Financial Data and Key Metrics Changes - Total investment income for Q1 2025 was $35.4 million, an increase from $33.8 million in Q4 2024, while net investment income rose to $15.6 million from $14.6 million in the previous quarter [5][18] - The fair value of the total investment portfolio decreased to $1 billion, down 6.7% from $1.08 billion in Q4 2024 and down 1.2% from $1.02 billion in the same period last year [17] - Net assets decreased to $503.3 million from $514.9 million at the end of Q4 2024, with NAV per share falling to $13.48, a decrease of 2.2% [17] Business Line Data and Key Metrics Changes - The loan portfolio primarily consists of first lien senior secured loans, with 97% of assets being floating rate [17] - The dollar weighted loan to value ratio increased from 28% to 29.1% [17] - The debt portfolio generated a dollar weighted average annualized yield of 15.4% for Q1 2025, compared to 14.7% in Q4 2024 [18] Market Data and Key Metrics Changes - The first quarter of 2025 was characterized by a cautious market environment, with a noted slowdown in healthcare lending and overall deal activity [12][29] - The company executed three investments in existing portfolio companies totaling $50.7 million in funded loans during Q1 2025 [6][16] Company Strategy and Development Direction - The company aims to optimize its portfolio and enhance origination channels following the merger with BC Partners Credit, focusing on credit-first underwriting practices [6][9] - The strategic focus is on diversifying the portfolio and mitigating risks, with a target loan size range of $30 million to $150 million [6][9] - The company is positioned to benefit from a strategic focus on sustainable growth and a strong track record of low loss rates compared to peers [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted a shift in the venture ecosystem, with companies now prioritizing sustainable growth over top-line growth due to market conditions [12][13] - The sentiment in the market is expected to shift, with companies needing to demonstrate growth to attract investment [14] - Management expressed confidence in the company's ability to cover dividends and build NAV per share, despite a cautious approach to credit [37][38] Other Important Information - The company has a total available liquidity of $315.4 million, including unrestricted cash and cash equivalents, and a borrowing capacity of $297 million [20] - A new stock repurchase program of $25 million was approved, reflecting management's confidence in the stock's valuation [22] - A regular distribution of $0.33 per share and a supplemental dividend of $0.02 per share were declared for Q2 2025 [23] Q&A Session Summary Question: Comments on healthcare lending and its slowdown - Management indicated that healthcare remains a core vertical but noted a softer quarter in lending, influenced by broader market conditions [28][29] Question: Update on the investment pipeline - The pipeline is currently seeing a mix of refinances and new opportunities, with a cautious approach to credit impacting activity levels [30][33] Question: Trends in net investment income and dividend declaration - The supplemental dividend for Q2 is lower due to a strategic decision to build NAV rather than focus solely on dividend payouts [36][38] Question: Impact of private credit market conditions - Management noted improvements in the structure of the pipeline, with lower leverage asks and maintained quality of covenants [44][45] Question: Insights on AI investment opportunities - The company is focused on mature businesses in the AI space, avoiding early-stage companies due to their high burn rates [46][48] Question: Factors driving realized gains and unrealized depreciation - Realized gains were driven by the sale of Gynasonics, while unrealized depreciation was influenced by performance and market multiples [51][53]

Company Overview and Strategy - Runway Growth Finance Corp is focused on venture debt with a fully-scaled platform, emphasizing a disciplined investment process and strong balance sheet [14] - The company aims to deliver comprehensive financing solutions and execute larger deals with the backing of BC Partners [14] - Runway Growth intends to expand origination channels and strengthen sourcing capabilities through BC Partners' investment platform [15] Portfolio Performance and Risk - The company's disciplined investment approach has resulted in a low annualized loss rate of 7 bps [9] - Cumulative net loss rate since inception is 56 bps [9] - As of March 31, 2025, the portfolio at fair value was $1,004 million [24] - 98% of the loan structure is first lien [29] - 96% of the portfolio has a weighted average risk rating of 3 or better [60] Financial Highlights - Total loan commitments amount to $3 billion [29] - The average loan commitment is $34.8 million [29] - As of March 31, 2025, total investment income was $35.398 million [71]

