Runway Growth Finance Corp. Overview of Proposed Acquisition of SWK Holdings NASDAQ Listed I RWAY I RWAYL I RWAYZ October 2025 © Runway Growth Capital LLC 2025 Forward-looking Statements This presentation dated October 2025 is being provided by Runway Growth Finance Corp. ("Runway Growth" or the "Company") for discussion purposes only and is neither an offer to sell, nor a solicitation of an offer to purchase, an interest in the Company. It is solely intended to describe the general business, investment obj ...

Acquisition of high-quality portfolio centered on healthcare and life sciences investments Accelerates strategy to diversify and optimize portfolio while adding significant scale Enhances financial profile and is expected to be accretive to net investment income (“NII”) MENLO PARK, Calif., Oct. 09, 2025 (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 ...

Completed 11 Investments in New and Existing Portfolio Companies Representing $128.3 Million in Funded InvestmentsMENLO PARK, Calif., Oct. 09, 2025 (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 provided an operational and portfolio update for the quarter ended September 30, 2025. “We executed on our strategic priorities in t ...

Core Insights - Runway Growth Finance (NASDAQ: RWAY) has experienced a 7% decline year-to-date, which has increased its discount to its net asset value (NAV) per share while still offering a double-digit base cash dividend along with supplemental distributions [1] Group 1: Company Performance - The company is externally managed and is currently facing a significant discount to its NAV per share [1] - Despite the decline in share price, the company continues to provide attractive cash dividends, indicating a commitment to returning value to shareholders [1] Group 2: Market Strategy - Pacifica Yield is focused on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and firms in the green energy sector [1]

Group 1 - The article emphasizes the importance of creating a portfolio that generates income without the need for selling assets, aiming to alleviate the stress of retirement investing [1] - It highlights the role of mortgage-backed securities in the US housing market, which support homeownership for millions of families [2] - The service offers features such as model portfolios with buy/sell alerts, preferred and baby bond portfolios for conservative investors, and regular market updates, focusing on community and education [2] Group 2 - The article mentions that the contributors and analysts involved have beneficial long positions in specific securities, indicating a vested interest in the performance of those investments [3] - It notes that recommendations are closely monitored, with buy and sell alerts provided exclusively to members, suggesting a proactive investment strategy [4] - The article clarifies that past performance does not guarantee future results, and no specific investment advice is being given, highlighting the independent nature of the analysis [5]

Financial Data and Key Metrics Changes - Total investment income for Q2 2025 was $35.1 million, a decrease from $35.4 million in Q2 2024 [19] - Net investment income was $13.9 million, down from $15.6 million in the same period last year [19] - The debt portfolio generated a dollar-weighted average annualized yield of 15.4%, holding flat quarter over quarter and increasing from 15.1% year-over-year [19] - Total operating expenses increased to $21.2 million from $19.8 million in Q2 2024 [20] - Net realized loss on investments was $1.5 million compared to a net realized gain of $6.1 million in Q2 2024 [20] - Net assets decreased to $498.9 million from $503.3 million at the end of Q2 2024 [21] - NAV per share increased by 1.3% to $13.66 from $13.48 at the end of Q2 2024 [21] Business Line Data and Key Metrics Changes - The company executed three investments in new and existing portfolio companies totaling $37.8 million in funded loans during Q2 2025 [8][11] - Significant investments included a $40 million commitment in Auto Books and a $20 million commitment in Swing Education [9][10] - The weighted average portfolio risk rating remained stable at 2.33, indicating consistent credit quality [13] Market Data and Key Metrics Changes - The venture debt market is experiencing a fundamental shift, with companies focusing on demonstrating growth to attract investment [15] - AI deals represented 64% of 2025 deal value and count, indicating a concentration of fundraising momentum in this sector [17] - The company noted a cautious outlook for M&A activity in its target sectors for the remainder of the year [15] Company Strategy and Development Direction - The company aims to optimize its portfolio through diversification of investment size and expanding financing solutions [7] - It is leveraging its integration within the BC Partners platform to enhance origination channels and financing options [6] - The focus remains on high-quality late and growth-stage companies within technology, healthcare, and select consumer sectors [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate economic uncertainties and maintain shareholder value [6] - The outlook for 2026 appears brighter than for 2025, with expectations of increased pipeline activity [67] - Management emphasized the importance of portfolio optimization and diversification in the current market environment [68] Other Important Information - The company has a stock repurchase program approved for $25 million, with 815,408 shares repurchased during Q2 2025 [24] - Total available liquidity was reported at $297 million, including unrestricted cash and cash equivalents [22] - The company has $164.9 million in unfunded commitments, with $135.5 million allocated for debt financing [23] Q&A Session Summary Question: Non-accruals and their impact on total investment income - Management explained that PIK (payment-in-kind) is used for both offensive and defensive reasons, helping to manage cash flow issues and win transactions [29][30] Question: Share repurchase program strategy - The company uses a structured plan based on stock price relative to NAV, being more aggressive when the discount to NAV is higher [31] Question: Refinancing costs and their impact - Approximately $0.04 per share was attributed to increased interest expense, with a portion being one-time costs related to refinancing [35] Question: Unfunded commitments and drawdown expectations - Historically, about 50% of unused commitments expire without use, but performance at or above plan can reduce the likelihood of drawdowns [36] Question: Update on CADMA JV - The CADMA JV is ramping up, with expectations for additional transactions by year-end [56] Question: Market reaction to new products - All new products rolled out have been well received, with structured second lien and revolver products being highlighted [58] Question: M&A activity in the venture market - Management noted that companies are focusing on organic growth rather than M&A, which is seen as a positive trend [62]

Financial Performance - Core revenues increased by 20% from €1376 million in 1H2024 to €1403 million in 1H2025 [11] - Adjusted EBITDA increased by 30% from €935 million in 1H2024 to €963 million in 1H2025 [11, 23] - Recurring FCFE (Free Cash Flow to Equity) generation was approximately €63 million [9] - Net Debt to Adjusted EBITDA ratio increased from 069x in 2024FY to 094x in 1H2025 [11] Revenue Breakdown - Media Distribution revenues increased by 18% [14] - Digital Infrastructure revenues increased by 36%, driven by tower hosting and initial contributions from data centers and connectivity [14, 17] Operational Costs - Opex (excluding non-recurring items) increased by 37% [19] - Personnel costs increased by 99%, influenced by the renewal of the collective labor agreement and increased workforce related to diversification initiatives [19, 22] - Other Operating costs decreased by 33%, but increased by approximately 6% YoY when excluding lower level of capitalization compared to 1H24 [19, 22] Capital Expenditure (Capex) - Development capex for diversification initiatives is expected to be below 2024 levels [9, 26] - Maintenance capex is above the recurring normalized level due to extraordinary non-recurring activities [9, 26] Strategic Initiatives - Framework agreements established with 3 major live streaming content providers in Italy for CDN (Content Delivery Network) [9] - Extended Edge DC offerings to include IaaS (Infrastructure as a Service) services, targeting medium enterprises with private cloud applications [9]

