Company: GAINI
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001321741-25-000018
Chunk: 100

Company: GLADSTONE INVESTMENT CORPORATION\DE
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 2
Chunk 100
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 net assets resulting from operations$0.21 $(0.18)$0.39 NM

NM - Not meaningful

45

Investment Income

Total investment income increased $1.4 million, or 6.2%, for the three months ended June 30, 2025, as compared to the prior year period, primarily due to an increase in interest income and dividend and success fee income.

Interest income from our investments in debt securities increased $1.0 million, or 5.0%, for the three months ended June 30, 2025, as compared to the prior year period. Generally, the level of interest income from investments is directly related to the weighted-average principal balance of our interest-bearing investment portfolio outstanding during the period, multiplied by the weighted-average yield. 

The weighted-average principal balance of our interest-bearing investment portfolio during the three months ended June 30, 2025 was $610.0 million, compared to $571.0 million for the prior year period. This increase was primarily due to the origination of $176.4 million of new debt investments and $38.8 million of follow-on debt investments in existing portfolio companies, partially offset by $128.0 million of pay-offs, restructurings, or write-offs of debt investments and $30.8 million of existing loans placed on non-accrual status after March 31, 2024, and their respective impact on the weighted-average principal balance when considering the timing of new investments, pay-offs, restructurings, write-offs, and accrual status changes, as applicable. During the three months ended June 30, 2025, we collected $1.5 million in past due interest from SFEG Holdings, Inc. ("SFEG") that was previously on non-accrual status. We had no collections of past due interest during the three months ended June 30, 2024.

The weighted-average yield on our interest-bearing investments, excluding cash and cash equivalents and receipts recorded as dividend and success fee income, was 14.1% for the three months ended June 30, 2025, compared to 14.5% for the prior year period. The weighted-average yield may vary from period to period, based on the current stated interest rate on interest-bearing investments, coupled with any collection of past due interest during the period. 

As of June 30, 2025, our loans to B+T Group Acquisition, Inc. ("B