Investment Portfolio Performance - As of March 31, 2025, the total fair value of the company's portfolio investments was $1,004,233,000, a decrease from $1,076,840,000 as of December 31, 2024[220]. - The company held investments in 52 companies as of March 31, 2025, down from 57 companies at the end of 2024[219]. - The investment portfolio value decreased from $1,016.3 million as of March 31, 2024, to $1,004.2 million as of March 31, 2025, reflecting a decline of approximately 1.2%[224]. - The fair value of debt investments rated 2 increased to $706.8 million, representing 70.38% of the total portfolio as of March 31, 2025, up from 62.39% as of December 31, 2024[225]. Investment Income and Expenses - Total investment income for the three months ended March 31, 2025, was $35.4 million, down from $40.0 million in the same period of 2024, representing a decrease of about 14.5%[232]. - Net investment income for the three months ended March 31, 2025, was $15.6 million, compared to $18.7 million in 2024, a decline of approximately 16.5%[229]. - Operating expenses decreased to $19.8 million for the three months ended March 31, 2025, from $21.3 million in 2024, a reduction of approximately 7.0%[233]. - Management fees for Q1 2025 remained unchanged at $4.0 million compared to Q1 2024[235]. - Incentive fees decreased to $3.9 million in Q1 2025 from $4.7 million in Q1 2024, primarily due to a decrease in net investment income[236]. Debt Investments - Senior secured term loans accounted for 92.22% of the total portfolio fair value as of March 31, 2025[220]. - The company reported a dollar-weighted average remaining term of 34 months for its debt investments as of March 31, 2025[220]. - The company has committed principal amounts for debt investments ranging from $6.0 million to $75.0 million, with annual interest rates between 6.3% and 14.1%[220]. - As of March 31, 2025, 96.3% of the performing debt portfolio investments bore interest at variable rates, with 76.0% based on SOFR and 24.0% based on Prime[265]. Realized and Unrealized Gains - The company reported a net realized gain on investments of $6.1 million for the three months ended March 31, 2025, compared to no realized gains in the same period of 2024[229]. - The company had a net change in unrealized loss on investments of $19.8 million for the three months ended March 31, 2025, compared to a loss of $6.6 million in the same period of 2024[229]. - The net realized gain on investments was $6.1 million in Q1 2025, attributed to gains from Gynesonics, Inc. and losses from Quantum Corporation[238]. - Net change in unrealized loss on investments was $19.8 million in Q1 2025, primarily due to a decrease in fair value of several investments[239]. Liquidity and Commitments - Available liquidity as of March 31, 2025, was $315.4 million, including $18.4 million in cash and cash equivalents[247]. - As of March 31, 2025, the company had $162.2 million in unfunded commitments, including $132.8 million for debt financing[252]. Interest Rate Risk - A hypothetical 200 basis point increase in interest rates could increase investment income by a maximum of $17.0 million, while a decrease could reduce it by a maximum of $11.0 million annually[265]. - The net investment income is dependent on the difference between the borrowing rate and the investment rate, with rising interest rates potentially reducing net investment income if interest income does not correspondingly increase[267]. - As of March 31, 2025, the company did not have any hedging instruments to manage interest rate risk[270]. Company Structure and Management - The company is structured as a business development company (BDC) and a regulated investment company (RIC), which requires compliance with various regulatory requirements[214]. - The company aims to maximize total return primarily through current income on its loan portfolio and secondarily through capital gains on warrants and equity positions[213]. - The company is externally managed by Runway Growth Capital LLC, which provides investment advisory services[216].

