Company: GAINI
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001321741-25-000022
Chunk: 90

Company: GLADSTONE INVESTMENT CORPORATION\DE
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 90
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 partially offset by an increase in transaction multiples used to estimate the fair value of certain of our portfolio companies and increased performance of certain of our portfolio companies.

Across our entire investment portfolio, we recorded net unrealized appreciation of $36.2 million on our equity positions and appreciation of $17.2 million on our debt positions, for the six months ended September 30, 2025. As of September 30, 2025, the fair value of our investment portfolio was more than the cost basis by $93.7 million, as compared to March 31, 2025, when the fair value of our investment portfolio was more than the cost basis by $40.3 million, representing net unrealized appreciation of $53.4 million for the six months ended September 30, 2025. Our entire portfolio had a fair value of 109.0% of cost as of September 30, 2025.

57

LIQUIDITY AND CAPITAL RESOURCES

Operating Activities

Net cash used in operating activities for the six months ended September 30, 2025 was $110.8 million compared to net cash provided by operating activities of $75.5 million for the six months ended September 30, 2024. This change was primarily due to an increase in purchases of investments and decrease in net proceeds from the sale and recapitalization of investments and principal repayments of investments.

Purchases of investments totaled $133.9 million during the six months ended September 30, 2025, compared to $20.1 million during the six months ended September 30, 2024. Aggregate net proceeds from the sale and recapitalization of investments and principal repayments of investments totaled $5.8 million during the six months ended September 30, 2025, compared to $76.5 million during the six months ended September 30, 2024.

As of September 30, 2025, we had equity investments in and/or loans to 28 portfolio companies with an aggregate cost basis of $1.0 billion. As of September 30, 2024, we had equity investments in and/or loans to 22 portfolio companies with an aggregate cost basis of $840.1 million. 

The following table summarizes our total portfolio investment activity during the six months ended September 30, 2025 and 2024:

Six Months Ended September 30,20252024Beginning investment portfolio, at fair value$979,320