Runway Growth Finance (NASDAQ: RWAY) reported its Q1 2025 financial results, showing total investment income of $35.4 million and net investment income of $15.6 million ($0.42 per share). The company's investment portfolio reached $1.0 billion across 52 companies, with a dollar-weighted annualized yield of 15.44% on debt investments. During Q1, RWAY completed three investments in existing portfolio companies totaling $50.7 million and declared a Q2 2025 regular dividend of $0.33 plus a $0.02 supplemental dividend per share. The company maintained strong liquidity with $315.4 million available, including $18.4 million in cash. Notable achievements include $71.9 million in principal prepayments, $38.1 million in equity sale proceeds, and net realized gains of $6.1 million. The company's NAV stood at $13.48 per share, and it recently secured $107 million in Series 2025A Senior Notes.
Runway Growth Finance (NASDAQ: RWAY) ha riportato i risultati finanziari del primo trimestre 2025, mostrando un reddito totale da investimenti di 35,4 milioni di dollari e un reddito netto da investimenti di 15,6 milioni di dollari (0,42 dollari per azione). Il portafoglio investimenti della società ha raggiunto 1,0 miliardi di dollari distribuiti su 52 aziende, con un rendimento annualizzato ponderato per valore di 15,44% sugli investimenti in debito. Nel primo trimestre, RWAY ha completato tre investimenti in società già presenti nel portafoglio per un totale di 50,7 milioni di dollari e ha dichiarato un dividendo regolare per il secondo trimestre 2025 di 0,33 dollari più un dividendo supplementare di 0,02 dollari per azione. La società ha mantenuto una solida liquidità con 315,4 milioni di dollari disponibili, inclusi 18,4 milioni in contanti. Tra i risultati importanti figurano 71,9 milioni di dollari in rimborsi anticipati di capitale, 38,1 milioni di dollari da vendite di partecipazioni azionarie e guadagni netti realizzati di 6,1 milioni di dollari. Il valore patrimoniale netto (NAV) della società si attestava a 13,48 dollari per azione, e recentemente ha ottenuto 107 milioni di dollari tramite l’emissione di Senior Notes Serie 2025A.
Runway Growth Finance (NASDAQ: RWAY) informó sus resultados financieros del primer trimestre de 2025, mostrando ingresos totales por inversiones de 35,4 millones de dólares y ingresos netos por inversiones de 15,6 millones de dólares (0,42 dólares por acción). La cartera de inversiones de la empresa alcanzó 1.000 millones de dólares distribuidos en 52 compañías, con un rendimiento anualizado ponderado por valor en deuda del 15,44%. Durante el primer trimestre, RWAY completó tres inversiones en compañías existentes en su cartera por un total de 50,7 millones de dólares y declaró un dividendo regular para el segundo trimestre de 2025 de 0,33 dólares más un dividendo suplementario de 0,02 dólares por acción. La empresa mantuvo una sólida liquidez con 315,4 millones de dólares disponibles, incluyendo 18,4 millones en efectivo. Logros destacados incluyen 71,9 millones en pagos anticipados de principal, 38,1 millones en ingresos por ventas de acciones y ganancias netas realizadas de 6,1 millones. El valor neto del activo (NAV) de la compañía fue de 13,48 dólares por acción, y recientemente aseguró 107 millones en Notas Senior Serie 2025A.
Runway Growth Finance(NASDAQ: RWAY)는 2025년 1분기 재무 실적을 발표하며 총 투자 수익 3,540만 달러와 순 투자 수익 1,560만 달러(주당 0.42달러)를 기록했습니다. 회사의 투자 포트폴리오는 52개 기업에 걸쳐 10억 달러 규모이며, 부채 투자에 대한 달러 가중 연환산 수익률은 15.44%였습니다. 1분기 동안 RWAY는 기존 포트폴리오 기업 3곳에 총 5,070만 달러의 투자를 완료했으며, 2025년 2분기 정규 배당금으로 주당 0.33달러와 추가 배당금 0.02달러를 선언했습니다. 회사는 3억 1,540만 달러의 유동성을 유지했으며, 이 중 현금은 1,840만 달러입니다. 주요 성과로는 7,190만 달러의 원금 조기 상환, 3,810만 달러의 주식 매각 수익, 610만 달러의 순실현 이익이 포함됩니다. 회사의 순자산가치(NAV)는 주당 13.48달러이며, 최근 1억 700만 달러 규모의 2025A 시리즈 선순위 채권을 확보했습니다.
