Runway Growth Finance Corp. Reports Third Quarter 2026 Financial Results
Third-quarter net investment income rose slightly in total, but fell per share compared with the prior-year quarter.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Runway Growth Finance (Nasdaq: RWAY) reported third-quarter 2026 net investment income of $15.9 million, slightly above the prior-year quarter.
Investment income rose to $40.6 million from $36.7 million, while operating expenses increased to $24.7 million from $21.0 million. Net investment income per share fell to $0.38 from $0.43. Net assets increased from operations by $10.7 million, versus $8.0 million a year earlier.
The investment portfolio ended September at $1.1 billion. Net asset value per share was $11.94, versus $11.91 in June and $13.42 at year-end 2025. Core leverage fell to approximately 110% from 136% in June. The board declared a $0.33 quarterly distribution, payable on or about December 3, 2026. After quarter-end, Runway issued approximately $46.3 million of unsecured notes, redeemed approximately $33.0 million of notes and expanded its repurchase authorization to up to $30.0 million.
Positive
- Third-quarter investment income rose to $40.6 million from $36.7 million a year earlier.
- Third-quarter net investment income rose to $15.9 million from $15.7 million; per share fell to $0.38 from $0.43.
- Third-quarter net realized gain was $10.0 thousand, versus a $1.3 million loss a year earlier.
- Third-quarter unrealized losses narrowed to $5.2 million from $6.4 million a year earlier.
- Third-quarter net increase in assets from operations reached $10.7 million, or $0.26 per share, versus $8.0 million, or $0.22.
- Debt investment yield was 15.8% on a dollar-weighted annualized basis in the third quarter.
- Four investments in existing portfolio companies represented $8.5 million in third-quarter funding.
- Third-quarter investment proceeds included $130.228 million from sales and prepayments and $9.737 million from scheduled repayments.
- Core leverage declined to approximately 110% at September 30 from 136% at June 30, 2026.
- Available liquidity totaled approximately $216.6 million at September 30, including $3.6 million in unrestricted cash.
- 769,037 shares repurchased during the third quarter for an aggregate $4.8 million.
- Repurchase authorization expanded and extended to up to $30.0 million through September 30, 2027.
- Approximately $46.3 million raised through unsecured notes issued October 1, 2026.
- Approximately $33.0 million of 9.00% notes due January 31, 2027 were redeemed in full November 3, 2026.
- Additional debt commitments of $4.0 million completed October 1–November 5, 2026; existing commitments funded by $4.8 million.
- Post-quarter proceeds included $55.0 million in debt prepayments and $0.7 million in equity proceeds through November 5.
Negative
- Third-quarter operating expenses increased to $24.7 million from $21.0 million a year earlier.
- Portfolio fair value fell to $1,061.530 million from $1,192.350 million during the third quarter.
- Net asset value per share was $11.94 versus $13.42 at year-end 2025, but $11.91 in June.
- Total net assets decreased 1.6% from June 30 to $494.7 million at September 30, 2026.
- Cash and cash equivalents declined to $3.619 million from $18.175 million at year-end 2025.
- Net debt increased to $540.951 million from $435.337 million at year-end 2025.
- Nine-month investment income declined to $107.040 million from $107.292 million a year earlier.
- Nine-month operating expenses increased to $62.342 million from $62.009 million a year earlier.
- Nine-month net investment income declined to $44.698 million from $45.283 million a year earlier.
- Nine-month realized investment loss was $43.114 million, versus a $3.238 million gain a year earlier.
- New unsecured notes carry 7.75% interest and mature October 1, 2031.
- $213.0 million borrowing capacity remains subject to existing terms, advance rates, and regulatory and covenant requirements.
News Explained
After quarter-end, Runway Growth issued and sold
Key Figures
- Total investment income
- $40.6 million
- Q3 2026; compared with $36.7 million in Q3 2025
- Net investment income
- $15.9 million
- Q3 2026; compared with $15.7 million in Q3 2025
- Net investment income per share
- $0.38 per share
- Q3 2026; compared with $0.43 per share in Q3 2025
- Net increase in net assets from operations
- $10.7 million
- Q3 2026; compared with $8.0 million in Q3 2025
- Investment portfolio
- $1.1 billion
- Fair value as of September 30, 2026
- Quarterly distribution
- $0.33 per share
- Fourth quarter 2026; payable on or about December 3, 2026
- Share repurchase authorization
- Up to $30.0 million
- Fifth Repurchase Program; authorized through September 30, 2027
- October 2031 Notes
- Approximately $46.3 million at 7.75%
- Unsecured notes issued October 1, 2026, due October 1, 2031
Previous Earnings Reports
-
Reported $18.2 million net investment income and $0.43 per share for Q2 2026.
-
Reported $15.7 million net investment income and $0.43 per share for Q3 2025.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
net asset value financial
pari passu financial
non-accrual status 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 Thursday, November 5, 2026 at 5:00 p.m. ET
MENLO PARK, Calif., Nov. 05, 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 third quarter ended September 30, 2026.
