Runway Growth Finance Corp. Reports Fourth Quarter and Fiscal Year 2024 Financial Results
Rhea-AI Summary
Runway Growth Finance Corp. (RWAY) reported its Q4 and fiscal year 2024 results, with total investment income of $33.8 million and net investment income of $14.6 million ($0.39 per share) for Q4 2024. The company's investment portfolio reached $1.1 billion at fair value across 56 portfolio companies.
Key Q4 metrics include a dollar-weighted annualized yield of 14.7% on debt investments and NAV of $514.9 million ($13.79 per share). The company completed $154.0 million in funded investments, including two new portfolio companies.
For FY2024, RWAY achieved net investment income of $63.8 million ($1.64 per share) and maintained a low credit loss ratio of 12 basis points. The Board declared Q1 2025 distributions of $0.33 regular dividend plus $0.03 supplemental dividend per share.
Positive
- Strong portfolio yield of 14.7% on debt investments
- Maintained low credit loss ratio of 12 basis points
- Completed $154.0M in new investments
- Active share repurchase program with 555,104 shares bought in Q4
- Declared additional supplemental dividend of $0.03 per share
Negative
- Net investment income declined to $14.6M in Q4 2024 from $18.3M in Q4 2023
- Total investment income decreased to $33.8M from $39.2M year-over-year
- NAV per share decreased to $13.79 from $13.50 year-over-year
- Net assets declined 5.9% to $514.9M from $547.1M year-over-year
News Market Reaction 1 Alert
On the day this news was published, RWAY declined 1.03%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Delivered Total and Net Investment Income of
Investment Portfolio of
Conference Call Today, Thursday, March 20, 2025 at 5:00 p.m. ET
MENLO PARK, Calif., March 20, 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 fourth quarter and fiscal year ended December 31, 2024.
Fourth Quarter 2024 Highlights
- Total investment income of
$33.8 million - Net investment income of
$14.6 million , or$0.39 per share - Net asset value of
$514.9 million , or$13.79 per share - Dollar-weighted annualized yield on debt investments of
14.7% for the quarter - Two investments completed in new portfolio companies and five investments in existing portfolio companies, representing
$154.0 million in funded investments - Aggregate proceeds of
$152.6 million in principal prepayments and$2.4 million from scheduled amortizations - Repurchased 555,104 shares of the Company's outstanding common stock during the fourth quarter under previously authorized share repurchase program
Fiscal Year 2024 Highlights
- Total investment portfolio of
$1.1 billion at fair value - Net investment income of
$63.8 million , or$1.64 per share - Net asset value of
$514.9 million , or$13.79 per share - Total investment fundings of
$330.5 million :$223.2 million in seven new portfolio companies,$101.7 million in nine existing portfolio companies, and$5.6 million in Runway-Cadma I LLC - Aggregate proceeds of
$287.4 million in principal prepayments and$4.8 million from scheduled amortizations - Low credit loss ratio of an average 12 basis points per year on a gross basis and an average 10 basis points per year on a net (debt and equity) basis, based on cumulative commitments since inception
- Repurchased 3,161,805 shares of the Company's outstanding common stock under previously authorized share repurchase programs
First Quarter 2025 Distributions
- Declared first quarter 2025 regular dividend of
$0.33 per share - Declared first quarter 2025 supplemental dividend of
$0.03 per share
“In 2024, Runway Growth advanced its strategy to optimize our portfolio, enhance our origination channels, and expand our product set,” said David Spreng, Founder and CEO of Runway Growth. “Notably, we believe the close of the combination between our investment adviser, Runway Growth Capital, and BC Partners Credit positions the Company to further diversify our go-forward composition and maximize the portfolio with attractive investment opportunities. Our stockholders and borrowers alike will benefit from the combined scale and expertise of our expanded platform as we seek to mitigate risk and drive heightened returns.”
Spreng continued, “Our team’s diligent underwriting and credit-first investment philosophy will drive the strength of our portfolio and enable our borrowers to perform against the dynamic macro environment taking shape in the year ahead.”