[Financial Performance and Corporate Updates](index=1&type=section&id=Financial%20Performance%20and%20Corporate%20Updates) Runway Growth's Q2 2025 performance highlights include strong investment income, portfolio growth, increased NAV, and declared distributions [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Runway Growth reported strong Q2 2025 results with **$35.1 million** in total investment income, a **15.40%** portfolio yield, and declared a **$0.36 per share** Q3 distribution Q2 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Total Investment Income | $35.1 million | | Net Investment Income | $13.9 million | | Net Investment Income per Share | $0.38 | | Net Asset Value (NAV) | $498.9 million | | NAV per Share | $13.66 | | Dollar-weighted Annualized Yield | 15.40% | - Investment Activity: Completed **$37.8 million** in funded investments across two new and one existing portfolio company[7](index=7&type=chunk) - Capital Returns: Received **$25.0 million** in principal prepayments and repurchased **815,408 shares** for **$8.1 million**[7](index=7&type=chunk) - Q3 2025 Distributions: Declared a total distribution of **$0.36 per share**, consisting of a **$0.33** regular dividend and a **$0.03** supplemental dividend[7](index=7&type=chunk) [Second Quarter 2025 Operating Results](index=1&type=section&id=Second%20Quarter%202025%20Operating%20Results) Q2 2025 operating results show total investment income of **$35.1 million**, a **15.4%** annualized yield, and a significant positive shift in unrealized gains Q2 Operating Results Comparison (YoY) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Investment Income | $35.1 million | $34.2 million | | Net Investment Income | $13.9 million | $14.6 million | | Net Investment Income per Share | $0.38 | $0.37 | - The dollar-weighted annualized yield on average debt investments for the quarter was **15.4%**[5](index=5&type=chunk) - Operating expenses increased to **$21.2 million** from **$19.6 million** in Q2 2024[6](index=6&type=chunk) - The company recorded a net change in unrealized gain on investments of **$4.4 million**, a significant improvement from a net change in unrealized loss of **$6.3 million** in Q2 2024[8](index=8&type=chunk) [Portfolio and Investment Activity](index=2&type=section&id=Portfolio%20and%20Investment%20Activity) The investment portfolio reached **$1.0 billion** fair value across **54** companies, with **97.8%** senior secured loans, driven by **$38.7 million** in new investments - The investment portfolio had an aggregate fair value of **$1.0 billion** in **54** companies, with loans comprising **$962.5 million**, of which **97.8%** are senior secured[9](index=9&type=chunk) Portfolio Value Roll-Forward (in thousands) | Description | Three Months Ended June 30, 2025 (in thousands) | | :--- | :--- | | Beginning investment portfolio | $1,004,233 | | Purchases of investments | $38,719 | | Sales and prepayments | ($25,000) | | Net change in unrealized gain (loss) | $5,720 | | **Ending investment portfolio** | **$1,024,951** | [Net Asset Value (NAV)](index=2&type=section&id=Net%20Asset%20Value) Net Asset Value per share increased to **$13.66**, with total net assets at **$498.9 million**, driven by a **$0.45 per share** net increase from operations NAV Change (QoQ) | Metric | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | NAV per Share | $13.66 | $13.48 | | Total Net Assets | $498.9 million | N/A | - The net increase in net assets from operations was **$0.45 per share**, a substantial increase from **$0.05 per share** in the prior quarter[11](index=11&type=chunk) [Liquidity and Capital Resources](index=2&type=section&id=Liquidity%20and%20Capital%20Resources) As of quarter-end, Runway Growth had approximately **$297.0 million** in available liquidity, primarily from its credit facility, with its core leverage ratio increasing to approximately **105%** from **99%** in the previous quarter - Total available liquidity was approximately **$297.0 million**, comprising **$6.0 million** in unrestricted cash and **$291.0 million** in available borrowing capacity[12](index=12&type=chunk) - The core leverage ratio rose to **105%** at the end of Q2 2025, up from **99%** at the end of Q1 2025[12](index=12&type=chunk) [Distributions](index=2&type=section&id=Distributions) On August 6, 2025, the Board of Directors declared total distributions of **$0.36 per share** for the third quarter of 2025, consisting of a **$0.33** regular and **$0.03** supplemental dividend Q3 2025 Distribution Details | Component | Amount per Share | | :--- | :--- | | Regular