Runway Growth Finance (NASDAQ : RWAY) a publié ses résultats financiers du premier trimestre 2025, affichant un revenu total d'investissement de 35,4 millions de dollars et un revenu net d'investissement de 15,6 millions de dollars (0,42 dollar par action). Le portefeuille d'investissement de la société a atteint 1,0 milliard de dollars répartis sur 52 entreprises, avec un rendement annualisé pondéré en dollars de 15,44 % sur les investissements en dette. Au cours du premier trimestre, RWAY a réalisé trois investissements dans des sociétés déjà présentes dans son portefeuille pour un total de 50,7 millions de dollars et a déclaré un dividende régulier pour le deuxième trimestre 2025 de 0,33 dollar, plus un dividende supplémentaire de 0,02 dollar par action. La société a maintenu une forte liquidité avec 315,4 millions de dollars disponibles, dont 18,4 millions en liquidités. Parmi les réalisations notables figurent 71,9 millions de dollars de remboursements anticipés de principal, 38,1 millions de dollars de produits de ventes d'actions et des gains nets réalisés de 6,1 millions de dollars. La valeur nette d'inventaire (VNI) de la société s'élevait à 13,48 dollars par action, et elle a récemment obtenu 107 millions de dollars grâce à une émission d'obligations senior de la série 2025A.
Runway Growth Finance (NASDAQ: RWAY) meldete seine Finanzergebnisse für das erste Quartal 2025 mit einem gesamten Investmentertrag von 35,4 Millionen US-Dollar und einem Nettoinvestitionsertrag von 15,6 Millionen US-Dollar (0,42 US-Dollar pro Aktie). Das Anlageportfolio des Unternehmens erreichte 1,0 Milliarde US-Dollar verteilt auf 52 Unternehmen, mit einer dollargewichteten annualisierten Rendite von 15,44 % auf Fremdkapitalinvestitionen. Im ersten Quartal tätigte RWAY drei Investitionen in bestehende Portfoliounternehmen in Höhe von insgesamt 50,7 Millionen US-Dollar und erklärte eine reguläre Dividende für das zweite Quartal 2025 von 0,33 US-Dollar zuzüglich einer zusätzlichen Dividende von 0,02 US-Dollar pro Aktie. Das Unternehmen behielt eine starke Liquidität mit 315,4 Millionen US-Dollar verfügbar, darunter 18,4 Millionen US-Dollar in bar. Zu den bemerkenswerten Erfolgen zählen 71,9 Millionen US-Dollar an vorzeitigen Kapitalrückzahlungen, 38,1 Millionen US-Dollar aus Aktienverkäufen und realisierte Nettoerträge von 6,1 Millionen US-Dollar. Der Nettoinventarwert (NAV) des Unternehmens lag bei 13,48 US-Dollar pro Aktie, und kürzlich wurden 107 Millionen US-Dollar in Senior Notes der Serie 2025A aufgenommen.
Positive
Strong portfolio yield of 15.44% on debt investments
Healthy liquidity position with $315.4 million available
Net realized gains of $6.1 million on investments
Regular dividend of $0.33 plus supplemental dividend of $0.02 per share
Successfully raised $107 million through Series 2025A Senior Notes
Negative
Total investment income decreased to $35.4M from $40.0M YoY
Net investment income declined to $15.6M from $18.7M YoY
Net assets decreased 4.9% YoY to $503.3M from $529.5M
Unrealized loss on investments of $19.8M, up from $6.6M loss YoY
Insights
RWAY reported lower Q1 results year-over-year but maintained healthy dividend coverage with noteworthy portfolio realizations generating significant gains.
Runway Growth's Q1 2025 results reveal a notable 11.5% decline in total investment income to $35.4 million, down from $40.0 million in Q1 2024. Net investment income similarly decreased to $15.6 million ($0.42 per share) compared to $18.7 million ($0.46 per share) year-over-year. Despite these declines, the company's NII still comfortably covers its $0.33 regular dividend plus $0.02 supplemental dividend with a coverage ratio of approximately 1.2x.
Portfolio activity shows a strategic rebalancing, with the company generating $71.9 million from principal prepayments and $38.1 million from equity sales, resulting in $7.4 million in realized equity gains. Total net realized gains were $6.1 million. The company deployed a relatively modest $50.7 million in follow-on investments to existing portfolio companies, suggesting a cautious approach to new capital deployment. This disciplined capital recycling has strengthened the balance sheet, reducing the core leverage ratio from 108% to 99% quarter-over-quarter.
