Gladstone Capital Corp (NASDAQ:GLAD) stock rose 3.68% (As on November 18, 11:22:01 AM UTC-4, Source: Google Finance) after the company beats market’s expectations for the fourth quarter of FY25. Total investment income increased by $2.3 million, or 10.5%, for the quarter ended September 30, 2025, compared to the prior quarter ended June 30, 2025, driven primarily by a $2.9 million increase in interest income, quarter over quarter, partially offset by a $0.6 million decrease in other income. Interest income increased by $2.9 million, or 14.0%, quarter over quarter. Net investment income for the quarter ended September 30, 2025 was $11.4 million, or $0.52 per share. The net increase in net assets resulting from operations was $14.0 million, or $0.63 per share, for the quarter ended September 30, 2025, compared to $7.4 million, or $0.33 per share, for the quarter ended June 30, 2025. The current quarter increase in net assets resulting from operations was primarily driven by $11.4 million of net investment income and $9.1 million of net unrealized appreciation during the quarter, partially offset by $6.3 million of net realized loss recognized during the quarter.

Moreover, total expenses increased by $2.1 million, or 20.5%, quarter over quarter, primarily due to a $1.3 million increase in interest expense and a $0.9 million increase in the net incentive fee quarter over quarter. The quarter over quarter increase in interest expense was driven by a $0.9 million increase in interest expense on the Credit Facility and a $0.5 million increase in interest expense on the notes payable. Meanwhile, in November 2025, the company invested $15.0 million in Turn Key Health Clinics, LLC, an existing portfolio company, through secured first lien debt. In November 2025, the company invested $26.6 million in Sicilian Oven Restaurants LLC through secured first lien debt and preferred equity. In October 2025, the sale of the remaining common equity investment in Sokol and Company, LLC was completed, representing a return of the equity cost basis of $0.5 million and a realized gain of approximately $1.8 million.

GLAD in the fourth quarter of FY25 has reported the adjusted earnings per share of 52 cents, beating the analysts’ estimates for the adjusted earnings per share of 51 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $23.94 million in the fourth quarter of FY25, beating the analysts’ estimates for revenue by 5.09%.