Third Quarter 2026 Highlights
- Total investment portfolio of
$1.1 billion at fair value - Total investment income of
$40.6 million - Net investment income of
$15.9 million , or$0.38 per share - Net asset value of
$494.7 million , or$11.94 per share - Dollar-weighted annualized yield on debt investments of
15.8% - Four investments completed in existing portfolio companies, representing
$8.5 million in funded investments - Aggregate proceeds of
$140.0 million , including four full loan principal repayments totaling$130.7 million ,$8.7 million in other scheduled loan principal amortization payments, and$0.6 million in equity proceeds - Repurchased 769,037 shares during the quarter for an aggregate purchase price of
$4.8 million
Fourth Quarter 2026 Distributions
- Declared fourth quarter 2026 dividend of
$0.33 per share
“We are pleased to report solid third quarter results, reflecting strong earnings and stable NAV,” said Runway Growth Founder and Co-CEO David Spreng. “We intentionally moderated originations during the quarter as we continued to optimize the balance sheet, but remain well positioned to capitalize on demand for venture debt financing as the innovation economy grows.”
“It’s been an encouraging first few months at Runway as we continue to execute against our key priorities,” said Runway Growth Co-CEO Michael Rovner. “We have made meaningful progress diversifying the portfolio, bringing leverage back within our target range and expanding our share repurchase program. Looking ahead, we will continue to take a disciplined approach to capital allocation, with shareholder value at the center of our decision-making.”
Third Quarter 2026 Operating Results
Total investment income for the quarter ended September 30, 2026 was
The Company's dollar-weighted annualized yield on average debt investments for the quarter ended September 30, 2026 was
Total operating expenses for the quarter ended September 30, 2026 were
Net investment income for the quarter ended September 30, 2026 was
Net realized gain was
For the quarter ended September 30, 2026, net change in unrealized loss was
For the quarter ended September 30, 2026, our net increase in net assets resulting from operations was
Portfolio and Investment Activity
As of September 30, 2026, Runway Growth’s investment portfolio had an aggregate fair value of
During the third quarter of 2026, Runway Growth completed four investments in existing portfolio companies, representing
Total portfolio investment activity for the three months ended September 30, 2026 and 2025 was as follows:
| Three Months Ended September 30, | ||||||||||
| 2026 | 2025 | |||||||||
| Beginning investment portfolio | $ | 1,192,350 | $ | 1,024,951 | ||||||
| Purchases of investments | 8,447 | 53,708 | ||||||||
| PIK interest | 1,998 | 4,096 | ||||||||
| Sales and prepayments of investments | (130,228) | (126,074) | ||||||||
| Scheduled repayments of investments | (9,737) | (1,536) | ||||||||
| Amortization of fixed income premiums or accretion of discounts | 3,880 | (757) | ||||||||
| Net realized gain (loss) on investments | 13 | (1,318) | ||||||||
| Net change in unrealized gain (loss) on investments | (5,193) | (7,106) | ||||||||
| Ending investment portfolio | $ | 1,061,530 | $ | 945,964 | ||||||
Net Asset Value
As of September 30, 2026, net asset value per share was
Liquidity and Capital Resources
As of September 30, 2026, the Company had approximately
Distributions
On November 4, 2026, the Company’s board of directors (the "Board of Directors") declared a quarterly distribution of
Recent Developments
The Company evaluated events subsequent to September 30, 2026 through November 5, 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.
October 2031 Notes
On October 1, 2026, the Company issued and sold approximately
Interest on the October 2031 Notes is payable quarterly in arrears on March 1, June 1, September 1, and December 1 of each year. The October 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 October 1, 2028, at a redemption price of
Redemption of SWK 2027 Notes
On November 3, 2026, the Company redeemed in full approximately
Fifth Share Repurchase Program
On November 4, 2026, the Board of Directors approved an expansion and extension of the Fifth Repurchase Program, which authorizes the Company to repurchase up to
Recent Portfolio Activity
From October 1, 2026 through November 5, 2026, the Company completed
Conference Call
Runway Growth will hold a conference call to discuss its third quarter ended September 30, 2026 financial results at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, November 5, 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 veterans David Spreng and Michael Rovner. 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)
| September 30, 2026 | December 31, 2025 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Investments at fair value: | ||||||||
| Non-control/non-affiliate investments at fair value (cost of | $ | 1,048,654 | $ | 912,656 | ||||
