ) million, respectively.

During the years ended March 31, 2026, 2025 and 2024, we recorded capital gains-based incentive fees of $ 38.0 million, $ 7.4 million and $ 12.7 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 general counsel and secretary, 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.

Another of our officers, Mr.

LiCalsi (our general counsel and secretary), serves as the Administrator’s president as well as the executive vice president of administration, general counsel, and secretary for the Adviser.

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.

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

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.

Our allocable portion of the Administrator’s expenses is generally derived by multiplying the Administrator’s total expenses by the approximate percentage of time during the current quarter the Administrator’s employees performed services for us in relation to their time spent performing services for all companies serviced by the Administrator.

3 unchanged sentences

Gladstone Securities, LLC (“Gladstone Securities”) is a privately held broker dealer registered with the Financial Industry Regulatory Authority and insured by the Securities Investor Protection Corporation.

Gladstone Securities is an affiliate of ours, as its parent company is 100 % indirectly owned and controlled by David Gladstone, our chairman and chief executive officer.

Gladstone Securities is an affiliate of ours, as its parent company is 100 % indirectly owned and controlled by David Gladstone, our chairman.

Gladstone also serves on the board of managers of Gladstone Securities.

1 unchanged sentence

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 years ended March 31, 2025, 2024, and 2023, the fees received by Gladstone Securities from portfolio companies totaled $ 2.0 million, $ 0.3 million, and $ 1.6 million, respectively.

During the years ended March 31, 2026, 2025, and 2024, the fees received by Gladstone Securities from our portfolio companies totaled $ 1.6 million, $ 2.0 million, and $ 0.3 million, respectively.

Investment in Affiliated Fund

In December 2024, we invested in Gladstone Alternative, one of our affiliated funds, that is a registered, non-diversified, closed-end management investment company that operates as an interval fund.

The fair value of the investment in Gladstone Alternative will be excluded from the average total assets subject to base management fee for the purposes of calculating the base management fee we pay to the Adviser.

The fair value of the investment in Gladstone Alternative is excluded from the average total assets subject to base management fee for the purposes of calculating the base management fee we pay to the Adviser.

Related Party Fees Due

12 unchanged sentences

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 March 31, 2025 and 2024 were $ 0.1 million , respectively.

Co-investment expenses as of both March 31, 2026 and 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 as of March 31, 2026 and 2025, respectively.

Revolving Line of Credit

As of March 31, 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.

As of March 31, 2026 , our Credit Facility had a total commitment amount of $ 300.0 million .

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).

11 unchanged sentences

$ 76,238 $ 60,305 $ 60,980

Effective interest rate (B)

Weighted-average interest rate (B)

9.9 % 10.6 % 10.1 %

10 unchanged sentences

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

As of March 31, 2025, and as defined in the performance guaranty of our Credit Facility, we had a net worth of $ 953.3 million, asset coverage on our senior securities representing indebtedness of 204.4 %, 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 March 31, 2026, and as defined in the performance guaranty of our Credit Facility, we had a net worth of $ 1.2 billion, asset coverage on our senior securities representing indebtedness of 213.8 %, 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 March 31, 2026, we were in compliance with all covenants under our Credit Facility.

1 unchanged sentence

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.

At 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 3.25 % per annum, plus an unused commitment fee of 1.0 %.

At March 31, 2024 , the discount rate used to determine the fair value of our Credit Facility was 30-day Term SOFR, with a 0.35 % floor, plus 3.25 % per annum, plus an unused commitment fee of 1.0 % .

At March 31, 2026, 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 1.0 %.

At 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.

19 unchanged sentences

Fair value at March 31, 2025

The fair value of the collateral under our Credit Facility was $ 764.7 million and $ 717.3 million as of March 31, 2025 and 2024, respectively.

The fair value of the collateral under our Credit Facility was $ 1.2 billion and $ 764.7 million as of March 31, 2026 and 2025, respectively.

Notes Payable

1 unchanged sentence

In March 2021 , we completed a public offering of 5.00 % Notes due 2026 with an aggregate principal amount of $ 127.9 million (the “ 5.00 % 2026 Notes”), which resulted in net proceeds of approximately $ 123.8 million after deducting underwriting discounts, commissions and offering costs borne by us.