Fourth Quarter 2024 Operating Results
Total investment income for the quarter ended December 31, 2024 was
Net investment income for the quarter ended December 31, 2024 was
The Company's dollar-weighted annualized yield on average debt investments for the quarter ended December 31, 2024 was
Total operating expenses for the quarter ended December 31, 2024 were
Net realized loss on investments was
For the quarter ended December 31, 2024, net change in unrealized gain on investments was
Portfolio and Investment Activity
As of December 31, 2024, Runway Growth’s investment portfolio had an aggregate fair value of approximately
During the fourth quarter of 2024, Runway Growth funded two investments in new portfolio companies and five investments in existing portfolio companies, representing
Total portfolio investment activity for the three and twelve months ended December 31, 2024, and 2023 was as follows:
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Beginning investment portfolio | $ | 1,066,100 | $ | 1,010,927 | $ | 1,067,009 | $ | 1,126,309 | ||||||||
| Purchases of investments | 80,077 | 94,937 | 254,106 | 200,464 | ||||||||||||
| Purchases of U.S. Treasury Bills | — | 41,999 | — | 76,973 | ||||||||||||
| PIK interest | 2,683 | 4,590 | 12,265 | 19,924 | ||||||||||||
| Sales and prepayments of investments | (81,736 | ) | (63,407 | ) | (226,397 | ) | (289,078 | ) | ||||||||
| Scheduled repayments of investments | (2,400 | ) | (285 | ) | (4,780 | ) | (7,331 | ) | ||||||||
| Sales and maturities of U.S. Treasury Bills | — | — | (42,029 | ) | (35,000 | ) | ||||||||||
| Amortization of fixed income premiums or accretion of discounts | (1,485 | ) | 1,350 | 6,808 | 8,682 | |||||||||||
| Net realized gain (loss) on investments | (2,939 | ) | (17,209 | ) | (2,939 | ) | (18,387 | ) | ||||||||
| Net change in unrealized gain (loss) on investments | 16,540 | (5,893 | ) | 12,797 | (15,547 | ) | ||||||||||
| Ending investment portfolio | $ | 1,076,840 | $ | 1,067,009 | $ | 1,076,840 | $ | 1,067,009 | ||||||||
Net Asset Value
As of December 31, 2024, net asset value ("NAV") per share was
For the quarter ended December 31, 2024, our net increase in net assets resulting from operations was
Liquidity and Capital Resources
As of December 31, 2024, the Company had approximately
The Company ended the quarter with a core leverage ratio of approximately
Distributions
On March 20, 2025, the Company’s board of directors (the "Board of Directors") declared a regular quarterly distribution of
Share Repurchase Program
On November 2, 2023, the Board of Directors approved a share repurchase program (the "Second Repurchase Program"), under which the Company was authorized to repurchase up to
On July 30, 2024, the Board of Directors approved a share repurchase program (the "Third Repurchase Program") under which the Company may repurchase up to
Recent Developments
The Company evaluated events subsequent to December 31, 2024 through March 20, 2025, the date the consolidated financial statements were issued.
BCP Transaction
On January 30, 2025, Runway Growth Capital LLC (the "Adviser") was acquired by certain private investment funds advised by BC Partners Credit and Mount Logan Capital Inc., pursuant to its minority investment (the "BCP Transaction"). On January 23, 2025, the Company’s stockholders approved an amended and restated advisory agreement (the "Third Amended and Restated Advisory Agreement") between the Company and the Adviser at a special meeting of stockholders. The Third Amended and Restated Advisory Agreement was entered into in connection with the termination of the former advisory agreement, which terminated automatically in accordance with its terms as a result of the BCP Transaction. The Third Amended and Restated Advisory Agreement took effect upon the closing of the BCP Transaction on January 30, 2025. Other than the date and term of the agreement, there were no changes to the terms of the Third Amended and Restated Advisory Agreement.
Board of Directors
As previously disclosed, Gregory M. Share informed the Board of Directors on November 15, 2024 of his intent to resign as a director of the Company, effective upon the appointment of a director to fill the vacancy created by his resignation. In connection with the stockholder agreement between the Company and OCM Growth Holdings, LLC ("OCM Growth"), OCM Growth submitted Catherine Frey as a replacement nominee for consideration by the Board of Directors. Mr. Share’s resignation was not due to any disagreements with the Company relating to the Company’s operations, policies or practices. The Board of Directors appointed Catherine Frey to serve on the Board of Directors for the remainder of Mr. Share’s term as a Class III director, effective on January 23, 2025.
