Runway Growth Finance Corp. Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
Runway Growth Finance (Nasdaq: RWAY) reported second quarter 2026 total investment income of $37.0 million and net investment income of $18.2 million, or $0.43 per share, up from $13.9 million, or $0.38 per share, a year earlier. Net increase in net assets from operations was $27.2 million, or $0.65 per share.
The company ended June 30, 2026 with a $1.2 billion investment portfolio across 79 companies and a dollar‑weighted annualized yield on debt investments of 14.2%. Net asset value totaled $502.6 million, or $11.91 per share, versus $12.13 per share on March 31, 2026.
Runway Growth funded $239.6 million of investments tied to its SWK Holdings acquisition and $101.7 million in new and existing portfolio companies, while receiving $36.5 million in aggregate proceeds. The board declared a $0.33 per share third‑quarter 2026 dividend and reported available liquidity of $210.8 million. Michael Rovner was appointed Co‑Chief Executive Officer effective August 6, 2026.
Positive
- Net investment income rose to $18.2 million ($0.43/share) from $13.9 million ($0.38/share) year over year
- Net increase in net assets from operations grew to $27.2 million ($0.65/share) from $16.8 million ($0.45/share)
- Investment portfolio expanded to $1.2 billion fair value from $886.3 million beginning balance
- Total operating expenses declined to $18.8 million from $21.2 million in the prior‑year quarter
- Available liquidity of $210.8 million, including $200.0 million undrawn credit capacity, supports funding needs
- Quarterly dividend of $0.33 per share declared for Q3 2026, providing ongoing cash return to shareholders
Negative
- Net asset value per share decreased to $11.91 from $12.13 on March 31, 2026 and $13.42 at December 31, 2025
- Net realized loss on investments widened sharply to $45.3 million from $1.5 million a year earlier
- Core leverage ratio increased to approximately 136% from 98% at March 31, 2026
- Certain borrowers BlueShift and Marley Spoon transitioned to non‑accrual status, modestly impacting portfolio yield
- Credit facility total commitments were reduced to $425.0 million from $550.0 million under the July 13, 2026 amendment
News Explained
The July 13 amendment cut credit-facility commitments from $550.0 million to $425.0 million, changing the company’s borrowing framework.
Runway Growth entered an eighth amendment to its credit agreement on
The release also reports that the investment adviser and its affiliates announced a commitment to purchase up to
The amendment further changed financial covenants, lender prepayment terms, key-person triggers, loan eligibility criteria and borrowing-base concentration limits.
As of
From
Market reaction after 2Q26 earnings report: RWAY +3.68%
Following this news, RWAY has gained 3.68%, reflecting a moderate positive market reaction. Our momentum scanner has triggered 16 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $6.20. Trading volume is above average at 1.8x the average, suggesting increased trading activity.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 07 | First-quarter earnings | Positive | -4.3% | Reported higher portfolio scale, income, dividend, and liquidity alongside SWK acquisition completion. |
| Mar 12 | Fourth-quarter earnings | Positive | -7.4% | Reported full-year income, dividend, refinancing activity, and portfolio growth. |
| Nov 06 | Third-quarter earnings | Positive | +1.9% | Reported quarterly income, portfolio expansion, dividend, repurchases, and planned SWK merger. |
| Aug 07 | Second-quarter earnings | Positive | +1.0% | Reported investment income, funded investments, yield, portfolio scale, liquidity, and distributions. |
| Aug 07 | Third-quarter distribution | Positive | +0.1% | Declared a regular and supplemental distribution totaling $0.36 per share. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings reactions were mixed: the two most recent quarterly reports declined despite positive operating metrics, while three earlier earnings-related events were positive.
Key Terms
non-accrual status financial
senior secured loans financial
payment-in-kind interest financial
business development company regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Delivered Total and Net Investment Income of
Investment Portfolio of
Conference Call on Friday, August 7, 2026 at 10:00 a.m. ET
MENLO PARK, Calif., Aug. 06, 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 second quarter ended June 30, 2026.