Distribution | $0.33 | | Supplemental Distribution | $0.03 | | **Total Distribution** | **$0.36** | | **Record Date** | August 18, 2025 | | **Payment Date** | September 2, 2025 | [Recent Developments](index=2&type=section&id=Recent%20Developments) Subsequent to the quarter's end, from July 1 to August 7, 2025, Runway Growth completed **$20.0 million** in new debt commitments and received **$22.4 million** in debt prepayments - From July 1, 2025, to August 7, 2025, the Company completed **$20.0 million** of additional debt commitments, funding **$16.8 million**; funded an additional **$0.3 million** in existing commitments; and received **$22.4 million** in debt prepayments and **$0.2 million** from equity sales[15](index=15&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents Runway Growth's consolidated balance sheets and statements of operations, detailing assets, liabilities, and financial performance [Consolidated Statements of Assets and Liabilities](index=4&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) As of June 30, 2025, total assets were **$1.04 billion**, with total investments at **$1.02 billion**, leading to total net assets of **$498.9 million** and a NAV per share of **$13.66** Key Balance Sheet Data (in thousands) | Account | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total investments at fair value | $1,024,951 | $1,076,840 | | Total assets | $1,041,257 | $1,091,355 | | Total debt, less unamortized costs | $515,948 | $552,332 | | Total liabilities | $542,383 | $576,486 | | Total net assets | $498,874 | $514,869 | | Net asset value per share | $13.66 | $13.79 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, total investment income was **$35.1 million**, yielding **$13.9 million** in net investment income, and a **$16.8 million** net increase in net assets from operations Statement of Operations Summary (Three Months Ended June 30, in thousands) | Account | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Total investment income | $35,147 | $34,193 | | Total operating expenses | $21,199 | $19,602 | | **Net investment income** | **$13,948** | **$14,591** | | Net realized and unrealized gain (loss) | $2,849 | ($6,300) | | **Net increase in net assets** | **$16,797** | **$8,291** | | Net investment income per share | $0.38 | $0.37 | | Net increase in net assets per share | $0.45 | $0.21 | [Additional Information](index=3&type=section&id=Additional%20Information) This section provides details on the upcoming conference call, an overview of Runway Growth Finance Corp., and important disclosures regarding forward-looking statements [Conference Call Information](index=3&type=section&id=Conference%20Call) Runway Growth will host a conference call and webcast to discuss its second quarter 2025 financial results on **Thursday, August 7, 2025**, at **5:00 p.m. ET** - A conference call to discuss Q2 2025 results is scheduled for **Thursday, August 7, 2025**, at **5:00 p.m. ET** (2:00 p.m. PT)[16](index=16&type=chunk) [About Runway Growth Finance Corp.](index=3&type=section&id=About%20Runway%20Growth%20Finance%20Corp.) Runway Growth Finance Corp. is a **specialty finance company** and **regulated BDC** providing flexible capital solutions to late- and growth-stage companies - Runway Growth is a **specialty finance company** and **regulated BDC** focused on providing capital to late- and growth-stage companies as an alternative to equity financing[17](index=17&type=chunk) [Forward-Looking Statements and Disclosures](index=3&type=section&id=Forward-Looking%20Statements%20and%20Disclosures) This report contains **forward-looking statements** subject to **risks and uncertainties**, and investors are advised to review the detailed risk factors in the company's **SEC filings** - The press release includes **forward-looking statements** subject to **risks and uncertainties**; actual results may differ materially[18](index=18&type=chunk)[19](index=19&type=chunk) - Readers are directed to the company's **SEC filings** for a detailed discussion of risk factors[18](index=18&type=chunk)[19](index=19&type=chunk)

