Runway Growth Finance Corp. Reports Fourth Quarter and Fiscal Year 2025 Financial Results
Rhea-AI Summary
Runway Growth Finance (Nasdaq: RWAY) reported fourth-quarter and full-year 2025 results. Key metrics: total investment portfolio $927.4M, FY total investment income $137.3M, FY net investment income $56.9M ($1.55/share), and NAV $485.0M ($13.42/share). Q4 dollar-weighted yield on debt investments was 14.2%. The board declared a $0.33 quarterly dividend payable March 24, 2026. Liquidity totaled $395.2M and core leverage was ~90%. Company issued $103.25M of 7.25% notes due 2031 and repaid the April 2026 notes on January 21, 2026.
Positive
- Investment portfolio of $927.4M at fair value
- FY total investment income of $137.3M
- Dollar-weighted annualized debt yield of 14.2% (Q4)
- Available liquidity approximately $395.2M
- Issued $103.25M of 7.25% notes due 2031 to fund operations
Negative
- Net asset value fell 5.8% to $13.42 per share
- Q4 net investment income declined ~20% to $11.6M versus prior year quarter
- Net increase in assets from operations dropped to $7.4M in Q4 from $28.2M prior year
- Q4 net change in unrealized loss was $3.9M versus a $16.5M unrealized gain prior year
News Market Reaction – RWAY
In the Mar 13 session, RWAY declined 7.40%, reflecting a notable negative market reaction. Argus tracked a trough of -2.4% from its starting point during tracking. Our momentum scanner triggered 11 alerts that day, indicating notable trading interest and price volatility. Trading volume was elevated at 2.0x the daily average, suggesting increased selling activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Nov 06 | Q3 2025 earnings | Positive | +1.9% | Reported higher NII, strong yields, stable NAV and declared $0.33 dividend. |
| Aug 07 | Q2 2025 earnings | Positive | +1.0% | Strong Q2 income, solid portfolio yield, NAV growth and higher distributions. |
| Aug 07 | Q3 2025 dividend | Positive | +0.1% | Declared Q3 2025 total distribution of $0.36 per share. |
| Jul 15 | Q2 2025 update | Positive | +0.8% | Detailed new funded investments and significant principal repayments in Q2. |
| May 12 | Q1 2025 earnings | Positive | +6.5% | Reported strong Q1 income, robust yields, high liquidity and NAV around $13.48. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Past earnings and portfolio updates for RWAY have typically seen modest positive price reactions following the announcements.
Over the last year, RWAY’s earnings and portfolio updates have highlighted consistent net investment income growth, strong dollar‑weighted yields and a largely senior secured portfolio. Prior quarters reported total investment income in the mid‑$30M range, NAV per share around $13.5, and ample liquidity. Management has regularly paired results with dividends around $0.33/share and incremental portfolio expansion. The current Q4 and FY 2025 report continues this pattern, adding detail on portfolio size of $927.4M, low credit loss ratios, and ongoing progress toward the SWK Holdings acquisition.
Key Terms
net investment income financial
net asset value financial
dollar-weighted annualized yield financial
credit loss ratio financial
core leverage ratio financial
senior notes financial
indenture regulatory
unsecured notes 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, March 12, 2026 at 5:00 p.m. ET
MENLO PARK, Calif., March 12, 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 fourth quarter and fiscal year ended December 31, 2025.
Fourth Quarter 2025 Highlights
- Total investment income of
$30.0 million - Net investment income of
$11.6 million , or$0.32 per share - Net asset value of
$485.0 million , or$13.42 per share - Dollar-weighted annualized yield on debt investments of
14.2% - Seven investments completed in new and existing portfolio companies, representing
$42.9 million in funded investments - Aggregate proceeds of
$75.6 million in principal prepayments,$2.2 million from scheduled amortizations, and$0.3 million in sale proceeds from equity
Fiscal Year 2025 Highlights
- Total investment portfolio of
$927.4 million at fair value - Total investment income of
$137.3 million - Net investment income of
$56.9 million , or$1.55 per share - Net asset value of
$485.0 million , or$13.42 per share - Total investment fundings of
$261.6 million :$86.4 million in seven new portfolio companies,$168.5 million in ten existing portfolio companies, and$6.7 million in Runway-Cadma I LLC - Aggregate proceeds of
$383.5 million in principal prepayments and$11.6 million from scheduled amortizations, and$38.6 million in sale proceeds from equity - Low credit loss ratio of an average 10 basis points per year on a gross basis and an average 7 basis points per year on a net (debt and equity) basis, based on cumulative commitments since inception
First Quarter 2026 Distributions
- Declared first quarter 2026 dividend of
$0.33 per share
“In 2025, Runway Growth leveraged the resources and scale of the BC Partners Credit platform to drive origination volume and optimize our portfolio,” said David Spreng, Founder and CEO of Runway Growth. “Despite ongoing macroeconomic volatility, our disciplined focus on first-lien investments in economically resilient businesses, has positioned us to perform. We are excited about the anticipated closing of our proposed acquisition of SWK holdings, which will expand our exposure and capabilities in healthcare and life sciences as we continue to diversify. Looking at the year ahead, we are encouraged by our pipeline and will continue to deploy capital thoughtfully as we utilize our enhanced origination channels.”
