Runway Growth Finance Corp. Reports First Quarter 2025 Financial Results
Delivered Total and Net Investment Income of
Investment Portfolio of
Conference Call Today,
First Quarter 2025 Highlights
- Total investment income of
$35.4 million - Net investment income of
$15.6 million , or$0.42 per share - Net asset value of
$503.3 million , or$13.48 per share - Dollar-weighted annualized yield on debt investments of 15.44%
- Three investments completed in existing portfolio companies, representing
$50.7 million in funded investments - Aggregate proceeds of
$71.9 million in principal prepayments and$3.7 million from scheduled amortization - Aggregate proceeds of
$38.1 million in equity sale proceeds, resulting in net realized gains of$7.4 million - Total net realized gains on investments of
$6.1 million
Second Quarter 2025 Distributions
- Declared second quarter 2025 regular dividend of
$0.33 per share - Declared second quarter 2025 supplemental dividend of
$0.02 per share
“In the first quarter of 2025, Runway Growth advanced its platform strategy, enhancing origination channels as we seek to maximize our portfolio,” said
First Quarter 2025 Operating Results
Total investment income for the quarter ended
Net investment income for the quarter ended
The Company's dollar-weighted annualized yield on average debt investments for the quarter ended
Total operating expenses for the quarter ended
Net realized gain on investments was
For the quarter ended
Portfolio and Investment Activity
As of
During the first quarter of 2025, Runway Growth funded three investments in existing portfolio companies, representing
Total portfolio investment activity for the three months ended
| Three Months Ended |
||||||||
| 2025 | 2024 | |||||||
| Beginning investment portfolio | $ | 1,076,840 | $ | 1,067,009 | ||||
| Purchases of investments | 15,320 | 24,642 | ||||||
| PIK interest | 3,260 | 4,176 | ||||||
| Sales and prepayments of investments | (74,978 | ) | (34,449 | ) | ||||
| Scheduled repayments of investments | (3,665 | ) | (413 | ) | ||||
| Sales and maturities of |
- | (42,029 | ) | |||||
| Amortization of fixed income premiums or accretion of discounts | 1,189 | 4,013 | ||||||
| Net realized gain (loss) on investments | 6,057 | - | ||||||
| Net change in unrealized gain (loss) on investments | (19,790 | ) | (6,617 | ) | ||||
| Ending investment portfolio | $ | 1,004,233 | $ | 1,016,332 | ||||
Net Asset Value
As of
For the quarter ended
Liquidity and Capital Resources
As of
The Company ended the quarter with a core leverage ratio of approximately 99%, compared to 108% for the quarter ended
Distributions
On
Recent Developments
The Company evaluated events subsequent to
Borrowings
On
The Series 2025A Notes have a fixed interest rate of 7.51% per year. The Company used the net proceeds from the offering of the Series 2025A Notes to repay outstanding indebtedness, make investments in accordance with the Company’s investment objective and investment strategy, and for other general corporate purposes of the Company.
The Series 2025A Notes will mature on
The Note Purchase Agreement contains customary terms and conditions for senior notes issued in a private placement, including, without limitation, affirmative and negative covenants related to information reporting, maintenance of the Company’s status as a business development company within the meaning of the Investment Company Act of 1940, as amended, and a regulated investment company under the Internal Revenue Code of 1986, as amended, minimum shareholders’ equity, minimum asset coverage ratio and maximum secured debt ratio. The Note Purchase Agreement also contains customary events of default with customary cure and notice periods.
Recent Portfolio Activity
From
Share Repurchase Program
On
Conference Call
Runway Growth will hold a conference call to discuss its first quarter ended
A live webcast will be available in the investor section of the Company’s website, and will be archived for 90 days following the call.
