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INVESTMENTS

12 Months Ended

Sep. 30, 2025

Investments, Debt and Equity Securities [Abstract]

In accordance with ASC 820, the fair value of each investment is determined to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between willing market participants on the measurement date. This fair value definition focuses on exit price in the principal, or most advantageous, market and prioritizes, within a measurement of fair value, the use of market-based inputs over entity-specific inputs. ASC 820 also establishes the following three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of a financial instrument as of the measurement date.

•Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical financial instruments in active markets;

•Level 2 — inputs to the valuation methodology include quoted prices for similar financial instruments in active or inactive markets, and inputs that are observable for the financial instrument, either directly or indirectly, for substantially the full term of the financial instrument. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or instances where prices vary substantially over time or among brokered market makers; and

•Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs are those inputs that reflect assumptions that market participants would use when pricing the financial instrument and can include the Valuation Team’s assumptions based upon the best available information.

When a determination is made to classify our investments within Level 3 of the valuation hierarchy, such determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, Level 3 financial instruments typically include, in addition to the unobservable, or Level 3, inputs, observable inputs (or components that are actively quoted and can be validated to external sources). The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. Investments in funds measured using NAV as a practical expedient are not categorized within the fair value hierarchy.

As of September 30, 2025, all of our investments were valued using Level 3 inputs within the ASC 820 fair value hierarchy, except for our investments in money market funds, which were valued using Level 1 inputs and our investments in Gladstone Alternative Income Fund (“Gladstone Alternative”) and Leeds Novamark Capital I, L.P. (“Leeds”), which were valued using NAV as a practical expedient. As of September 30, 2024, all of our investments were valued using Level 3 inputs within the ASC 820 fair value hierarchy, except for our investments in money market funds, which were valued using Level 1 inputs and our investment in Leeds, which was valued using NAV as a practical expedient.

We transfer investments in and out of Level 1, 2, and 3 of the valuation hierarchy as of the beginning balance sheet date, based on changes in the use of observable and unobservable inputs utilized to perform the valuation for the period. During the years ended September 30, 2025 and 2024, there were no investments transferred into or out of Levels 1, 2 or 3 of the valuation hierarchy.

As of September 30, 2025 and 2024, 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 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


	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, 2024:
Secured first lien debt	$	—	$	—	$	554,937	$	554,937
Secured second lien debt	—		—		113,716		113,716
Unsecured debt	—		—		32		32
Preferred equity	—		—		31,346		31,346
Common equity/equivalents	—		—		96,191		96,191
Total	$	—	$	—	$	796,222	$	796,222
Investments measured at NAV(A)	—		—		—		38
Total Investments	$	—	$	—	$	796,222	$	796,260
Cash Equivalents	2,157		—		—		2,157
Total Investments and Cash Equivalents as of September 30, 2024	$	2,157	$	—	$	796,222	$	798,417

(A)Includes our investments in Gladstone Alternative and Leeds as of September 30, 2025 and our investment in Leeds as of September 30, 2024. 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 annual 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 September 30, 2025 and 2024 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)
	September 30, 2025			September 30, 2024
Non-Control/Non-Affiliate Investments
Secured first lien debt	$	517,762		$	540,661
Secured second lien debt	131,750			105,169
Unsecured debt	17			32
Preferred equity	16,794			27,247
Common equity/equivalents	29,958		(A)	77,757		(B)
Total Non-Control/Non-Affiliate Investments	$	696,281		$	750,866

Affiliate Investments
Secured first lien debt	$	34,713		$	380
Preferred equity	9,420			4,099
Common equity/equivalents	4,703			2,959
Total Affiliate Investments	$	48,836		$	7,438

Control Investments
Secured first lien debt	$	69,896		$	13,896
Secured second lien debt	18,792			8,547
Unsecured debt	316			—
Preferred equity	5,000			—
Common equity/equivalents	14,892			15,475
Total Control Investments	$	108,896		$	37,918
Total Investments at Fair Value Using Level 3 Inputs	$	854,013		$	796,222

(A)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.

