Trinity Capital Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
Trinity Capital (NYSE: TRIN) reported Q2 2026 total investment income of $87.2 million, up 25.5% year-over-year, and net investment income (NII) of $46.0 million, or $0.51 per basic share, up 32.1% year-over-year. Return on average equity was 15.2% and return on average assets was 6.9%. Net increase in net assets from operations was $44.4 million, or $0.49 per share.
Total net assets rose 8.6% year-to-date to $1.3 billion, with NAV per share increasing to $13.47. The investment portfolio reached about $2.7 billion at fair value, with debt investments 89.3% first-lien and 81.5% floating-rate. Q2 originations totaled $709.0 million in new commitments and $618.7 million of gross fundings, while exits and repayments were $378.3 million. Non-accrual investments were $18.7 million, or 0.8% of the debt portfolio at fair value. Trinity declared $0.17 monthly dividends for July–September 2026 (totaling $0.51) and raised $99.5 million of net equity ATM proceeds in Q2, plus $11.6 million subsequently. On July 27, 2026, TRIN, TRNI and TRNZ transferred their listings to the NYSE and NYSE Texas.
Positive
- Total investment income $87.2 million, up 25.5% year-over-year
- Net investment income $46.0 million, up 32.1% year-over-year
- ROAE 15.2% and ROAA 6.9% in Q2 2026
- NAV per share increased to $13.47 from $13.27 on March 31, 2026
- Investment portfolio fair value up 10.0% quarter-over-quarter to ~$2.7 billion
- Non-accrual investments only 0.8% of debt portfolio at fair value
- Liquidity of $430.1 million, including $407.9 million of available credit facility capacity
- ATM equity issuance raised $99.5 million in Q2 at $16.39 per share, described as accretive
Negative
- NII per share declined to $0.51 from $0.53 in Q2 2025
- Interest expense rose to $24.8 million from $18.0 million year-over-year
- Effective yield on debt investments decreased to 15.0% from 15.7% in Q2 2025
- Net leverage ratio increased to 118% from 115% at March 31, 2026
- Net realized loss on investments of approximately $0.8 million in Q2 2026
- Net unrealized depreciation of approximately $0.8 million in Q2 2026
News Explained
The completed Q2 ATM added 6,134,888 shares and $99.5 million to the company, while reducing existing holders’ percentage ownership absent offsets.
During Q2, Trinity Capital issued and sold 6,134,888 common shares through its ATM program, raising
Those sales increased the share count; under the supplied definition, issuing additional shares reduces an existing holder’s percentage ownership absent offsetting changes, even though the release calls the ATM issuances accretive.
At
AI-generated analysis. How Rhea-AI works. Not financial advice.
Return on Average Equity reaches
Quarterly Net Investment Income climbs to a record
Q2 2026 Total Investment Income grows
Second Quarter 2026 Highlights
- Total investment income of
$87.2 million 25.5% year-over-year. - Net investment income ("NII") of
$46.0 million $0.51 32.1% year-over-year. - Net increase in net assets resulting from operations of
$44.4 million $0.49 15.2% Return on Average Equity "ROAE" (NII/Average Equity).6.9% Return on Average Assets "ROAA" (NII/Average Assets).- Net Asset Value ("NAV") of
$1.3 billion $13.47 - Total gross investment commitments of
$709.0 million - Total gross investments funded of
$618.7 million $296.3 million $301.0 million $21.4 million - Total gross investment exits and repayments of
$378.3 million $220.2 million $58.3 million $93.0 million $6.8 million - The Company announced
$0.17 $0.51
"Our Q2 results reflect years of investment in building a platform that can perform across cycles -- directly originated, diversified across five verticals, a growing managed funds platform, and backed by an internally managed team that has a real stake in the outcome," Trinity Capital CEO Kyle Brown said. "That is not a new story for Trinity Capital, but this quarter gave us another opportunity to demonstrate it."
