Runway Growth Finance Corp. Reports First Quarter 2026 Financial Results
Rhea-AI Summary
Runway Growth Finance (Nasdaq: RWAY) reported Q1 2026 results: total investment portfolio of $886.3M, total investment income of $29.5M, and net investment income of $10.6M (or $0.29 per share). Net asset value was $438.2M or $12.13 per share. The board declared a $0.33 quarterly dividend and approved a $15.0M share repurchase program. The company completed the SWK acquisition and assumed $33.0M of 9.00% notes due 2027. Dollar-weighted annualized yield on debt investments was 14.2%, and available liquidity was approximately $372.3M.
Positive
- Investment portfolio of $886.3M at fair value
- Dollar-weighted yield on debt investments of 14.2%
- Declared dividend of $0.33 per share for Q2 2026
- Board approved $15.0M share repurchase authorization
- Completed SWK acquisition and issued 6,330,509 shares
Negative
- Net asset value down 12.9% year-over-year
- Net decrease from operations of $34.8M in Q1 2026
- Net change in unrealized loss of $46.7M for Q1 2026
- Unrestricted cash of only $2.3M at quarter end
- Core leverage ratio near 98% at quarter end
News Market Reaction – RWAY
In the May 8 session, RWAY declined 4.25%, reflecting a moderate negative market reaction. Argus tracked a trough of -2.1% from its starting point during tracking. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 12 | Q4/FY 2025 results | Positive | -7.4% | Reported FY 2025 income, NAV and liquidity with stable 14.2% portfolio yield. |
| Nov 06 | Q3 2025 results | Positive | +1.9% | Solid Q3 income, high 16.8% yield, buybacks and a $0.33 dividend. |
| Aug 07 | Q2 2025 results | Positive | +1.0% | Strong Q2 income, 15.4% yield, portfolio at $1.0B and higher NAV. |
| Aug 07 | Q3 2025 distribution | Positive | +0.1% | Announced $0.36 per share total Q3 2025 distribution to shareholders. |
| Jul 15 | Q2 2025 portfolio update | Neutral | +0.8% | Detailed new funded loans and major repayment-driven liquidity events. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-related releases have usually led to modest reactions, with one notable negative move on the most recent full-year report.
Over the past year, Runway Growth’s earnings updates have highlighted a sizable investment portfolio (around $900M–$1B), strong dollar‑weighted yields above 14%, and recurring quarterly dividends of about $0.33–$0.36 per share. Liquidity has remained substantial, and leverage in the ~90% range was previously disclosed. The completed SWK acquisition, referenced in prior filings, adds a healthcare and life sciences platform, making this Q1 2026 report a key milestone for integrating that transaction into reported NAV and income metrics.
Key Terms
net asset value financial
senior secured loans financial
core leverage ratio financial
Merger Agreement regulatory
Senior Notes financial
supplemental indenture regulatory
guaranteed cash payment financial
unrealized loss financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Delivered Total and Net Investment Income of
Investment Portfolio of
Conference Call Today, Thursday, May 7, 2026 at 5:00 p.m. ET
MENLO PARK, Calif., May 07, 2026 (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, 2026.
First Quarter 2026 Highlights
- Total investment portfolio of
$886.3 million at fair value - Total investment income of
$29.5 million - Net investment income of
$10.6 million , or$0.29 per share - Net asset value of
$438.2 million , or$12.13 per share - Dollar-weighted annualized yield on debt investments of
14.2% - Four investments completed in new and existing portfolio companies, representing
$17.6 million in funded investments - Aggregate proceeds of
$15.0 million in principal prepayments,$1.9 million from scheduled amortizations, and$2.5 million in sale proceeds from equity
Second Quarter 2026 Distributions
- Declared second quarter 2026 dividend of
$0.33 per share
“In the first quarter, Runway Growth focused on the close and integration of the SWK Holdings acquisition, while navigating a volatile macroeconomic backdrop,” said David Spreng, Founder and CEO of Runway Growth. “With the transaction now complete, we are well positioned to selectively capitalize on opportunities and expand our exposure to leading healthcare and life sciences companies. Today, we also announced a new
First Quarter 2026 Operating Results
Total investment income for the quarter ended March 31, 2026 was
The Company's dollar-weighted annualized yield on average debt investments for the quarter ended March 31, 2026 was
Total operating expenses for the quarter ended March 31, 2026 were
Net investment income for the quarter ended March 31, 2026 was
Net realized gain on investments was
For the quarter ended March 31, 2026, net change in unrealized loss on investments was
For the quarter ended March 31, 2026, our net decrease in net assets resulting from operations was
Portfolio and Investment Activity
As of March 31, 2026, Runway Growth’s investment portfolio had an aggregate fair value of
During the first quarter of 2026, Runway Growth funded one investment in a new portfolio company, three investments in existing portfolio companies, representing
During the first quarter of 2026, Runway Growth received aggregate proceeds of
Total portfolio investment activity for the three months ended March 31, 2026 and 2025 was as follows:
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Beginning investment portfolio | $ | 927,402 | $ | 1,076,840 | |||
| Purchases of investments | 17,477 | 15,320 | |||||
| PIK interest | 4,797 | 3,260 | |||||
| Sales and prepayments of investments | (17,483 | ) | (74,978 | ) | |||
| Scheduled repayments of investments | (1,934 | ) | (3,665 | ) | |||
| Amortization of fixed income premiums or accretion of discounts | 1,912 | 1,189 | |||||
| Net realized gain (loss) on investments | 1,257 | 6,057 | |||||
| Net change in unrealized gain (loss) on investments | (47,082 | ) | (19,790 | ) | |||
| Ending investment portfolio | $ | 886,346 | $ | 1,004,233 | |||
Net Asset Value
As of March 31, 2026, net asset value per share was
Liquidity and Capital Resources
As of March 31, 2026, the Company had approximately
The Company ended the quarter with a core leverage ratio of approximately
Distributions
On May 5, 2026, the Company’s board of directors (the "Board of Directors") declared a quarterly distribution of
Recent Developments
The Company evaluated events subsequent to March 31, 2026 through May 7, 2026, 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.
