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].

Core Insights - Runway Growth Finance Corp. has made significant operational updates, including an amended credit agreement and an expanded Board of Directors [1][2] Credit Agreement - The amended credit agreement extends the maturity date and revolving period for the Company's credit facility, allowing for expanded financing solutions such as cash flow based loans, asset based loans, and recurring revenue loans [3] Board Refreshment - The Board of Directors has been expanded from five to eight members, with new appointments aimed at enhancing industry expertise and governance [4][7] - Ted Goldthorpe has been appointed as Chairman of the Board, while Alexander Duka and Robert Warshauer have been appointed as independent directors [7]

Financial Data and Key Metrics Changes - For Q4 2024, total investment income was $33.8 million and net investment income was $14.6 million, compared to $36.7 million and $15.9 million in Q3 2024 [10][34] - The weighted average portfolio risk rating decreased to 2.33% in Q4 2024 from 2.48% in Q3 2024 [27] - The dollar-weighted loan-to-value ratio decreased from 29.3% to 26.6% [31] - Net assets increased to $514.9 million from $507.4 million in Q3 2024, with NAV per share rising to $13.79, up 3% from $13.39 [32] - Total operating expenses decreased to $19.2 million from $20.8 million in Q3 2024 [35] Business Line Data and Key Metrics Changes - The company executed two investments in new companies and five in existing companies, totaling $154 million in funded loans [16][27] - The loan portfolio is comprised of 97% floating rate assets, with all loans earning interest at or above agreed-upon interest rate floors [33] Market Data and Key Metrics Changes - Venture debt deal value increased to over $53 billion in 2024, up from approximately $27 billion in 2023, driven by multibillion-dollar deals in the AI sector [23] - The company noted that the venture debt space is experiencing growth, which is expected to continue [22] Company Strategy and Development Direction - The company aims to grow originations in loan sizes of $30 million to $150 million, with an ideal allocation to the BDC remaining at $20 million to $45 million [13] - The acquisition of Runway Growth Capital by BC Partners Credit is expected to enhance deal flow and diversify the portfolio [11][12] - The company maintains a credit-first investment philosophy and focuses on high-growth sectors such as technology, healthcare, and consumer products [15][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's performance and the ability of borrowers to operate effectively against the macro backdrop [17] - The company anticipates that the focus on high-growth sectors and senior secured loans will provide additional security for the portfolio [22] Other Important Information - The company declared aggregate distributions of $0.36 per share for Q1 2025, including a base dividend of $0.33 and a supplemental dividend of $0.03 [40] - The company extended its credit facility with KeyBank by three years, enhancing availability and lending verticals [38] Q&A Session Summary Question: Expectations for new originations in the first quarter - Management acknowledged that originations are typically back-ended and indicated potential for additional originations before the quarter ends [44] Question: Percentage of loan book trading at interest rate floors - Management stated that the majority of loans are at or above their interest rate floors [46] Question: Impact of Fed cuts on yield - Management noted that a significant portion of the yield decline was due to lower interest rates and fewer prepayment accelerations [50] Question: Discussion on dividend and capital allocation - Management emphasized the importance of a stable dividend and indicated a preference for building NAV while maintaining consistent dividends [56][57] Question: Broader origination opportunities post-BC Partners acquisition - Management expressed excitement about the expanded funnel of opportunities and the ability to underwrite different structures [62][66] Question: Share repurchase plans - Management confirmed discussions on share repurchases but emphasized the need to assess which option creates better returns [78] Question: Current state of the venture market - Management noted slower exit activity and M&A, but anticipated an uptick in new fundings and M&A in the coming quarters [81]

Financial Data and Key Metrics Changes - For Q4 2024, total investment income was $33.8 million and net investment income was $14.6 million, compared to $36.7 million and $15.9 million in Q3 2024 [10][34] - The weighted average portfolio risk rating decreased to 2.33% in Q4 2024 from 2.48% in Q3 2024 [27] - The dollar-weighted loan-to-value ratio decreased from 29.3% to 26.6% [31] - Net assets increased to $514.9 million from $507.4 million in Q3 2024, with NAV per share rising to $13.79, a 3% increase [32] - Total operating expenses decreased to $19.2 million from $20.8 million in Q3 2024 [35] Business Line Data and Key Metrics Changes - In Q4 2024, the company executed two investments in new companies and five investments in existing companies, totaling $154 million in funded loans [16][27] - The loan portfolio is comprised almost exclusively of first-lien senior secured loans, with 97% being floating rate assets [32] Market Data and Key Metrics Changes - Venture debt deal value increased to over $53 billion in 2024, up from approximately $27 billion in 2023, driven by significant deals in the AI sector [23] - The company noted that the venture debt space experienced explosive growth in 2024, which is expected to continue [22] Company Strategy and Development Direction - The company aims to grow originations in the total loan size of $30 million to $150 million, with an ideal allocation to the BDC remaining at $20 million to $45 million [13][15] - The acquisition of Runway Growth Capital by BC Partners Credit is expected to enhance deal flow and diversify the portfolio [11][12] - The company maintains a credit-first investment philosophy and focuses on high-growth sectors such as technology, healthcare, and consumer products [18][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's performance and the ability of borrowers to operate effectively against the macro backdrop [17] - The company anticipates that the focus on high-growth sectors and senior loans will provide additional security for the portfolio [22] Other Important Information - The company declared aggregate distributions of $0.36 per share for Q1 2025, which includes a base dividend of $0.33 and a supplemental dividend of $0.03 [40] - The company extended its credit facility with KeyBank by three years, enhancing availability and lending verticals [38] Q&A Session Summary Question: Expectations for new originations in the first quarter - Management indicated that originations are typically back-ended and additional originations may close before the quarter ends [44] Question: Percentage of loan book trading at interest rate floors - The majority of loans are at or above their interest rate floors [46] Question: Impact of Fed cuts on yield - The decline in yield was primarily due to lower interest rates and fewer prepayment accelerations [50] Question: Discussion on dividend policy and capital allocation - The Board aims for a stable and predictable dividend while also considering building NAV [56][57] Question: Broader origination opportunities post-BC Partners acquisition - The integration is expected to expand the origination funnel and provide access to a broader set of products [62][66] Question: Size of equity portfolio and management strategy - The company is primarily a debt investor and will manage equity positions proactively, focusing on realizing gains when appropriate [88][90]