"In a quarter where many parts of the market faced real pressure, Trinity's structure and disciplined underwriting produced results we are genuinely proud of. We funded
Second Quarter 2026 Operating Results
For the three months ended June 30, 2026, total investment income was
Total operating expenses and excise taxes, excluding interest expense, for the second quarter of 2026 were
Interest expense for the second quarter of 2026 was
Net investment income was approximately
During the three months ended June 30, 2026, the Company's net unrealized depreciation totaled approximately
Net realized loss on investments was approximately
Net increase in net assets resulting from operations was
Net Asset Value
Total net assets at the end of the second quarter of 2026 increased by
Portfolio and Investment Activity
As of June 30, 2026, the Company's investment portfolio had an aggregate fair value of approximately
During the second quarter, the Company originated approximately
Gross proceeds received from exits and repayments of the Company's investments during the second quarter totaled approximately
As of the end of the second quarter, loans to four portfolio companies and equipment financing to one portfolio company were on non-accrual status with a total fair value of approximately
The following table shows the distribution of the Company's loan and equipment financing investments on the 1 to 5 investment risk rating scale at fair value as of June 30, 2026 and March 31, 2026 (dollars in thousands):
June 30, 2026 | March 31, 2026 | |||||||||||||||||
Investment Risk Rating | Investments at | Percentage of | Investments at | Percentage of | ||||||||||||||
Scale Range | Designation | Fair Value | Total Portfolio | Fair Value | Total Portfolio | |||||||||||||
4.0 - 5.0 | Very Strong Performance | $ | 123,311 | 5.1 | % | $ | 96,282 | 4.3 | % | |||||||||
3.0 - 3.9 | Strong Performance | 1,165,201 | 47.8 | % | 917,118 | 41.1 | % | |||||||||||
2.0 - 2.9 | Performing | 1,080,131 | 44.3 | % | 1,147,127 | 51.5 | % | |||||||||||
1.6 - 1.9 | Watch | 37,069 | 1.5 | % | 31,708 | 1.4 | % | |||||||||||
1.0 - 1.5 | Default/Workout | 18,728 | 0.8 | % | 24,393 | 1.1 | % | |||||||||||
Total Debt Investments excluding | 2,424,440 | 99.5 | % | 2,216,628 | 99.4 | % | ||||||||||||
. | Senior Credit Corp 2022 LLC (1) | 12,885 | 0.5 | % | 12,885 | 0.6 | % | |||||||||||
Total Debt Investments | $ | 2,437,325 | 100.0 | % | $ | 2,229,513 | 100.0 | % | ||||||||||
(1) | An investment risk rating is not applied to Senior Credit Corp 2022 LLC. | |||||||||||
As of both June 30, 2026 and March 31, 2026, the Company's loan and equipment financing investments had a weighted average risk rating score of 3.0. The Company's grading scale is comprised of numerous factors, two key factors being liquidity and performance to plan. A company may be downgraded as it approaches the need for additional capital or if it is underperforming relative to its business plans. Conversely, it may be upgraded upon a capitalization event or if it is exceeding its plan. As such, the overall grading may fluctuate quarter-to-quarter.
Liquidity and Capital Resources
As of June 30, 2026, the Company had approximately
As of June 30, 2026, the Company's net leverage, or net debt-to-equity ratio, was approximately
During the three months ended June 30, 2026, the Company utilized its equity ATM offering program to sell 6,134,888 accretive shares of its common stock at a weighted average price of
Distributions
On June 17, 2026, the Company's Board of Directors declared regular monthly dividends of
Recent Developments
For the period from July 1, 2026 to August 3, 2026, the Company issued and sold 662,575 shares of its common stock at a weighted-average price of
On July 27, 2026, the Company transferred the listing of its common stock from the Nasdaq Global Select Market to the NYSE and NYSE Texas under the same ticker symbol, "TRIN." In connection with such transfer, the Company's March 2029 Notes and September 2029 Notes also transferred to the NYSE and NYSE Texas under the ticker symbols "TRNZ" and "TRNI," respectively, on July 27, 2026.
Conference Call
Trinity Capital will hold a conference call to discuss its second quarter 2026 financial results at 12:00 p.m. Eastern Time on Wednesday, August 5, 2026.