Fourth Quarter 2025 Operating Results
Total investment income for the quarter ended December 31, 2025 was
The Company's dollar-weighted annualized yield on average debt investments for the quarter ended December 31, 2025 was
Total operating expenses for the quarter ended December 31, 2025 were
Net investment income for the quarter ended December 31, 2025 was
Net realized loss on investments was
For the quarter ended December 31, 2025, net change in unrealized loss on investments was
For the quarter ended December 31, 2025, our net increase in net assets resulting from operations was
Portfolio and Investment Activity
As of December 31, 2025, Runway Growth’s investment portfolio had an aggregate fair value of
During the fourth quarter of 2025, Runway Growth funded three investments in new portfolio companies, four investments in existing portfolio companies, representing
During the fourth quarter of 2025, Runway Growth received aggregate proceeds of
Total portfolio investment activity for the three and twelve months ended December 31, 2025 and 2024 was as follows:
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||
| Beginning investment portfolio | $ | 945,964 | $ | 1,066,100 | $ | 1,076,840 | $ | 1,067,009 | ||||||||||||
| Purchases of investments | 42,574 | 80,077 | 150,321 | 254,106 | ||||||||||||||||
| PIK interest | 4,205 | 2,683 | 15,654 | 12,265 | ||||||||||||||||
| Sales and prepayments of investments | (60,923 | ) | (81,736 | ) | (286,975 | ) | (226,397 | ) | ||||||||||||
| Scheduled repayments of investments | (2,177 | ) | (2,400 | ) | (11,608 | ) | (4,780 | ) | ||||||||||||
| Sales and maturities of U.S. Treasury Bills | - | - | - | (42,029 | ) | |||||||||||||||
| Amortization of fixed income premiums or accretion of discounts | 1,945 | (1,485 | ) | 5,294 | 6,808 | |||||||||||||||
| Net realized gain (loss) on investments | (377 | ) | (2,939 | ) | 2,861 | (2,939 | ) | |||||||||||||
| Net change in unrealized gain (loss) on investments | (3,809 | ) | 16,540 | (24,985 | ) | 12,797 | ||||||||||||||
| Ending investment portfolio | $ | 927,402 | $ | 1,076,840 | $ | 927,402 | $ | 1,076,840 | ||||||||||||
(1) Refer to "Note 2 – Summary of Significant Accounting Policies, Secured Borrowings" of the Company's consolidated financial statements in Part II, Item 8 of the Form 10-K as of December 31, 2025 for additional detail on the accounting treatment of the participation interest sold.
Net Asset Value
As of December 31, 2025, net asset value per share was
Liquidity and Capital Resources
As of December 31, 2025, the Company had approximately
The Company ended the quarter with a core leverage ratio of approximately
Distributions
On February 25, 2026, the Company’s board of directors (the "Board of Directors") declared a quarterly distribution of
Recent Developments
The Company evaluated events subsequent to December 31, 2025 through March 12, 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.
Repayment of April 2026 Notes
The
Baby Bond Offering
On February 3, 2026, the Company issued and sold
Interest on the February 2031 Notes will be due quarterly in arrears on March 1, June 1, September 1, and December 1 of each year. The February 2031 Notes may be redeemed in whole or in part at any time or from time to time at the Company's option on or after February 3, 2028, at a redemption price of
Redemption of July 2027 Notes and December 2027 Notes
On March 6, 2026, the Company redeemed
Recent Portfolio Activity
From January 1, 2026 through March 12, 2026, the Company completed
Conference Call
Runway Growth will hold a conference call to discuss its fourth quarter ended December 31, 2025 financial results at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, March 12, 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) | ||||||||
| December 31, 2025 | December 31, 2024 | |||||||
| Assets | ||||||||
| Investments at fair value: | ||||||||
| Non-control/non-affiliate investments at fair value (cost of | $ | 912,656 | $ | 1,005,328 | ||||
| Affiliate investments at fair value (cost of | - | 64,572 | ||||||
| Control investments at fair value (cost of | 14,746 | 6,940 | ||||||
| Total investments at fair value (cost of | 927,402 | 1,076,840 | ||||||
| Cash and cash equivalents | 18,175 | 5,751 | ||||||
| Interest and fees receivable | 7,594 | 8,141 | ||||||
| Deferred financing costs | 4,217 | - | ||||||
| Other assets | 2,726 | 623 | ||||||
| Total assets | 960,114 | 1,091,355 | ||||||
| Liabilities | ||||||||
| Debt: | ||||||||
| Credit facility | 173,000 | 311,000 | ||||||