(B)Excludes our investment in Leeds with a fair value of $38 thousand as of September 30, 2024, which was valued using NAV as a practical expedient.

In accordance with ASC 820, the following table provides quantitative information about our Level 3 fair value measurements of our investments as of September 30, 2025 and 2024. 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. The weighted average calculations in the table below are based on the principal balances for all debt related calculations and on the cost basis for all equity related calculations for the particular input.

Quantitative Information about Level 3 Fair Value Measurements

Range / Weighted Average as of

September 30,
2025

September 30,
2024

Valuation
Techniques/
Methodologies

Unobservable
Input

September 30,
2025

September 30,
2024

Secured first lien debt

548,670

464,090

Yield Analysis

Discount Rate

9.4%–19.8% / 11.7%

10.8%–17.3% / 12.6%

73,701

90,847

TEV

EBITDA multiple

3.5x–8.0x / 6.0x

4.1x–13.9x / 10.0x

EBITDA

$538–$4,655 / $3,540

$3,020–$16,211 / $10,309

Revenue multiple

0.6x–0.8x / 0.7x

0.2x–4.6x / 2.1x

Revenue

$10,844–$21,649 / $15,090

$6,336–$21,118 / $13,981

Secured second lien debt

141,750

101,928

Yield Analysis

Discount Rate

11.4%–15.2% / 13.1%

12.2%—16.0% / 14.1%

—

3,241

Market Quote

IBP

N/A

88.0%–88.0% / 88.0%

8,792

8,547

TEV

EBITDA multiple

5.4x–5.4x / 5.4x

EBITDA

$2,345–$2,345 / $2,345

$3,343–$3,343 / $3,343

Unsecured debt

333

TEV

EBITDA multiple

8.0x–8.0x / 8.0x

0.0x–0.0x / 0.0x

EBITDA

$3,804–$3,804 / $3,804

$0–$0 / $0

Revenue multiple

0.9x–0.9x / 0.9x

1.0x–1.0x / 1.0x

Revenue

$4,846–$4,846 / $4,846

$7,834–$7,834 / $7,834

Preferred and common equity / equivalents(A)

80,767

127,537

TEV

EBITDA multiple

3.5x–14.6x / 6.8x

4.1x–13.9x / 8.0x

EBITDA

$538–$142,549 / $10,222

$1,182–$144,458 / $10,847

Revenue multiple

0.6x–0.9x / 0.7x

0.2x–4.6x / 2.0x

Revenue

$4,846–$21,649 / $12,394

$4,672–$21,118 / $12,587

Total Level 3 Investments, at Fair Value

854,013

796,222

(A)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. Fair value as of September 30, 2024 excludes our investment in Leeds with a fair value of $38 thousand, which was valued using NAV as a practical expedient.

Fair value measurements can be sensitive to changes in one or more of the valuation inputs. Changes in discount rates, EBITDA or EBITDA multiples (or revenue or revenue multiples), each in isolation, may change the fair value of certain of our investments. Generally, an increase/(decrease) in market yields, discount rates, or a (decrease)/increase in EBITDA or EBITDA multiples (or revenue or revenue multiples) may result in a (decrease)/increase, respectively, in the fair value of certain of our investments.

Changes in Level 3 Fair Value Measurements of Investments

The following tables provide the changes in fair value, broken out by security type, during the years ended September 30, 2025 and 2024 for all investments for which we determine fair value using unobservable (Level 3) inputs.