Core Viewpoint - Runway Growth Finance Corp. reported its financial results for the second quarter of 2025, showcasing a solid performance with total investment income of $35.1 million and net investment income of $13.9 million, indicating a strategic focus on optimizing its investment portfolio and enhancing shareholder returns [2][5][9]. Financial Performance - Total investment income for Q2 2025 was $35.1 million, up from $34.2 million in Q2 2024 [5]. - Net investment income for Q2 2025 was $13.9 million, or $0.38 per share, compared to $14.6 million, or $0.37 per share, in Q2 2024 [5]. - Operating expenses increased to $21.2 million in Q2 2025 from $19.6 million in Q2 2024 [7]. - The dollar-weighted annualized yield on average debt investments was 15.4% for Q2 2025 [6]. Investment Portfolio - As of June 30, 2025, the investment portfolio had a fair value of $1.0 billion, consisting of $962.5 million in loans (97.8% senior secured) and $62.5 million in warrants and equity-related investments [10]. - The company completed two investments in new portfolio companies and one in an existing company, totaling $37.8 million in funded investments during Q2 2025 [11]. Net Asset Value - The net asset value (NAV) per share as of June 30, 2025, was $13.66, reflecting a 1% increase from $13.48 as of March 31, 2025 [12]. - Total net assets at the end of Q2 2025 were $498.9 million [12]. Liquidity and Capital Resources - The company had approximately $297.0 million in available liquidity as of June 30, 2025, including $6.0 million in cash and $291.0 million in borrowing capacity [13]. - The core leverage ratio was approximately 105%, up from 99% at the end of Q1 2025 [13]. Distributions - The board declared total distributions of $0.36 per share for Q3 2025, consisting of a regular dividend of $0.33 and a supplemental dividend of $0.03 [14].

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including assets, operations, cash flows, and investment schedules, for Q2 2025 [Consolidated Statements of Assets and Liabilities](index=4&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) Total assets decreased to **$1.04 billion** by June 30, 2025, reducing net assets to **$498.9 million** and NAV per share to **$13.66** Consolidated Statements of Assets and Liabilities (in thousands) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Total investments at fair value | $1,024,951 | $1,076,840 | | Total assets | $1,041,257 | $1,091,355 | | Total debt, less unamortized deferred financing costs | $515,948 | $552,332 | | Total liabilities | $542,383 | $576,486 | | Total net assets | $498,874 | $514,869 | | Net asset value per share | $13.66 | $13.79 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 total investment income was **$35.1 million**, with net investment income at **$13.9 million**, and a net increase in net assets of **$16.8 million** Financial Performance Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Investment Income | $35,147 | $34,193 | $70,545 | $74,202 | | Net Investment Income | $13,948 | $14,591 | $29,547 | $33,255 | | Net Realized and Unrealized Gain (Loss) | $2,849 | $(6,300) | $(10,884) | $(12,917) | | **Net Increase (Decrease) in Net Assets** | **$16,797** | **$8,291** | **$18,663** | **$20,338** | | Net Investment Income per Share | $0.38 | $0.37 | $0.79 | $0.84 | | Net Increase (Decrease) in Net Assets per Share | $0.45 | $0.21 | $0.50 | $0.51 | [Consolidated Statements of Changes in Net Assets](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) Net assets decreased by **$16.0 million** for the six months ended June 30, 2025, primarily due to distributions and stock repurchases Reconciliation of Net Assets for the Six Months Ended June 30, 2025 (in thousands) | Description | Amount | | :--- | :--- | | Balances at December 31, 2024 | $514,869 | | Net increase in net assets from operations | $18,663 | | Repurchase of common stock | $(8,141) | | Dividends paid to stockholders | $(26,517) | | **Balances at June 30, 2025** | **$498,874** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to **$73.3 million** for H1 2025, with **$6.0 million** cash at period-end Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $73,265 | $29,953 | | Net cash (used in) provided by financing activities | $(73,058) | $(24,113) | | Net increase (decrease) in cash and cash equivalents | $209 | $5,840 | | **Cash and cash equivalents at end of period** | **$5,960** | **$8,810** | [Consolidated Schedule of Investments](index=8&type=section&id=Consolidated%20Schedule%20of%20Investments) The investment portfolio totaled **$1.025 billion** as of June 30, 2025, primarily in debt investments (**93.9%**), with top