Gladstone Investment Corporation (the "Company") reported its financial results for the three and six months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, total interest income increased to $20.996 million, up from $20.277 million in the same period of 2023. Total investment income also rose to $22.565 million, reflecting an 11.3% increase from $20.277 million in the prior year. Notably, net investment income turned positive at $7.291 million, a substantial recovery from a loss of $1.730 million in 2023. The Company recorded a net realized gain of $42.303 million for the quarter, a significant increase from $289,000 in the previous year.

However, the net increase in net assets resulting from operations for the three months was $15.482 million, down from $47.356 million in 2023, indicating a decrease of 67.3%. For the six months ended September 30, 2024, total investment income was $44.743 million, compared to $40.577 million in 2023, while net investment income rose to $19.705 million from $6.710 million. The net increase in net assets resulting from operations for the six months was $8.956 million, a sharp decline from $56.142 million in the prior year.

As of September 30, 2024, total assets decreased to $868.780 million from $938.083 million as of March 31, 2024. Net assets also fell to $458.375 million from $492.711 million, with a corresponding decline in net asset value per share to $12.49 from $13.43. Total borrowings decreased to $341.035 million from $398.345 million, reflecting a strategic reduction in leverage.

The Company engaged in notable investment activities, including the exit from Nth Degree Investment Group, LLC, which resulted in a realized gain of $42.3 million. Additionally, it invested $18.5 million in Nocturne Luxury Villas, Inc. for an add-on acquisition. The investment portfolio as of September 30, 2024, comprised 22 portfolio companies across various sectors, with a total fair value of $853.307 million, down from $920.504 million as of March 31, 2024.

The Company declared cash distributions totaling $43.3 million for the six months ended September 30, 2024, compared to $24.3 million in the same period of 2023. A supplemental distribution of $0.70 per common share was also declared for payment in October 2024.

Overall, while Gladstone Investment Corporation demonstrated improved net investment income and realized gains, it faced challenges with net asset increases and total investment value, reflecting a complex market environment and strategic adjustments in its investment portfolio.