Quarterly report [Sections 13 or 15(d)]

INVESTMENTS (Tables)

v3.26.1
INVESTMENTS (Tables)
 9 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Schedule of Fair Value, Assets Measured on Recurring Basis
As of June 30, 2026 and September 30, 2025, our investments, by security type, at fair value were categorized as follows within the ASC 820 fair value hierarchy:
Fair Value Measurements
Quoted Prices in
Active Markets
for Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
 Fair Value
As of June 30, 2026:
Secured first lien debt
 $ —  $ —  $ 665,834  $ 665,834 
Secured second lien debt
 —  —  185,844  185,844 
Unsecured debt
 —  —  356 

356 
Preferred equity
 —  —  40,876 

40,876 
Common equity/equivalents
 — 

—  55,471  55,471 
Total
 $ —  $ —  $ 948,381  $ 948,381 
Investments measured at NAV(A)
—  —  —  4,945 
Total Investments
$ —  $ —  $ 948,381  $ 953,326 
Cash Equivalents
 2,141  —  —  2,141 
Total Investments and Cash Equivalents as of June 30, 2026
 $ 2,141  $ —  $ 948,381  $ 955,467 
Fair Value Measurements
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
 Fair Value
As of September 30, 2025:
Secured first lien debt
 $ —  $ —  $ 622,371  $ 622,371 
Secured second lien debt
 —  —  150,542  150,542 
Unsecured debt
 —  — 

333 

333 
Preferred equity
 —  — 

31,214 

31,214 
Common equity/equivalents
 — 

—  49,553  49,553 
Total
 $ —  $ —  $ 854,013  $ 854,013 
Investments measured at NAV(A)
—  —  —  5,111 
Total Investments
$ —  $ —  $ 854,013  $ 859,124 
Cash Equivalents
 31,774  —  —  31,774 
Total Investments and Cash Equivalents as of September 30, 2025
 $ 31,774  $ —  $ 854,013  $ 890,898 
(A)Includes our investment in Gladstone Alternative as of June 30, 2026 and our investments in Gladstone Alternative and Leeds as of September 30, 2025. Investments that are measured at fair value using NAV as a practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented elsewhere in this quarterly report.
The following table presents our portfolio investments, valued using Level 3 inputs within the ASC 820 fair value hierarchy and carried at fair value as of June 30, 2026 and September 30, 2025, by caption on our accompanying Consolidated Statements of Assets and Liabilities and by security type:
Total Recurring Fair Value Measurements Reported in
Consolidated Statements of Assets and Liabilities
Using Significant Unobservable Inputs (Level 3)
June 30, 2026 September 30, 2025
Non-Control/Non-Affiliate Investments
Secured first lien debt $ 551,453  $ 517,762 
Secured second lien debt 168,398  131,750 
Unsecured debt 16  17 
Preferred equity 24,122  16,794 
Common equity/equivalents 44,032  29,958 
(B)
Total Non-Control/Non-Affiliate Investments
 $ 788,021  $ 696,281 
Affiliate Investments
Secured first lien debt $ 33,315  $ 34,713 
Preferred equity 9,725  9,420 
Common equity/equivalents 7,054 
(A)
 4,703 
(B)
Total Affiliate Investments $ 50,094  $ 48,836 
Control Investments
Secured first lien debt $ 81,066  $ 69,896 
Secured second lien debt 17,446  18,792 
Unsecured debt 340  316 
Preferred equity 7,029  5,000 
Common equity/equivalents 4,385  14,892 
Total Control Investments
 $ 110,266  $ 108,896 
Total Investments at Fair Value Using Level 3 Inputs $ 948,381  $ 854,013 
(A)Excludes our investment in Gladstone Alternative with a fair value of $4.9 million as of June 30, 2026, which was valued using NAV as a practical expedient.
(B)Excludes our investments in Gladstone Alternative and Leeds with fair values of $5.1 million and $36 thousand, respectively, as of September 30, 2025, which were valued using NAV as a practical expedient.
Schedule of Fair Value Measurement Inputs and Valuation Techniques The table below is not intended to be all-inclusive, but rather provides information on the significant Level 3 inputs as they relate to our fair value measurements. Significant level 3 inputs were weighted by the relative fair value of the investments.
Quantitative Information about Level 3 Fair Value Measurements