The investment portfolio stands at $1.0 billion across 52 companies, with 97.9% in senior secured loans - reflecting a conservative risk profile. The debt portfolio's dollar-weighted annualized yield remains attractive at 15.44%, highlighting the premium pricing Runway achieves in the growth-stage lending market.
Most encouraging is the company's substantial liquidity position of $315.4 million, including $18.4 million in cash and $297.0 million in credit facility capacity. This was further enhanced post-quarter with a $107 million private placement of notes at 7.51% and a newly authorized $25 million share repurchase program - both positive signals for capital management.
The NAV per share of $13.48 shows relative stability compared to $13.36 a year earlier, though the total net assets declined 4.9% to $503.3 million. The significant decrease in net increase in net assets from operations ($1.9 million versus $12.0 million year-over-year) warrants attention and appears primarily driven by a $19.8 million unrealized loss on investments.
RWAY's Q1 shows reduced earnings but strong portfolio monetization, healthy yield maintenance, and improved liquidity position amid cautious growth strategy.
Runway Growth's Q1 results reveal a company deliberately recycling capital while maintaining yield discipline. The 15.44% dollar-weighted annualized yield on debt investments is particularly noteworthy in the current market - demonstrating RWAY's ability to command premium pricing for its capital. While total investment income contracted to $35.4 million from $40.0 million year-over-year, this appears to be a function of portfolio size rather than yield deterioration.
The significant capital return events are the standout feature of the quarter. The company generated $71.9 million in prepayments and $3.7 million from scheduled amortizations, while also realizing $38.1 million from equity sales with $7.4 million in net realized gains. These substantial realizations underscore the portfolio's underlying quality and the company's ability to successfully exit investments at a profit.
The $19.8 million unrealized loss warrants investor attention as it significantly outpaces the $6.1 million in realized gains, suggesting potential stress in certain portfolio companies. This magnitude of unrealized loss (1.9% of the portfolio) isn't alarming for a venture debt portfolio but deserves monitoring in future quarters for potential credit deterioration patterns.
The cautious deployment pace - just $15.3 million net funded to existing portfolio companies after accounting for refinances - indicates disciplined underwriting amid the BC Partners integration. Post-quarter activity accelerated with $40 million in new commitments, of which $27 million was funded, suggesting increased comfort with deployment.
Balance sheet management improved with leverage reduction from 108% to 99% and liquidity enhancement through the $107 million note issuance. The new $25 million share repurchase program signals management's confidence and provides valuation support. The combined $0.35 dividend ($0.33 regular plus $0.02 supplemental) represents an annualized yield of approximately 10.4% based on recent share prices, providing attractive income return while the company navigates through this transitional period under BC Partners ownership.
Delivered Total and Net Investment Income of $35.4 million and $15.6 million, Respectively
Investment Portfolio of $1.0 billion
Conference Call Today, Monday, May 12, 2025 at 5:00 p.m. ET
MENLO PARK, Calif., May 12, 2025 (GLOBE NEWSWIRE) -- Runway Growth Finance Corp. (Nasdaq: RWAY) (“Runway Growth” or the “Company”), a leading provider of flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity, today announced its financial results for the first quarter ended March 31, 2025.
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 David Spreng, Founder and CEO of Runway Growth. “For the first quarter, we delivered net investment income of $15.6 million, comfortably covered our quarterly distributions, and executed on three investments in existing portfolio companies. As officially part of the broader BC Partners platform, we believe we have ample liquidity to move both opportunistically and selectively when the right investments arise. Looking ahead, we are well positioned to optimize our portfolio while maintaining credit-first underwriting practices as we deliver strong returns for our shareholders.”
First Quarter 2025 Operating Results
Total investment income for the quarter ended March 31, 2025 was $35.4 million, compared to $40.0 million for the quarter ended March 31, 2024.
Net investment income for the quarter ended March 31, 2025 was $15.6 million, or $0.42 per share, compared to $18.7 million, or $0.46 per share, for the quarter ended March 31, 2024.
The Company's dollar-weighted annualized yield on average debt investments for the quarter ended March 31, 2025 was 15.4%. The Company calculates the yield on dollar-weighted debt investments for any period measured as (1) total investment-related income during the period divided by (2) the daily average of the fair value of debt investments, including investments on non-accrual status, outstanding during the period.
Total operating expenses for the quarter ended March 31, 2025 were $19.8 million, compared to $21.3 million for the quarter ended March 31, 2024.
Net realized gain on investments was $6.1 million for the quarter ended March 31, 2025, compared to no net realized gains or losses for the quarter ended March 31, 2024.
