FOR THE QUARTERLY PERIOD ENDED June 30, 2025 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 814-00852 SuRo Capital Corp. (Exact name of registrant as specified in its charter) Maryland 27-4443543 (State or other jurisdiction of incorporation or organization) 64 ...

Financial Data and Key Metrics Changes - The company reported a net asset value (NAV) of $9.18 per share, a 38% increase from the prior quarter, marking the largest increase since inception [6][30] - The increase in NAV was primarily driven by net unrealized appreciation of the investment portfolio and realized gains from the sale of investments [30] Business Line Data and Key Metrics Changes - CoreWeave's stock price increased over 200% following its IPO, reflecting strong investor conviction [9] - The company sold approximately 40% of its initial CoreWeave investment, generating $25.3 million in net proceeds and $15.3 million in realized gains [10][11] - The company fully exited its investment in ServiceTitan, realizing a gain of approximately $6 million [11] Market Data and Key Metrics Changes - OpenAI is generating over $13 billion in annual recurring revenue (ARR), with projections of reaching $20 billion by year-end [13] - Canva's annual recurring revenue is now $3.3 billion, up 50% since May 2024, with 240 million monthly active users [18] Company Strategy and Development Direction - The company is focused on AI infrastructure investments, which accounted for approximately 33% of the investment portfolio at fair value [29] - The company plans to continue monetizing investments as portfolio companies become public and shares are freely tradable [11][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing trends in AI capital expenditures and the reopening of the IPO market [6][7] - The company anticipates declaring additional distributions throughout the year based on ongoing portfolio activity [31] Other Important Information - The company declared a cash dividend of $0.25 per share, paid on July 31, to shareholders of record as of July 21 [11][31] - The company ended the quarter with approximately $52.4 million in liquid assets, including $49.9 million in cash [31] Q&A Session Summary Question: Thoughts on the second quarter dividend and potential size of dividends in Q3 and Q4 - Management projected ongoing monetizations of public companies and anticipates declaring at least one and possibly two distributions targeting one towards the end of Q3 and another towards the end of the year [34][37]

Financial Performance - SuRo Capital's Net Asset Value (NAV) per share reached $9.18 as of June 30, 2025, marking the greatest quarter-over-quarter increase since inception (over 35%) [8] - Net assets totaled approximately $219.4 million at the end of the quarter [8] - The company declared a cash dividend of $0.25 per share [7] - Net realized gain on investments was $21.2 million [41] - Net change in unrealized appreciation of investments was $44.8 million [41] Investment Exits - SuRo Capital exited 40% of its original aggregate position in CoreWeave, Inc, realizing a gain of approximately $15.3 million [8] - The company sold its entire position in ServiceTitan, Inc, realizing a gain of approximately $5.9 million [8] New Investments - SuRo Capital made a $5.0 million investment in Plaid Inc [10] - The company invested $250,000 in Supplying Demand, Inc (d/b/a Liquid Death) as a convertible debt investment [10] Portfolio Composition - The top 5 positions accounted for approximately 53% of the investment portfolio at fair value as of June 30, 2025 [37] - The total investment portfolio fair value was $243.8 million [37] - Artificial Intelligence Infrastructure & Applications comprised 33.1% of the portfolio fair value, amounting to $80.8 million [39]

Core Insights - SuRo Capital Corp. reported a significant increase in net asset value (NAV) per share, reaching $9.18 as of June 30, 2025, up from $6.66 per share at the end of March 2025 and $6.94 per share a year earlier, marking a growth of over 35% [2][3][24] - The growth in NAV was primarily driven by investments in AI-focused companies, with notable contributions from CoreWeave's IPO and OpenAI's record $40 billion capital raise, which underscored the demand for AI platforms [3][4] - The company declared an initial cash dividend of $0.25 per share, reflecting successful monetizations of its public securities and indicating a positive outlook for further distributions throughout the year [4][11] Financial Performance - As of June 30, 2025, SuRo Capital's total net assets were approximately $219.4 million, with liquid assets around $52.4 million [2][9] - The company reported a net investment loss of $3.7 million for the second quarter, but realized gains on investments amounted to $21.2 million, contributing to a net increase in net assets from operations of $62.3 million [9][21] - The total investment portfolio had a fair value of approximately $243.8 million, with the top five investments accounting for about 53% of the total portfolio [5][6] Investment Activity - During the second quarter, SuRo Capital invested $5 million in Plaid, a fintech platform, and exited investments in CoreWeave and ServiceTitan, realizing gains of $15.3 million and $5.9 million respectively [7][8] - The company held positions in 36 portfolio companies, with 33 being privately held and 3 publicly held, indicating a diversified investment strategy [5][18] Market Context - The strong performance of SuRo Capital is reflective of broader market trends favoring AI infrastructure companies, which have gained significant attention and investment in recent years [3][4] - The company's strategy focuses on identifying and investing in high-growth, category-defining companies, particularly in the technology and fintech sectors [4][18]