Range / Weighted Average as of

June 30,
2026		 September 30,
2025
Valuation
Techniques/
Methodologies
Unobservable
Input
 June 30,
2026		 September 30,
2025


Secured first lien debt
 $ 581,235  $ 548,670 
Yield Analysis
 Discount Rate
9.5% - 20.0%
/ 11.3%
9.4% - 19.8%
/ 11.7%

84,599  73,701 
TEV
EBITDA multiple
3.8x – 8.0x
/ 6.4x
3.5x – 8.0x
/ 6.0x


EBITDA
$367 - $4,459
/ $3,928
$538 - $4,655
/ $3,540


Revenue multiple
0.6x – 0.8x
/ 0.7x
0.6x – 0.8x
/ 0.7x


Revenue
$5,267 - $20,670
/ $12,472
$10,844 - $21,649
/ $15,090


Secured second lien debt
 168,398  141,750 
Yield Analysis
 Discount Rate
10.6% - 13.8%
/ 12.0%
11.4% - 15.2%
/ 13.1%

17,446  8,792 
TEV
 EBITDA multiple
5.2x – 5.8x
/ 5.5x
5.4x – 5.4x
/ 5.4x


EBITDA
$2,116 - $12,252
/ $7,926
$2,345 - $2,345
/ $2,345


Unsecured debt
 356  333 
TEV
EBITDA multiple
8.0x – 8.0x
/ 8.0x
8.0x – 8.0x
/ 8.0x
EBITDA
$3,868 - $3,868
/ $3,868
$3,804 - $3,804
/ $3,804
Revenue multiple
0.9x – 0.9x
/ 0.9x
0.9x – 0.9x
/ 0.9x


Revenue
$4,264 - $4,264
/ $4,264
$4,846 - $4,846
/ $4,846


Preferred and common equity / equivalents(A)
96,347  80,767 
TEV
 EBITDA multiple
3.8x – 15.1x
/ 8.2x
3.5x – 14.6x
/ 6.8x


