Rand Capital Q3 investment income falls 17%
Portfolio fair value was up 17.0% from December 31, 2025, while interest income from portfolio companies rose 4% sequentially.
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 Filing Summary
Rand Capital Corporation (RAND) reported third-quarter fiscal 2026 net investment income of $668,941, or $0.23 per share, versus $992,579, or $0.33, a year earlier. Total investment income was $1,311,768, down 17%, primarily reflecting portfolio investments on non-accrual status. Expenses rose to $769,396 from $596,203, mainly on higher professional fees, interest expense and base management fees.
Net assets from operations increased $944,398, versus a $2,231,194 decrease in the prior-year quarter. Portfolio fair value was $56,736,055 at September 30, 2026, up 17.0% from $48,480,496 at December 31, 2025. The 20-business portfolio was approximately 77% debt and 23% equity by fair value; debt investments' annualized weighted average yield was 8.97%, versus 11.3% on December 31, 2025.
Rand deployed $12.0 million in new and follow-on investments during the first nine months, all in the first half, and made no new or follow-on cash investments in the third quarter. Quarter-end cash was $222,920; the line of credit had $5,000,000 outstanding and approximately $12.4 million remaining availability. Rand paid a $0.29-per-share quarterly dividend on September 9, 2026.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointPortfolio fair value rose 17.0% to $56,736,055 at September 30, 2026.
- Moderate pointNet increase in assets from operations was $944,398, versus a prior-year decrease.
Negative
- Moderate pointTotal investment income fell 17% year over year.
- Moderate pointNet investment income was $668,941, below $992,579 a year earlier.
Filing Explained
The 8-K furnishes Rand’s third-quarter results; it reports a
8-K Event Classification
Key Figures
Key Terms
non-accrual status financial
payment-in-kind (PIK) interest financial
annualized weighted average yield financial
adjusted expenses financial
capital gains incentive fees financial
Earnings Snapshot
FAQ
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of report (Date of earliest event reported):
(Exact Name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification Number) |
(Address of Principal Executive Offices) (Zip Code)
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging
growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On November 4, 2026, Rand Capital Corporation (the “Company”) issued a press release announcing its results for the third quarter ended September 30, 2026. A copy of the release is furnished with this report as Exhibit 99.1 and is incorporated by reference into this Item 2.02.
The information contained in this report under Item 2.02 is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information contained in this report under Item 2.02 shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 7.01. Regulation FD Disclosure.
The Company has updated its earnings conference call slide presentation for third quarter ended September 30, 2026, and will make it available on the Company’s website at www.randcapital.com, under “Investors”. The slide presentation will be referenced during the Company’s earnings conference call. The information found on, or otherwise accessible through, the Company’s website is not incorporated by reference herein.
Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibits |
Exhibit Number |
Description of Exhibit | |
| 99.1 | Press Release, dated November 4, 2026. | |
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| RAND CAPITAL CORPORATION | ||
| Date: November 4, 2026 | ||
| By: | /s/ Margaret Brechtel | |
| Name: | Margaret Brechtel | |
| Title: | Chief Financial Officer | |
Exhibit 99.1
 |
NEWS RELEASE |
14 Lafayette Square, Suite 1405 ● Buffalo, New York 14203
FOR IMMEDIATE RELEASE
Rand Capital Reports Third Quarter Fiscal Year 2026 Results
| ● | Interest income from portfolio companies rose 4% sequentially to $1.2 million, supported by contributions from investments made earlier in 2026 | |
| ● | Third quarter total investment income was $1.3 million compared with $1.6 million in the prior-year period, primarily reflecting the impact of certain investments being on non-accrual status | |
| ● | Net investment income was $669,000, or $0.23 per share, in the third quarter | |
| ● | Net asset value (NAV) per share was $17.36 at September 30, 2026 | |
| ● | Portfolio fair value was $56.7 million, up 17.0% from year-end 2025 |
BUFFALO, NY, November 4, 2026 – Rand Capital Corporation (Nasdaq: RAND) (“Rand” or the “Company”), a business development company providing alternative financing for lower middle market companies, announced its results for the third quarter ended September 30, 2026.
