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INVESTMENTS (Tables)
 3 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Schedule of Fair Value, Assets Measured on Recurring Basis
As of December 31, 2025 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 December 31, 2025:
Secured first lien debt
$— $— $647,576 $647,576 
Secured second lien debt
— — 170,662 170,662 
Unsecured debt
— — 346 

346 
Preferred equity
— — 36,761 

36,761 
Common equity/equivalents
— 

— 42,492 42,492 
Total
$— $— $897,837 $897,837 
Investments measured at NAV(A)
— — — 5,075 
Total Investments
$— $— $897,837 $902,912 
Cash Equivalents
1,253 — — 1,253 
Total Investments and Cash Equivalents as of December 31, 2025
$1,253 $— $897,837 $904,165 
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 December 31, 2025 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 December 31, 2025 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)
December 31, 2025September 30, 2025
Non-Control/Non-Affiliate Investments
Secured first lien debt$540,903 $517,762 
Secured second lien debt151,870 131,750 
Unsecured debt16 17 
Preferred equity22,643 16,794 
Common equity/equivalents27,981 29,958 
(B)
Total Non-Control/Non-Affiliate Investments
$743,413 $696,281 
Affiliate Investments
Secured first lien debt$33,251 $34,713 
Preferred equity8,648 9,420 
Common equity/equivalents4,817 
(A)
4,703 
(B)
Total Affiliate Investments$46,716 $48,836 
Control Investments
Secured first lien debt$73,422 $69,896 
Secured second lien debt18,792 18,792 
Unsecured debt330 316 
Preferred equity5,470 5,000 
Common equity/equivalents9,694 14,892 
Total Control Investments
$107,708 $108,896 
Total Investments at Fair Value Using Level 3 Inputs$897,837 $854,013 
(A)Excludes our investment in Gladstone Alternative with a fair value of $5.1 million as of December 31, 2025, 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.
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

December 31,
2025		September 30,
2025
Valuation
Techniques/
Methodologies
Unobservable
Input
December 31,
2025		September 30,
2025


Secured first lien debt(A)
$570,154 $548,670 
Yield Analysis
Discount Rate
9.0% - 18.0%
/ 11.2%
9.4% - 19.8%
/ 11.7%

77,422 73,701 
TEV
EBITDA multiple
3.6x – 8.3x
/ 6.2x
3.5x – 8.0x
/ 6.0x


EBITDA
$490 - $4,266
/ $3,485
$538 - $4,655
/ $3,540


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


Revenue
$8,268 - $22,244
/ $14,884
$10,844 - $21,649
/ $15,090


Secured second lien debt
151,870 141,750 
Yield Analysis
Discount Rate
11.1% - 14.8%
/ 12.3%
11.4% - 15.2%
/ 13.1%

18,792 8,792 
TEV
EBITDA multiple
5.0x – 5.6x
/ 5.3x
5.4x – 5.4x
/ 5.4x


EBITDA
$2,355 - $11,359
/ $7,146
$2,345 - $2,345
/ $2,345


Unsecured debt
346 333 
TEV
EBITDA multiple
8.3x – 8.3x
/ 8.3x
8.0x – 8.0x
/ 8.0x
EBITDA
$3,755 - $3,755
/ $3,755
$3,804 - $3,804
/ $3,804
Revenue multiple
0.9x – 0.9x
/ 0.9x
0.9x – 0.9x
/ 0.9x


Revenue
$4,708 - $4,708
/ $4,708
$4,846 - $4,846
/ $4,846


Preferred and common equity / equivalents(B)
79,253 80,767 
TEV
EBITDA multiple
3.6x – 15.1x
/ 7.0x
3.5x – 14.6x
/ 6.8x


EBITDA
$490 -$143,118
/ $9,727
$538 -$142,549
/ $10,222


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


Revenue
$4,708 -$22,244
/ $11,209
$4,846 -$21,649
/ $12,394
Total Level 3 Investments, at Fair Value
$897,837 $854,013 

(A)Fair value as of December 31, 2025 includes one proprietary debt investment totaling $43.6 million, which was valued using the payoff amount as the unobservable input.
(B)Fair value as of December 31, 2025 excludes our investment in Gladstone Alternative with a fair value of $5.1 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 months ended December 31, 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)
Three months ended December 31, 2025Secured
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)
(112)— — — 1,790 1,678 
Net unrealized appreciation (depreciation)(B)
(23)739 — 607 (4,821)(3,498)
Reversal of prior period net depreciation (appreciation) on realization(B)
(169)(145)— — (1,790)(2,104)
New investments, repayments and settlements: (C)
Issuances/originations
57,276 39,071 13 4,940 — 101,300 
Settlements/repayments
(31,767)(19,545)— — — (51,312)
Net proceeds from sales
— — — — (2,240)(2,240)
Fair Value as of December 31, 2025
$647,576 $170,662 $346 $36,761 $42,492 $897,837 