Core Viewpoint - SuRo Capital Corp. will report its financial results for the quarter ended June 30, 2025, on August 6, 2025, after the U.S. market closes [1]. Company Overview - SuRo Capital Corp. is a publicly traded investment fund focused on investing in high-growth, venture-backed private companies [4]. - The fund aims to create a portfolio of high-growth emerging private companies through a disciplined investment approach, providing investors access to these companies via publicly traded common stock [4]. - SuRo Capital has positioned itself as a gateway to venture capital, offering unique access to innovative private companies before they go public [4]. - The company's diverse portfolio includes sectors such as AI infrastructure, emerging consumer brands, and advanced software solutions for both consumer and enterprise markets [4]. - SuRo Capital is headquartered in New York, NY, with an additional office in San Francisco, CA [4].

Core Insights - SuRo Capital Corp. reported its best quarter since inception, with a net asset value (NAV) per share increase of over 35% for Q2 2025, driven by the recognition of AI infrastructure companies' value [3][5] - The company declared an initial cash dividend of $0.25 per share, reflecting successful monetizations of public securities and indicating potential for additional dividends throughout the year [4][11] - As of June 30, 2025, SuRo Capital's estimated NAV per share is between $9.00 and $9.50, up from $6.66 per share at March 31, 2025 [5][10] Investment Portfolio Update - SuRo Capital held positions in 36 portfolio companies as of June 30, 2025, including 33 privately held and 3 publicly held [6] - The company made a $5.0 million investment in Plaid Inc., a leading fintech platform, in April 2025 [4][6] - Significant exits included CoreWeave, Inc., generating $25.3 million in proceeds and a gain of $15.3 million, and ServiceTitan, Inc., yielding $15.9 million in proceeds with a gain of $5.9 million [7] Financial Position - As of June 30, 2025, SuRo Capital's liquid assets totaled approximately $52.4 million, consisting of cash and directly-held securities [10] - The company had approximately 23,888,107 shares of common stock outstanding as of the same date [10]

Net Asset Value and Financial Position - As of June 30, 2025, SuRo Capital's net asset value is estimated to be between $9.00 and $9.50 per share, up from approximately $6.94 per share at June 30, 2024[8]. - The company reported net assets of approximately $162.3 million as of June 30, 2025, compared to $156.8 million at March 31, 2025[8]. Portfolio and Investments - SuRo Capital held positions in 36 portfolio companies as of June 30, 2025, including 33 privately held and 3 publicly held[10]. - During the three months ended June 30, 2025, SuRo Capital invested $5.0 million in Class A Common Shares of Plaid Inc.[11]. - The company realized net proceeds of $25.3 million from the sale of 222,240 shares of CoreWeave, Inc., resulting in a gain of $15.3 million[11]. - SuRo Capital also realized net proceeds of $15.9 million from the sale of 151,515 shares of ServiceTitan, Inc., with a gain of $5.9 million[11]. Dividends and Future Announcements - On July 3, 2025, the Board of Directors declared a dividend of $0.25 per share, payable on July 31, 2025[12]. - The company expects to announce its second quarter results in August 2025[14]. Financial Estimates and Risks - The preliminary financial estimates provided are unaudited and subject to change, with actual results potentially differing materially[13]. - Forward-looking statements indicate potential risks and uncertainties that could impact future performance[15].