For the quarter ended March 31, 2025, net change in unrealized loss on investments was $19.8 million, compared to a net change in unrealized loss on investments of $6.6 million for the comparable prior year period.
Portfolio and Investment Activity
As of March 31, 2025, Runway Growth’s investment portfolio had an aggregate fair value of $1.0 billion in 52 companies, comprising $946.4 million in term loans, 97.9% of which are senior secured loans, and $57.8 million in warrants and other equity-related investments.
During the first quarter of 2025, Runway Growth funded three investments in existing portfolio companies, representing $15.3 million in funded loans, which is net of refinances of $35.0 million and upfront loan origination fees of $0.4 million.
Total portfolio investment activity for the three months ended March 31, 2025 and 2024 was as follows:
Three Months Ended March 31,
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 U.S. Treasury Bills
-
(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 March 31, 2025, net asset value per share was $13.48, compared to $13.36 as of March 31, 2024. Total net assets at the end of the first quarter of 2025 was $503.3 million, down 4.9% from $529.5 million as of March 31, 2024.
For the quarter ended March 31, 2025, our net increase in net assets resulting from operations was $1.9 million, or $0.05 per share, compared to a net increase in net assets resulting from operations of $12.0 million, or $0.30 per share, for the quarter ended March 31, 2024.
Liquidity and Capital Resources
As of March 31, 2025, the Company had approximately $315.4 million in available liquidity, including unrestricted cash and cash equivalents of $18.4 million and $297.0 million in available borrowing capacity under the Company’s credit facility, subject to existing terms, advance rates and regulatory and covenant requirements.
The Company ended the quarter with a core leverage ratio of approximately 99%, compared to 108% for the quarter ended December 31, 2024.
Distributions
On May 7, 2025, the Company’s board of directors (the "Board of Directors") declared a regular quarterly distribution of $0.33 per share and a supplemental distribution of $0.02 per share for stockholders of record as of May 19, 2025, each payable on June 3, 2025.
Recent Developments
The Company evaluated events subsequent to March 31, 2025 through May 12, 2025, the date the consolidated financial statements were issued. There have been no subsequent events that occurred during such period that would require recognition or disclosure, except as disclosed below.
Borrowings
On April 7, 2025, the Company entered into the Master Note Purchase Agreement, dated April 7, 2025 (the “Note Purchase Agreement”), governing the issuance of 7.51% Series 2025A Senior Notes due April 7, 2028 (the “Series 2025A Notes”), in aggregate principal amount of $107.0 million, to institutional investors in a private placement.
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 April 7, 2028 unless redeemed, purchased or prepaid prior to such date by the Company in accordance with the terms of the Note Purchase Agreement. Interest on the Series 2025A Notes will be due semiannually on April 7 and October 7 of each year, beginning on October 7, 2025. In addition, the Company is obligated to offer to repay the Series 2025A Notes at par (plus accrued and unpaid interest to, but not including, the date of prepayment) if certain change in control events occur. Subject to the terms of the Note Purchase Agreement, so long as no Default or Event of Default (each as defined in the Note Purchase Agreement) shall then exist, at any time on or after October 7, 2027, the Company may, at its option, prepay all or any part of the 2025A Notes at 100% of the principal amount so prepaid, together with, in each case, accrued interest to the prepayment date.
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 April 1, 2025 through May 12, 2025, the Company completed $40.0 million of additional debt commitments, of which $27.0 million was funded upon closing.
Share Repurchase Program
On May 7, 2025, the Board of Directors approved a repurchase program (the “New Repurchase Program”) under which the Company may repurchase up to $25.0 million of its outstanding common stock. Under the New Repurchase Program, purchases may be made at management’s discretion from time to time in open-market transactions, in accordance with all applicable securities laws and regulations. If not renewed, the New Repurchase Program will terminate upon the earlier of (i) May 7, 2026 or (ii) the repurchase of $25.0 million of the Company's outstanding shares of common stock.
Conference Call
Runway Growth will hold a conference call to discuss its first quarter ended March 31, 2025 financial results at 2:00 p.m. PT (5:00 p.m. ET) on Monday, May 12, 2025. To participate in the conference call or webcast, participants should register online at the Runway Investor Relations website. The earnings call can also be accessed through the following links:
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 Finance Corp.
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 Runway Growth Capital LLC, an established registered investment advisor that was formed in 2015 and led by industry veteran David Spreng. For more information, please visit www.runwaygrowth.com.
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 Securities and Exchange Commission. Runway Growth undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
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 March 31, 2025, which may be obtained on the Company’s website, www.runwaygrowth.com, or the SEC’s website, www.sec.gov.
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