EBITDA
$367 -$151,055
/ $27,433
$538 -$142,549
/ $10,222


Revenue multiple
0.6x – 0.9x
/ 0.6x
0.6x– 0.9x
/ 0.7x


Revenue
$4,264 -$20,670
/ $5,960
$4,846 -$21,649
/ $12,394
Total Level 3 Investments, at Fair Value
 $ 948,381  $ 854,013 
(A)Fair value as of June 30, 2026 excludes our investment in Gladstone Alternative with a fair value of $4.9 million, which was valued using NAV as a practical expedient. Fair value as of September 30, 2025 includes one proprietary equity investment totaling $2.2 million, which was valued using the payoff amount as the unobservable input. Fair value as of September 30, 2025 excludes our investments in Gladstone Alternative and Leeds with fair values of $5.1 million and $36 thousand, respectively, which were valued using NAV as a practical expedient.
Schedule of Fair Value Measurements Using Significant Unobservable Inputs
The following tables provide the changes in fair value, broken out by security type, during the three and nine months ended June 30, 2026 and 2025 for all investments for which we determine fair value using unobservable (Level 3) inputs.
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Three months ended June 30, 2026 Secured
First Lien
Debt		 Secured
Second Lien
Debt		 Unsecured
Debt		 Preferred
Equity		 Common
Equity/
Equivalents		 Total
Fair Value as of March 31, 2026 $ 630,527  $ 185,141  $ 341  $ 37,394  $ 48,436  $ 901,839 
Total gains (losses):
Net realized gain (loss)(A)
—  —  —  —  —  — 
Net unrealized appreciation (depreciation)(B)
1,019  (186) 2  1,482  1,322  3,639 
Reversal of prior period net depreciation (appreciation) on realization(B)
(565) —  —  —  —  (565)
New investments, repayments and settlements: (C)
Issuances/originations
 73,304  2,591  13  2,000  5,713  83,621 
Settlements/repayments
 (38,451) (1,702) —  —  —  (40,153)
Net proceeds from sales
 —  —  —  —  —  — 
Fair Value as of June 30, 2026
 $ 665,834  $ 185,844  $ 356  $ 40,876  $ 55,471  $ 948,381 
Change in unrealized appreciation (depreciation) attributable to investments still held at June 30, 2026 $ 1,019  $ (186) $ 2  $ 1,482  $ 1,322  $ 3,639 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Nine months ended June 30, 2026 Secured
First Lien
Debt		 Secured
Second
Lien Debt		 Unsecured
Debt		 Preferred
Equity		 Common
Equity/
Equivalents		 Total
Fair Value as of September 30, 2025 $ 622,371  $ 150,542  $ 333  $ 31,214  $ 49,553  $ 854,013 
Total gains (losses):
Net realized gain (loss)(A)
(325) —  —  —  1,790  1,465 
Net unrealized appreciation (depreciation)(B)
385  (606) (16) 2,722  3,147  5,632 
Reversal of prior period net depreciation (appreciation) on realization(B)
(1,376) (145) —  —  (1,790) (3,311)
New investments, repayments and settlements: (C)
Issuances/originations
 159,694  58,004  39  6,940  5,796  230,473 
Settlements/repayments
 (114,915) (21,951) —  —  —  (136,866)
Net proceeds from sales
 —  —  —  —  (3,025) (3,025)
Fair Value as of June 30, 2026
 $ 665,834  $ 185,844  $ 356  $ 40,876  $ 55,471  $ 948,381 
Change in unrealized appreciation (depreciation) attributable to investments still held at June 30, 2026 $ (294) $ (606) $ (16) $ 2,722  $ 3,147  $ 4,953 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Three Months Ended June 30, 2025 Secured
First Lien
Debt		 Secured
Second Lien
Debt		 Unsecured
Debt		 Preferred
Equity		 Common
Equity/
Equivalents		 Total
Fair Value as of March 31, 2025 $ 541,524  $ 144,970  $ 335  $ 25,031  $ 45,765  $ 757,625 
Total gains (losses):
Net realized gain (loss)(A)
(4,439) —  —  —  731  (3,708)
Net unrealized appreciation (depreciation)(B)
815  (355) 7  686  (7,570) (6,417)
Reversal of prior period net depreciation (appreciation) on realization(B)
6,053  295  —  —  —  6,348 
New investments, repayments and settlements: (C)
Issuances/originations
 73,889  130  12  —  —  74,031 
Settlements/repayments
 (80,193) (741) —  —  —  (80,934)
Net proceeds from sales
 —  —  —  —  (731) (731)
Transfers
 (8,500) —  —  —  8,500  — 
Fair Value as of June 30, 2025
 $ 529,149  $ 144,299  $ 354  $ 25,717  $ 46,695  $ 746,214 
Change in unrealized appreciation (depreciation) attributable to investments still held at June 30, 2025 $ 815  $ (355) $ 7  $ 686  $ (7,570) $ (6,417)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Nine months ended June 30, 2025 Secured
First Lien
Debt		 Secured
Second
Lien Debt		 Unsecured
Debt		 Preferred
Equity		 Common
Equity/
Equivalents		 Total
Fair Value as of September 30, 2024 $ 554,937  $ 113,716  $ 32  $ 31,346  $ 96,191  $ 796,222 
Total gains (losses):
Net realized gain (loss)(A)
(8,513) —  —  5,404  64,827  61,718 