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Three Months Ended December 31, 2024Secured
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)
(4,074)— — 2,450 59,348 57,724 
Net unrealized appreciation (depreciation)(B)
(3,534)115 5 3,136 12,396 12,118 
Reversal of prior period net depreciation (appreciation) on realization(B)
3,581 — — (2,450)(55,140)(54,009)
New investments, repayments and settlements: (C)
Issuances/originations
111,754 29,244 322 6,262 — 147,582 
Settlements/repayments
(76,255)(15,841)— — — (92,096)
Net proceeds from sales
— — — (9,450)(63,631)(73,081)
Fair Value as of December 31, 2024
$586,409 $127,234 $359 $31,294 $49,164 $794,460 
(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 December 31, 2025 and September 30, 2025:
December 31, 2025September 30, 2025
CostFair ValueCostFair Value
Secured first lien debt$671,528 72.5 %$647,576 71.7 %$646,131 73.7 %$622,371 72.4 %
Secured second lien debt169,463 18.3 170,662 18.9 149,937 17.1 150,542 17.5 
Unsecured debt568 0.1 346 0.0 555 0.1 333 0.1 
Total debt investments841,559 90.9 818,584 90.6 796,623 90.9 773,246 90.0 
Preferred equity42,369 4.6 36,761 4.1 37,429 4.3 31,214 3.6 
Common equity/equivalents42,112 4.5 47,567 5.3 42,562 4.8 54,664 6.4 
Total equity investments
84,481 9.1 84,328 9.4 79,991 9.1 85,878 10.0 
Total Investments
$926,040 100.0 %$902,912 100.0 %$876,614 100.0 %$859,124 100.0 %
Our investments at fair value consisted of the following industry classifications as of December 31, 2025 and September 30, 2025:
December 31, 2025September 30, 2025
Industry ClassificationFair ValuePercentage of
Total
Investments		Fair ValuePercentage of
Total
Investments
Healthcare, Education, and Childcare$288,403 31.9 %$273,262 31.8 %
Diversified/Conglomerate Manufacturing203,153 22.5 202,466 23.6 
Diversified/Conglomerate Service146,845 16.3 152,042 17.7 
Beverage, Food, and Tobacco77,921 8.6 54,605 6.4 
Cargo Transportation50,000 5.5 20,000 2.3 
Home and Office Furnishings, Housewares and Durable Consumer Products29,928 3.3 30,000 3.5 
Machinery
26,467 3.0 26,381 3.1 
Personal, Food, and Miscellaneous Supplies22,751 2.5 23,700 2.7 
Oil and Gas
16,746 1.9 17,512 2.0 
Personal and Non-Durable Consumer Products13,576 1.5 13,866 1.6 
Automobile9,264 1.0 27,361 3.2 
Printing and Publishing5,365 0.6 5,809 0.7 
Other, < 2.0%
12,493 1.4 12,120 1.4 
Total Investments$902,912 100.0 %$859,124 100.0 %
Our investments at fair value were included in the following U.S. geographic regions as of December 31, 2025 and September 30, 2025:
December 31, 2025September 30, 2025
Location
Fair Value
Percentage of
Total
Investments
Fair Value
Percentage of
Total Investments
South$320,014 35.4 %$287,371 33.5 %
Midwest266,400 29.5 237,417 27.6 
West213,878 23.7 233,564 27.2 
Northeast102,620 11.4 100,772 11.7 
Total Investments$902,912 100.0 %$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 December 31, 2025:
Amount
For the remaining nine months ending September 30:
2026(A)
$22,553 
For the fiscal years ending September 30:
2027130,873 

2028200,051 

2029146,569 

2030239,554 

Thereafter103,360 

Total contractual repayments
$842,960 

Adjustments to cost basis of debt investments(1,401)

Investments in equity securities84,481 

Investments held as of December 31, 2025 at cost:
$926,040 
(A)Includes debt investments with contractual principal amounts totaling $0.4 million for which the maturity date has passed as of December 31, 2025.