Investment Income - Total investment income for Q1 2025 was $35.4 million, down from $40.0 million in Q1 2024, representing a decrease of 11.5%[4] - Net investment income for Q1 2025 was $15.6 million, or $0.42 per share, compared to $18.7 million, or $0.46 per share in Q1 2024, reflecting a decline of 16.6% in net income[4] - Total investment income decreased to $35,398 million in Q1 2025 from $40,009 million in Q1 2024, a decline of approximately 11.5%[31] - Net investment income fell to $15,599 million in Q1 2025, down from $18,664 million in Q1 2024, representing a decrease of about 16.5%[31] - Net investment income per common share decreased to $0.42 in Q1 2025 from $0.46 in Q1 2024[31] Operating Expenses - Total operating expenses decreased to $19.8 million in Q1 2025 from $21.3 million in Q1 2024, a reduction of 7.0%[6] - Total operating expenses decreased to $19,799 million in Q1 2025 from $21,345 million in Q1 2024, a decline of approximately 7.3%[31] - Management fees increased slightly to $4,009 million in Q1 2025 from $3,952 million in Q1 2024[31] Asset Valuation - The net asset value per share increased to $13.48 as of March 31, 2025, compared to $13.36 a year earlier, marking a growth of 0.9%[12] - The investment portfolio had an aggregate fair value of $1.0 billion, consisting of $946.4 million in term loans, with 97.9% being senior secured loans[9] Liquidity and Capital Management - As of March 31, 2025, the company had approximately $315.4 million in available liquidity, including $18.4 million in cash[14] - The company approved a share repurchase program allowing for the repurchase of up to $25.0 million of its outstanding common stock[22] Investment Activity - The company completed three investments in existing portfolio companies, totaling $50.7 million in funded investments[7] Unrealized and Realized Gains/Losses - Net realized gain on affiliate investments was $8,943 million in Q1 2025, while net realized loss on non-control/non-affiliate investments was $(2,886) million[31] - The net change in unrealized loss on investments totaled $(19,790) million in Q1 2025, compared to $(6,617) million in Q1 2024, indicating a significant increase in unrealized losses[31] Net Assets and Tax Expense - Net increase in net assets resulting from operations was $1,866 million in Q1 2025, down from $12,047 million in Q1 2024, a decline of approximately 84.5%[31] - The company reported a tax expense of $110 million in Q1 2025, compared to only $2 million in Q1 2024, indicating a significant increase in tax liabilities[31] Share Count - The weighted average shares outstanding decreased to 37,347,428 in Q1 2025 from 40,392,255 in Q1 2024, a reduction of about 7.6%[31]

Core Viewpoint - Runway Growth Finance Corp. reported its financial results for the first quarter of 2025, highlighting a decrease in total and net investment income compared to the previous year, while maintaining a strong investment portfolio and liquidity position [2][5][12]. Financial Performance - Total investment income for Q1 2025 was $35.4 million, down from $40.0 million in Q1 2024 [5]. - Net investment income for Q1 2025 was $15.6 million, or $0.42 per share, compared to $18.7 million, or $0.46 per share, in Q1 2024 [5][8]. - The dollar-weighted annualized yield on average debt investments was 15.4% for the quarter [6]. Operating Expenses and Gains - Total operating expenses for Q1 2025 were $19.8 million, a decrease from $21.3 million in Q1 2024 [7]. - The company realized a net gain on investments of $6.1 million for Q1 2025, compared to no net realized gains or losses in Q1 2024 [7][8]. Investment Portfolio - As of March 31, 2025, the investment portfolio had a fair value of $1.0 billion, consisting of $946.4 million in term loans, with 97.9% being senior secured loans [10]. - The company completed three investments in existing portfolio companies during Q1 2025, totaling $50.7 million in funded investments [8][11]. Net Asset Value - The net asset value as of March 31, 2025, was $503.3 million, or $13.48 per share, down from $529.5 million, or $13.36 per share, as of March 31, 2024 [12]. Liquidity and Capital Resources - The company had approximately $315.4 million in available liquidity as of March 31, 2025, including $18.4 million in cash and $297.0 million in borrowing capacity [14]. - The core leverage ratio was approximately 99%, compared to 108% at the end of 2024 [14]. Distributions - The board declared a regular quarterly distribution of $0.33 per share and a supplemental distribution of $0.02 per share for Q2 2025 [15]. Recent Developments - The company entered into a Master Note Purchase Agreement on April 7, 2025, issuing $107.0 million in Series 2025A Senior Notes with a fixed interest rate of 7.51% [18][19]. - A new share repurchase program was approved, allowing the company to repurchase up to $25.0 million of its outstanding common stock [23].