“Interest income from our portfolio companies increased sequentially in the third quarter, supported by contributions from investments made earlier in the year and building on a relatively stable income base during 2026,” said Daniel P. Penberthy, President and Chief Executive Officer of Rand. “Improved operating performance at several portfolio companies also supported valuation gains, helping offset declines elsewhere and contributing to a modest sequential increase in net asset value per share.”
“Our focus remains on strengthening the portfolio’s income producing base, actively managing challenged investments and preserving financial flexibility. With a predominantly debt-oriented portfolio and available borrowing capacity, we intend to remain selective in committing capital, balancing new investment opportunities with the needs of our existing portfolio and long-term shareholder returns.”
Third Quarter Review (compared with the prior-year period unless otherwise noted)
| ● | Total investment income of $1.3 million decreased $268,000, or 17%, from $1.6 million in the third quarter of 2025, primarily reflecting lower interest income from portfolio companies due to certain investments being placed on non-accrual status over the last year, along with lower interest from other investments and fee income. Dividend income of $28,000 in the third quarter of 2026 partially offset this decline. | |
| ● | On a sequential basis, interest income from portfolio companies increased 4% to $1.2 million, reflecting income generated by new investments made during the year. | |
| ● | Non-cash payment-in-kind (PIK) interest totaled $99,000, representing 8% of interest income from portfolio companies, compared with 43% in the prior-year period. The decline in PIK as a percentage of interest income reflects the impact of four portfolio companies being on non-accrual status, which reduced the amount of PIK interest recognized in the quarter. | |
| ● | Total expenses were $769,000 compared with $596,000 in the same period last year. The increase primarily reflected higher professional fees, interest expense due to higher average borrowings and base management fees, partly offset by lower income-based incentive fees. Neither period included a capital gains incentive fee expense or benefit. |
Rand Capital Reports Second Quarter Fiscal Year 2026 Results November 4, 2026 Page 2 of 7 |
| ● | Net investment income was $669,000, or $0.23 per share, compared with $993,000, or $0.33 per share, in the third quarter of 2025. | |
| ● | Net assets were $51.5 million, or $17.36 per share, at September 30, 2026, compared with $17.33 per share, at June 30, 2026. Net investment income of $669,000 and net realized and unrealized gains of $275,000 more than offset $861,000 of dividends declared during the third quarter. At December 31, 2025, net assets were $17.57 per share. |
Portfolio and Investment Activity
As of September 30, 2026, Rand’s investment portfolio had a fair value of $56.7 million, up 17.0% from $48.5 million at December 31, 2025. The portfolio consisted of investments in 20 portfolio businesses and was comprised of approximately 77% debt investments and 23% equity investments at fair value. Portfolio fair value increased $235,000 from June 30, 2026.
Rand deployed $12.0 million into new and follow-on investments during the first nine months of 2026, with all of that deployment occurring in the first half of the year. No new or follow-on cash investments were made during the third quarter of 2026.
The annualized weighted average yield of debt investments, including PIK interest, was 8.97% at September 30, 2026, compared with 11.3% at December 31, 2025. This change in the annualized weighted average yield primarily reflects the timing of placing certain portfolio investments on non-accrual status.
Third Quarter 2026 portfolio activity included:
| ● | BMP Swanson Holdco LLC: Rand recognized a $2.0 million realized loss on its debt and equity investments, which had previously been written down to zero. Recognition of the realized loss was accompanied by an equivalent reversal of previously recorded unrealized depreciation and therefore did not result in an additional reduction in NAV during the quarter. | |
| ● | BlackJet Direct Marketing LLC: Rand received a $250,000 principal repayment on its debt investment and recognized a $7,500 prepayment fee. | |
| ● | Feature Healthcare LLC, doing business as 4 Seasons Home Care: Rand received a $16,250 principal repayment. | |
| ● | Valuation increases in Bauer Sheet Metal and Fabricating, Inter-National Electronic Alloys and Open Exchange were partly offset by decreases in Autotality, ITA Acquisition and OnCore Golf. |
Liquidity and Capital Resources
Rand ended the quarter with $223,000 in cash and cash equivalents on hand, compared with $4.2 million at December 31, 2025. The Company had $5.0 million outstanding on its line of credit as of September 30, 2026, with estimated remaining availability of approximately $12.4 million. The applicable borrowing rate at quarter-end was 7.4%.
