STOCK TITAN

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.

(Moderate)

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.

Tags

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.

Loading...
Loading translation...

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 $46.3 million of unsecured notes due in 2031 at 7.75%, then redeemed $33.0 million of 2027 notes bearing 9.00%; the new notes extend debt maturity while adding a new interest-bearing obligation.

Key Figures

Total investment income: $40.6 million Net investment income: $15.9 million Net investment income per share: $0.38 per share +5 more
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

2 past events · Latest: Aug 06
Same Type 2 events
  1. Aug 06

    Earnings report

    24h Move
    +14.4%

    Reported $18.2 million net investment income and $0.43 per share for Q2 2026.

  2. Nov 06

    Earnings report

    24h Move
    +1.9%

    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, pari passu, non-accrual status, business development company
4 terms
net asset value financial
"Net asset value per share was $11.94"
Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.
View in glossary
pari passu financial
"rank pari passu with the Company's existing and future unsecured"
An instruction that different claims, securities, or creditors are treated equally and share rights or payments on the same priority level. For investors, it means their position will be paid or have voting power alongside others in the same class rather than being favored or subordinated—think of several people standing in one bus line who all get on together rather than some cutting ahead. That parity affects expected recovery in reorganizations, dividend order, and relative risk.
non-accrual status financial
"including any investments on non-accrual status"
A loan or credit account is placed in non-accrual status when the lender stops recording expected interest income because the borrower is not making scheduled payments or repayment is doubtful. Think of it like a landlord who stops counting unpaid rent as future income once a tenant stops paying; it signals rising credit problems and potential losses. For investors, non-accrual levels indicate loan quality and can foreshadow write-downs, lower earnings, and increased risk to a lender’s balance sheet.
business development company regulatory
"regulated as a business development company under the Investment Company Act"
A business development company is a publicly traded investment vehicle that lends to and buys stakes in smaller or privately held companies, acting like a combination of a lender, investor, and business partner. It matters to investors because BDCs offer the potential for higher regular income through dividends and diversified exposure to growing businesses, but they can also carry greater credit and liquidity risk than typical stocks or bonds—think higher-yielding but riskier income instruments.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google
Add on Google

Delivered Total and Net Investment Income of $40.6 million and $15.9 million, Respectively

Investment Portfolio of $1.1 billion

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 $40.6 million, compared to $36.7 million for the quarter ended September 30, 2025.

The Company's dollar-weighted annualized yield on average debt investments for the quarter ended September 30, 2026 was 15.8%. The Company calculates the yield on dollar-weighted debt investments for any period measured as (1) total investment-related income during the period divided by (2) the daily average of the fair value of debt investments outstanding during the period, including any investments on non-accrual status.

Total operating expenses for the quarter ended September 30, 2026 were $24.7 million, compared to $21.0 million for the quarter ended September 30, 2025.

Net investment income for the quarter ended September 30, 2026 was $15.9 million, or $0.38 per share, compared to $15.7 million, or $0.43 per share, for the quarter ended September 30, 2025.

Net realized gain was $10.0 thousand for the quarter ended September 30, 2026, compared to a net realized loss of $1.3 million for the quarter ended September 30, 2025.

For the quarter ended September 30, 2026, net change in unrealized loss was $5.2 million, compared to a net change in unrealized loss of $6.4 million for the quarter ended September 30, 2025.

For the quarter ended September 30, 2026, our net increase in net assets resulting from operations was $10.7 million, or $0.26 per share, compared to a net increase in net assets resulting from operations of $8.0 million, or $0.22 per share, for the quarter ended September 30, 2025.

Portfolio and Investment Activity

As of September 30, 2026, Runway Growth’s investment portfolio had an aggregate fair value of $1.1 billion in 77 companies, comprising $1.0 billion in loans, 96.2% of which are senior secured loans, and $69.7 million in warrants and other equity-related investments.