| 2026 Notes | 25,000 | 95,000 | ||||||
| 2027 Notes | 132,250 | 152,250 | ||||||
| 2028 Notes | 107,000 | - | ||||||
| Deferred financing costs | (1,913 | ) | (5,918 | ) | ||||
| Total debt, less deferred financing costs | 435,337 | 552,332 | ||||||
| Incentive fees payable | 14,444 | 14,106 | ||||||
| Interest payable | 6,756 | 7,743 | ||||||
| Foreign currency forward contracts | 711 | - | ||||||
| Secured borrowings | 14,578 | - | ||||||
| Accrued expenses and other liabilities | 3,319 | 2,305 | ||||||
| Total liabilities | 475,145 | 576,486 | ||||||
| Net assets | ||||||||
| Common stock, par value | 361 | 373 | ||||||
| Additional paid-in capital | 534,508 | 557,992 | ||||||
| Accumulated undistributed (overdistributed) earnings | (49,900 | ) | (43,496 | ) | ||||
| Total net assets | $ | 484,969 | $ | 514,869 | ||||
| Shares of common stock outstanding ( | 36,134,037 | 37,347,428 | ||||||
| Net asset value per share | $ | 13.42 | $ | 13.79 | ||||
| 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, | |||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||
| Investment income | ||||||||||||||||||||
| From non-control/non-affiliate investments: | ||||||||||||||||||||
| Interest income | $ | 25,664 | $ | 29,402 | $ | 116,978 | $ | 127,045 | ||||||||||||
| Payment-in-kind interest income | 4,309 | 2,794 | 16,166 | 12,088 | ||||||||||||||||
| Dividend income | 253 | 318 | 1,011 | 318 | ||||||||||||||||
| Fee income | (256 | ) | 542 | 1,690 | 2,231 | |||||||||||||||
| From affiliate investments: | ||||||||||||||||||||
| Interest income | - | 611 | 646 | 2,419 | ||||||||||||||||
| Fee income | - | - | 256 | - | ||||||||||||||||
| Other income | 67 | 112 | 582 | 531 | ||||||||||||||||
| Total investment income | 30,037 | 33,779 | 137,329 | 144,632 | ||||||||||||||||
| Operating expenses | ||||||||||||||||||||
| Management fees | 3,808 | 3,931 | 15,724 | 15,694 | ||||||||||||||||
| Incentive fees | 2,925 | 2,292 | 14,452 | 14,579 | ||||||||||||||||
| Interest and other debt financing expenses | 9,992 | 11,120 | 42,673 | 44,226 | ||||||||||||||||
| Professional fees | 518 | 756 | 2,205 | 2,199 | ||||||||||||||||
| Administration agreement expenses | 570 | 478 | 2,563 | 1,986 | ||||||||||||||||
| Insurance expense | 167 | 201 | 646 | 829 | ||||||||||||||||
| Tax expense | 70 | 390 | 880 | 392 | ||||||||||||||||
| Other expenses | 360 | (10 | ) | 1,276 | 976 | |||||||||||||||
| Total operating expenses | 18,410 | 19,158 | 80,419 | 80,881 | ||||||||||||||||
| Net investment income | 11,627 | 14,621 | 56,910 | 63,751 | ||||||||||||||||
| Net realized and net change in unrealized gain (loss) | ||||||||||||||||||||
| Net realized gain (loss): | ||||||||||||||||||||
| Non-control/non-affiliate investments | (377 | ) | (2,939 | ) | (6,082 | ) | (2,939 | ) | ||||||||||||
| Affiliate investments | - | - | 8,943 | - | ||||||||||||||||
| Control investments | - | - | - | - | ||||||||||||||||
| Net realized gain (loss) on investments | (377 | ) | (2,939 | ) | 2,861 | (2,939 | ) | |||||||||||||
| Net realized gain (loss) on forward contracts and foreign currency transactions | (3 | ) | - | (26 | ) | - | ||||||||||||||
| Net realized gain (loss) | (380 | ) | (2,939 | ) | 2,835 | (2,939 | ) | |||||||||||||
| Net change in unrealized gain (loss): | ||||||||||||||||||||
| Non-control/non-affiliate investments | (4,506 | ) | 10,810 | (16,183 | ) | (372 | ) | |||||||||||||
| Affiliate investments | - | 5,516 | (9,925 | ) | 12,779 | |||||||||||||||
| Control investments | 697 | 214 | 1,123 | 390 | ||||||||||||||||
| Net change in unrealized gain (loss) on investments | (3,809 | ) | 16,540 | (24,985 | ) | 12,797 | ||||||||||||||
| Net change in unrealized gain (loss) on forward contracts and foreign currency transactions | (71 | ) | - | (711 | ) | - | ||||||||||||||
| Net change in unrealized gain (loss) | (3,880 | ) | 16,540 | (25,696 | ) | 12,797 | ||||||||||||||
| Net realized and unrealized gain (loss) | (4,260 | ) | 13,601 | (22,861 | ) | 9,858 | ||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 7,367 | $ | 28,222 | $ | 34,049 | $ | 73,609 | ||||||||||||
| Net investment income per common share (basic and diluted) | $ | 0.32 | $ | 0.39 | $ | 1.55 | $ | 1.64 | ||||||||||||
| Net increase (decrease) in net assets resulting from operations per common share (basic and diluted) | $ | 0.20 | $ | 0.75 | $ | 0.93 | $ | 1.89 | ||||||||||||
| Weighted average shares outstanding (basic and diluted) | 36,134,037 | 37,465,536 | 36,697,936 | 38,852,271 | ||||||||||||||||