The 5.00 % 2026 Notes are traded under the ticker symbol “GAINN” on the Nasdaq Global Select Market (“Nasdaq”).

The 5.00 % 2026 Notes will mature on May 1, 2026 and may be redeemed in whole or in part at any time or from time to time at the Company's option.

The 5.00 % 2026 Notes bear interest at a rate of 5.00 % per year, which is payable quarterly in arrears.

The indenture relating to the 5.00 % 2026 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 Securities Exchange Act of 1934, as amended (the "Exchange Act"), we will provide the holders of the 5.00 % 2026 Notes, and the trustee with audited annual consolidated financial statements and unaudited interim consolidated financial statements.

The 5.00 % 2026 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 $ 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 May 1, 2026, the maturity date.

The 5.00 % 2026 Notes were traded under the ticker symbol “GAINN” on the Nasdaq Global Select Market (“Nasdaq”).

On May 1, 2026, we repaid the 5.00 % 2026 Notes with an aggregate principal amount outstanding of $ 127.9 million at maturity.

The 5.00 % 2026 Notes were 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 $ 4.1 million, which were recorded as discounts to the aggregate principal amount on our accompanying Consolidated Statements of Assets and Liabilities and were being amortized over the period ended May 1, 2026, the maturity date.

4.875 % Notes due 2028

8 unchanged sentences

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 on or after August 1, 2025.

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

6 unchanged sentences

The following tables summarize our 5.00 % 2026 Notes, 4.875 % 2028 Notes, 8.00 % 2028 Notes and 7.875 % 2030 Notes as of March 31, 2025 and 2024:

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.

7.125 % Notes due 2031

In February 2026 , we completed a public offering of 7.125 % Notes due 2031 with an aggregate principal amount of $ 100.0 million (the " 7.125 % 2031 Notes"), which resulted in net proceeds of approximately $ 96.9 million after deducting underwriting discounts, commissions and offering costs borne by us.

The 7.125 % 2031 Notes are traded under the ticker symbol “GAING” on Nasdaq.

The 7.125 % 2031 Notes will mature on May 1, 2031 and may be redeemed in whole or in part at any time or from time to time at the Company’s option on or after May 1, 2028.

The 7.125 % 2031 Notes bear interest at a rate of 7.125 % per year , payable quarterly in arrears.

The indenture relating to the 7.125 % 2031 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 7.125 % 2031 Notes and the trustee with audited annual consolidated financial statements and unaudited interim consolidated financial statements.

The 7.125 % 2031 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 $ 3.1 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 May 1, 2031, the maturity date.

The following tables summarize our 5.00 % 2026 Notes, 4.875 % 2028 Notes, 6.875 % 2028 Notes, 8.00 % 2028 Notes, 7.875 % 2030 Notes and 7.125 % 2031 Notes as of March 31, 2026 and 2025:

As of March 31, 2026:

9 unchanged sentences

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

7.125 % 2031 Notes

GAING February 18, 2026 May 1, 2031 7.125 % 4,000,000 $ 25.00 100,000

Notes payable, gross (B)

19,619,500 548,988

Unamortized Discounts ( 8,029 )

Unamortized deferred financing costs ( 8,460 )

Notes payable, net (C)

11 unchanged sentences

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

Notes payable, gross (B)

18,549,500 463,738

Unamortized Discounts ( 5,893 )

Unamortized deferred financing costs ( 8,029 )

Notes payable, net (C)

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

The 8.00 % 2028 Notes can be redeemed at our option at any time on or after August 1, 2025.

(A) As of March 31, 2026, the 5.00 % 2026 Notes and the 4.875 % 2028 Notes can be redeemed at our option at any time.

On May 1, 2026, we repaid the 5.00 % 2026 Notes at maturity .

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

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.

The 7.125 % 2031 Notes can be redeemed at our option at any time on or after May 1, 2028.

