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Here are 1-3 brief analogies for Gladstone Capital (GLAD):

• It's like a Real Estate Investment Trust (REIT) for private company loans, similar to how Prologis (PLD) invests in industrial real estate, but Gladstone Capital invests in a portfolio of debt (and some equity) of private middle-market businesses.

• Think of it as a publicly traded corporate bond fund, similar to a Vanguard corporate bond ETF (VTC), but instead of publicly traded bonds, Gladstone Capital invests in loans and some equity in private businesses.

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• Debt Financing: Provides various forms of secured and unsecured debt, including first lien, second lien, unitranche, and subordinated loans, to lower middle-market companies.
• Equity Investments: Makes minority equity co-investments, often in conjunction with its debt financing, in the companies within its investment portfolio.

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Gladstone Capital Corporation (symbol: GLAD) operates as a Business Development Company (BDC).

GLAD primarily sells its financial services (debt and equity financing) to other companies, specifically private, middle-market companies.

Due to its business model as a BDC, Gladstone Capital invests in a diversified portfolio of companies across various industries. This strategy aims to spread risk and generate income from a broad base of investments rather than relying on a few dominant clients.

Consequently, GLAD does not typically have "major customers" in the traditional sense, where a single or a few entities account for a significant portion of its revenue. Its income is primarily derived from interest payments on loans and, to a lesser extent, dividends and capital gains from its equity investments across its entire portfolio.

The companies in GLAD's investment portfolio are generally privately held and, therefore, do not have public stock symbols. Examples of the types of private companies Gladstone Capital has invested in as part of its diversified portfolio include:

• Pristine Services, Inc.
• A-C-T Environmental & Infrastructure, Inc.
• Infinium Spirits, Inc.
• The Great Greek Franchising, LLC
• Meridian Waste Management, LLC

Therefore, while GLAD's customers are indeed other companies, no single entity or small group of entities can be identified as "major customers" due to the nature of its diversified lending and investment strategy.

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• Gladstone Management Corporation
• Gladstone Administration, LLC

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David Gladstone, Chairman and Chief Executive Officer

Mr. Gladstone is the Founder of Gladstone Capital Corporation and has served as its Chief Executive Officer and Chairman of the Board since its inception in 2003. He also founded and continues to serve as Chief Executive Officer and Chairman of the board of directors of affiliates, including Gladstone Investment Corporation, Gladstone Land Corporation, Gladstone Commercial Corporation, the Adviser, and the Administrator. Prior to founding The Gladstone Companies in 2001, Mr. Gladstone served as either Chairman or Vice Chairman of the board of directors of American Capital, Ltd., a publicly-traded leveraged buyout fund and mezzanine debt finance company, from 1997 to 2001. From 1974 to 1997, he held various positions, including Chairman and Chief Executive Officer, with Allied Capital Corporation and its affiliates, which were the largest group of publicly-traded mezzanine debt funds in the United States and managers of two private venture capital limited partnerships. Mr. Gladstone has co-authored two books on financing for small and medium-sized businesses, "Venture Capital Handbook" and "Venture Capital Investing." He holds an MBA from the Harvard Business School.

Nicole Schaltenbrand, Chief Financial Officer and Treasurer

Ms. Schaltenbrand joined Gladstone in November 2015. She has served as Chief Financial Officer and Treasurer since that time. Prior to joining Gladstone, Ms. Schaltenbrand worked as a senior manager of SEC reporting and accounting policy at National Rural Utilities Cooperative Finance Corporation from 2012 to 2015. She also worked as a senior manager in the assurance practice of KPMG LLP from 2004 to 2012. Ms. Schaltenbrand is a CPA in the Commonwealth of Virginia and holds a Bachelor of Science in Accounting from the Pennsylvania State University.

Bob Marcotte, President

Mr. Marcotte joined Gladstone Capital Corporation in December 2013 with an extensive background in commercial finance and investment banking. Since 2002, he has focused on the origination and management of middle market debt and equity investments, supporting both private equity sponsors and owner operators. Prior to joining Gladstone, Mr. Marcotte served as an Executive Vice President and Co-Head of Asset Management for MCG Capital, a publicly-traded business development company, where he was responsible for investment origination, evaluation, underwriting, and portfolio management. While at MCG Capital, he led over $625 million of middle market debt and equity investments. Before MCG Capital, he was Chief Financial Officer for Aleron, Inc., a wholesale internet access and network services provider, and worked in the investment banking divisions of Goldman, Sachs & Co. and Merrill Lynch & Co.

Michael LiCalsi, Chief Administrative Officer, Co-General Counsel, and Co-Secretary

Mr. LiCalsi has been Chief Administrative Officer since July 2025, and Co-General Counsel (and previously General Counsel) since October 2009 and Co-Secretary (and previously Secretary) since October 2012 for Gladstone Capital and its affiliates. He was appointed President of Gladstone Administration in July 2013. Before joining The Gladstone Companies, Mr. LiCalsi served as an Associate Attorney in the Washington, D.C. office of Baker Botts L.L.P., a multinational law firm. From 1996 to 2004, he held various positions at TD Waterhouse Investor Services, Inc. (currently TD Ameritrade, Inc.), including regional and national vice president. He holds a JD from the George Mason University School of Law.

Jay Beckhorn, Assistant Treasurer

Mr. Beckhorn joined Gladstone in January 2013. He serves as Assistant Treasurer of Gladstone Capital and Gladstone Investment, and also as Managing Director, Finance of Gladstone Commercial and Treasurer of Gladstone Commercial and Gladstone Land, focusing on debt finance. He has 26 years of real estate finance experience. Prior to joining Gladstone, Mr. Beckhorn was a Regional Director with Heavenrich & Co., an M&A group that serves the seniors housing industry. Previously, he was a Senior Vice President with Sunrise Senior Living, where he secured debt financing for the company's development, acquisition, and joint venture activities. He also worked for Riggs Bank and Kettler, a D.C. area real estate developer.