Second Quarter 2026 Highlights
- Total investment portfolio of
$1.2 billion at fair value - Total investment income of
$37.0 million - Net investment income of
$18.2 million , or$0.43 per share - Net asset value of
$502.6 million , or$11.91 per share - Dollar-weighted annualized yield on debt investments of
14.2% - Funded approximately
$239.6 million of investments acquired in connection with the Company's acquisition of SWK Holdings, including$216.2 million across 13 acquired loan positions and$23.4 million in acquired equity positions, with a combination of cash and the Company's common stock as consideration - Ten investments completed in new and existing portfolio companies, representing
$101.7 million in funded investments, which net of assignments was$85.8 million - Aggregate proceeds of
$36.5 million , representing$15.9 million in assignments,$10.5 million from scheduled repayments, and$10.1 million in sale proceeds from equity - Repurchased 249,169 shares during the quarter for an aggregate purchase price of
$1.4 million
Third Quarter 2026 Distributions
- Declared third quarter 2026 dividend of
$0.33 per share
“During the second quarter, we made meaningful progress executing our strategy while further strengthening the foundation of the business,” said David Spreng, Founder and Co-Chief Executive Officer of Runway Growth. “The successful integration of the SWK portfolio has enhanced our diversification, increased our earnings capacity and broadened our opportunity set. At the same time, we remain disciplined in our capital allocation, balancing new investments with opportunistic share repurchases. Complementing these efforts, our investment adviser and its affiliates recently announced their commitment to purchase up to
“I also want to welcome Mike Rovner, who has been appointed Co-Chief Executive Officer of Runway Growth Finance and Co-Chief Investment Officer of Runway Growth Capital,” continued Mr. Spreng. “Mike brings more than 30 years of experience spanning technology, venture capital, private credit and growth lending. His experience building and leading investment platforms, together with his connectivity across the BC Partners platform, further strengthens our leadership team and investment capabilities. Mike's disciplined investment philosophy and deep understanding of the innovation economy closely align with the culture we've built at Runway, and I look forward to partnering with him as we remain focused on maximizing shareholder returns.”
Second Quarter 2026 Operating Results
Total investment income for the quarter ended June 30, 2026 was
The Company's dollar-weighted annualized yield on average debt investments for the quarter ended June 30, 2026 was
Total operating expenses for the quarter ended June 30, 2026 were
Net investment income for the quarter ended June 30, 2026 was
Net realized loss was
For the quarter ended June 30, 2026, net change in unrealized gain was
For the quarter ended June 30, 2026, our net increase in net assets resulting from operations was
Portfolio and Investment Activity
As of June 30, 2026, Runway Growth’s investment portfolio had an aggregate fair value of
During the second quarter of 2026, Runway Growth funded approximately
During the second quarter of 2026, Runway Growth received aggregate proceeds of
Total portfolio investment activity for the three months ended June 30, 2026 and 2025 was as follows:
| Three Months Ended June 30, | ||||||||||
| 2026 | 2025 | |||||||||
| Beginning investment portfolio | $ | 886,346 | $ | 1,004,233 | ||||||
| Purchases of investments | 325,352 | 38,719 | ||||||||
| PIK interest | 1,957 | 4,093 | ||||||||
| Sales and prepayments of investments | (25,974 | ) | (25,000 | ) | ||||||
| Scheduled repayments of investments | (10,469 | ) | (4,230 | ) | ||||||
| Amortization of fixed income premiums or accretion of discounts | 5,330 | 2,917 | ||||||||
| Net realized gain (loss) on investments | (44,384 | ) | (1,501 | ) | ||||||
| Net change in unrealized gain (loss) on investments | 54,192 | 5,720 | ||||||||
| Ending investment portfolio | $ | 1,192,350 | $ | 1,024,951 | ||||||
Net Asset Value
As of June 30, 2026, net asset value per share was
Liquidity and Capital Resources
As of June 30, 2026, the Company had approximately
Distributions
On August 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 June 30, 2026 through August 6, 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.
Credit Facility
On July 13, 2026, the Company entered into the Eighth Amendment to its amended and restated credit agreement (the “Credit Facility Amendment”). The Credit Facility Amendment, (i) reduced the total commitments under the Credit Facility from
Appointment of Co-Chief Executive Officer
On August 5, 2026, the Board of Directors elected Michael Rovner, age 56, as the Company’s Co-Chief Executive Officer, effective as of the close of business on August 6, 2026 (the “Effective Time”), to serve alongside R. David Spreng, whose title will change from Chief Executive Officer and President to Co-Chief Executive Officer and President of the Company, as of the Effective Time. In addition, Mr. Rovner will serve as the Co-Chief Executive Officer, the Co-Chief Investment Officer and as a member of the investment committee of Runway Growth Capital LLC ("RGC"), effective as of the Effective Time.