Net unrealized appreciation (depreciation)(B)
(10,011) (252) (23) 7,513  6,432  3,659 
Reversal of prior period net depreciation (appreciation) on realization(B)
9,612  295  —  (5,404) (60,010) (55,507)
New investments, repayments and settlements: (C)
Issuances/originations
 212,754  47,827  345  6,262  915  268,103 
Settlements/repayments
 (221,130) (17,287) —  —  —  (238,417)
Net proceeds from sales
 —  —  —  (19,404) (70,160) (89,564)
Transfers (8,500) —  —  —  8,500  — 
Fair Value as of June 30, 2025
 $ 529,149  $ 144,299  $ 354  $ 25,717  $ 46,695  $ 746,214 
Change in unrealized appreciation (depreciation) attributable to investments still held at June 30, 2025 $ (8,899) $ (399) $ (23) $ 7,513  $ 2,421  $ 613 
(A)Included in net realized gain (loss) on investments on our accompanying Consolidated Statements of Operations for the corresponding period.
(B)Included in net unrealized appreciation (depreciation) on investments on our accompanying Consolidated Statements of Operations for the corresponding period.
(C)Includes increases in the cost basis of investments resulting from new portfolio investments, accretion of discounts, PIK, and other non-cash disbursements to portfolio companies, as well as decreases in the cost basis of investments resulting from principal repayments or sales, the amortization of premiums and acquisition costs and other cost-basis adjustments.
Schedule of Investment Holdings
The following table outlines our investments by security type as of June 30, 2026 and September 30, 2025:
June 30, 2026 September 30, 2025
Cost Fair Value Cost Fair Value
Secured first lien debt $ 690,585  71.3  % $ 665,834  69.8  % $ 646,131  73.7  % $ 622,371  72.4  %
Secured second lien debt 185,990  19.2  185,844  19.5  149,937  17.1  150,542  17.5 
Unsecured debt 594  0.1  356  0.1  555  0.1  333  0.1 
Total debt investments 877,169  90.6  852,034  89.4  796,623  90.9  773,246  90.0 
Preferred equity 44,369  4.6  40,876  4.3  37,429  4.3  31,214  3.6 
Common equity/equivalents 47,123  4.8  60,416  6.3  42,562  4.8  54,664  6.4 
Total equity investments
 91,492  9.4  101,292  10.6  79,991  9.1  85,878  10.0 
Total Investments
 $ 968,661  100.0  % $ 953,326  100.0  % $ 876,614  100.0  % $ 859,124  100.0  %
Our investments at fair value consisted of the following industry classifications as of June 30, 2026 and September 30, 2025:
June 30, 2026 September 30, 2025
Industry Classification Fair Value Percentage of
Total
Investments		 Fair Value Percentage of
Total
Investments
Diversified/Conglomerate Manufacturing $ 289,704  30.4  % $ 202,466  23.6  %
Healthcare, Education, and Childcare 220,268  23.1  273,262  31.8 
Diversified/Conglomerate Service 151,376  15.9  152,042  17.7 
Beverage, Food, and Tobacco 86,132  9.0  54,605  6.4 
Cargo Transportation 50,000  5.2  20,000  2.3 
Home and Office Furnishings, Housewares and Durable Consumer Products 34,793  3.6  30,000  3.5 
Machinery
 25,768  2.7  26,381  3.1 
Personal, Food, and Miscellaneous Services 22,493  2.4  23,700  2.7 
Ecological 18,201  1.9  —  — 
Personal and Non-Durable Consumer Products
 16,246  1.7  13,866  1.6 
Oil and Gas 13,510  1.4  17,512  2.0 
Automobile 8,099  0.9  27,361  3.2 
Printing and Publishing 4,385  0.5  5,809  0.7 
Other, < 2.0%
 12,351  1.3  12,120  1.4 
Total Investments $ 953,326  100.0  % $ 859,124  100.0  %
Our investments at fair value were included in the following U.S. geographic regions as of June 30, 2026 and September 30, 2025:
June 30, 2026 September 30, 2025
Location
Fair Value
Percentage of
Total
Investments
Fair Value
Percentage of
Total Investments
South $ 373,171  39.1  % $ 287,371  33.5  %
Midwest 231,723  24.3  237,417  27.6 
West 198,233  20.8  233,564  27.2 
Northeast 150,199  15.8  100,772  11.7 
Total Investments $ 953,326  100.0  % $ 859,124  100.0  %
Schedule of Contractual Principal Repayment and Maturity
The following table summarizes the contractual principal repayment and maturity of our investment portfolio by fiscal year, assuming no voluntary prepayments, as of June 30, 2026:
Amount
For the remaining three months ending September 30:
2026(A)
$ 11,456 
For the fiscal years ending September 30:
 2027 84,622 

2028 176,116 

2029 121,834 

2030 312,771 

Thereafter 171,579 

Total contractual repayments
 $ 878,378 

Adjustments to cost basis of debt investments (1,209)

Investments in equity securities 91,492 

Investments held as of June 30, 2026 at cost:
 $ 968,661 
(A)Includes debt investments with contractual principal amounts totaling $0.2 million for which the maturity date has passed as of June 30, 2026.