To listen to the call, please dial (800) 267-6316, or (203) 518-9783 internationally, and reference Conference ID: TRINQ226 if asked, approximately 10 minutes prior to the start of the call. The conference call and presentation will also be available on the investor relations section of the Company's website at ir.trinitycapital.com.
A taped replay will be made available approximately two hours after the conclusion of the call and will remain available until August 12, 2026. To access the replay, please dial (800) 695-2122 or (402) 530-9027. You may also access the webcast replay of the call and the presentation on the investor relations section of the Company's website at ir.trinitycapital.com.
About Trinity Capital Inc.
Trinity Capital Inc. (NYSE: TRIN) is an international alternative asset manager that seeks to deliver consistent returns for investors through access to private credit markets. Trinity Capital sources and structures investments in well-capitalized growth-oriented companies. With five distinct business verticals — Sponsor Finance, Equipment Finance, Tech Lending, Asset Based Lending, and Healthcare & Life Sciences — Trinity Capital stands as a long-term trusted partner for innovative companies seeking tailored debt solutions. Headquartered in Phoenix, Arizona, Trinity Capital's dedicated team is strategically located across the United States and in Europe. For more information on Trinity Capital, please visit trinitycapital.com and stay connected to the latest activity via LinkedIn.
Forward-Looking Statements
This press release may contain "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 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 filings with the Securities and Exchange Commission ("SEC"). The Company undertakes no duty to update any forward-looking statement made herein, except as required by law. All forward-looking statements speak only as of the date of this press release. More information on risks and other potential factors that could affect the Company's financial results, including important factors that could cause actual results to differ materially from plans, estimates or expectations included herein or on the webcast/conference call, is included in the Company's filings with the SEC, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's most recently filed annual report on Form 10-K and subsequent SEC filings.
Contact
Ben Malcolmson
Head of Investor Relations
Trinity Capital Inc.
ir@trinitycapital.com
(480) 852-3950
TRINITY CAPITAL INC. Consolidated Statements of Assets and Liabilities (In thousands, except share and per share data) | ||||||||
June 30, | December 31, | |||||||
2026 | 2025 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Investments at fair value: | ||||||||
Control investments (cost of | $ | 148,781 | $ | 123,760 | ||||
Affiliate investments (cost of | 65,538 | 50,495 | ||||||
Non-Control / Non-Affiliate investments (cost of | 2,517,982 | 2,243,820 | ||||||
Total investments (cost of | 2,732,301 | 2,418,075 | ||||||
Cash and cash equivalents | 22,177 | 19,110 | ||||||
Interest receivable | 19,259 | 19,031 | ||||||
Deferred credit facility costs | 5,053 | 5,872 | ||||||
Other assets | 26,582 | 22,431 | ||||||
Total assets | $ | 2,805,372 | $ | 2,484,519 | ||||
LIABILITIES | ||||||||
Credit Facility | $ | 282,100 | $ | 373,900 | ||||
Secured Notes, net of | 198,751 | 198,533 | ||||||
Unsecured Notes, net of | 1,017,412 | 721,763 | ||||||
Distribution payable | — | 41,574 | ||||||
Security deposits | 2,718 | 3,008 | ||||||
Accounts payable, accrued expenses and other liabilities | 37,542 | 51,742 | ||||||
Total liabilities | 1,538,523 | 1,390,520 | ||||||
NET ASSETS | ||||||||
Common stock, | 94 | 82 | ||||||
