GLAD Gladstone Capital Corporation

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 26, 2023

Gladstone Capital Corporation

(Exact name of registrant as specified in its charter)

(703) 287-5800

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

On July 26, 2023, Gladstone Capital Corporation issued a press release announcing its financial results for the fiscal quarter ended June 30, 2023. The text of the press release is included as an exhibit to this Current Report on Form 8-K. The information in this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

SIGNATURE

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Gladstone Capital Corporation Reports Financial Results for its

Third Quarter Ended June 30, 2023

McLean, VA, July 26, 2023: Gladstone Capital Corporation (Nasdaq: GLAD) (the “Company”) today announced earnings for its third fiscal quarter ended June 30, 2023. Please read the Company’s Quarterly Report on Form 10-Q, filed today with the U.S. Securities and Exchange Commission (the “SEC”), which is available on the SEC’s website at www.sec.gov, and the Investors section of the Company’s website at www.GladstoneCapital.com.

Summary Information (dollars in thousands, except per share data) (unaudited):

Third Fiscal Quarter 2023 Highlights:

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Third Fiscal Quarter 2023 Results:

Total investment income increased by $2.3 million, or 11.0%, for the quarter ended June 30, 2023, compared to the prior quarter ended March 31, 2023, primarily due to a $2.2 million increase in interest income. The increase in interest income was driven by increases in both the weighted average yield and weighted average principal balance of our interest-bearing investments.

Total expenses increased by $0.2 million, quarter over quarter, primarily due to a $0.6 million increase in interest expense quarter over quarter, driven mainly by an increase in the weighted average interest rate on our credit facility, and a $0.5 million increase in incentive fees, driven mainly by an increase in the average portfolio yields. These increases were partially offset by a $1.0 million decrease in the net base management fee, driven mainly by an increase in portfolio company fee credits from new deal originations and advisory fees.

Net investment income for the quarter ended June 30, 2023 was $11.7 million, an increase of 21.2%, as compared to the prior quarter, or $0.31 per share, and covered distributions paid of $0.24 by 129%.

The net increase in net assets resulting from operations was $11.9 million, or $0.32 per share, for the quarter ended June 30, 2023, compared to $12.0 million, or $0.33 per share, for the quarter ended March 31, 2023. The current quarter increase was primarily driven by the increase in net investment income and $3.0 million of net realized gain recognized during the quarter, partially offset by $2.7 million of net unrealized depreciation recognized during the quarter.

Subsequent Events: Subsequent to June 30, 2023, the following significant events occurred:

Comments from Gladstone Capital’s President, Bob Marcotte: “While our recent earnings have benefitted from the increase in interest rates, the competitive outlook for lower middle market investing continues to improve and should sustain our favorable investment margin and portfolio growth, which will be the primary drivers of our earnings momentum in the coming quarters.”

Conference Call for Stockholders: The Company will hold its earnings release conference call on Thursday, July 27, 2023, at 8:30 a.m. Eastern Time. Please call (866) 424-3437 to enter the conference call. An operator will monitor the call and set a queue for any questions. A replay of the conference call will be available through August 3, 2023. To hear the replay, please dial (877) 660-6853 and use playback conference number 13739226. The replay of the conference call will be available beginning approximately one hour after the call concludes. The live audio broadcast of the Company’s quarterly conference call will also be available online at www.GladstoneCapital.com. The event will be archived and available for replay on the investors section of the Company’s website.

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About Gladstone Capital Corporation: Gladstone Capital Corporation is a publicly-traded business development company that invests in debt and equity securities, consisting primarily of secured first and second lien term loans to lower middle market businesses in the United States. Information on the business activities of Gladstone Capital and the other publicly-traded Gladstone funds can be found at www.GladstoneCompanies.com.

To obtain a paper copy of the Company’s most recent Form 10-Q, please contact the Company at 1521 Westbranch Drive, Suite 100, McLean, VA 22102, ATTN: Investor Relations. The financial information above is not comprehensive and is without notes, so readers should obtain and carefully review the Company’s Form 10-Q for the quarter ended June 30, 2023, including the notes to the consolidated financial statements contained therein.

Investor Relations Inquiries: Please visit www.gladstonecompanies.com or (703) 287-5893.

Forward-looking Statements:

The statements in this press release about future growth and shareholder returns are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements inherently involve certain risks and uncertainties in predicting future results and conditions. Although these statements are based on our current plans that are believed to be reasonable as of the date of this press release, a number of factors could cause actual results and conditions to differ materially from these forward-looking statements, including those factors described from time to time in our filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or otherwise, except as required by law.

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