(B) As of March 31, 2026 and 2025, asset coverage on our senior securities representing indebtedness, calculated pursuant to Sections 18 and 61 of the 1940 Act, was 213.8 % and 204.4 %, respectively.

1 unchanged sentence

The fair value based on the last reported closing prices of the 5.00 % 2026 Notes, 4.875 % 2028 Notes, 7.875 % 2030 Notes and 7.125 % 2031 Notes as of March 31, 2026 was $ 129.0 million, $ 127.8 million, $ 128.2 million and $ 101.3 million, respectively.

The fair value based on the last reported closing prices of the 5.00 % 2026 Notes, 4.875 % 2028 Notes and 8.00 % 2028 Notes as of March 31, 2024 was $ 123.9 million, $ 123.7 million and $ 77.3 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 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.

We consider the closing prices of the 5.00 % 2026 Notes, 4.875 % 2028 Notes, 8.00 % 2028 Notes, 7.875 % 2030 Notes and 7.125 % 2031 Notes to be Level 1 inputs within the ASC 820 hierarchy.

B ased on a DCF analysis, the fair value of the 6.875 % 2028 Notes as of March 31, 2026 was $ 59.7 million and the discount rate used to determine the fair value of the 6.875 % 2028 Notes was 7.075 %.

We consider the 6.875 % 2028 Notes to be Level 3 within the ASC 820 fair value hierarchy.

REGISTRATION STATEMENT AND COMMON EQUITY OFFERINGS

4 unchanged sentences

As of March 31, 2026, we have the ability to issue up to an additional $ 119.3 million of the securities registered under the registration statement.

On September 3, 2021, we filed a registration statement on Form N-2 (File No.

333-259302), which the SEC declared effective on October 15, 2021.

The registration statement permitted us to issue, through one or more transactions, up to an aggregate of $ 300.0 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.

This registration statement was terminated on April 18, 2024

Common Equity Offerings

2 unchanged sentences

and Virtu Americas LLC (collectively, the "Sales Agents"), under which we have the ability to issue and sell shares of our common stock, from time to time, through the Sales Agents, having an aggregate offering price of up to $ 75.0 million in what is commonly referred to as an “at-the-market” program (the “2024 Common Stock ATM Program”).

In June 2025, we entered into an equity distribution agreement with M&T Securities, Inc.

and entered into amendments to the agreements with Oppenheimer & Co.

Riley Securities, Inc.

and Virtu Americas LLC to add M&T Securities, Inc.

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

As of March 31, 2026, we had remaining capacity to sell up to an additional $ 30.8 million of common stock under the 2024 Common Stock ATM Program.

8 unchanged sentences

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 year ended March 31, 2025.

During the year ended March 31, 2025, we sold 148,714 shares of our common stock under the Common Stock ATM Program at a weighted-average gross price of $ 13.64 per share and raised approximately $ 2.0 million of gross proceeds.

The weighted-average net price per share, after deducting commissions and offering costs borne by us, was $ 13.48 and resulted in total net proceeds of approximately $ 2.0 million.

During the year ended March 31, 2026, 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 year ended March 31, 2024, we sold 3,097,162 shares of our common stock under the 2022 Common Stock ATM Program at a weighted-average gross price of $ 14.37 per share and raised approximately $ 44.5 million of gross proceeds.

The weighted-average net price per share, after deducting commissions and offering costs borne by us, was $ 14.12 and resulted in total net proceeds of approximately $ 43.7 million.

During the year ended March 31, 2025, 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.

During the year ended March 31, 2023, we sold 386,482 shares of our common stock under the 2022 Common Stock ATM Program at a weighted-average gross price of $ 14.21 per share and raised approximately $ 5.5 million of gross proceeds.

The weighted-average net price per share, after deducting commissions and offering costs borne by us, was $ 14.01 and resulted in total net proceeds of approximately $ 5.4 million.

During the year ended March 31, 2024, we sold 3,097,162 shares of our common stock under the 2022 Common Stock ATM Program, with a weighted-average gross price of $ 14.37 per share and a weighted-average net price of $ 14.12 per share after deducting commissions and offering costs borne by us, raising approximately $ 44.5 million and $ 43.7 million of gross and net proceeds, respectively.