Investment Portfolio Performance - The fair value of the investment portfolio as of March 31, 2025, was $213,577,198, compared to $175,015,571 as of March 31, 2024, indicating a year-over-year increase of approximately 22%[248][252]. - Total investment income decreased to $499,094 for the three months ended March 31, 2025, from $1,528,091 for the same period in 2024, representing a decline of about 67%[258][259]. - Net investment loss for the three months ended March 31, 2025, was $(3,661,769), compared to $(3,222,902) for the same period in 2024, reflecting an increase in losses[258]. - The net realized loss on investments for the three months ended March 31, 2025, was $(17,951), compared to a net loss of $(424,074) for the same period in 2024[258]. - The net change in unrealized appreciation of investments for the three months ended March 31, 2025, was $2,888,878, contrasting with a depreciation of $(18,418,370) in the same period in 2024[258]. Investment Strategy and Activities - The company’s investment strategy focuses on non-controlling equity and equity-related investments, primarily in high-growth, venture-backed companies across various sectors[241]. - The company did not exit or receive proceeds from any investments during the three months ended March 31, 2025[250]. - The company is frequently negotiating investments in private companies, subject to closing conditions[298]. - The fair value of investments is determined in good faith by the Board of Directors, which may fluctuate due to inherent uncertainties[300]. Financial Performance and Expenses - Compensation expenses for the three months ended March 31, 2025, were $1,667,835, down from $2,185,318 in the same period in 2024, a decrease of approximately 24%[258]. - Total operating expenses decreased to $4,160,863 for the three months ended March 31, 2025, from $4,750,993 for the same period in 2024, representing a decrease of approximately 12.4%[260]. - Net investment loss for the three months ended March 31, 2025, was $3,661,769, compared to a loss of $3,222,902 for the same period in 2024, indicating an increase in loss of about 13.6%[261]. Cash Reserves and Obligations - Cash reserves decreased to $16,180,542 as of March 31, 2025, down from $20,035,640 at the beginning of the year, primarily due to new investments and operating expenses[269]. - Total cash reserves and liquid securities amounted to $38,518,303 as of March 31, 2025, compared to $37,626,760 as of December 31, 2024, reflecting an increase of approximately 2.4%[267]. - The company has $75.2 million in total contractual obligations as of March 31, 2025, with $39.7 million due for the 6.00% Notes due 2026 and $35.0 million for the 6.50% Convertible Notes due 2029[271]. Share Repurchase and Distributions - No shares were repurchased under the Share Repurchase Program during the three months ended March 31, 2025, with approximately $25.0 million remaining available for repurchase[273]. - The company declared a total distribution of $12.10 per share from its formation through March 31, 2025[287]. - The distribution on May 4, 2021, was $2.50 per share, with 2,335,527 shares issued in lieu of cash, representing approximately 9.6% of outstanding shares prior to the distribution[294]. - The company intends to focus on equity investments primarily for capital gains, with distributions expected to be less consistent than other BDCs[291]. - The company plans to make future distributions in the form of additional shares under its dividend reinvestment plan (DRIP) unless stockholders opt for cash[292]. - All distributions paid from realized gains, with none representing a return of capital[288]. - The company does not anticipate paying distributions on a quarterly basis, expecting to declare and pay at least annually if earnings or realized capital gains are available[291]. Market Risks - The company is subject to market risks, including potential impacts on the valuation of equity investments during periods of capital market disruption[299]. - As of March 31, 2025, all debt investments and outstanding borrowings bore fixed rates of interest[301].

Q1 2025 Earnings Overview - SuRo Capital's NAV per share was $666 as of March 31, 2025[8] - The company's net assets were approximately $1568 million at quarter-end[8] - A new portfolio company investment was made in Plaid Inc for $50 million[7] - An additional $50 million debt refinance occurred in Q1[8] - $353 million in 600% Notes due 2026 were repurchased to date[11] - $350 million in 650% Convertible Notes due 2029 were issued to date[11] Portfolio Company Activity - CoreWeave, Inc successfully executed an IPO on March 28th[8] According to Reuters, CoreWeave raised over $15 billion from the listing at a valuation of approximately $230 billion[32, 38] - OpenAI announced a $400 billion financing round at a $3000 billion post-money valuation[8, 32, 47] Portfolio Composition - The top 5 positions accounted for 46% of the investment portfolio at fair value, based on a total investment portfolio fair value of $2136 million at March 31, 2025[29, 30]

Financial Data and Key Metrics Changes - The company ended the quarter with a net asset value (NAV) of $156.8 million or $6.66 per share, a slight decrease from $6.68 per share at the end of the previous year [19][37] - The decrease in NAV per share was primarily driven by a net investment loss, offset by an increase in unrealized appreciation of investments [37] Business Line Data and Key Metrics Changes - OpenAI announced a $40 billion funding round at a $300 billion post-money valuation, significantly up from its previous $7 billion round [9] - CoreWeave completed a $1.5 billion IPO at a valuation of approximately $23 billion, and its stock price increased over 35% post-IPO [11][13] - Canva reported annualized revenue exceeding $6 billion, marking an increase of over 30% year-over-year [15] Market Data and Key Metrics Changes - The Nasdaq experienced its worst quarterly performance since 2022, impacting private market valuations [6][7] - The S&P 500 saw significant volatility, with a drop of up to 12% before rebounding slightly [8] Company Strategy and Development Direction - The company is focused on AI infrastructure and applications, with significant investments in companies like OpenAI and CoreWeave [24] - The management believes the portfolio is well-positioned for future growth, particularly in AI and fintech sectors [23][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the portfolio's positioning despite ongoing market volatility and uncertainties [8][24] - The company is seeing more investment opportunities than ever, particularly in AI and fintech [42] Other Important Information - The company made a $5 million investment in Plaid, which is expected to be its last private financing before going public [16] - The company has a note repurchase program for its 6% notes due 2026, having repurchased $35.3 million in aggregate principal [34] Q&A Session Questions and Answers Question: Plans for ServiceTitan position post-lockup expiration - Management indicated that they do not view themselves as holders of public securities and would exit the position in normalized market conditions [42] Question: Discount for unregistered shares - The discount applied to CoreWeave and ServiceTitan shares is due to their unregistered status, which will be removed once they are registered [48] Question: Return of capital to shareholders - Management stated that if net realized gains are achieved by year-end, a distribution would be made by then or early in the next quarter [52] Question: OpenAI's valuation and investment mark-up - Management clarified that the investment mark-up reflects a less than 100% increase due to the nature of the valuation adjustments [55]