concentrations in Application Software Portfolio Composition by Investment Type (June 30, 2025) | Investment Type | Cost ($k) | Fair Value ($k) | % of Total Portfolio | | :--- | :--- | :--- | :--- | | Senior Secured Loans | 955,354 | 941,705 | 91.88% | | Second Lien Loans | 20,902 | 20,778 | 2.03% | | Preferred Stock/Units | 51,920 | 39,549 | 3.86% | | Warrants | 23,804 | 14,500 | 1.41% | | Other | 14,084 | 8,419 | 0.82% | | **Total** | **1,066,064** | **1,024,951** | **100.00%** | Top 5 Industry Concentrations by Fair Value (June 30, 2025) | Industry | Investments at Fair Value ($k) | Percentage of Net Assets | | :--- | :--- | :--- | | Application Software | $225,083 | 45.12% | | Commercial & Professional Services | $177,181 | 35.51% | | Health Care Equipment & Services | $145,164 | 29.10% | | Systems Software | $133,628 | 26.79% | | Technology Hardware & Equipment | $86,645 | 17.37% | [Notes to Consolidated Financial Statements](index=24&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section details accounting policies, fair value measurement, related party agreements, debt facilities, and tax status as a RIC [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=67&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, portfolio activity, and liquidity, highlighting stable credit quality and strong liquidity with **$297.0 million** available - For the six months ended June 30, 2025, the company funded **$54.0 million** in new and existing portfolio companies and received **$107.9 million** in sales and repayments[229](index=229&type=chunk) - The dollar-weighted annualized yield on the debt investment portfolio was **15.4%** for Q2 2025, compared to **15.1%** for Q2 2024[227](index=227&type=chunk) - As of June 30, 2025, the company had **$297.0 million** in available liquidity, including cash and availability under its Credit Facility, and an asset coverage ratio of **195%**[263](index=263&type=chunk)[264](index=264&type=chunk) [Portfolio Composition and Investment Activity](index=70&type=section&id=Portfolio%20Composition%20and%20Investment%20Activity) The **$1.025 billion** investment portfolio, primarily senior secured loans, saw **$54.0 million** funded and **$107.9 million** from repayments in H1 2025 Investment Portfolio Reconciliation (in thousands) | | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Beginning investment portfolio | $1,076,840 | $1,067,009 | | Purchases of investments | $54,039 | $100,025 | | Sales and repayments of investments | $(107,873) | $(61,507) | | Net realized/unrealized & other | $(9,455) | $(12,036) | | **Ending investment portfolio** | **$1,024,951** | **$1,063,324** | [Asset Quality](index=72&type=section&id=Asset%20Quality) Debt portfolio credit quality remained strong, with **93.9%** in top categories and only **one investment** on non-accrual status as of June 30, 2025 Debt Investment Rating Distribution by Fair Value | Investment Rating | June 30, 2025 (% of Portfolio) | December 31, 2024 (% of Portfolio) | | :--- | :--- | :--- | | 1 (Strong Performance) | 2.18% | 2.53% | | 2 (Acceptable Performance) | 66.05% | 62.39% | | 3 (Below Plan, Monitored) | 21.83% | 21.50% | | 4 (Materially Below Plan) | 3.62% | 3.17% | | 5 (Going Concern Issues) | 0.23% | 0.52% | - As of June 30, 2025, only **one investment**, Mingle Healthcare Solutions, Inc., was on non-accrual status, with a fair value of **$2.4 million**. This is an improvement from **two investments** with a fair value of **$5.6 million** at the end of 2024[233](index=233&type=chunk) [Results of Operations](index=73&type=section&id=Results%20of%20Operations) Q2 2025 net investment income was **$13.9 million**, impacted by higher expenses, with a net unrealized gain of **$4.4 million** Comparison of Results of Operations (in thousands) | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total investment income | $35,147 | $34,193 | | Total operating expenses | $21,199 | $19,602 | | **Net investment income** | **$13,948** | **$14,591** | | Net realized gain (loss) | $(1,512) | $0 | | Net change in unrealized gain (loss) | $4,361 | $(6,300) | | **Net increase in net assets** | **$16,797** | **$8,291** | [Financial Condition, Liquidity, Capital Resources and Obligations](index=78&type=section&id=Financial%20Condition%2C%20Liquidity%2C%20Capital%20Resources%20and%20Obligations) The company maintains robust liquidity with **$297.0 