The Company did not repurchase any outstanding common stock during the third quarter of 2026.
Dividends
Rand paid its regular quarterly cash dividend of $0.29 per share on September 9, 2026, to shareholders of record as of August 26, 2026. The dividend totaled approximately $861,000.
Rand Capital Reports Second Quarter Fiscal Year 2026 Results November 4, 2026 Page 3 of 7 |
Webcast and Conference Call
Rand will host a conference call and webcast on Wednesday, November 4, 2026, at 1:30 p.m. Eastern Time, to review its financial results. The review will be accompanied by a slide presentation, which will be available on Rand’s website at www.randcapital.com in the “Investor Relations” section. Rand’s conference call can be accessed by calling (201) 689-8263. Alternatively, the webcast can be monitored on Rand’s website at www.randcapital.com under “Investors” where the replay will also be available.
A telephonic replay will be available from 4:30 p.m. Eastern Time on the day of the call through Wednesday, November 18, 2026. To listen to the archived call, dial (412) 317-6671 and enter replay pin 13762865. A transcript of the call will also be posted once available.
ABOUT RAND CAPITAL
Rand Capital Corporation (Nasdaq: RAND) is an externally managed business development company (BDC). The Company’s investment objective is to maximize total return to its shareholders with current income and capital appreciation by focusing its debt and related equity investments in privately-held, lower middle market companies with committed and experienced managements in a broad variety of industries. Rand primarily invests in businesses that have sustainable, differentiated and market-proven products, revenue of more than $10 million and EBITDA in excess of $1.5 million. The Company’s investment activities are managed by its external investment adviser, Rand Capital Management, LLC. Additional information can be found at the Company’s website where it regularly posts information: randcapital.com.
Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than historical facts, including but not limited to statements regarding the strategy of the Company and its outlook; statements regarding the implementation of the Company’s strategy and the growth of its dividend; and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target” or other similar words or expressions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) evolving legal, regulatory and tax regimes; (2) changes in general economic and/or industry specific conditions; and (3) other risk factors as detailed from time to time in Rand’s reports filed with the Securities and Exchange Commission (“SEC”), including Rand’s annual report on Form 10-K for the year ended December 31, 2025, quarterly reports on Form 10-Q, and other documents filed with the SEC. Consequently, such forward-looking statements should be regarded as Rand’s current plans, estimates and beliefs. Except as required by applicable law, Rand assumes no obligation to update the forward-looking information contained in this release.