These sales were above our then current NAV per share.

25 unchanged sentences

April 8, 2025 May 21, 2025 May 30, 2025 0.08

April 8, 2025 June 4, 2025 June 13, 2025 0.54 (A)

April 8, 2025 June 20, 2025 June 30, 2025 0.08

2 unchanged sentences

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

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

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

11 unchanged sentences

April 9, 2024 May 17, 2024 May 31, 2024 0.08

April 11, 2023 June 5, 2023 June 15, 2023 0.12 (A)

April 9, 2024 June 19, 2024 June 28, 2024 0.08

1 unchanged sentence

July 9, 2024 August 21, 2024 August 30, 2024 0.08

July 11, 2023 September 7, 2023 September 15, 2023 0.12 (A)

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

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

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

October 10, 2023 November 7, 2023 November 17, 2023 0.12 (A)

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

October 24, 2023 December 5, 2023 December 15, 2023 0.88 (A)

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

13 unchanged sentences

July 11, 2023 August 23, 2023 August 31, 2023 0.08

July 11, 2023 September 7, 2023 September 15, 2023 0.12 (A)

July 11, 2023 September 21, 2023 September 29, 2023 0.08

October 10, 2023 October 20, 2023 October 31, 2023 0.08

October 10, 2023 November 7, 2023 November 17, 2023 0.12 (A)

October 10, 2023 November 20, 2023 November 30, 2023 0.08

3 unchanged sentences

January 9, 2024 February 21, 2024 February 29, 2024 0.08

January 10, 2023 March 3, 2023 March 15, 2023 0.240 (A)

January 9, 2024 March 21, 2024 March 29, 2024 0.08

3 unchanged sentences

For the fiscal years ended March 31, 2026, 2025, and 2024, Investment Company Taxable Income exceeded distributions declared and paid, and, in accordance with Section 855(a) of the Code, we elected to treat $ 21.3 million, $ 36.7 million, and $ 18.7 million, respectively, of the first distributions paid subsequent to fiscal year-end, as having been paid in the prior year.

In addition, for the fiscal years ended March 31, 2025, 2024, and 2023, 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, $ 1.4 million, and $ 10.6 million, respectively, 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, 2026, the net capital loss carryforward balance was $ 17.3 million and no distributions paid subsequent to fiscal year-end will be treated as having been paid in the prior year.

For the fiscal years ended March 31, 2025, and 2024, 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, and $ 1.4 million, respectively, of the first distributions paid subsequent to fiscal year-end as having been paid in the prior year.

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.

14 unchanged sentences

Undistributed ordinary income 21,283 36,673

Undistributed capital gain

Undistributed capital (loss) gain

( 17,260 ) 18,663

Other temporary differences

4 unchanged sentences

Tax Year Ended March 31,

Underdistributed (overdistributed) net investment income

(Overdistributed) underdistributed net investment income

$ ( 9,994 ) $ 9,623

Accumulated net realized gain in excess of distributions

Accumulated net realized gain (loss) in excess of distributions

$ 10,335 $ ( 8,424 )

12 unchanged sentences

Under the RIC Modernization Act, we are permitted to carryforward any capital losses that we may incur for an unlimited period, and such capital loss carryforwards will retain their character as either short-term or long-term capital losses.

Our capital loss carryforward balance was $ 0 as of both March 31, 2025 and 2024.

Our capital loss carryforward balance was $ 17.3 million and $ 0 as of March 31, 2026 and 2025, respectively .

COMMITMENTS AND CONTINGENCIES

3 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 March 31, 2026 and 2025, we had no established reserves for such loss contingencies.

3 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 and $ 1.0 million as of March 31, 2025 and 2024, respectively.

Reserves and holdbacks against escrow amounts were $ 1.0 million as of March 31, 2026 and 2025.