Company Performance - Runway Growth Finance Corp. reported quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.42 per share, and down from $0.45 per share a year ago, representing an earnings surprise of -7.14% [1] - The company posted revenues of $33.78 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 7.81%, and down from $39.23 million year-over-year [2] - Over the last four quarters, the company has not surpassed consensus EPS estimates and has topped consensus revenue estimates only once [2] Market Comparison - Runway Growth Finance Corp. shares have lost about 1.9% since the beginning of the year, while the S&P 500 has declined by 3.5% [3] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.40 on revenues of $35.67 million, and for the current fiscal year, it is $1.60 on revenues of $143.2 million [7] - The estimate revisions trend for Runway Growth Finance Corp. is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Financial - SBIC & Commercial Industry, to which Runway Growth Finance Corp. belongs, is currently in the bottom 43% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Runway Growth Finance Corp. Fourth Quarter 2024 Investor Presentation NASDAQ Listed I RWAY I RWAYL I RWAYZ March 2025 © Runway Growth Capital LLC 2025 Forward-looking Statements This presentation dated March 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 objectives and ...

Investment Income - Total investment income for Q4 2024 was $33.8 million, down from $39.2 million in Q4 2023[6] - Net investment income for Q4 2024 was $14.6 million, or $0.39 per share, compared to $18.3 million, or $0.45 per share, in Q4 2023[6] - Investment income for the year ended December 31, 2024, totaled $144,632,000, down from $164,209,000 in 2023, a decrease of 11.9%[35] Portfolio and Assets - The investment portfolio had a fair value of approximately $1.1 billion, consisting of 56 portfolio companies[10] - Total assets increased to $1,091,355,000 as of December 31, 2024, compared to $1,079,153,000 in 2023, reflecting a growth of 1.9%[33] - Total investments at fair value rose to $1,076,840,000 from $1,067,009,000, marking an increase of 0.7% year-over-year[33] Debt and Financing - Total debt, less unamortized deferred financing costs, increased to $552,332,000 from $510,078,000, an increase of 8.3%[33] - The dollar-weighted annualized yield on debt investments for Q4 2024 was 14.7%[7] Shareholder Returns - The company declared a regular dividend of $0.33 per share and a supplemental dividend of $0.03 per share for Q1 2025[15] - The company repurchased 555,104 shares of common stock during Q4 2024[5] Net Asset Value - Net asset value (NAV) per share increased to $13.79 as of December 31, 2024, from $13.50 a year earlier[12] - The net asset value per share increased to $13.79 from $13.50, representing a growth of 2.1%[33] Operational Performance - Net increase in net assets resulting from operations for the year ended December 31, 2024, was $73,609,000, compared to $44,341,000 in 2023, an increase of 66.1%[35] - Management fees for the three months ended December 31, 2024, were $3,931,000, a decrease from $4,113,000 in 2023, down by 4.4%[35] - The weighted average shares outstanding decreased to 37,465,536 from 40,509,269, a reduction of 7.5%[35] Investment Gains - The company reported a net realized and unrealized gain on investments of $13,601,000 for the three months ended December 31, 2024, compared to a loss of $23,102,000 in 2023[35] Liquidity - The company had approximately $244.8 million in available liquidity as of December 31, 2024[14] Strategic Initiatives - The combination with BC Partners Credit is expected to diversify the company's portfolio and enhance investment opportunities[4]

Core Insights - Runway Growth Finance Corp. reported total investment income of $33.8 million and net investment income of $14.6 million for Q4 2024, showing a decrease from $39.2 million and $18.3 million respectively in Q4 2023 [6][8] - The company's investment portfolio reached a fair value of approximately $1.1 billion, consisting of 56 portfolio companies and one joint venture [12] - The company declared a regular quarterly dividend of $0.33 per share and a supplemental dividend of $0.03 per share for Q1 2025 [17] Financial Performance - Total investment income for the fiscal year 2024 was $144.6 million, down from $164.2 million in 2023 [37] - Net investment income for the fiscal year 2024 was $63.8 million, or $1.64 per share, compared to $78.3 million, or $1.93 per share, in 2023 [7][37] - The net asset value (NAV) per share increased to $13.79 as of December 31, 2024, from $13.50 a year earlier, despite total net assets decreasing by 5.9% to $514.9 million [14] Investment Activity - In Q4 2024, the company completed two investments in new portfolio companies and five investments in existing portfolio companies, totaling $154.0 million in funded investments [7][13] - The dollar-weighted annualized yield on debt investments for Q4 2024 was 14.7% [9] - The company reported a low credit loss ratio of an average of 12 basis points per year on a gross basis since inception [7] Share Repurchase and Capital Management - The company repurchased 555,104 shares during Q4 2024 under its share repurchase program [7] - As of December 31, 2024, the company had approximately $244.8 million in available liquidity, including $5.8 million in cash and $239.0 million in borrowing capacity [16] Recent Developments - The company underwent a significant transaction with BC Partners Credit, which is expected to enhance its investment capabilities and diversify its portfolio [5][21] - The board of directors has seen changes, with new appointments made to fill vacancies [22][23][29]