Repurchase Program
On May 5, 2026, our Board of Directors approved a share repurchase program (the "New Repurchase Program"), under which we may repurchase up to
Retirement and Appointment of Certain Officers
The Company
On May 5, 2026, Thomas B. Raterman notified our Board of Directors that he would retire from his positions as our Chief Operating Officer, Chief Financial Officer, Treasurer and Corporate Secretary effective as of the close of business on June 30, 2026, at which time he will become Vice Chairman of RGC. In that role, he will focus on strategic initiatives that include portfolio optimization, platform-level mergers and acquisitions, capital markets transactions, and capital formation. Mr. Raterman will also continue to serve as a member of the investment committee of RGC.
On May 5, 2026, our Board of Directors elected Carmela Thomson to serve as our Chief Financial Officer, Treasurer and Corporate Secretary effective as of the close of business on June 30, 2026.
The Investment Adviser
Effective as of April 6, 2026, David Spreng, our Chief Executive Officer and President, returned to his role as Chief Investment Officer of RGC in place of Greg Greifeld.
In connection with the Merger (as defined below), John David Tamas became a managing director of healthcare and life sciences investing at RGC.
Effective as of April 30, 2026, Avisha Khubani was promoted to Chief Credit Officer at RGC.
SWK Acquisition
On April 6, 2026, the Company completed its previously announced acquisition of SWK Holdings Corporation, a Delaware corporation ("SWK"), pursuant to that certain Agreement and Plan of Merger (the "Merger Agreement"), dated as of October 9, 2025, by and among the Company, SWK, RWAY Portfolio Holding Corp., a Delaware corporation and a direct wholly-owned subsidiary of the Company ("Intermediary Sub"), RWAY Portfolio Corp., a Delaware corporation and a wholly-owned subsidiary of Intermediary Sub ("Acquisition Sub") and Runway Growth Capital LLC, a Delaware limited liability company (the "Adviser"). Pursuant to the Merger Agreement, SWK first merged with and into Acquisition Sub, with Acquisition Sub as the surviving company (the "First Merger"). Following the effectiveness of the First Merger, Acquisition Sub merged with and into Intermediary Sub, with Intermediary Sub as the surviving company (the "Second Merger"). Following the effectiveness of the Second Merger, Intermediary Sub merged with and into the Company, with the Company as the surviving company (the "Third Merger" and, together with the First Merger and the Second Merger, the "Mergers").
In accordance with the terms of the Merger Agreement, at the effective time of the First Merger, each outstanding share of common stock, par value
Third Supplemental Indenture for the SWK 2027 Notes
On April 6, 2026, the Company entered into a third supplemental indenture (the "Third Supplemental Indenture") by and between the Company and Wilmington Trust, National Association (the "Trustee"), effective as of the closing of the Merger. The Third Supplemental Indenture relates to the Company's assumption of
Pursuant to the Third Supplemental Indenture, the Company expressly assumed the obligations of SWK for the due and punctual payment of the principal of, and premium, if any, and interest on all the 2027 Notes, and the due and punctual performance and observance of all of the covenants and conditions of the indenture, dated October 3, 2023 (the "Base Indenture"), by and between SWK and the Trustee, as amended by the First Supplemental Indenture, dated as of October 3, 2023 and the Second Supplemental Indenture dated as of April 6, 2026.
Recent Portfolio Activity
From March 31, 2026 through May 7, 2026, the Company funded
Conference Call
Runway Growth will hold a conference call to discuss its first quarter ended March 31, 2026 financial results at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, May 7, 2026. 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 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 affiliate of BC Partners Advisors L.P. 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, as amended. 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 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,” which may be obtained on the Company’s website, www.runwaygrowth.com, or the SEC’s website, www.sec.gov.