Mr. Rovner has more than 30 years of industry experience spanning early and growth stage technology companies, private equity, private credit, and growth-debt lending. Prior to joining the Company, Mr. Rovner served as a managing director at BC Partners and its affiliate Mount Logan Management since 2023. Before that, from 2012 to 2023, he served as the chief executive officer and head of the investment committee of Ovation Partners, a provider of asset backed lending solutions and growth capital for established companies, which he co-founded. From 2009 to 2011, Mr. Rovner served on the Board of Directors of Vida Capital, a vertically integrated manager of insurance-related and longevity contingent assets, which he co-founded in 2009. From 2000 to 2011, he served as a partner and head of the financial services practice of Austin Ventures, a venture capital and growth equity firm focused on early-stage and growth equity investments in the financial services, technology, digital media, and technology-enabled services markets. Mr. Rovner began his career in early-stage technology businesses, including Empart Technology (acquired by ARI Networks), Stanford Technology Group (acquired by Informix Software), and Mission Critical Software (NASDAQ IPO and subsequent acquisition by NetIQ Corporation). Mr. Rovner received a B.A. in English from UCLA.
Investment Committee
Effective as of the close of business on August 6, 2026, RGC’s Investment Committee will consist of R. David Spreng, Michael Rovner, Thomas B. Raterman and Patrick Schafer. For additional information regarding Mr. Rovner’s appointment and the related changes to RGC’s Investment Committee, refer to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, being filed concurrently with this Current Report on Form 8-K.
Recent Portfolio Activity
From July 1, 2026 through August 6, 2026, the Company funded
Conference Call
Runway Growth will hold a conference call to discuss its second quarter ended June 30, 2026 financial results at 7:00 a.m. PT (10:00 a.m. ET) on Friday, August 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
Carmela Thomson, Chief Financial Officer, ct@runwaygrowth.com
| RUNWAY GROWTH FINANCE CORP. Consolidated Statements of Assets and Liabilities (In thousands, except share and per share data) | ||||||||
| June 30, 2026 | December 31, 2025 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Investments at fair value: | ||||||||
| Non-control/non-affiliate investments at fair value (cost of | $ | 1,179,315 | $ | 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 | 1,192,350 | 927,402 | ||||||
| Cash and cash equivalents | 10,831 | 18,175 | ||||||
| Interest and fees receivable | 13,234 | 7,594 | ||||||
| Deferred financing costs | 3,567 | 4,217 | ||||||
| Other assets | 2,375 | 2,726 | ||||||
| Total assets | 1,222,357 | 960,114 | ||||||
| Liabilities | ||||||||
| Debt: | ||||||||
| Credit facility | 350,000 | 173,000 | ||||||
| 2026 Notes | - | 25,000 | ||||||
| 2027 Notes | 73,219 | 132,250 | ||||||
| 2028 Notes | 107,000 | 107,000 | ||||||
| 2029 Notes | 50,000 | - | ||||||
| 2031 Notes | 103,250 | - | ||||||
| Deferred financing costs, net | (4,524 | ) | (1,913 | ) | ||||
| Total debt, net | 678,945 | 435,337 | ||||||
| Incentive fees payable | 13,238 | 14,444 | ||||||
| Interest payable | 9,654 | 6,756 | ||||||
| Foreign currency forward contracts | - | 711 | ||||||
| Secured borrowings | 14,903 | 14,578 | ||||||
| Accrued expenses and other liabilities | 3,039 | 3,319 | ||||||
| Total liabilities | 719,779 | 475,145 | ||||||
| Net assets | ||||||||
| Common stock, par value | 422 | 361 | ||||||
| Additional paid-in capital | 585,038 | 534,508 | ||||||
| Accumulated undistributed (overdistributed) earnings | (82,882 | ) | (49,900 | ) | ||||
| Total net assets | $ | 502,578 | $ | 484,969 | ||||