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Year Ended September 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)		—		—		(946)		64,827		55,368
Net unrealized appreciation (depreciation)(B)	(7,573)		285		(56)		6,510		7,179		6,345
Reversal of prior period net depreciation (appreciation) on realization(B)	9,612		295		—		946		(60,010)		(49,157)
New investments, repayments and settlements:(C)
Issuances/originations	322,603		57,958		357		12,762		3,026		396,706
Settlements/repayments	(240,195)		(21,712)		—		—		—		(261,907)
Net proceeds from sales	—		—		—		(19,404)		(70,160)		(89,564)
Transfers	(8,500)		—		—		—		8,500		—
Fair Value as of September 30, 2025	$	622,371	$	150,542	$	333	$	31,214	$	49,553	$	854,013


Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Year Ended September 30, 2024	Secured First Lien Debt		Secured Second Lien Debt		Unsecured Debt		Preferred Equity		Common Equity/ Equivalents		Total
Fair Value as of September 30, 2023	$	510,701	$	127,854	$	24	$	26,855	$	39,128	$	704,562
Total gains (losses):
Net realized gain (loss)(A)	(50)		—		—		332		1,724		2,006
Net unrealized appreciation (depreciation)(B)	(7,071)		2,445		8		(5,039)		52,781		43,124
Reversal of prior period net depreciation (appreciation) on realization(B)	(53)		(22)		—		130		(283)		(228)
New investments, repayments and settlements:(C)
Issuances/originations	131,462		36,978		—		10,150		4,585		183,175
Settlements/repayments	(80,102)		(53,539)		—		—		—		(133,641)
Net proceeds from sales	50		—		—		(1,082)		(1,744)		(2,776)
Transfers	—		—		—		—		—		—
Fair Value as of September 30, 2024	$	554,937	$	113,716	$	32	$	31,346	$	96,191	$	796,222

(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.

Investment Activity

Proprietary Investments

As of September 30, 2025 and 2024, we held 54 and 47 proprietary investments with an aggregate fair value of $859.1 million and $792.9 million, or 100.0% and 99.6% of the total portfolio at fair value, respectively. The following significant proprietary investment transactions occurred during the year ended September 30, 2025:

•In October 2024, our $15.0 million debt investment in Perimeter Solutions Group paid off at par. We also received a $0.5 million prepayment penalty in conjunction with the payoff.

•In October 2024, our investment in Antenna Research Associates, Inc. was sold, which resulted in a net realized gain on our common equity of approximately $59.3 million and the repayment of our debt investment of $31.3 million at par.

•In November 2024, we invested an additional $28.9 million in Giving Home Healthcare, LLC (“Giving Home”), an existing portfolio company, through secured first lien debt. In June 2025, we invested an additional $7.0 million in Giving Home through secured first lien debt.

•In November 2024, we invested $10.5 million in Wings ‘N More Restaurants, LLC (“Wings”) through secured first lien debt. We also extended Wings a $1.5 million secured first lien line of credit commitment and a $5.0 million secured first lien delayed draw term loan commitment, both of which were unfunded at close.

•In November 2024, our $22.3 million debt investment in ENET Holdings, LLC paid off at par.

•In December 2024, we invested $42.8 million in Vet’s Choice Radiology, LLC through secured first lien debt.

•In December 2024, we invested $28.9 million in Pan-Am Dental, LLC through secured second lien debt and preferred equity.

•In December 2024, we invested $15.0 million in Freedom Dental Management, Inc. through secured first lien debt.

•In December 2024, we invested $5.0 million in Tube Bending Technology, LLC through secured second lien debt.

•In December 2024, we invested $5.0 million in Gladstone Alternative, one of our affiliated funds, through common equity.

•In December 2024, our investment in Salt and Straw, LLC, paid off which resulted in a realized gain of approximately $2.5 million on our preferred equity and the repayment of our debt investment of $10.9 million at par. We also received a $0.1 million prepayment penalty in conjunction with the payoff. We continue to hold warrants for common equity in Salt and Straw, LLC.

•In December 2024, we sold our debt investments in DKI Ventures, LLC, which resulted in a net realized loss on our debt of approximately $4.1 million.

•In January 2025, our $20.6 million debt investment in Fix-It Group, LLC paid off at par. We also received a $0.1 million prepayment penalty.

•In January 2025, our $5.4 million debt investment in Sokol and Company, LLC (“Sokol”) paid off at par. Additionally, in February 2025, a portion of our common equity investment in Sokol was sold, representing a return of our equity cost basis of $1.1 million and a realized gain of $4.7 million.