IR Contacts:
Taylor Donahue, Prosek Partners, rway@prosek.com
Thomas B. Raterman, Chief Financial Officer and Chief Operating Officer, tr@runwaygrowth.com
| RUNWAY GROWTH FINANCE CORP. Consolidated Statements of Assets and Liabilities (In thousands, except share and per share data) | |||||||
| March 31, 2026 | December 31, 2025 | ||||||
| (Unaudited) | |||||||
| Assets | |||||||
| Investments at fair value: | |||||||
| Non-control/non-affiliate investments at fair value (cost of | $ | 873,311 | $ | 912,656 | |||
| Affiliate investments at fair value (cost of | - | - | |||||
| Control investments at fair value (cost of | 13,035 | 14,746 | |||||
| Total investments at fair value (cost of | 886,346 | 927,402 | |||||
| Cash and cash equivalents | 2,312 | 18,175 | |||||
| Interest and fees receivable | 8,540 | 7,594 | |||||
| Deferred financing costs | 3,895 | 4,217 | |||||
| Other assets | 3,833 | 2,726 | |||||
| Total assets | 904,926 | 960,114 | |||||
| Liabilities | |||||||
| Debt: | |||||||
| Credit facility | 180,000 | 173,000 | |||||
| 2026 Notes | - | 25,000 | |||||
| 2027 Notes | 40,250 | 132,250 | |||||
| 2028 Notes | 107,000 | 107,000 | |||||
| 2031 Notes | 103,250 | - | |||||
| Deferred financing costs | (3,556 | ) | (1,913 | ) | |||
| Total debt, less deferred financing costs | 426,944 | 435,337 | |||||
| Incentive fees payable | 14,851 | 14,444 | |||||
| Interest payable | 7,199 | 6,756 | |||||
| Foreign currency forward contracts | 176 | 711 | |||||
| Secured borrowings | 14,759 | 14,578 | |||||
| Accrued expenses and other liabilities | 2,769 | 3,319 | |||||
| Total liabilities | 466,698 | 475,145 | |||||
| Net assets | |||||||
| Common stock, par value | 361 | 361 | |||||
| Additional paid-in capital | 534,238 | 534,508 | |||||
| Accumulated undistributed (overdistributed) earnings | (96,371 | ) | (49,900 | ) | |||
| Total net assets | $ | 438,228 | $ | 484,969 | |||
| Shares of common stock outstanding ( | 36,134,037 | 36,134,037 | |||||
| Net asset value per share | $ | 12.13 | $ | 13.42 | |||
| RUNWAY GROWTH FINANCE CORP. Consolidated Statements of Operations (In thousands, except share and per share data) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Investment income | |||||||
| From non-control/non-affiliate investments: | |||||||
| Interest income | $ | 23,591 | $ | 30,109 | |||
| Payment-in-kind interest income | 4,633 | 3,651 | |||||
| Dividend income | 253 | 318 | |||||
| Fee income | 417 | 229 | |||||
| From affiliate investments: | |||||||
| Interest income | - | 646 | |||||
| Fee income | - | 256 | |||||
| From control investments: | |||||||
| Interest income | 494 | - | |||||
| Other income | 62 | 189 | |||||
| Total investment income | 29,450 | 35,398 | |||||
| Operating expenses | |||||||
| Management fees | 3,613 | 4,009 | |||||
| Incentive fees | 2,601 | 3,929 | |||||
| Interest and other debt financing expenses | 10,486 | 10,287 | |||||
| Professional fees | 604 | 454 | |||||
| Administration agreement expenses | 648 | 625 | |||||
| Insurance expense | 160 | 155 | |||||
| Tax expense | 270 | 110 | |||||
| Other expenses | 444 | 230 | |||||
| Total operating expenses | 18,826 | 19,799 | |||||
| Net investment income | 10,624 | 15,599 | |||||
| Net realized and net change in unrealized gain (loss) | |||||||
| Net realized gain (loss): | |||||||
| Non-control/non-affiliate investments | 207 | (2,886 | ) | ||||
| Affiliate investments | - | 8,943 | |||||
| Control investments | 1,050 | - | |||||
| Net realized gain (loss) on investments | 1,257 | 6,057 | |||||
| Net realized gain (loss) on forward contracts and foreign currency transactions | (5 | ) | - | ||||
| Net realized gain (loss) | 1,252 | 6,057 | |||||
| Net change in unrealized gain (loss): | |||||||
| Non-control/non-affiliate investments | (46,424 | ) | (9,799 | ) | |||
| Affiliate investments | - | (9,925 | ) | ||||
| Control investments | (658 | ) | (66 | ) | |||
| Net change in unrealized gain (loss) on investments | (47,082 | ) | (19,790 | ) | |||
| Net change in unrealized gain (loss) on forward contracts and foreign currency transactions | 535 | - | |||||
| Net change in unrealized gain (loss) on secured borrowings | (146 | ) | - | ||||
| Net change in unrealized gain (loss) | (46,693 | ) | (19,790 | ) | |||
| Net realized and unrealized gain (loss) | (45,441 | ) | (13,733 | ) | |||
| Net increase (decrease) in net assets resulting from operations | $ | (34,817 | ) | $ | 1,866 | ||
| Net increase (decrease) in net assets resulting from operations per common share (basic and diluted) | $ | (0.96 | ) | $ | 0.05 | ||
| Weighted average shares outstanding (basic and diluted) | 36,134,037 | 37,347,428 | |||||