Financial Commitments and Obligations

15 unchanged sentences

$ 13.55 $ 13.43 $ 13.09 $ 13.43 $ 11.52 $ 11.17 $ 12.40 $ 10.85 $ 9.95 $ 9.22

Income from investment operations (B)

Net investment income

Income (loss) from investment operations (B)

Net investment (loss) income

( 0.10 ) 0.76 0.63 1.11 0.45 0.54 1.11 0.23 0.68 0.74

Net realized gain (loss) on investments and other

Net realized (loss) gain on investments and other

( 0.71 ) 1.72 0.88 0.32 0.37 0.32 1.36 2.04 0.04 0.51

1 unchanged sentence

— — — — — — ( 0.31 ) ( 0.41 ) — —

Net unrealized (depreciation) appreciation of investments and other

Net unrealized appreciation (depreciation) of investments and other

5.58 ( 0.70 ) 0.96 ( 0.36 ) 2.26 0.42 ( 2.38 ) 0.63 1.16 0.23

24 unchanged sentences

39,821,967 36,837,381 36,688,667 33,591,505 33,205,023 33,205,023 33,049,463 32,822,459 32,653,635 30,270,958

Weighted-average shares of common stock outstanding 38,712,611 36,735,218 34,466,724 33,311,785 33,205,023 33,176,760 32,865,840 32,807,597 32,268,776 30,270,958

Consolidated Statement of Assets and Liabilities Data:

11 unchanged sentences

18.85 % 13.70 % 14.19 % 9.97 % 13.51 % 10.58 % 6.32 % 13.30 % 11.08 % 10.02 %

Ratio of net investment income to average net assets (J)

Ratio of net investment (loss) income to average net assets (J)

( 0.69 ) % 5.87 % 4.72 % 8.28 % 3.52 % 4.91 % 8.99 % 1.92 % 6.68 % 7.63 %

Portfolio turnover ratio

1.68 % 20.41 % 9.58 % 12.45 % 12.34 % 8.99 % 21.27 % 17.16 % 14.87 % 13.86 %

(A) Based on actual shares of common stock outstanding at the beginning or end of the corresponding year, as appropriate.

3 unchanged sentences

(D) During the years ended March 31, 2026, 2024, 2023, and 2020, the accretive effect is the result of issuing common shares at a price above the then current NAV per share.

During the years ended March 31, 2018 and 2016, the net dilutive effect is the result of issuing common shares at a price below the then current NAV per share.

During the year ended March 31, 2018, the net dilutive effect is the result of issuing common shares at a price below the then current NAV per share.

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

7 unchanged sentences

Had we included Virginia state taxes incurred on the deemed distributions of retained capital gains for the fiscal years ended March 31, 2020 and 2019, the ratio of net expenses to average net assets would have been 6.89 % and 14.07 %, respectively.

(J) Had we not received any non-contractual, unconditional, and irrevocable credits of fees from the Adviser, the ratio of net investment income (loss) to average net assets would have been 2.79 %, 1.53 %, 5.66 %, 0.31 %, 2.16 %, 6.20 %, ( 1.22 %), 3.66 %, 4.19 %, and 3.94 % for the fiscal years ended March 31, 2025, 2024, 2023, 2022, 2021, 2020, 2019, 2018, 2017 and 2016, respectively.

(J) Had we not received any non-contractual, unconditional, and irrevocable credits of fees from the Adviser, the ratio of net investment (loss) income to average net assets would have been ( 3.85 %), 2.79 %, 1.53 %, 5.66 %, 0.31 %, 2.16 %, 6.20 %, ( 1.22 %), 3.66 %, and 4.19 % for the fiscal years ended March 31, 2026, 2025, 2024, 2023, 2022, 2020, 2019, 2018, and 2017, respectively.

UNCONSOLIDATED SIGNIFICANT SUBSIDIARIES

8 unchanged sentences

May 20, 2026 May 29, 2026 0.08

June 4, 2025 June 13, 2025 0.54 (A)

June 23, 2026 June 30, 2026 0.08

Total for the Quarter:

(A) Represents a supplemental distribution to common stockholders.

Notes Payable

On May 1, 2026, we repaid the 5.00 % 2026 Notes with an aggregate principal amount outstanding of $ 127.9 million at maturity.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

1 unchanged sentence

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-K

Item 8. Financial Statements and Supplementary Data