•In February 2025, we invested $18.9 million in Dutch Gold Honey, Inc. through secured second lien debt and common equity.

•In February 2025, we invested $19.4 million in Viron International, LLC through secured first lien debt and common equity.

•In March 2025, we received a $6.0 million partial repayment on our debt investment in Viva Railings, LLC.

•In March 2025, we exited our investment in MCG Energy Solutions, LLC, which resulted in a realized gain on our preferred equity investment of approximately $3.0 million and the repayment of our debt investment of $20.4 million at par.

•In April 2025, our $42.2 million debt investment in SpaceCo Holdings, LLC paid off at par.

•In April 2025, our investment in Eegees, LLC was restructured as part of the bankruptcy process resulting in a new $12.8 million first lien debt investment and a new $8.5 million common equity investment in Eegee Acquisition Corporation. In conjunction with the restructuring, we recorded a net realized loss of approximately $4.4 million.

•In May 2025, we invested $46.0 million in Altior Healthcare, LLC through secured first lien debt.

•In June 2025, our $36.1 million debt investment in Cafe Zupas paid off at par. We also received a $0.4 million prepayment penalty in conjunction with the payoff.

•In June 2025, we invested $12.6 million in RF Technologies, LLC through secured first lien debt. We also extended RF Technologies, LLC a $3.5 million secured first lien line of credit commitment.

•In July 2025, we invested $25.0 million in MASSiv Brands, LLC through secured first lien debt.

•In July 2025, we invested $15.0 million in Alsay Incorporated through secured second lien debt and preferred equity.

•In July 2025, we invested $23.7 million in Snif-Snax, LLC through secured first lien debt and preferred equity.

•In July 2025, we invested $13.0 million in Zero Case Holding Inc. through secured first lien debt and common equity. We also extended this business a $4.0 million secured first lien line of credit commitment, which was unfunded at close.

•In August 2025, we invested an additional $16.6 million in OCI, LLC, an existing portfolio company, through secured first lien debt and common equity.

•In August 2025, we invested $30.0 million in Foodservices Brand Group (“FBG”) through secured first lien debt. We also extended FBG a $10.0 million secured first lien line of credit commitment, which was unfunded at close.

•In September 2025, we recorded a realized loss of $6.4 million on our equity investment in FES Resources Holdings, LLC.

•In September 2025, our $15.4 million debt investment in Ohio Armor Holdings, LLC paid off at par. We continue to hold a common equity investment in Ohio Armor Holdings, LLC.

Syndicated Investments

As of September 30, 2025 and 2024, we held one and two syndicated investments with an aggregate fair value of less than $0.1 million and $3.3 million, or less than 0.1% and 0.4% of the total portfolio at fair value, respectively. The following significant syndicated investment transaction occurred during the year ended September 30, 2025:

•In July 2025, our $3.7 million debt investment in 8th Avenue Food & Provisions, Inc. paid off at par.

Investment Concentrations

As of September 30, 2025, our investment portfolio consisted of investments in 55 portfolio companies located in 22 states in 16 different industries, with an aggregate fair value of $859.1 million. The five largest investments at fair value as of September 30, 2025 totaled $196.5 million, or 22.9% of our total investment portfolio, as compared to the five largest investments at fair value as of September 30, 2024 totaling $232.7 million, or 29.2% of our total investment portfolio. As of September 30, 2025 and 2024, our average investment by obligor was $15.9 million and $15.7 million at cost, respectively.

