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)

Core Insights - Runway Growth Capital LLC has committed $20 million to Swing Education to support its nationwide expansion and address the demand for qualified substitute teachers [1][3] - Swing Education, founded in 2015, operates as an online marketplace connecting schools with substitute teachers, addressing the acute shortage in K–12 education [2][5] - The investment from Runway is structured as a first lien term loan and a revolving credit line, providing Swing Education with flexible financing to meet seasonal capital needs [1][3] Company Overview - Swing Education partners with school districts across multiple states including California, Arizona, Texas, Illinois, New York, New Jersey, and Washington, D.C. [2][5] - The company aims to streamline the hiring and placement of substitute teachers through technology and support services, improving the overall experience for schools and educators [2][5] - Swing Education has filled millions of absence days and is dedicated to ensuring every classroom has a teacher, thereby enhancing student learning opportunities [5] Investment Context - Runway Growth Capital focuses on providing growth loans to companies seeking alternatives to equity financing, with a target loan size ranging from $20 million to $150 million [4] - The investment reflects Runway's commitment to supporting growth-stage companies with non-dilutive capital that aligns with their long-term strategic goals [3]

Core Points - Runway Growth Finance Corp. declared total distributions for Q3 2025 of $0.36 per share, consisting of a regular cash dividend of $0.33 and a supplemental dividend of $0.03 [1] - The key dates for the Q3 2025 dividend include the declaration date on August 6, 2025, record date on August 18, 2025, and payment date on September 2, 2025 [2] - Runway Growth aims to distribute substantially all of its available earnings on a quarterly basis, subject to the discretion of its Board of Directors [2] - The company operates as a closed-end investment fund regulated as a business development company under the Investment Company Act of 1940 [3] - Runway Growth is externally managed by Runway Growth Capital LLC, led by industry veteran David Spreng [3]

Core Insights - Runway Growth Finance Corp. (RWAY) is expected to report second-quarter 2025 results on August 7, with anticipated revenue decline and earnings increase year-over-year [1][8] - The company has a weak earnings surprise history, lagging the Zacks Consensus Estimate in three of the last four quarters [2] Earnings & Sales Projections - The Zacks Consensus Estimate for RWAY's earnings is 39 cents, reflecting a 5.4% increase from the prior-year quarter [3] - The consensus estimate for sales is $34 million, indicating a slight decline [3] Factors Impacting Earnings - The Federal Reserve's decision to keep interest rates unchanged at 4.25-4.5% during Q2 2025 likely benefited RWAY's interest income due to higher loan yields [4] - RWAY has been experiencing rising expenses due to investments in venture growth stage companies, which are expected to have elevated operating costs in the second quarter [4] Earnings Whispers - The quantitative model does not predict an earnings beat for RWAY, as it lacks a positive Earnings ESP and a Zacks Rank better than 3 [5] - RWAY currently holds a Zacks Rank of 3 [6] Performance of Other Finance Stocks - Moody's reported adjusted earnings of $3.56 per share, exceeding the Zacks Consensus Estimate of $3.44, with an 8.5% year-over-year growth [7] - Moelis & Company reported adjusted earnings of 53 cents per share, significantly improving from 18 cents in the prior-year quarter, supported by revenue growth despite increased expenses [9]

Financial Data and Key Metrics Changes - Revenues increased by 2%, up from 1.7% in the first quarter, driven by media distribution and digital infrastructure, with CPI contributing 1.2% [3][4] - Adjusted EBITDA reached €96.3 million, a 3% increase, with net profitability consistent with last year [4][14] - Net debt stood at €178 million, approximately one times the last twelve months EBITDA, reflecting a €50 million increase since the end of 2024 [21][22] Business Line Data and Key Metrics Changes - Media distribution revenues grew by 10.8%, significantly above CPI, due to the coverage extension of the Ride app network [16][17] - Digital infrastructure segment revenues amounted to €16.4 million, growing by 3.6%, primarily from tower hosting, with radio broadcaster volumes increasing by 50% [18] Market Data and Key Metrics Changes - The CDN market is stabilizing with balanced supply and demand, leading to decreased competition and improved performance quality [7][8] - The company is focusing on mid-sized enterprises and digital players, anticipating over 30 megawatts of additional demand in the coming years [10] Company Strategy and Development Direction - The company plans to expand its service range and partnerships, particularly with private cloud players, while focusing on the hyperscale project [12][13] - Maintenance CapEx is expected to increase due to extraordinary activities, while development CapEx is anticipated to be lower than last year [23][24] Management Comments on Operating Environment and Future Outlook - Management raised the adjusted EBITDA guidance for 2025, citing favorable electricity tariffs and higher non-core benefits [22][23] - The company is actively targeting non-core benefits to maintain growth levels despite development initiative impacts [23] Other Important Information - The company is undergoing extraordinary maintenance activities, including significant investments in the Apulia region [5][6] - Framework agreements with major operators for live streaming in Italy are expected to enhance traffic and revenue [9] Q&A Session Questions and Answers Question: Details on potential sector consolidation and expected timeline - Management indicated that the consolidation process is complex, with ongoing evaluations and no specific timeline available at this stage [28][29] Question: Next steps for hyperscale data center project - The concession with the municipality is expected to be signed in the coming weeks, with pre-marketing activities to follow [30][31] Question: Clarification on EBITDA guidance and non-core benefits - The €1.5 million non-core benefits were already included in the guidance, with additional impacts noted in operating expenses [37] Question: Revenue breakdown for CDN and edge data center - Management expects a roughly equal split between CDN and edge data center revenues, with a slight preference for CDN [38] Question: Investment levels for maintenance and development CapEx - Maintenance CapEx is expected to trend upwards, while development CapEx is projected to decrease by 20-25% compared to last year [49]

Core Insights - Runway Growth Finance Corp. completed three investments totaling $37.8 million in funded loans during the second quarter of 2025, focusing on portfolio optimization and diversification [1][2][3] Investment Activities - The company funded two new portfolio companies and one existing portfolio company, including a $10 million investment in Federal Hearings and Appeals Services (FHAS) [3][7] - Additional investments included $40 million in Autobooks, $20 million in Swing Education, and $2.8 million in Marley Spoon SE [7] Liquidity Events - Runway Growth received a full principal repayment of $21.1 million from Nalu Medical Inc. and a repayment of $25 million from SetPoint Medical Corporation during the second quarter [4][8] Portfolio Management - As of June 30, 2025, the portfolio consisted of 48 debt investments across 31 companies and 89 equity investments in 49 companies, with a focus on technology, healthcare, and select consumer sectors [6][5] - The company emphasizes a credit-first approach, maintaining rigorous underwriting standards and frequent communication with portfolio companies [5][6] Company Overview - Runway Growth is a specialty finance company providing flexible capital solutions to late- and growth-stage companies, regulated as a business development company under the Investment Company Act of 1940 [9]