During the third quarter of 2026, Runway Growth completed four investments in existing portfolio companies, representing $8.5 million in funded investments. Total debt and equity fundings net of upfront loan origination fees were $8.4 million. Runway Growth received aggregate proceeds of $130.2 million in principal prepayments and equity sale proceeds and $9.7 million in scheduled amortizations.

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 $11.94, compared to $11.91 as of June 30, 2026. Total net assets at the end of the third quarter of 2026 were $494.7 million, a decrease of 1.6% from $502.6 million as of June 30, 2026.

Liquidity and Capital Resources

As of September 30, 2026, the Company had approximately $216.6 million in available liquidity, including unrestricted cash and cash equivalents of $3.6 million and $213.0 million in available borrowing capacity under the Company’s credit facility, subject to existing terms, advance rates and regulatory and covenant requirements. The Company ended the quarter with a core leverage ratio of approximately 110%, compared to 136% for the quarter ended June 30, 2026.

Distributions

On November 4, 2026, the Company’s board of directors (the "Board of Directors") declared a quarterly distribution of $0.33 per share for stockholders of record as of November 17, 2026. Distributions are payable on or about December 3, 2026.

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 $46.3 million in aggregate principal amount of 7.75% interest-bearing unsecured Notes due October 1, 2031 (the "October 2031 Notes") under its shelf Registration Statement on Form N-2. The October 2031 Notes were issued pursuant to the Base Indenture and Fifth Supplemental Indenture, dated October 1, 2026, between the Company and U.S. Bank Trust Company, National Association, as trustee.

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 $25 per note plus accrued and unpaid interest thereon to, but excluding, the date fixed for redemption. The October 2031 Notes are general unsecured obligations of the Company that rank pari passu with the Company's existing and future unsecured, unsubordinated indebtedness.

Redemption of SWK 2027 Notes

On November 3, 2026, the Company redeemed in full approximately $33.0 million in outstanding aggregate principal amount of its 9.00% Senior Notes due January 31, 2027, in accordance with the terms of the governing indenture, at a redemption price equal to 100% of the aggregate principal amount thereof plus accrued and unpaid interest thereon.

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 $30.0 million of its outstanding shares of common stock until September 30, 2027 at management’s discretion and in accordance with applicable securities laws and regulations. If not renewed, the Fifth Repurchase Program will terminate upon the earlier of (i) the repurchase of $30.0 million of the Company’s outstanding shares of common stock or (ii) September 30, 2027.

Recent Portfolio Activity

From October 1, 2026 through November 5, 2026, the Company completed $4.0 million of additional debt commitments and funded $4.8 million in unfunded commitments on existing investments. The Company also received $55.0 million in debt prepayments and $0.7 million in equity proceeds.

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 $1,094,910 and $961,646, respectively) $1,048,654  $912,656 
Affiliate investments at fair value (cost of $4,551 and $4,551, respectively)  -   - 
Control investments at fair value (cost of $12,180 and $13,233, respectively)  12,876   14,746 
Total investments at fair value (cost of $1,111,641 and $979,430, respectively)  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 ($0.01 par value, 100,000,000 shares authorized)  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.

What were Runway Growth Finance's third-quarter 2026 earnings?

Runway Growth Finance reported $15.9 million in net investment income, or $0.38 per share, for the quarter ended September 30, 2026. That compares with $15.7 million, or $0.43 per share, a year earlier. Total investment income increased to $40.6 million from $36.7 million.

When will RWAY pay its fourth-quarter 2026 dividend?

RWAY's $0.33 per-share quarterly distribution is payable on or about December 3, 2026, to stockholders of record as of November 17, 2026. The board declared the distribution on November 4, 2026.

When can Runway Growth Finance redeem its October 2031 notes?

Runway Growth Finance may redeem the October 2031 notes in whole or in part at its option on or after October 1, 2028. The redemption price is $25 per note plus accrued and unpaid interest to, but excluding, the redemption date. Interest is payable quarterly in arrears.

Keep reading