Contacts:
| Company: | Investors: |
| Daniel P. Penberthy | Craig P. Mychajluk |
| President and CEO | Alliance Advisors IR |
| 716.853.0802 | 716-843-3832 |
| invest@randcapital.com | cmychajluk@allianceadvisors.com |
Rand Capital Reports Second Quarter Fiscal Year 2026 Results November 4, 2026 Page 4 of 7 |
FINANCIAL TABLES FOLLOW
Rand Capital Corporation and Subsidiaries
Consolidated Statements of Financial Position
September 30, 2026 (Unaudited) | December 31, 2025 | |||||||
| ASSETS | ||||||||
| Investments at fair value: | ||||||||
| Control investments (cost of $6,563,940 and $6,563,940, respectively) | $ | 1,000,000 | $ | 1,400,000 | ||||
| Affiliate investments (cost of $44,436,906 and $40,867,599, respectively) | 38,938,209 | 36,775,685 | ||||||
| Non-Control/Non-Affiliate investments (cost of $14,271,955 and $9,630,860, respectively) | 16,797,846 | 10,304,811 | ||||||
| Total investments, at fair value (cost of $65,272,801 and $57,062,399, respectively) | 56,736,055 | 48,480,496 | ||||||
| Cash and cash equivalents | 222,920 | 4,208,948 | ||||||
| Interest receivable (net of allowance of $25,337 at September 30, 2026 and December 31, 2025) | 241,387 | 168,039 | ||||||
| Prepaid income taxes | 309,395 | 283,581 | ||||||
| Other assets | 132,337 | 54,248 | ||||||
| Total assets | $ | 57,642,094 | $ | 53,195,312 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (NET ASSETS) | ||||||||
| Liabilities: | ||||||||
| Due to investment adviser | $ | 555,565 | $ | 519,287 | ||||
| Accounts payable and accrued expenses | 116,404 | 101,975 | ||||||
| Line of credit | 5,000,000 | — | ||||||
| Deferred revenue | 427,086 | 390,597 | ||||||
| Total liabilities | 6,099,055 | 1,011,859 | ||||||
| Stockholders’ equity (net assets): | ||||||||
| Common stock, $0.10 par; shares authorized 100,000,000; shares issued: 3,037,709; shares outstanding: 2,969,814 at September 30, 2026 and December 31, 2025 | 303,771 | 303,771 | ||||||
| Capital in excess of par value | 64,063,157 | 64,063,157 | ||||||
| Treasury stock, at cost: 67,895 shares at September 30, 2026 and December 31, 2025 | (1,566,605 | ) | (1,566,605 | ) | ||||
| Total distributable earnings | (11,257,284 | ) | (10,616,870 | ) | ||||
| Total stockholders’ equity (net assets) (per share – September 30, 2026: $17.36; December 31, 2025: $17.57) | 51,543,039 | 52,183,453 | ||||||
| Total liabilities and stockholders’ equity (net assets) | $ | 57,642,094 | $ | 53,195,312 | ||||
Rand Capital Reports Second Quarter Fiscal Year 2026 Results November 4, 2026 Page 5 of 7 |
Rand Capital Corporation and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Three months ended September 30, 2026 | Three months ended September 30, 2025 | Nine months ended September 30, 2026 | Nine months ended September 30, 2025 | |||||||||||||
| Investment income: | ||||||||||||||||
| Interest from portfolio companies: | ||||||||||||||||
| Control investments | $ | — | $ | 13,417 | $ | 16,517 | $ | 26,396 | ||||||||
| Affiliate investments | 836,258 | 1,177,248 | 2,618,122 | 3,724,896 | ||||||||||||
| Non-Control/Non-Affiliate investments | 388,065 | 234,469 | 946,170 | 865,570 | ||||||||||||
| Total interest from portfolio companies | 1,224,323 | 1,425,134 | 3,580,809 | 4,616,862 | ||||||||||||
| Interest from other investments: | ||||||||||||||||
| Non-Control/Non-Affiliate investments | 45 | 73,488 | 13,873 | 120,427 | ||||||||||||
| Total interest from other investments | 45 | 73,488 | 13,873 | 120,427 | ||||||||||||
| Dividend and other investment income: | ||||||||||||||||
| Affiliate investments | 28,241 | — | 180,754 | 13,125 | ||||||||||||
| Total dividend and other investment income | 28,241 | — | 180,754 | 13,125 | ||||||||||||
