Core Viewpoint - Trinity Capital Inc. has declared a cash dividend of $0.51 per share for the quarter ending June 30, 2025, marking the 22nd consecutive quarter of consistent or increased dividends for its shareholders [1] Dividend Summary - The dividend declaration date is June 18, 2025, with a record date of June 30, 2025, and a payment date of July 15, 2025 [2] - The company's objective is to distribute approximately 90% to 100% of its taxable quarterly income to qualify for tax treatment as a regulated investment company under the Internal Revenue Code of 1986 [2] Tax Characteristics - Dividends are paid from taxable earnings and may include a return of capital and/or capital gains, with specific tax characteristics reported to stockholders on Form 1099-DIV after the calendar year [3] Company Overview - Trinity Capital Inc. is an international alternative asset manager focused on delivering consistent returns through access to private credit markets, with five business verticals: Sponsor Finance, Equipment Finance, Tech Lending, Asset-Based Lending, and Life Sciences [4] - The company is headquartered in Phoenix, Arizona, and has a dedicated team located across the United States and in London [4]

Core Insights - Paytient has secured $40 million in funding from Trinity Capital to support its expansion into various health plan markets, including large group employer-sponsored plans and the ACA marketplace [1] - The company aims to transform the patient experience by enabling easier access to care and managing out-of-pocket healthcare costs without interest or fees [2] - Paytient currently serves over 23 million members and partners with nearly 7,000 employers, insurers, and providers, embedding cost-smoothing solutions into health plan designs [3] Company Overview - Paytient is focused on improving how Americans access and afford healthcare through employer- or health plan-embedded payment solutions for various medical expenses [5] - The company is the largest provider of Medicare Prescription Payment Plan (M3P) solutions, powering 40% of the Part D marketplace [7] Market Position and Strategy - The funding will allow Paytient to scale faster and meet the increasing demand from insurers and employers for innovative cost-sharing solutions [3] - The company is positioned well for long-term success due to its proven model, strong leadership, and rapid market traction [4] - Paytient is expanding its partnerships in the ACA marketplace, increasing its active states from 8 to 13, with plans for nationwide expansion in 2026 [7]

Core Insights - Trinity Capital Inc. has committed $40 million in growth capital to Paytient, a healthcare payments company focused on improving access and affordability of care [1] - Paytient enables employers and insurers to provide cost-sharing solutions that allow patients to manage out-of-pocket healthcare costs over time without interest or fees [2] - Paytient currently serves over 23 million members and partners with nearly 7,000 employers, insurers, and providers, embedding cost-smoothing solutions into health plan designs [3] Company Overview - Paytient is transforming healthcare access and affordability by offering employer- or health plan-embedded payment solutions for various out-of-pocket expenses [6] - Trinity Capital Inc. is an alternative asset manager that focuses on delivering consistent returns through private credit markets, with a diverse range of business verticals [5]

A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy- outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and strive to provide readers with ample research and investment opportunities. The dividend yield of business development company Trinity Capital Inc. (NASDAQ: TRIN ) is still hovering around 14% despite the BDC profiting from rising ...

Group 1: Investment Announcement - Trinity Capital Inc. has committed $62.7 million in growth capital to Atmosphere TV, a streaming platform focused on businesses [1] - The investment aims to support Atmosphere's significant growth and innovation in the media landscape [3] Group 2: Company Overview - Atmosphere TV is a premier streaming platform tailored for high-traffic environments such as restaurants, bars, gyms, and airports, offering over 30 original and partner TV channels [2][5] - The platform utilizes proprietary content delivery technology to provide dynamic, audio-optional streaming content, enhancing customer experiences [2] Group 3: Leadership Insights - Ryan Thompson from Trinity Capital expressed excitement about partnering with Atmosphere during its growth phase [3] - Blake Sabatinelli, CEO of Atmosphere, highlighted Trinity Capital's expertise in scaling high-growth technology businesses as a key factor in their partnership [3] Group 4: Market Position and Recognition - Atmosphere has been recognized in Deloitte's 2023 Technology Fast 500, Fast Company's 2022 Most Innovative Companies, and Forbes' Next Billion Dollar Startups lists, indicating its strong market position [5]

