MENLO PARK, Calif., July 31, 2024 (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 announced that its Board of Directors has declared a third quarter 2024 regular cash distribution of $0.40 per share. In addition, the Board of Directors declared a supplemental dividend of $0.05 per share, for the third quarter of 2024. The follo ...

MENLO PARK, Calif., July 31, 2024 (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 announced that its Board of Directors has declared a third quarter 2024 regular cash distribution of $0.40 per share. In addition, the Board of Directors declared a supplemental dividend of $0.05 per share, for the third quarter of 2024. The foll ...

"Runway Growth delivered portfolio expansion in the second quarter while maintaining our disciplined approach to underwriting and credit quality," said David Spreng, Founder and CEO of Runway Growth. "As we evaluate the current late- and growth-stage market, we are confident that more high-quality companies are seeking non-dilutive capital to advance their strategic roadmaps. Our borrowers continue to generate strong performance in the existing operating environment, and we look forward to partnering with a ...

Core Insights - Runway Growth has successfully expanded its portfolio in Q2 2024 while maintaining a disciplined approach to underwriting and credit quality, indicating confidence in the demand for non-dilutive capital among high-quality companies [1][6] - The company completed two significant investments totaling $75.5 million, including a $58.4 million investment in a marketing technology enterprise SaaS platform and a $56.1 million senior secured term loan to Onward Medical N.V. [1][10] - As of June 30, 2024, Runway Growth's portfolio consisted of 47 debt investments across 31 companies and 83 equity investments in 52 companies, showcasing a diverse investment strategy focused on late and growth-stage businesses in technology, life sciences, and consumer services [3][7] Investment Activity - In Q2 2024, Runway Growth funded two new portfolio companies, reflecting its strategy to support high-quality late-stage companies in the venture debt market [7] - The company experienced a prepayment of $25.3 million on a senior secured term loan to Turning Tech Intermediate, Inc., along with scheduled principal amortization of $1.3 million [2][7] Portfolio Management - Runway Growth emphasizes a credit-first approach, maintaining high investment standards despite prolonged high interest rates, which positions it as a preferred lender in the venture debt space [7] - The company has a low leverage ratio and sufficient capital reserves, allowing it to deploy funds effectively across its core sectors [7][8]

MENLO PARK, Calif., July 09, 2024 (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 will release its second quarter 2024 financial results after market close on Thursday, August 8, 2024. Runway Growth will discuss its financial results on a conference call that day at 2:00 p.m. PT (5:00 p.m. ET). To participate in the conferenc ...

The facility is divided into five individual credit tranches. The first initial credit tranche of €16.0 million will be available upon signing of the Loan Agreement and will be drawn down immediately. Three subsequent credit tranches of €14.0 million, up to €5.0 million and up to €7.5 million will be available to be drawn by the Company until March 31, 2025, July 31, 2026 and January 31, 2027 respectively, in each case subject to the Company's achievement of certain milestones under the Loan Agreement. The ...

Runway Growth Finance Corp. (NASDAQ:RWAY) Q1 2024 Earnings Conference Call May 7, 2024 5:00 PM ET Company Participants Quinlan Abel - Investor Relations David Spreng - Chairman, President and Chief Executive Officer Greg Greifeld - Managing Director, Deputy Chief Investment Officer and Head, Credit of Runway Growth Capital Tom Raterman - Chief Financial Officer and Chief Operating Officer Conference Call Participants Melissa Wedel - JPMorgan Casey Alexander - Compass Point Research and Trading Bryce Rowe - ...