| Shares of common stock outstanding ( | 42,215,377 | 36,134,037 | ||||||
| Net asset value per share | $ | 11.91 | $ | 13.42 | ||||
| RUNWAY GROWTH FINANCE CORP. Consolidated Statements of Operations (Unaudited) (In thousands, except share and per share data) | ||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||
| Investment income | ||||||||||||||||||||
| From non-control/non-affiliate investments: | ||||||||||||||||||||
| Interest income | $ | 34,707 | $ | 30,490 | $ | 58,298 | $ | 60,599 | ||||||||||||
| Payment-in-kind interest income | 1,546 | 3,987 | 6,179 | 7,638 | ||||||||||||||||
| Dividend income | 53 | 188 | 306 | 506 | ||||||||||||||||
| Fee income | 244 | 314 | 661 | 543 | ||||||||||||||||
| From affiliate investments: | ||||||||||||||||||||
| Interest income | - | - | - | 646 | ||||||||||||||||
| Fee income | - | - | - | 256 | ||||||||||||||||
| From control investments: | ||||||||||||||||||||
| Interest income | 370 | - | 864 | - | ||||||||||||||||
| Other income | 106 | 168 | 168 | 357 | ||||||||||||||||
| Total investment income | 37,026 | 35,147 | 66,476 | 70,545 | ||||||||||||||||
| Operating expenses | ||||||||||||||||||||
| Management fees | 3,478 | 3,944 | 7,091 | 7,953 | ||||||||||||||||
| Incentive fees | (199 | ) | 3,523 | 2,402 | 7,452 | |||||||||||||||
| Interest and other debt financing expenses | 13,001 | 11,764 | 23,487 | 22,051 | ||||||||||||||||
| Professional fees | 1,046 | 677 | 1,650 | 1,131 | ||||||||||||||||
| Administration agreement expenses | 625 | 663 | 1,273 | 1,288 | ||||||||||||||||
| Insurance expense | 199 | 161 | 359 | 316 | ||||||||||||||||
| Tax expense | 311 | 140 | 581 | 250 | ||||||||||||||||
| Other expenses | 374 | 327 | 818 | 557 | ||||||||||||||||
| Total operating expenses | 18,835 | 21,199 | 37,661 | 40,998 | ||||||||||||||||
| Net investment income | 18,191 | 13,948 | 28,815 | 29,547 | ||||||||||||||||
| Net realized and net change in unrealized gain (loss) | ||||||||||||||||||||
| Net realized gain (loss): | ||||||||||||||||||||
| Non-control/non-affiliate investments | (44,384 | ) | (1,501 | ) | (44,177 | ) | (4,387 | ) | ||||||||||||
| Affiliate investments | - | - | - | 8,943 | ||||||||||||||||
| Control investments | - | - | 1,050 | - | ||||||||||||||||
| Net realized gain (loss) on investments | (44,384 | ) | (1,501 | ) | (43,127 | ) | 4,556 | |||||||||||||
| Net realized gain (loss) on forward contracts and foreign currency transactions | (873 | ) | (11 | ) | (878 | ) | (11 | ) | ||||||||||||
| Net realized gain (loss) | (45,257 | ) | (1,512 | ) | (44,005 | ) | 4,545 | |||||||||||||
| Net change in unrealized gain (loss): | ||||||||||||||||||||
| Non-control/non-affiliate investments | 54,192 | 5,595 | 7,768 | (4,204 | ) | |||||||||||||||
| Affiliate investments | - | - | - | (9,925 | ) | |||||||||||||||
| Control investments | - | 125 | (658 | ) | 59 | |||||||||||||||
| Net change in unrealized gain (loss) on investments | 54,192 | 5,720 | 7,110 | (14,070 | ) | |||||||||||||||
| Net change in unrealized gain (loss) on forward contracts and foreign currency transactions | 176 | (1,359 | ) | 711 | (1,359 | ) | ||||||||||||||
| Net change in unrealized gain (loss) on secured borrowings | (109 | ) | - | (255 | ) | - | ||||||||||||||
| Net change in unrealized gain (loss) | 54,259 | 4,361 | 7,566 | (15,429 | ) | |||||||||||||||
| Net realized and unrealized gain (loss) | 9,002 | 2,849 | (36,439 | ) | (10,884 | ) | ||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 27,193 | $ | 16,797 | $ | (7,624 | ) | $ | 18,663 | |||||||||||
| Net increase (decrease) in net assets resulting from operations per common share (basic and diluted) | $ | 0.65 | $ | 0.45 | $ | (0.19 | ) | $ | 0.50 | |||||||||||
| Weighted average shares outstanding (basic and diluted) | 42,074,771 | 37,103,061 | 39,120,815 | 37,224,569 | ||||||||||||||||