On March 13, 2025, John F. Engel informed the Board of Directors of his intent to resign as a director of the Company, effective upon the appointment of a director to fill the vacancy created by his resignation. Mr. Engel's resignation was not due to any disagreements with the Company's operations, policies, or practices. The Board of Directors appointed Jennifer Kwon Chou to serve on the Board of Directors for the remainder of Mr. Engel’s term as a Class II director, effective on March 21, 2025.
On March 13, 2025, the Board of Directors increased the size of the Board of Directors from five members to eight members. The Board of Directors appointed the following individuals to serve on the Board of Directors, effective on March 21, 2025:
- Alexander Duka was appointed to serve on the Board of Directors as an independent Class I director for a term expiring at the Company's 2026 annual meeting of stockholders.
- Ted Goldthorpe was appointed to serve as an interested Class II director for a term expiring at the Company's 2027 annual meeting of stockholders.
- Robert Warshauer was appointed to serve as an independent Class III director for a term expiring at the Company's 2026 annual meeting of stockholders.
Credit Facility
On March 18, 2025, the Company entered into a Sixth Amendment (the "Credit Agreement Amendment") to the Amended and Restated Credit Agreement dated as of April 20, 2022 (the "Credit Agreement"), among the Company, as borrower; the financial institutions parties thereto as lenders (the "Lenders"); KeyBank National Association, as administrative agent for the Lenders; CIBC Bank USA, as documentation agent; MUFG Bank, Ltd., as co-documentation agent; and U.S. Bank Trust Company, National Association, as collateral custodian and paying agent. The Credit Agreement Amendment amended the Credit Agreement to, among other things, (i) extend the maturity date and revolving period; (ii) permit future financing subsidiaries, and (iii) amend certain other terms of the Credit Agreement, including without limitation loan eligibility criteria, the borrowing base calculation, and excess concentration measures.
Recent Portfolio Activity
From January 1, 2025 through March 20, 2025, the Company completed
Conference Call
Runway Growth will hold a conference call to discuss its fourth quarter and fiscal year ended December 31, 2024, financial results at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, March 20, 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”, 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, tdonahue@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) | |||||||
| December 31, 2024 | December 31, 2023 | ||||||
| Assets | |||||||
| Investments at fair value: | |||||||
| Non-control/non-affiliate investments at fair value (cost of | $ | 1,005,328 | $ | 972,604 | |||
| Affiliate investments at fair value (cost of | 64,572 | 51,456 | |||||
| Control investments at fair value (cost of | 6,940 | 950 | |||||
| Investment in U.S. Treasury Bills at fair value (cost of | — | 41,999 | |||||
| Total investments at fair value (cost of | 1,076,840 | 1,067,009 | |||||
| Cash and cash equivalents | 5,751 | 2,970 | |||||
| Interest and fees receivable | 8,141 | 8,269 | |||||
| Other assets | 623 | 905 | |||||
| Total assets | 1,091,355 | 1,079,153 | |||||
| Liabilities | |||||||
| Debt: | |||||||
| Credit facility | 311,000 | 272,000 | |||||
| 2026 Notes | 95,000 | 95,000 | |||||
| 2027 Notes | 152,250 | 152,250 | |||||
| Unamortized deferred financing costs | (5,918 | ) | (9,172 | ) | |||
| Total debt, less unamortized deferred financing costs | 552,332 | 510,078 | |||||
| Incentive fees payable | 14,106 | 12,500 | |||||
| Interest payable | 7,743 | 6,764 | |||||
| Accrued expenses and other liabilities | 2,305 | 2,740 | |||||
| Total liabilities | 576,486 | 532,082 | |||||
| Net assets | |||||||
| Common stock, par value | 373 | 414 | |||||
| Additional paid-in capital | 557,992 | 605,110 | |||||