PART I. FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Runway Growth Finance Corp. as of March 31, 2024, including statements of assets, operations, cash flows, and detailed investment schedules [Consolidated Statements of Assets and Liabilities](index=4&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) Total assets decreased to **$1.03 billion** from **$1.08 billion**, with net assets at **$529.5 million** and NAV per share at **$13.36** Consolidated Statements of Assets and Liabilities Summary | Financial Metric | March 31, 2024 (Unaudited, in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Total Investments at Fair Value** | $1,016,332 | $1,067,009 | | **Total Assets** | $1,030,938 | $1,079,153 | | **Total Debt, less unamortized costs** | $475,914 | $510,078 | | **Total Liabilities** | $501,469 | $532,082 | | **Total Net Assets** | $529,469 | $547,071 | | **Net Asset Value per Share** | $13.36 | $13.50 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2024 total investment income increased to **$40.0 million**, with net investment income rising to **$18.7 million** and net assets from operations at **$12.0 million** Consolidated Statements of Operations Summary | Metric (in thousands, except per share data) | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Total Investment Income** | $40,009 | $39,310 | | **Total Operating Expenses** | $21,345 | $21,064 | | **Net Investment Income** | $18,664 | $18,246 | | **Net Realized and Unrealized Gain (Loss)** | $(6,617) | $(6,262) | | **Net Increase in Net Assets from Operations** | $12,047 | $11,984 | | **Net Investment Income per Share** | $0.46 | $0.45 | | **Net Increase in Net Assets per Share** | $0.30 | $0.30 | [Consolidated Statements of Changes in Net Assets](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) Net assets decreased from **$547.1 million** to **$529.5 million** in Q1 2024, primarily due to **$19.0 million** in dividends and **$10.6 million** in treasury stock acquisitions Consolidated Statements of Changes in Net Assets Summary | Description (in thousands) | For the Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | | **Balances at December 31, 2023** | $547,071 | | Net increase from operations | $12,047 | | Acquisition of treasury stock | $(10,609) | | Dividends paid to stockholders | $(19,040) | | **Balances at March 31, 2024** | $529,469 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating activities generated **$68.6 million** in cash, while financing used **$64.7 million**, resulting in a net cash increase of **$3.9 million** for Q1 2024 Consolidated Statements of Cash Flows Summary | Cash Flow Activity (in thousands) | For the Three Months Ended March 31, 2024 (in thousands) | For the Three Months Ended March 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Net Cash Provided by (Used in) Operating Activities** | $68,598 | $(18,526) | | **Net Cash (Used in) Provided by Financing Activities** | $(64,653) | $16,036 | | **Net Increase (Decrease) in Cash** | $3,945 | $(2,490) | | **Cash and Cash Equivalents at End of Period** | $6,915 | $3,271 | [Consolidated Schedule of Investments](index=8&type=section&id=Consolidated%20Schedule%20of%20Investments) The investment portfolio's fair value was **$1.016 billion**, primarily senior secured debt (**94%**), with major concentrations in Health Care Technology and Application Software Investment Portfolio Composition | Investment Type | Fair Value (in thousands) | % of Total Portfolio | | :--- | :--- | :--- | | Senior Secured Term Loans | $955,177 | 93.98% | | Second Lien Term Loans | $14,388 | 1.42% | | Preferred Stocks | $28,810 | 2.83% | | Warrants | $15,093 | 1.49% | | Other | $2,804 | 0.28% | | **Total Investments** | **$1,016,332** | **100.00%** | Investment Portfolio Industry Concentration | Industry | % of Net Assets | | :--- | :--- | | Health Care Technology | 34.22% | | Application Software | 32.87% | | Internet Software and Services | 22.47% | | System Software | 21.56% | | Human Resource & Employment Services | 21.49% | [Notes to Consolidated Financial Statements](index=28&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes cover accounting policies, related-party transactions, investment specifics, fair value measurements, debt structure, and net asset changes - For Q1 2024, approximately **10.5%** of total investment income was attributable to non-cash Payment-In-Kind (PIK) interest, compared to **9.7%** in Q1 2023[70](index=70&type=chunk) - As of March 31, 2024, the company had two loans on non-accrual status with a combined cost basis of **$47.7 million** and a fair value of **$38.7 million**, representing **3.8%** of the total investment portfolio[75](index=75&type=chunk) - The company entered into a **50/50** joint venture, Runway-Cadma I LLC, with Cadma Capital Partners LLC, with an initial equity commitment of **$35.0 million** from each party to invest in secured loans to growth-stage companies[62](index=62&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial performance, portfolio composition, investment activity, operating results, liquidity, and capital resources [Portfolio Composition and Investment Activity](index=55&type=section&id=Portfolio%20Composition%20and%20Investment%20Activity) The **$1.016 billion** investment portfolio, primarily senior secured loans (**94%**), yielded **17.4%** with **$24.7 million** funded and **$34.8 million** repaid - The debt investment portfolio had a dollar-weighted annualized yield of **17.4%** for Q1 2024, up from **15.2%** for Q1 2023[212](index=212&type=chunk) Investment Portfolio Activity | Activity (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | | **Beginning Investment Portfolio** | $1,067,009 | | Purchases of investments | $24,642 | | Sales and repayments of investments | $(34,862) | | Sales and maturities of U.S. Treasury Bills | $(42,029) | | Net change in unrealized gain (loss) | $(6,617) | | **Ending Investment Portfolio** | **$1,016,332** | [Asset Quality](index=57&type=section&id=Asset%20Quality) The debt portfolio's asset quality is monitored by a five-level rating system, with **91.6%** in top categories and **3.8%** on non-accrual status Debt Investment Portfolio Ratings | Investment Rating | Fair Value (in thousands) | % of Total Portfolio | | :--- | :--- | :--- | | 1 | $— | 0.00% | | 2 | $605,452 | 59.57% | | 3 | $325,372 | 32.01% | | 4 | $35,539 | 3.50% | | 5 | $3,202 | 0.32% | | **Total** | **$969,565** | **95.40%** | - As of March 31, 2024, two loans were on non-accrual status: Mingle Healthcare Solutions, Inc. (fair value **$3.2M**) and Snagajob, Inc. (fair value **$35.5M**), representing a combined **3.8%** of the total investment portfolio[217](index=217&type=chunk) [Results of Operations](index=58&type=section&id=Results%20of%20Operations) Q1 2024 total investment income rose to **$40.0 million**, with net investment income at **$18.7 million** and net unrealized losses of **$6.6 million** - Net investment income increased to **$18.7 million** in Q1 2024 from **$18.2 million** in Q1 2023, primarily due to growth in payment-in-kind income and fee income[227](index=227&type=chunk) - The net change in unrealized loss on investments was **$6.6 million** for Q1 2024, mainly due to fair value decreases in investments in CareCloud, Inc., Snagajob.com, Inc., Mingle Healthcare Solutions, Inc., FiscalNote, Inc., and Coginiti Corp[229](index=229&type=chunk) [Financial Condition, Liquidity, and Capital Resources](index=61&type=section&id=Financial%20Condition,%20Liquidity,%20and%20Capital%20Resources) Available liquidity was **$319.9 million**, with an asset coverage ratio of **209%**, sufficient to meet near-term capital requirements including **$235.8 million** in unfunded commitments - Total available liquidity as of March 31, 2024, was **$319.9 million**, including cash and available credit facility capacity[237](index=237&type=chunk) - The company's asset coverage ratio was **209%** as of March 31, 2024, compared to **205%** at year-end 2023[238](index=238&type=chunk) - As of March 31, 2024, the company had **$235.8 million** in unfunded commitments, of which approximately **$42.0 million** was eligible to be drawn by portfolio companies and **$35.0 million** was committed to the Runway-Cadma I LLC joint venture[242](index=242&type=chunk)[244](index=244&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=63&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks include valuation and interest rate risk, with a **200 basis point** rate change potentially impacting annual income by **+$18.3 million** or **-$15.9 million** - The company's primary market risks are valuation risk for illiquid investments and interest rate risk on its floating-rate assets and liabilities[255](index=255&type=chunk)[256](index=256&type=chunk) - A hypothetical **200 basis point** increase in interest rates could increase annual investment income by a maximum of **$18.3 million**, while a **200 basis point** decrease could reduce it by a maximum of **$15.9 million** due to interest rate floors[257](index=257&type=chunk) [Item 4. Controls and Procedures](index=64&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal controls over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[262](index=262&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=65&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material legal proceedings or aware of any threatened against it - The company is not currently subject to any material legal proceedings[266](index=266&type=chunk) [Item 1A. Risk Factors](index=65&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the 2023 Annual Report on Form 10-K - There have been no material changes to the risk factors discussed in the company's 2023 Annual Report on Form 10-K[268](index=268&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=65&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the quarter, except through the Dividend Reinvestment Plan - No unregistered sales of equity securities occurred during the reporting period, except as part of the Dividend Reinvestment Plan[270](index=270&type=chunk) [Item 5. Other Information](index=66&type=section&id=Item%205.%20Other%20Information) The company repurchased **887,096 shares** under its Rule 10b5-1 plan during Q1 2024, with no new director/officer trading plans - Under its Rule 10b5-1 plan, the company repurchased **887,096 shares** during the three months ended March 31, 2024[274](index=274&type=chunk)