Group 1 - Trinity Capital (NASDAQ: TRIN) has shown early signs of credit stabilization, with its risk rating on the portfolio remaining largely stable [1] - The current situation does not yet indicate a strong sustained improvement, but it is a positive sign for potential investors [1] - The focus on long-term wealth creation through stocks with strong growth potential and stable dividend yields is emphasized [1] Group 2 - The investment strategy includes careful selection of companies with strong fundamentals and a consistent history of dividend payouts [1] - Financial stocks, particularly banks and Business Development Companies (BDCs), are the primary focus of the investment analysis [1]

Group 1 - Trinity Capital Inc. announced a commitment of $15 million in growth capital to Lendflow, a software development company focused on embedded credit infrastructure for fintechs and lenders [1][3] - Lendflow's platform allows for efficient integration of lending experiences with scalable, low-code solutions, enhancing customer acquisition through credit decisioning and underwriting [2][6] - The growth capital will support Lendflow's product initiatives and its mission to democratize access to credit, including advancements in AI-driven data intelligence and automation [3][4] Group 2 - Trinity Capital is an international alternative asset manager that has deployed over $4 billion across 400 investments since its inception in 2008, focusing on private credit markets [5] - Lendflow provides a comprehensive embedded credit infrastructure that enables fintechs and SaaS platforms to launch credit products quickly, enhancing customer engagement and retention [6]

Group 1 - The current environment for Business Development Companies (BDCs) is characterized by volatility due to prolonged elevated interest rates, leading to a decline in asset values [1] - Trinity Capital (TRIN) is highlighted as one of the BDCs affected by these market conditions [1] - A hybrid investment strategy combining classic dividend growth stocks with BDCs, REITs, and Closed End Funds is suggested as an effective way to enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1]

Financial Data and Key Metrics Changes - The company reported net investment income of $32.4 million, a 29% increase compared to Q1 of the previous year [5] - Total investment income reached $65 million, reflecting a 30% increase year-over-year [15] - The net asset value (NAV) grew to $833 million, up from $823 million at the end of the previous year [17] - The effective yield on the portfolio was 15.3%, while the core yield was 14.1% [15] - The NAV per share decreased to $13.05 from $13.35, primarily due to the early retirement of convertible notes [17][18] Business Line Data and Key Metrics Changes - The portfolio consisted of approximately 75% secured loans, 19% equipment financing, 4% equity, and 2% warrants [24] - In Q1, funding breakdown was 38% to equipment financing, 29% to life sciences, 18% to sponsor finance, 10% to tech lending, and 5% to asset-based lending [25] - The credit quality remained strong, with approximately 99.1% of the portfolio performing on a fair value basis [26] Market Data and Key Metrics Changes - The company has a strong investment pipeline with $623 million in unfunded commitments as of the end of Q1 [12] - The average internal credit rating for the portfolio stood at 2.9, indicating strong performance [26] - The company’s largest industry exposure is finance and insurance, representing 16.9% of the portfolio at cost [24] Company Strategy and Development Direction - The company is focused on building a resilient asset management business that can withstand market fluctuations [8] - The internally managed structure aligns the interests of management and shareholders, promoting growth and returns [9] - The company aims to capitalize on new opportunities in the private credit space, particularly in late-stage VC and lower middle market [10] Management's Comments on Operating Environment and Future Outlook - Management is closely monitoring macroeconomic conditions, including tariff impacts on portfolio companies, and has found limited exposure [6][22] - The company is committed to maintaining credit quality and has not seen an unusual uptick in requests for amendments or delayed payments [7] - Management expressed confidence in the ability to cover dividends and grow NAV, despite recent earnings fluctuations [71][72] Other Important Information - The company received a BAA3 investment grade rating from Moody's, which is expected to open access to cheaper capital [11][19] - The company raised $31 million from its equity ATM program at an average premium of 17% to NAV [19] Q&A Session Summary Question: Why did interest income drop despite a net increase in portfolio investments? - Management attributed the drop to the effects of prior rate cuts and a decrease in early repayments [31][32] Question: What is the expectation for payoffs in the upcoming quarters? - Management indicated that normal payoffs have resumed and are expected to help with earnings [34] Question: What was found regarding tariff impacts on medical devices? - Management reported low tariff impact on the life sciences portfolio, with no alarming findings [36] Question: Why were commitments at a slower pace this quarter? - Management chose to slow originations to focus on portfolio health and assess the impact of tariffs [44] Question: How does the company view lower yields in the portfolio? - Management believes the lower yields are a result of rate changes and a shift towards more mature sponsor finance deals, which provide stability [60] Question: What is the current status of revolver draws or liquidity issues? - Management reported no uptick in requests for additional capital from borrowers [68] Question: How committed is the company to maintaining or increasing dividends? - Management is focused on covering and potentially increasing dividends, with plans to build NAV first [71][72]