| Fee income: | ||||||||||||||||
| Control investments | — | 4,515 | 9,032 | 13,547 | ||||||||||||
| Affiliate investments | 55,784 | 72,714 | 144,656 | 247,360 | ||||||||||||
| Non-Control/Non-Affiliate investments | 3,375 | 3,772 | 16,912 | 178,503 | ||||||||||||
| Total fee income | 59,159 | 81,001 | 170,600 | 439,410 | ||||||||||||
| Total investment income | 1,311,768 | 1,579,623 | 3,946,036 | 5,189,824 | ||||||||||||
| Expenses: | ||||||||||||||||
| Base management fee | 214,969 | 184,382 | 609,817 | 654,239 | ||||||||||||
| Income based incentive fees | (2,300 | ) | 66,505 | (2,300 | ) | 186,178 | ||||||||||
| Capital gains incentive fees | — | — | — | (1,565,000 | ) | |||||||||||
| Interest expense | 113,164 | 25,416 | 215,250 | 87,319 | ||||||||||||
| Professional fees | 240,538 | 133,415 | 588,354 | 484,277 | ||||||||||||
| Stockholders and office operating | 61,488 | 59,398 | 227,316 | 253,510 | ||||||||||||
| Directors’ fees | 76,375 | 66,550 | 226,125 | 196,950 | ||||||||||||
| Administrative fees | 52,500 | 50,250 | 155,700 | 149,250 | ||||||||||||
| Insurance | 10,612 | 8,250 | 31,198 | 31,386 | ||||||||||||
| Corporate development | 2,050 | 2,037 | 7,243 | 6,538 | ||||||||||||
| Bad debt expense | — | — | — | 38,462 | ||||||||||||
| Total expenses | 769,396 | 596,203 | 2,058,703 | 523,109 | ||||||||||||
| Net investment income before income taxes: | 542,372 | 983,420 | 1,887,333 | 4,666,715 | ||||||||||||
| Income tax benefit | (126,569 | ) | (9,159 | ) | (36,296 | ) | (22,213 | ) | ||||||||
| Net investment income | 668,941 | 992,579 | 1,923,629 | 4,688,928 | ||||||||||||
| Net realized (loss) gain on sales and dispositions of investments: | ||||||||||||||||
| Affiliate investments | (2,020,884 | ) | (2,850,015 | ) | 13,635 | (1,924,658 | ) | |||||||||
| Non-Control/Non-Affiliate investments | — | (77,314 | ) | — | (77,339 | ) | ||||||||||
| Net realized (loss) gain on sales and dispositions of investments | (2,020,884 | ) | (2,927,329 | ) | 13,635 | (2,001,997 | ) | |||||||||
| Net change in unrealized appreciation/depreciation on investments: | ||||||||||||||||
| Control investments | (400,000 | ) | — | (400,000 | ) | (875,000 | ) | |||||||||
| Affiliate investments | 2,520,884 | (481,647 | ) | (1,406,783 | ) | (11,027,301 | ) | |||||||||
| Non-Control/Non-Affiliate investments | 301,940 | 189,944 | 1,851,940 | — | ||||||||||||
| Change in unrealized appreciation/depreciation before income taxes | 2,422,824 | (291,703 | ) | 45,157 | (11,902,301 | ) | ||||||||||
| Deferred income tax expense (benefit) | 126,483 | 4,741 | 39,214 | (89,469 | ) | |||||||||||
| Net change in unrealized appreciation/depreciation on investments | 2,296,341 | (296,444 | ) | 5,943 | (11,812,832 | ) | ||||||||||
| Net realized and unrealized gain (loss) on investments | 275,457 | (3,223,773 | ) | 19,578 | (13,814,829 | ) | ||||||||||
| Net increase (decrease) in net assets from operations | $ | 944,398 | $ | (2,231,194 | ) | $ | 1,943,207 | $ | (9,125,901 | ) | ||||||
| Weighted average shares outstanding | 2,969,814 | 2,969,814 | 2,969,814 | 2,936,938 | ||||||||||||
| Basic and diluted net increase (decrease) in net assets from operations per share | $ | 0.32 | $ | (0.75 | ) | $ | 0.65 | $ | (3.11 | ) | ||||||
Rand Capital Reports Second Quarter Fiscal Year 2026 Results November 4, 2026 Page 6 of 7 |
Rand Capital Corporation and Subsidiaries
Consolidated Statements of Changes in Net Assets
(Unaudited)
Three months ended September 30, 2026 | Three months ended September 30, 2025 | Nine months ended September 30, 2026 | Nine months ended September 30, 2025 | |||||||||||||
| Net assets at beginning of period | $ | 51,459,887 | $ | 56,713,954 | $ | 52,183,453 | $ | 65,332,520 | ||||||||