Investment Income - Total investment income for Q1 2024 was $40.0 million, a 1.8% increase from $39.3 million in Q1 2023[4] - Net investment income for Q1 2024 was $18.7 million, or $0.46 per share, compared to $18.2 million, or $0.45 per share in Q1 2023[4] - Total investment income for Q1 2024 was $40,009,000, a slight increase from $39,310,000 in Q1 2023, representing a growth of 1.77%[27] - Net investment income increased to $18,664,000 in Q1 2024 from $18,246,000 in Q1 2023, reflecting a year-over-year increase of 2.29%[27] - Net investment income per common share (basic and diluted) rose to $0.46 in Q1 2024, compared to $0.45 in Q1 2023, marking a 2.22% increase[27] Investment Performance - The dollar-weighted annualized yield on average debt investments for Q1 2024 was 17.4%[5] - The net change in unrealized loss on non-control/non-affiliate investments was $(5,065,000) in Q1 2024, compared to $(1,421,000) in Q1 2023, indicating a significant decline in investment performance[27] - The company reported a net change in unrealized loss on affiliate investments of $(1,552,000) in Q1 2024, compared to $(5,986,000) in Q1 2023, indicating improved performance in this segment[27] Assets and Valuation - As of March 31, 2024, the investment portfolio had a fair value of approximately $1.02 billion across 53 portfolio companies[8] - The net asset value (NAV) per share decreased to $13.36 as of March 31, 2024, down from $14.07 a year earlier[10] - Total net assets at the end of Q1 2024 were $529.5 million, a 7% decline from $569.8 million in Q1 2023[10] Dividends and Share Repurchase - The company declared a regular quarterly dividend of $0.40 per share and a supplemental dividend of $0.07 per share for Q2 2024[13] - The company repurchased 183,702 shares under the Share Repurchase Program from March 31, 2024, to May 7, 2024[17] Liquidity - The company had approximately $319.9 million in available liquidity as of March 31, 2024[12] Operating Expenses - Total operating expenses for Q1 2024 were $21,345,000, an increase from $21,064,000 in Q1 2023, reflecting a rise of 1.34%[27] - Management fees remained stable at $3,952,000 in Q1 2024, compared to $3,959,000 in Q1 2023[27] - The company experienced a decrease in tax expense, reporting only $2,000 in Q1 2024, down from $50,000 in Q1 2023[27] Share Count - Weighted average shares outstanding (basic and diluted) decreased to 40,392,255 in Q1 2024 from 40,509,269 in Q1 2023[27] Net Change in Assets - Net increase in net assets resulting from operations was $12,047,000 for Q1 2024, slightly up from $11,984,000 in Q1 2023[27]

Runway Growth Finance Corp. (NASDAQ:RWAY) Q4 2023 Results Conference Call March 7, 2024 5:00 PM ET Company Participants Quinlan Abel - Assistant Vice President, Investor Relations Greg Greifeld - Acting CEO, Managing Director, Deputy CIO, Head of Credit Tom Raterman - Acting President and CFO and Chief Operating Officer Conference Call Participants Finian O'Shea - Wells Fargo Melissa Wedel - JP Morgan Bryce Rowe - B. Riley Eric Zwick - Hovde Group Mickey Schleien - Ladenburg Thalmann Casey Alexander - Compa ...