The following table outlines our investments by security type as of September 30, 2025 and 2024:


	September 30, 2025								September 30, 2024
	Cost				Fair Value				Cost				Fair Value
Secured first lien debt	$	646,131	73.7	%	$	622,371	72.4	%	$	580,736	75.3	%	$	554,937	69.7	%
Secured second lien debt	149,937		17.1		150,542		17.5		113,691		14.8		113,716		14.3
Unsecured debt	555		0.1		333		0.1		198		0.0		32		0.0
Total debt investments	796,623		90.9		773,246		90.0		694,625		90.1		668,685		84.0
Preferred equity	37,429		4.3		31,214		3.6		45,017		5.8		31,346		3.9
Common equity/equivalents	42,562		4.8		54,664		6.4		31,369		4.1		96,229		12.1
Total equity investments	79,991		9.1		85,878		10.0		76,386		9.9		127,575		16.0
Total Investments	$	876,614	100.0	%	$	859,124	100.0	%	$	771,011	100.0	%	$	796,260	100.0	%

Our investments at fair value consisted of the following industry classifications as of September 30, 2025 and 2024:


Industry Classification	September 30, 2025				September 30, 2024
	Fair Value		Percentage of Total Investments		Fair Value		Percentage of Total Investments
Healthcare, Education, and Childcare	$	273,262	31.8	%	$	101,707	12.8	%
Diversified/Conglomerate Manufacturing	202,466		23.6		160,264		20.1
Diversified/Conglomerate Service	152,042		17.7		179,032		22.5
Beverage, Food, and Tobacco	54,605		6.4		88,327		11.1
Home and Office Furnishings, Housewares and Durable Consumer Products	30,000		3.5		—		—
Automobile	27,361		3.2		28,286		3.6
Machinery	26,381		3.1		21,816		2.7
Personal, Food, and Miscellaneous Services	23,700		2.7		—		—
Cargo Transportation	20,000		2.3		20,200		2.5
Oil and Gas	17,512		2.0		20,554		2.6
Personal and Non-Durable Consumer Products	13,866		1.6		13,586		1.7
Printing and Publishing	5,809		0.7		4,312		0.5
Aerospace and Defense	1,184		0.1		153,096		19.2
Other, < 2.0%	10,936		1.3		5,080		0.7
Total Investments	$	859,124	100.0	%	$	796,260	100.0	%

Our investments at fair value were included in the following U.S. geographic regions as of September 30, 2025 and 2024:


Location	September 30, 2025				September 30, 2024
	Fair Value		Percentage of Total Investments		Fair Value		Percentage of Total Investments
South	$	287,371	33.5	%	$	314,010	39.4	%
Midwest	237,417		27.6		192,897		24.2
West	233,564		27.2		249,082		31.3
Northeast	100,772		11.7		40,271		5.1
Total Investments	$	859,124	100.0	%	$	796,260	100.0	%

The geographic composition indicates the location of the headquarters for our portfolio companies. A portfolio company may have additional locations in other geographic regions.

Investment Principal Repayments

The following table summarizes the contractual principal repayment and maturity of our investment portfolio by fiscal year, assuming no voluntary prepayments, as of September 30, 2025:


Year Ending September 30,	Amount
2026(A)	$	58,434
2027	157,554
2028	222,265
2029	139,336
2030	209,608
Thereafter	10,000
Total contractual repayments	$	797,197
Adjustments to cost basis of debt investments	(574)
Investments in equity securities	79,991
Investments held as of September 30, 2025 at cost:	$	876,614

(A)Includes debt investments with contractual principal amounts totaling $0.5 million for which the maturity date has passed as of September 30, 2025.

Receivables from Portfolio Companies

Receivables from portfolio companies represent non-recurring costs incurred on behalf of such portfolio companies and are included in other assets on our accompanying Consolidated Statements of Assets and Liabilities. We generally maintain an allowance for uncollectible receivables from portfolio companies when the receivable balance becomes 90 days or more past due or if it is determined, based upon management’s judgment, that the portfolio company is unable to pay its obligations. We write-off accounts receivable when we have exhausted collection efforts and have deemed the receivables uncollectible. As of September 30, 2025 and 2024, we had gross receivables from portfolio companies of $2.4 million and $1.7 million, respectively. The allowance for uncollectible receivables was $52 thousand and $75 thousand as of September 30, 2025 and 2024, respectively.