| Net investment income | 668,941 | 992,579 | 1,923,629 | 4,688,928 | ||||||||||||
| Net realized (loss) gain on sales and dispositions of investments | (2,020,884 | ) | (2,927,329 | ) | 13,635 | (2,001,997 | ) | |||||||||
| Net change in unrealized appreciation/depreciation on investments | 2,296,341 | (296,444 | ) | 5,943 | (11,812,832 | ) | ||||||||||
| Net increase (decrease) in net assets from operations | 944,398 | (2,231,194 | ) | 1,943,207 | (9,125,901 | ) | ||||||||||
| Declaration of dividend | (861,246 | ) | (861,246 | ) | (2,583,621 | ) | (2,585,105 | ) | ||||||||
| Net assets at end of period | $ | 51,543,039 | $ | 53,621,514 | $ | 51,543,039 | $ | 53,621,514 | ||||||||
Rand Capital Reports Second Quarter Fiscal Year 2026 Results November 4, 2026 Page 7 of 7 |
Rand Capital Corporation and Subsidiaries
Reconciliation of GAAP Total Expense to Non-GAAP Adjusted Expenses
(Unaudited)
In addition to reporting total expenses, which is a U.S. generally accepted accounting principle (“GAAP”) financial measure, Rand presents adjusted expenses, which is a non-GAAP financial measure. Adjusted expenses is defined as GAAP total expenses removing the effect of any expenses/(credits) for capital gains incentive fees accrual. GAAP total expenses is the most directly comparable GAAP financial measure. Rand believes that adjusted expenses provides useful information to investors regarding financial performance because it is a method the Company uses to measure its financial and business trends related to its results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.
Three months ended Sept 30, 2026 | Three months ended Sept 30, 2025 | Nine months ended Sept 30, 2026 | Nine months ended Sept 30, 2025 | |||||||||||||
| Total expenses | $ | 769,396 | $ | 596,203 | $ | 2,058,703 | $ | 523,109 | ||||||||
| Exclude (credits) for capital gains incentive fees | - | - | - | (1,565,000 | ) | |||||||||||
| Adjusted total expenses | $ | 769,396 | $ | 596,203 | $ | 2,058,703 | $ | 2,088,109 | ||||||||
Reconciliation of GAAP Net Investment Income per Share to
Adjusted Net Investment Income per Share
(Unaudited)
In addition to reporting Net Investment Income per Share, which is a GAAP financial measure, the Company presents Adjusted Net Investment Income per Share, which is a non-GAAP financial measure. Adjusted Net Investment Income per Share is defined as GAAP Net Investment Income per Share removing the effect of any expenses/(credits) for capital gains incentive fees. GAAP Net Investment Income per Share is the most directly comparable GAAP financial measure. Rand believes that Adjusted Net Investment Income per Share provides useful information to investors regarding financial performance because it is a method the Company uses to measure its financial and business trends related to its results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.
The per share amounts for the third quarters of 2026 and 2025 were computed using 2,969,814 weighted average shares outstanding. The per share amounts for the nine months ended September 30, 2026 were computed using 2,969,814 weighted average shares outstanding, compared with 2,936,938 for the nine months ended September 30, 2025.
Three months ended Sept 30, 2026 | Three months ended Sept 30, 2025 | Nine months ended Sept 30, 2026 | Nine months ended Sept 30, 2025 | |||||||||||||
| Net investment income per share | $ | 0.23 | $ | 0.33 | $ | 0.65 | $ | 1.60 | ||||||||
| Exclude (credits) for capital gains incentive fees per share | - | - | - | (0.54 | ) | |||||||||||
| Adjusted net investment income per share | $ | 0.23 | $ | 0.33 | $ | 0.65 | $ | 1.06 | ||||||||
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