Financial Data and Key Metrics Changes - The company reported net investment income of $32.4 million, a 29% increase compared to Q1 of the previous year [5] - Total investment income reached $65 million, marking a 30% increase year-over-year [15] - The effective yield on the portfolio was 15.3%, while the core yield was 14.1% [15] - The net asset value (NAV) grew to $833 million from $823 million at the end of the previous quarter, although NAV per share decreased from $13.35 to $13.05 [18] Business Line Data and Key Metrics Changes - The portfolio consisted of approximately 75% secured loans, 19% equipment financing, 4% equity, and 2% warrants [24] - Funding breakdown for Q1 included 38% to equipment financing, 29% to life sciences, 18% to sponsor finance, 10% to tech lending, and 5% to asset-based lending [25] - The credit quality remained strong, with approximately 99.1% of the portfolio performing on a fair value basis [26] Market Data and Key Metrics Changes - The company has $623 million in unfunded commitments, indicating a strong investment pipeline [13] - The largest industry exposure was finance and insurance at 16.9%, followed by medical devices at 12.3% [24] Company Strategy and Development Direction - The company is focused on building a resilient asset management business with five complementary business verticals [9] - An internally managed structure aligns the interests of employees and management with shareholders [10] - The company aims to capitalize on new opportunities in the private credit space, particularly in late-stage VC and lower middle market [11] Management's Comments on Operating Environment and Future Outlook - Management is closely monitoring macroeconomic conditions, including tariff impacts, and has found limited exposure among portfolio companies [6][23] - The company is optimistic about future growth, citing a strong investment pipeline and a recent investment-grade rating from Moody's [12][20] - Management emphasized the importance of credit quality and portfolio management in navigating market volatility [28] Other Important Information - The company raised $31 million from its equity ATM program and $4 million from its net debt ATM program during the quarter [20] - The company has no further debt obligations due until August 2026 following the repayment of convertible notes [19] Q&A Session Summary Question: Why did interest income drop despite a net increase in portfolio investments? - Management attributed the drop to the effects of prior rate cuts and a decrease in early repayments [30][31] Question: Will commitments increase in Q2? - Management indicated that while commitments were down in Q1 due to a defensive stance, they expect to see a robust pipeline and potential increases in commitments moving forward [44][46] Question: What is the impact of tariffs on the medical devices sector? - Management reported low tariff impact on the life sciences portfolio, with no alarming findings from their investigations [35][36] Question: How does the company view lower yields in the portfolio? - Management noted that the decrease in yield is primarily due to rate changes and a strategic shift towards more mature sponsor finance businesses [60] Question: How committed is the company to maintaining or increasing dividends? - Management expressed a strong commitment to maintaining and potentially increasing dividends, focusing on building NAV and ensuring coverage [70][72]