EXHIBIT 99.1

Gladstone Capital Corporation Reports Financial Results for its Second Quarter Ended March 31, 2018

MCLEAN, Va., May 02, 2018 (GLOBE NEWSWIRE) -- Gladstone Capital Corporation (NASDAQ:GLAD) (the “Company”) today announced earnings for its second fiscal quarter ended March 31, 2018.  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 Company’s website at www.GladstoneCapital.com. 

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

          
 
For the Quarter Ended:
 March 31,
2018
 December 31,
2017
  Change % Change 
          
Total investment income $11,086 $10,859 $227 2.1%
Total expenses, net of credits (5,473)(5,282)191 (3.6)
Net investment income 5,613 5,577 36 0.6 
Net investment income per common share 0.21 0.21   
Cash distribution per common share 0.21 0.21   
Net realized gain 324 441 (117)(26.5)
Net unrealized appreciation  3,367 1,142 2,225 194.8 
Net increase in net assets resulting from operations 9,304 7,160 2,144 29.9 
Weighted average yield on interest-bearing investments 11.5%12.0%(0.5)%(4.2)
Total invested $19,439 $56,938 $(37,499)(65.9)
Total repayments and net proceeds 14,198 19,843 (5,645)(28.4)
          
As of: March 31,
2018
 December 31,
2017
 Change % Change 
Total investments, at fair value $ 

402,138
 $392,430 $9,708 24.7%
Fair value, as a percent of cost 88.0%87.2%0.8%0.9 
Net asset value per common share $8.62 $8.48 $0.14 1.7 
             

Second Fiscal Quarter 2018 Highlights:

Second Fiscal Quarter 2018 Results:

Interest income increased by approximately $0.3 million, or 3.1%, due to an increase in the weighted-average interest-bearing portfolio balance, slightly offset by a decrease in the weighted-average yield and a decrease in other income quarter over quarter.  Total expenses increased slightly by 3.6% quarter over quarter, primarily due to an increase in interest expense as a result of increased borrowings outstanding quarter over quarter.

Net Investment Income for the quarter ended March 31, 2018 was approximately $5.6 million, or $0.21 per share, an increase of 0.6% as compared to the prior quarter.   

The Net Increase in Net Assets Resulting from Operations for the quarters ended March 31, 2018 and December 31, 2017 was $9.3 million, or $0.35 per share, compared to $7.2 million, or $0.27 per share, respectively. The quarter over quarter increase was primarily driven by $3.4 million in net unrealized appreciation.

Subsequent Events:  Subsequent to March 31, 2018, the following significant events occurred:

  
Record Date Payment Date Distribution
per
Common Share
 Distribution
per Series
2024 Term
Preferred Share
 
April 20, 2018 April 30, 2018 $0.07 $0.125 
May 22, 2018 May 31, 2018 0.07 0.125 
June 20, 2018 June 29, 2018 0.07 0.125 
  Total for the Quarter $0.21 $0.375 
          

Comments from Gladstone Capital’s President, Bob Marcotte: “The combination of interest income, net of interest expense, increasing 25% over the prior year quarter and the broad based portfolio appreciation this quarter, has lifted our return on equity to 16.3% in the current quarter and to 12.6% for the last four quarters. We continue to be well positioned to improve on our results over the balance of fiscal year 2018 as the full benefit of our recently reduced bank debt costs and the expected rise in floating rates are realized.”

Conference Call for Stockholders: The Company will hold its earnings release conference call on Thursday, May 3, 2018, at 8:30 a.m. EDT.  Please call (855) 465-0177 to enter the conference.  An operator will monitor the call and set a queue for any questions. A replay of the conference call will be available through May 10, 2018.  To hear the replay, please dial (855) 859-2056 and use conference number 54345967.  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 Company’s website through July 3, 2018.

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.  Including distributions through today, the Company has paid 183 consecutive monthly or quarterly cash distributions on its common stock.  Information on the business activities of all the 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 March 31, 2018, including the notes to the consolidated financial statements contained therein.

Investor Relations Inquiries: Please visit www.gladstonecompanies.com or +1-703-287-5893.

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.