1. Think of it like a publicly traded, smaller version of Blackstone or KKR, but focused on providing loans and taking ownership stakes in established, medium-sized U.S. businesses.

2. It's like a mutual fund that invests directly in the debt and equity of established, medium-sized U.S. companies, giving public investors access to private market opportunities.

3. Imagine a hybrid of a commercial bank and a private equity investor, exclusively providing both loans and equity to established, medium-sized U.S. businesses.

• Debt Financing: Gladstone Investment provides various forms of debt, including senior, senior subordinated, junior subordinated, and mezzanine loans, for purposes such as growth, working capital, or refinancing existing debt.
• Equity Investments: The company makes direct equity investments in portfolio companies through instruments like buyouts, limited liability company interests, and warrants or options, often seeking a minority or majority ownership stake.

• Small and mid-sized private companies based in the United States.
• Companies operating in the manufacturing, consumer products, and business services/distribution sectors.
• Companies with annual sales typically ranging from $20 million to $100 million and EBITDA from $3 million to $20 million.

David J. Gladstone, Chairman & Chief Executive Officer

Mr. Gladstone is the founder of The Gladstone Companies, which includes Gladstone Investment Corporation, and has served as its Chief Executive Officer since its inception. Prior to founding Gladstone, he was Chairman or Vice Chairman of American Capital Strategies, a publicly-traded leveraged buyout fund and mezzanine debt finance company, from 1997 to 2001. From 1974 to 1997, Mr. Gladstone held various leadership positions, including Chairman and Chief Executive Officer, with Allied Capital Corporation and its affiliates, which were a prominent group of publicly-traded mezzanine debt funds and managers of private venture capital limited partnerships. He also managed the growth of Allied Capital Commercial, a publicly-traded REIT, from its initial public offering to $385 million in assets before its merger into Allied Capital Corporation in 1997. Mr. Gladstone also served as a Director, President, and Chief Executive Officer of Business Mortgage Investors, a private mortgage REIT managed by Allied Capital. He was the founder and managing member of The Capital Investors, LLC, a group of angel investors.

Taylor Ritchie, Chief Financial Officer

Mr. Ritchie joined Gladstone in November 2018. Before joining Gladstone Companies, he worked for Ernst & Young from 2011 to 2018 as a Manager in the Financial Services practice, where he focused on Banking and Capital Markets. He is a CPA licensed in the Commonwealth of Virginia.

David Dullum, President

Mr. Dullum joined The Gladstone Companies in February 2008 and has served as President of Gladstone Investment Corporation since April 2008. He possesses extensive experience in equity investing and middle-market buyouts. Prior to Gladstone, from 1995 to 2007, Mr. Dullum was a Partner of New England Partners, a private equity firm specializing in investments in small and medium-sized businesses. From 1976 to 1990, he was a Managing General Partner of Frontenac Company, a Chicago-based private equity firm.

Christopher J. Lee, Senior Managing Director

Mr. Lee serves as a Senior Managing Director at Gladstone Investment Corporation and brings 25 years of experience in private investments. He has a track record of investing in and successfully exiting portfolio companies. Before joining Gladstone, Mr. Lee was a Vice President with MCG Capital, a publicly-traded business development company, and previously worked as a consultant with KPMG (now BearingPoint).

Erika Highland, Senior Managing Director

Ms. Highland joined Gladstone in August 2005 and currently serves as a Managing Director of Gladstone Investment Corporation. Prior to her time at Gladstone, she was an Account Executive at Wells Fargo Retail Finance, where her responsibilities included monitoring and underwriting senior secured loans to national and regional retail chains. Earlier in her career, Ms. Highland was a financial Analyst in A.G. Edwards' Investment Banking Division, focusing on capital raising and M&A transactions for middle-market companies.

Here are the key risks to Gladstone Investment (GAIN):

1. Economic and Capital Market Volatility: As a Business Development Company (BDC), Gladstone Investment's financial performance is highly susceptible to broad changes in the economy and capital markets. Factors such as stock price volatility, inflation, elevated interest rates, and the risk of recession can adversely impact the value of its investments, the financial health of its portfolio companies, and its ability to access and deploy capital.
2. Credit Risk of Lower Middle Market and Sub-Investment Grade Investments: Gladstone Investment specializes in providing debt and equity financing to lower middle market companies. The majority of the loans in its portfolio are unrated and considered below investment grade, often referred to as high-yield securities or "junk bonds." These investments inherently carry a higher risk of default and potential loss compared to investment-grade debt instruments.
3. Illiquidity and Exit Strategy Risk for Private Investments: The fund typically holds its private company investments for approximately seven years, aiming to exit through sale, recapitalization, or initial public offering. The ability to successfully monetize these illiquid investments and realize gains is dependent on favorable market conditions for M&A and IPOs, as well as the individual performance and attractiveness of its portfolio companies to potential buyers.

• Growth in Interest Income from Debt Investments: The company's total investment income has been positively impacted by increases in interest income, driven by a higher weighted average yield on its debt investments. This yield is often correlated with prevailing interest rates, such as SOFR. Continued strategic debt investments and a favorable interest rate environment are anticipated to contribute to this revenue stream.
• Strategic Exits and Associated Success Fees/Realized Capital Gains: Gladstone Investment's business model involves making debt and equity investments in private businesses with an intention to hold them for approximately seven years before exiting through sale or recapitalization. Such exits generate success fees and realized capital gains, which are significant, albeit variable, components of their total investment income.
• Expansion of Investment Portfolio through New Buyout Activity: As a specialist in lower middle market buyouts, Gladstone Investment's ability to identify and execute new buyout opportunities directly contributes to the growth of its investment portfolio. This expansion leads to increased assets generating interest income and sets the stage for future capital gains.

Share Issuance

• Gladstone Investment sold approximately 2.3 million shares of its common stock through an at-the-market (ATM) program, generating around $31.9 million in net proceeds during the second and third fiscal quarters ended September 30, 2025, and December 31, 2025, respectively.

Outbound Investments

• During the third fiscal quarter ended December 31, 2025, Gladstone Investment invested $163 million in four new portfolio companies.
• In December 2025, the company invested $33.1 million in Rowan Energy Inc., comprising $25.8 million in secured first lien debt and $7.3 million in preferred equity.
• In July 2025, Gladstone Investment made a $67.6 million investment in Global GRAB Technologies, Inc., consisting of $46.5 million in secured first lien debt and $21.1 million in preferred equity.

Capital Expenditures

• As a Business Development Company (BDC), Gladstone Investment's primary capital allocation for "capital expenditures" is through its debt and equity investments in portfolio companies. These investments are summarized under "Outbound Investments" above.