Core Viewpoint - Runway Growth Finance Corp. has declared a regular cash distribution of $0.33 per share and a supplemental dividend of $0.02 per share for the second quarter of 2025, reflecting its commitment to providing flexible capital solutions to late- and growth-stage companies [1][2]. Group 1: Dividend Announcement - The Board of Directors declared a second quarter 2025 regular cash distribution of $0.33 per share [1]. - A supplemental dividend of $0.02 per share was also declared for the same quarter [1]. - Key dates for the dividend include: Declaration Date on May 7, 2025, Record Date on May 19, 2025, and Payment Date on June 3, 2025 [2]. Group 2: Company Overview - Runway Growth is a specialty finance company focused on providing flexible capital solutions to late- and growth-stage companies [3]. - The company is 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].

Company Overview - Runway Growth Capital LLC is a leading provider of growth loans to both venture and non-venture-backed companies, offering senior term loans ranging from $10 million to $150 million to fast-growing companies in the United States and Canada [5]. Key Appointment - Avisha Khubani has been promoted to Managing Director of Portfolio Analytics, where she will enhance portfolio monitoring, optimize investment decisions, and strengthen risk management strategies [1][4]. - Khubani joined Runway in 2018 as a Vice President and has significantly contributed to the firm's portfolio analytics function [2]. Professional Background - Prior to her role at Runway, Khubani was a Vice President at Kroll Inc., specializing in valuing complex portfolios of private loans and equity [3]. - She has also held finance roles in multiple venture-backed companies and has expertise in business and intangible asset valuation [3]. Leadership Insights - David Spreng, Founder and CEO of Runway, highlighted Khubani's analytical rigor and understanding of risk management as key contributions to the firm's success [4]. - Khubani expressed her excitement about her new role and commitment to disciplined investing and thoughtful portfolio management [4].

MENLO PARK, Calif., May 01, 2025 (GLOBE NEWSWIRE) -- Runway Growth Finance Corp. (Nasdaq: RWAY) (“Runway Growth”), a leading provider of flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity, today announced that it has rescheduled its previously announced release of first quarter 2025 financial results to after market close on Monday, May 12, 2025. Runway Growth will now host a conference call and simultaneous webcast to discuss its first quarter 2025 finan ...

Core Insights - Runway Growth Finance Corp. reported operational and portfolio updates for Q1 2025, highlighting its focus on providing flexible capital solutions to late- and growth-stage companies [1][5] - The company emphasized its commitment to maintaining credit quality and disciplined underwriting in the current market environment, especially after the acquisition of its investment adviser by BC Partners Advisors L.P. [2][3] Originations - In Q1 2025, Runway Growth funded three investments in existing portfolio companies, demonstrating its active engagement in the venture debt market [3] - The company is positioned as a preferred lender, focusing on high-quality late-stage companies in sectors such as technology, healthcare, and consumer services [3][4] Portfolio Management - As of March 31, 2025, Runway Growth's portfolio consisted of 46 debt investments across 31 companies and 84 equity investments in 47 companies, with 26 companies receiving both types of investment [4] - The company maintains frequent communication with its portfolio companies to support their growth potential [4] Liquidity Events - Notable liquidity events in Q1 2025 included: - A full principal repayment of $25.6 million from Gynesonics, Inc., along with liquidation of preferred stock for total proceeds of $37.4 million - A partial principal repayment of $11.3 million from FiscalNote Holdings, Inc. - Liquidation of Quantum Corporation's common stock for total proceeds of $0.7 million - Other scheduled loan principal amortization payments totaling $3.7 million [6]

Core Viewpoint - Runway Growth Finance Corp. will release its first quarter 2025 financial results on May 13, 2025, and will hold a conference call to discuss these results [1]. Company Overview - Runway Growth is a specialty finance company that provides flexible capital solutions to late- and growth-stage companies as an alternative to raising equity [3]. - The company is structured as a closed-end investment fund and is regulated as a business development company under the Investment Company Act of 1940 [3]. - Runway Growth is externally managed by Runway Growth Capital LLC, which was established in 2015 and is led by industry veteran David Spreng [3].