Paid-in capital in excess of par | 1,287,771 | 1,100,343 | ||||||
Distributable earnings/(accumulated deficit) | (21,016) | (6,426) | ||||||
Total net assets | 1,266,849 | 1,093,999 | ||||||
Total liabilities and net assets | $ | 2,805,372 | $ | 2,484,519 | ||||
NET ASSET VALUE PER SHARE | $ | 13.47 | $ | 13.42 | ||||
TRINITY CAPITAL INC. Consolidated Statements of Operations (In thousands, except share and per share data) (Unaudited) | |||||||||||||||||||
Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||||||||||
June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||
Interest and dividend income: | |||||||||||||||||||
Control investments | $ | 4,048 | $ | 2,430 | $ | 9,649 | $ | 4,758 | |||||||||||
Affiliate investments | 1,774 | 977 | 3,893 | 2,250 | |||||||||||||||
Non-Control / Non-Affiliate investments | 73,780 | 63,306 | 149,378 | 122,379 | |||||||||||||||
Total interest and dividend income | 79,602 | 66,713 | 162,920 | 129,387 | |||||||||||||||
Fee and other income: | |||||||||||||||||||
Control investments | 633 | — | 633 | — | |||||||||||||||
Affiliate investments | 648 | 597 | 1,261 | 1,289 | |||||||||||||||
Non-Control / Non-Affiliate investments | 6,287 | 2,173 | 12,484 | 4,192 | |||||||||||||||
Total fee and other income | 7,568 | 2,770 | 14,378 | 5,481 | |||||||||||||||
Total investment income | 87,170 | 69,483 | 177,298 | 134,868 | |||||||||||||||
EXPENSES: | |||||||||||||||||||
Interest expense and other debt financing costs | 24,774 | 18,044 | 48,878 | 35,700 | |||||||||||||||
Compensation and benefits | 12,428 | 12,489 | 29,699 | 23,134 | |||||||||||||||
Professional fees | 1,245 | 1,787 | 2,464 | 3,814 | |||||||||||||||
General and administrative | 2,991 | 2,246 | 6,135 | 4,713 | |||||||||||||||
Total gross expenses | 41,438 | 34,566 | 87,176 | 67,361 | |||||||||||||||
Allocated expenses to Trinity Capital Adviser, LLC | (896) | (508) | (2,029) | (916) | |||||||||||||||
Total net expenses | 40,542 | 34,058 | 85,147 | 66,445 | |||||||||||||||
NET INVESTMENT INCOME/(LOSS) BEFORE TAXES | 46,628 | 35,425 | 92,151 | 68,423 | |||||||||||||||
Excise tax expense | 639 | 621 | 1,674 | 1,238 | |||||||||||||||
NET INVESTMENT INCOME | 45,989 | 34,804 | 90,477 | 67,185 | |||||||||||||||
NET REALIZED GAIN/(LOSS) FROM INVESTMENTS: | |||||||||||||||||||
Affiliate investments | — | — | (3,071) | — | |||||||||||||||
Non-Control / Non-Affiliate investments | (774) | (8,262) | (7,633) | (10,416) | |||||||||||||||
Net realized gain/(loss) from investments | (774) | (8,262) | (10,704) | (10,416) | |||||||||||||||
NET CHANGE IN UNREALIZED | |||||||||||||||||||
Control investments | (3,104) | 7,912 | (8,053) | 7,913 | |||||||||||||||
Affiliate investments | (3,899) | 52 | (12,804) | 482 | |||||||||||||||
Non-Control / Non-Affiliate investments | 6,193 | 6,908 | 15,321 | 3,335 | |||||||||||||||
Net change in unrealized appreciation/(depreciation) from | (810) | 14,872 | (5,536) | 11,730 | |||||||||||||||
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING | $ | 44,405 | $ | 41,414 | $ | 74,237 | $ | 68,499 | |||||||||||
NET INVESTMENT INCOME PER SHARE - BASIC | $ | 0.51 | $ | 0.53 | $ | 1.04 | $ | 1.05 | |||||||||||
NET INVESTMENT INCOME PER SHARE - DILUTED | $ | 0.51 | $ | 0.53 | $ | 1.04 | $ | 1.05 | |||||||||||
NET CHANGE IN NET ASSETS RESULTING FROM | $ | 0.49 | $ | 0.63 | $ | 0.85 | $ | 1.07 | |||||||||||
NET CHANGE IN NET ASSETS RESULTING FROM | $ | 0.49 | $ | 0.63 | $ | 0.85 | $ | 1.07 | |||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC | 90,464,413 | 65,911,570 | 87,072,704 | 64,242,822 | |||||||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED | 90,464,413 | 65,911,570 | 87,072,704 | 64,242,822 | |||||||||||||||
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SOURCE Trinity Capital Inc.