| Accumulated undistributed (overdistributed) earnings | (43,496 | ) | (47,637 | ) | |||
| Treasury stock | — | (10,816 | ) | ||||
| Total net assets | $ | 514,869 | $ | 547,071 | |||
| Shares of common stock outstanding ( | 37,347,428 | 40,509,269 | |||||
| Net asset value per share | $ | 13.79 | $ | 13.50 | |||
| RUNWAY GROWTH FINANCE CORP. Consolidated Statements of Operations (In thousands, except share and per share data) | |||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Investment income | |||||||||||||||
| From non-control/non-affiliate investments: | |||||||||||||||
| Interest income | $ | 29,402 | $ | 32,743 | $ | 127,045 | $ | 136,912 | |||||||
| Payment-in-kind interest income | 2,794 | 4,667 | 12,088 | 20,083 | |||||||||||
| Dividend income | 318 | 318 | 318 | 1,279 | |||||||||||
| Fee income | 542 | 757 | 2,231 | 3,342 | |||||||||||
| From affiliate investments: | |||||||||||||||
| Interest income | 611 | 604 | 2,419 | 2,090 | |||||||||||
| Payment-in-kind interest income | — | — | — | — | |||||||||||
| Fee income | — | — | — | 15 | |||||||||||
| From control investments: | |||||||||||||||
| Interest income | — | — | — | — | |||||||||||
| Payment-in-kind interest income | — | — | — | — | |||||||||||
| Other income | 112 | 136 | 531 | 488 | |||||||||||
| Total investment income | 33,779 | 39,225 | 144,632 | 164,209 | |||||||||||
| Operating expenses | |||||||||||||||
| Management fees | 3,931 | 4,113 | 15,694 | 16,711 | |||||||||||
| Incentive fees | 2,292 | 4,052 | 14,579 | 19,046 | |||||||||||
| Interest and other debt financing expenses | 11,120 | 10,371 | 44,226 | 43,143 | |||||||||||
| Professional fees | 756 | 846 | 2,199 | 2,350 | |||||||||||
| Administration agreement expenses | 478 | 478 | 1,986 | 2,125 | |||||||||||
| Insurance expense | 201 | 223 | 829 | 1,028 | |||||||||||
| Tax expense | 390 | 614 | 392 | 664 | |||||||||||
| Other expenses | (10 | ) | 211 | 976 | 867 | ||||||||||
| Total operating expenses | 19,158 | 20,908 | 80,881 | 85,934 | |||||||||||
| Net investment income | 14,621 | 18,317 | 63,751 | 78,275 | |||||||||||
| Net realized and net change in unrealized gain (loss) on investments | |||||||||||||||
| Net realized gain (loss) on non-control/non-affiliate investments, including U.S. Treasury Bills | (2,939 | ) | (196 | ) | (2,939 | ) | (1,374 | ) | |||||||
| Net realized gain (loss) on control investments | — | (17,013 | ) | — | (17,013 | ) | |||||||||
| Net realized gain (loss) on investments, including U.S. Treasury Bills | (2,939 | ) | (17,209 | ) | (2,939 | ) | (18,387 | ) | |||||||
| Net change in unrealized gain (loss) on non-control/non-affiliate investments, including U.S. Treasury Bills | 10,810 | (12,984 | ) | (372 | ) | (20,491 | ) | ||||||||
| Net change in unrealized gain (loss) on affiliate investments | 5,516 | 741 | 12,779 | (4,938 | ) | ||||||||||
| Net change in unrealized gain (loss) on control investments | 214 | 6,350 | 390 | 9,882 | |||||||||||
| Net change in unrealized gain (loss) on investments, including U.S. Treasury Bills | 16,540 | (5,893 | ) | 12,797 | (15,547 | ) | |||||||||
| Net realized and unrealized gain (loss) on investments | 13,601 | (23,102 | ) | 9,858 | (33,934 | ) | |||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 28,222 | $ | (4,785 | ) | $ | 73,609 | $ | 44,341 | ||||||
| Net investment income per common share (basic and diluted) | $ | 0.39 | $ | 0.45 | $ | 1.64 | $ | 1.93 | |||||||
| Net increase (decrease) in net assets resulting from operations per common share (basic and diluted) | $ | 0.75 | $ | (0.12 | ) | $ | 1.89 | $ | 1.09 | ||||||
| Weighted average shares outstanding (basic and diluted) | 37,465,536 | 40,509,269 | 38,852,271 | 40,509,269 | |||||||||||
FAQ
What were Runway Growth Finance's (RWAY) Q4 2024 earnings results?
How much did RWAY invest in new and existing portfolio companies in Q4 2024?
What is RWAY's dividend payment for Q1 2025?
How many shares did RWAY repurchase in Q4 2024?
What was Runway Growth's portfolio yield in Q4 2024?