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The key risks to Gladstone Capital (GLAD) primarily stem from its nature as a business development company (BDC) focused on debt and equity investments in lower middle-market companies.

1. Changes in the Economy and Capital Markets, including Interest Rate Fluctuations: Gladstone Capital is highly susceptible to shifts in the broader economy and capital markets. Factors such as stock price volatility, inflation, risks of recession, and particularly changes in interest rates, can significantly impact its business operations and financial condition. A substantial portion, over 90%, of Gladstone Capital's debt investments are structured with floating interest rates, which means that while rising rates can increase interest income, declining rates can negatively affect their net investment income. Conversely, interest rate volatility can also influence the company's borrowing costs and the valuation of its investment portfolio.
2. Credit Risk and Performance of Portfolio Companies: As a BDC, Gladstone Capital's financial performance is directly tied to the health and repayment ability of its portfolio companies. The company faces the risk of its investments going on non-accrual status, meaning these loans are no longer generating income, which can indicate stress within the portfolio. The relatively small size of its investment portfolio, spread across approximately 51 companies, also means that the underperformance or default of a few key investments could have a more concentrated impact on the business. Tariffs and inflation could also adversely affect the portfolio companies, thereby impacting their ability to repay loans.
3. Maintaining Regulated Investment Company (RIC) and Business Development Company (BDC) Status: Gladstone Capital operates under specific regulatory frameworks, requiring it to maintain its qualification as a Regulated Investment Company (RIC) under the Internal Revenue Code and as a Business Development Company (BDC) under the Investment Company Act of 1940. Failure to adhere to the complex rules and regulations necessary to maintain these statuses could materially and adversely affect its business, financial condition, results of operations, and cash flows.

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Intensified competition from rapidly growing, less-regulated private credit funds. These funds, often managed by large asset managers, are increasingly deploying substantial capital into the middle-market lending space, directly competing with Business Development Companies (BDCs) like Gladstone Capital for investment opportunities. Their typically less stringent regulatory oversight (compared to BDCs which are regulated investment companies) can afford them greater flexibility in deal structuring, capital deployment, and fee arrangements, potentially enabling them to offer more competitive terms or take on different risk profiles. This accelerating trend poses a threat by potentially compressing lending spreads, reducing the availability of high-quality deals for BDCs, and eroding market share within the private credit landscape.

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Gladstone Capital (GLAD) operates as a business development company (BDC) primarily offering debt and equity financing to lower middle-market companies within the United States. Their main services involve providing senior term loans, senior subordinated loans, junior subordinated loans, and minority equity investments.

The addressable market for Gladstone Capital's services can be understood through the U.S. middle market and the broader private credit market, which includes direct lending to these businesses:

• The U.S. "middle market," generally comprising companies with annual revenues between $20 million and $150 million and EBITDA between $3 million and $25 million, is estimated to include approximately 200,000 companies. This segment of the U.S. economy, based on combined revenue, is estimated by some to be $4 trillion in size, representing one-third of the private sector GDP.
• The private corporate loans market, which encompasses direct lending to middle-market companies in the U.S., has reached $1.7 trillion as of September 30, 2024.
• The U.S. Micro, Small and Medium Enterprise (MSME) Financing market, which includes debt and equity financing for small and medium-sized businesses, is estimated at US$1.1 trillion in 2024.

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Gladstone Capital Corporation (GLAD) is expected to drive future revenue growth over the next two to three years through a continuation of its core investment strategy, an emphasis on its weighted average yield, and strategic portfolio expansion.

• Expansion of the Investment Portfolio: Gladstone Capital consistently deploys capital into new and existing portfolio companies, primarily focusing on lower middle-market businesses. For instance, in the second fiscal quarter of 2025, the company invested $38.3 million in two new portfolio companies and $7.3 million in existing ones. Furthermore, subsequent to June 30, 2025, net originations totaled $89 million. More recently, in the quarter ended September 30, 2025, net originations exceeded $100 million. This ongoing investment activity is a direct driver of future interest and investment income.
• Optimization of Weighted Average Yield on Debt Investments: The company has demonstrated its ability to achieve a competitive weighted average yield on its interest-bearing investments. For example, the weighted average yield on interest-bearing investments improved to 13.9% in fiscal year 2024 from 13.3% in the prior year. While there have been fluctuations influenced by factors like SOFR rates, the strategic focus on securing favorable yields on new and existing loans contributes to revenue generation.
• Strategic Focus on Lower Middle Market, Senior Secured Lending: Gladstone Capital's investment highlights consistently emphasize its focus on lending to growth-oriented lower middle-market businesses, with a significant portion of its portfolio (over 70% of debt investments) in senior secured, first-lien loans. This established and consistent investment approach, coupled with active portfolio management and risk monitoring, is expected to continue generating interest income from a diversified base of borrowers in a segment where the company has a proprietary sourcing and execution model.

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Share Issuance

• Gladstone Capital completed an offering of $57.0 million aggregate principal amount of 2028 Notes in August 2023.
• In September 2025, the company announced a registered public offering of $110 million in unsecured convertible notes due 2030, with the underwriter having an option to purchase an additional $16.5 million.
• The company has a history of meeting its capital needs by accessing capital markets through public equity offerings of common and preferred stock, and public and private debt offerings.

Outbound Investments

• Gladstone Capital focuses on providing financing solutions to lower middle market companies nationwide, primarily through investments in low-risk First and Second Senior Secured Debt.
• The company anticipates net originations between $50 million and $100 million per quarter.
• For the quarter ended September 30, 2025, net originations exceeded $100 million.