| Affiliate investments at fair value (cost of | - | - | ||||||
| Control investments at fair value (cost of | 12,876 | 14,746 | ||||||
| Total investments at fair value (cost of | 1,061,530 | 927,402 | ||||||
| Cash and cash equivalents | 3,619 | 18,175 | ||||||
| Interest and fees receivable | 10,202 | 7,594 | ||||||
| Deferred financing costs on credit facility | 3,000 | 4,217 | ||||||
| Other assets | 2,187 | 2,726 | ||||||
| Total assets | 1,080,538 | 960,114 | ||||||
| Liabilities | ||||||||
| Debt: | ||||||||
| Credit facility | 212,000 | 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 | (4,518) | (1,913) | ||||||
| Total debt, net | 540,951 | 435,337 | ||||||
| Incentive fees payable | 15,028 | 14,444 | ||||||
| Interest payable | 11,267 | 6,756 | ||||||
| Foreign currency forward contracts | - | 711 | ||||||
| Secured borrowings | 14,938 | 14,578 | ||||||
| Accrued expenses and other liabilities | 3,659 | 3,319 | ||||||
| Total liabilities | 585,843 | 475,145 | ||||||
| Net assets | ||||||||
| Common stock, par value | 414 | 361 | ||||||
| Additional paid-in capital | 579,914 | 534,508 | ||||||
| Accumulated undistributed (overdistributed) earnings | (85,633) | (49,900) | ||||||
| Total net assets | $ | 494,695 | $ | 484,969 | ||||
| Shares of common stock outstanding ( | 41,446,340 | 36,134,037 | ||||||
| Net asset value per share | $ | 11.94 | $ | 13.42 | ||||
RUNWAY GROWTH FINANCE CORP.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||
| Investment income | ||||||||||||||||||||
| From non-control/non-affiliate investments: | ||||||||||||||||||||
| Interest income | $ | 37,283 | $ | 30,715 | $ | 95,581 | $ | 91,314 | ||||||||||||
| Payment-in-kind interest income | 1,999 | 4,219 | 8,178 | 11,857 | ||||||||||||||||
| Dividend income | 253 | 252 | 559 | 758 | ||||||||||||||||
| Fee income | 661 | 1,403 | 1,322 | 1,946 | ||||||||||||||||
| From affiliate investments: | ||||||||||||||||||||
| Interest income | - | - | - | 646 | ||||||||||||||||
| Fee income | - | - | - | 256 | ||||||||||||||||
| From control investments: | ||||||||||||||||||||
| Interest income | 256 | - | 1,120 | - | ||||||||||||||||
| Other income | 112 | 158 | 280 | 515 | ||||||||||||||||
| Total investment income | 40,564 | 36,747 | 107,040 | 107,292 | ||||||||||||||||
| Operating expenses | ||||||||||||||||||||
| Management fees | 4,620 | 3,963 | 11,711 | 11,916 | ||||||||||||||||
| Incentive fees | 4,277 | 4,075 | 6,679 | 11,527 | ||||||||||||||||
| Interest and other debt financing expenses | 13,282 | 10,630 | 36,769 | 32,681 | ||||||||||||||||
| Professional fees | 848 | 556 | 2,498 | 1,687 | ||||||||||||||||
| Administration agreement expenses | 706 | 705 | 1,979 | 1,993 | ||||||||||||||||
| Insurance expense | 204 | 163 | 563 | 479 | ||||||||||||||||
| Tax expense | 360 | 560 | 941 | 810 | ||||||||||||||||
| Other expenses | 384 | 359 | 1,202 | 916 | ||||||||||||||||
| Total operating expenses | 24,681 | 21,011 | 62,342 | 62,009 | ||||||||||||||||
| Net investment income | 15,883 | 15,736 | 44,698 | 45,283 | ||||||||||||||||
| Net realized and net change in unrealized gain (loss) | ||||||||||||||||||||
| Net realized gain (loss): | ||||||||||||||||||||
| Non-control/non-affiliate investments | 13 | (1,318) | (44,164) | (5,705) | ||||||||||||||||
| Affiliate investments | - | - | - | 8,943 | ||||||||||||||||
| Control investments | - | - | 1,050 | - | ||||||||||||||||
| Net realized gain (loss) on investments | 13 | (1,318) | (43,114) | 3,238 | ||||||||||||||||
| Net realized gain (loss) on forward contracts and foreign currency transactions | (3) | (12) | (881) | (23) | ||||||||||||||||
| Net realized gain (loss) | 10 | (1,330) | (43,995) | 3,215 | ||||||||||||||||
| Net change in unrealized gain (loss): | ||||||||||||||||||||
| Non-control/non-affiliate investments | (5,034) | (7,473) | 2,734 | (11,677) | ||||||||||||||||
| Affiliate investments | - | - | - | (9,925) | ||||||||||||||||
| Control investments | (159) | 367 | (817) | 426 | ||||||||||||||||
| Net change in unrealized gain (loss) on investments | (5,193) | (7,106) | 1,917 | (21,176) | ||||||||||||||||
| Net change in unrealized gain (loss) on forward contracts and foreign currency transactions | - | 719 | 711 | (640) | ||||||||||||||||
| Net change in unrealized gain (loss) on secured borrowings | 4 | - | (251) | - | ||||||||||||||||
| Net change in unrealized gain (loss) | (5,189) | (6,387) | 2,377 | (21,816) | ||||||||||||||||
| Net realized and unrealized gain (loss) | (5,179) | (7,717) | (41,618) | (18,601) | ||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 10,704 | $ | 8,019 | $ | 3,080 | $ | 26,682 | ||||||||||||
| Net increase (decrease) in net assets resulting from operations per common share (basic and diluted) | $ | 0.26 | $ | 0.22 | $ | 0.08 | $ | 0.72 | ||||||||||||
| Weighted average shares outstanding (basic and diluted) | 41,886,707 | 36,225,742 | 40,052,910 | 36,887,968 | ||||||||||||||||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.