About
Runway Growth is a growing specialty finance company focused on providing flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity. Runway Growth is a closed-end investment fund that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. Runway Growth is externally managed by
Forward-Looking Statements
Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Runway Growth’s filings with the
Important Disclosures
Strategies described involve special risks that should be evaluated carefully before a decision is made to invest. Not all of the risks and other significant aspects of these strategies are discussed herein. Please see a more detailed discussion of these risk factors and other related risks in the Company’s most recent annual report on Form 10-K in the section entitled “Risk Factors”, and in the Company's quarterly report on Form 10-Q for the quarter ended
IR Contacts:
Consolidated Statements of Assets and Liabilities (In thousands, except share and per share data) |
||||||
| (Unaudited) | ||||||
| Assets | ||||||
| Investments at fair value: | ||||||
| Non-control/non-affiliate investments at fair value (cost of |
$ | 997,359 | $ | 1,005,328 | ||
| Affiliate investments at fair value (cost of |
— | 64,572 | ||||
| Control investments at fair value (cost of |
6,874 | 6,940 | ||||
| Total investments at fair value (cost of |
1,004,233 | 1,076,840 | ||||
| Cash and cash equivalents | 18,356 | 5,751 | ||||
| Interest and fees receivable | 8,730 | 8,141 | ||||
| Other assets | 1,577 | 623 | ||||
| Total assets | 1,032,896 | 1,091,355 | ||||
| Liabilities | ||||||
| Debt: | ||||||
| Credit facility | 253,000 | 311,000 | ||||
| 2026 Notes | 95,000 | 95,000 | ||||
| 2027 Notes | 152,250 | 152,250 | ||||
| Unamortized deferred financing costs | (8,043 | ) | (5,918 | ) | ||
| Total debt, less unamortized deferred financing costs | 492,207 | 552,332 | ||||
| Distributions payable | 13,445 | — | ||||
| Incentive fees payable | 14,045 | 14,106 | ||||
| Interest payable | 7,656 | 7,743 | ||||
| Accrued expenses and other liabilities | 2,253 | 2,305 | ||||
| Total liabilities | 529,606 | 576,486 | ||||
| Net assets | ||||||
| Common stock, par value | 373 | 373 | ||||
| Additional paid-in capital | 557,992 | 557,992 | ||||
| Accumulated undistributed (overdistributed) earnings | (55,075 | ) | (43,496 | ) | ||
| Total net assets | $ | 503,290 | $ | 514,869 | ||
| Shares of common stock outstanding ( |
37,347,428 | 37,347,428 | ||||
| Net asset value per share | $ | 13.48 | $ | 13.79 | ||
Consolidated Statements of Operations (Unaudited) (In thousands, except share and per share data) |
||||||
| Three Months Ended |
||||||
| 2025 | 2024 | |||||
| Investment income | ||||||
| From non-control/non-affiliate investments: | ||||||
| Interest income | $ | 30,109 | $ | 34,455 | ||
| Payment-in-kind interest income | 3,651 | 4,207 | ||||
| Dividend income | 318 | — | ||||
| Fee income | 229 | 620 | ||||
| From affiliate investments: | ||||||
| Interest income | 646 | 599 | ||||
| Fee income | 256 | — | ||||
| Other income | 189 | 128 | ||||
| Total investment income | 35,398 | 40,009 | ||||
| Operating expenses | ||||||
| Management fees | 4,009 | 3,952 | ||||
| Incentive fees | 3,929 | 4,668 | ||||
| Interest and other debt financing expenses | 10,287 | 10,860 | ||||
| Professional fees | 454 | 662 | ||||
| Administration agreement expenses | 625 | 564 | ||||
| Insurance expense | 155 | 208 | ||||
| Tax expense | 110 | 2 | ||||
| Other expenses | 230 | 429 | ||||
| Total operating expenses | 19,799 | 21,345 | ||||
| Net investment income | 15,599 | 18,664 | ||||
| Net realized and net change in unrealized gain (loss) on investments | ||||||
| Net realized gain (loss) on non-control/non-affiliate investments | (2,886 | ) | — | |||
| Net realized gain (loss) on affiliate investments | 8,943 | — | ||||
| Net realized gain (loss) on investments | 6,057 | — | ||||
| Net change in unrealized gain (loss) on non-control/non-affiliate investments | (9,799 | ) | (5,065 | ) | ||
| Net change in unrealized gain (loss) on affiliate investments | (9,925 | ) | (1,552 | ) | ||
| Net change in unrealized gain (loss) on control investments | (66 | ) | — | |||
| Net change in unrealized gain (loss) on investments | (19,790 | ) | (6,617 | ) | ||
| Net realized and unrealized gain (loss) on investments | (13,733 | ) | (6,617 | ) | ||
| Net increase (decrease) in net assets resulting from operations | $ | 1,866 | $ | 12,047 | ||
| Net investment income per common share (basic and diluted) | $ | 0.42 | $ | 0.46 | ||
| Net increase (decrease) in net assets resulting from operations per common share (basic and diluted) | $ | 0.05 | $ | 0.30 | ||
| Weighted average shares outstanding (basic and diluted) | 37,347,428 | 40,392,255 | ||||
Source: Runway Growth Finance Corp.