million** available and a **195%** asset coverage ratio, continuing its capital return strategy - As of June 30, 2025, the company had **$297.0 million** in available liquidity, including **$6.0 million** in cash and **$291.0 million** available under its Credit Facility[263](index=263&type=chunk) - The asset coverage ratio was **195%** as of June 30, 2025, exceeding the regulatory requirement of **150%**[264](index=264&type=chunk) - On May 7, 2025, the Board approved a new **$25.0 million** share repurchase program. Through June 30, 2025, the company repurchased **815,408 shares** for **$8.1 million** under this program[275](index=275&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=82&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces valuation and interest rate risks, with **96.7%** of performing debt at variable rates, sensitive to rate changes - The company's investments are primarily **illiquid Level 3 investments** and valued in good faith by the Board of Directors, creating **valuation risk** as these values may differ significantly from those in a ready market[284](index=284&type=chunk) - As of June 30, 2025, **96.7%** of the company's performing debt portfolio bore interest at **variable rates**, primarily tied to SOFR and Prime rates[286](index=286&type=chunk) Annualized Interest Rate Sensitivity Analysis | Scenario | Maximum Impact on Investment Income | | :--- | :--- | | 200 basis point increase | +$17.3 million | | 200 basis point decrease | -$10.9 million | [Controls and Procedures](index=84&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were **effective**, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures are **effective** in timely alerting them to material information required for SEC reporting[293](index=293&type=chunk) - **No changes occurred** during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[294](index=294&type=chunk) [PART II. OTHER INFORMATION](index=85&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=85&type=section&id=Item%201.%20Legal%20Proceedings) The company and its adviser are **not currently subject to any material legal proceedings** - The Company and its adviser, RGC, are **not currently subject to any material legal proceedings**[297](index=297&type=chunk) [Risk Factors](index=85&type=section&id=Item%201A.%20Risk%20Factors) **No material changes** to previously disclosed risk factors have occurred - **No material changes** to the risk factors discussed in the Annual Report on Form 10-K for the year ended December 31, 2024, have occurred during the period ended June 30, 2025[299](index=299&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=85&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **815,408 shares** under its Fourth Repurchase Program, with **$16.9 million** remaining for future repurchases - During the three and six months ended June 30, 2025, the company repurchased **815,408 shares** under its Fourth Repurchase Program[302](index=302&type=chunk) - As of June 30, 2025, approximately **$16.9 million** remained available for share repurchases under the Fourth Repurchase Program[302](index=302&type=chunk) [Defaults Upon Senior Securities](index=85&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) **No defaults** upon senior securities were reported during the period - **None**[303](index=303&type=chunk) [Other Information](index=85&type=section&id=Item%205.%20Other%20Information) No other material information was required, and **no director or officer** entered into Rule 10b5-1 trading plans - For the period covered by the report, **no director or officer** of the Company has entered into any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements[306](index=306&type=chunk) [Exhibits](index=87&type=section&id=Item%206.%20Exhibits) Exhibits include CEO and CFO certifications and Inline XBRL documents - Exhibits filed include CEO and CFO certifications pursuant to Rule 13a-14 and Section 906 of the Sarbanes-Oxley Act, along with Inline XBRL documents[307](index=307&type=chunk) [Signatures](index=88&type=section&id=SIGNATURES) The report was **duly signed and authorized** on August 7, 2025, by the CEO and CFO - The report was **duly signed and authorized** on August 7, 2025, by R. David Spreng, President and Chief Executive Officer, and Thomas B. Raterman, Chief Financial Officer[309](index=309&type=chunk)[311](index=311&type=chunk)