Company: GAINI
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001321741-25-000018
Chunk: 175

Company: GLADSTONE INVESTMENT CORPORATION\DE
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 8
Chunk 175
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Net Unrealized Appreciation (Depreciation) of Investments

Net unrealized depreciation of investments of $1.0 million for the three months ended June 30, 2025 was primarily due to a decrease in the performance of certain of our portfolio companies. These decreases were partially offset by increased performance of certain of our other portfolio companies and an increase in transaction multiples used to estimate the fair value of certain of our portfolio companies.

Net unrealized depreciation of investments of $18.9 million for the three months ended June 30, 2024 was primarily due to a decrease in transaction multiples used to estimate the fair value of certain of our portfolio companies and a decrease in performance of certain of our portfolio companies. These decreases were partially offset by increased performance of certain of our other portfolio companies.

Across our entire investment portfolio, we recorded net unrealized depreciation of $2.6 million on our equity positions and net unrealized appreciation of $1.6 million on our debt investments for the three months ended June 30, 2025. As of June 30, 2025, the fair value of our investment portfolio was more than our cost basis by $39.2 million, compared to March 31, 2025, when the fair value of our investment portfolio was more than our cost basis by $40.3 million. This resulted in net unrealized depreciation of $1.0 million for the three months ended June 30, 2025. Our entire portfolio was fair valued at 103.9% of cost as of June 30, 2025.

49

LIQUIDITY AND CAPITAL RESOURCES

Operating Activities

Net cash used in operating activities for the three months ended June 30, 2025 was $50.2 million compared to net cash provided by operating activities of $12.3 million for the three months ended June 30, 2024. This change was primarily due to an increase in purchases of investments.

Purchases of investments totaled $62.8 million during the three months ended June 30, 2025, compared to $0.6 million during the three months ended June 30, 2024. Aggregate net proceeds from the principal repayments of investments totaled $4.4 million during the three months ended June 30, 2025, compared to $3.0 million during the three months ended June 30, 2024.

As of June 30, 2025