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Runway Growth Finance (RWAY) - 2025 Q2 - Quarterly Results

Financial Performance and Corporate Updates Runway Growth's Q2 2025 performance highlights include strong investment income, portfolio growth, increased NAV, and declared distributions Second Quarter 2025 Financial Highlights Runway Growth reported strong Q2 2025 results with $35.1 million in total investment income, a 15.40% portfolio yield, and declared a $0.36 per share Q3 distribution Q2 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Total Investment Income | $35.1 million | | Net Investment Income | $13.9 million | | Net Investment Income per Share | $0.38 | | Net Asset Value (NAV) | $498.9 million | | NAV per Share | $13.66 | | Dollar-weighted Annualized Yield | 15.40% | - Investment Activity: Completed $37.8 million in funded investments across two new and one existing portfolio company7 - Capital Returns: Received $25.0 million in principal prepayments and repurchased 815,408 shares for $8.1 million7 - Q3 2025 Distributions: Declared a total distribution of $0.36 per share, consisting of a $0.33 regular dividend and a $0.03 supplemental dividend7 Second Quarter 2025 Operating Results Q2 2025 operating results show total investment income of $35.1 million, a 15.4% annualized yield, and a significant positive shift in unrealized gains Q2 Operating Results Comparison (YoY) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Investment Income | $35.1 million | $34.2 million | | Net Investment Income | $13.9 million | $14.6 million | | Net Investment Income per Share | $0.38 | $0.37 | - The dollar-weighted annualized yield on average debt investments for the quarter was 15.4%5 - Operating expenses increased to $21.2 million from $19.6 million in Q2 20246 - The company recorded a net change in unrealized gain on investments of $4.4 million, a significant improvement from a net change in unrealized loss of $6.3 million in Q2 20248 Portfolio and Investment Activity The investment portfolio reached $1.0 billion fair value across 54 companies, with 97.8% senior secured loans, driven by $38.7 million in new investments - The investment portfolio had an aggregate fair value of $1.0 billion in 54 companies, with loans comprising $962.5 million, of which 97.8% are senior secured9 Portfolio Value Roll-Forward (in thousands) | Description | Three Months Ended June 30, 2025 (in thousands) | | :--- | :--- | | Beginning investment portfolio | $1,004,233 | | Purchases of investments | $38,719 | | Sales and prepayments | ($25,000) | | Net change in unrealized gain (loss) | $5,720 | | Ending investment portfolio | $1,024,951 | Net Asset Value (NAV) Net Asset Value per share increased to $13.66, with total net assets at $498.9 million, driven by a $0.45 per share net increase from operations NAV Change (QoQ) | Metric | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | NAV per Share | $13.66 | $13.48 | | Total Net Assets | $498.9 million | N/A | - The net increase in net assets from operations was $0.45 per share, a substantial increase from $0.05 per share in the prior quarter11 Liquidity and Capital Resources As of quarter-end, Runway Growth had approximately $297.0 million in available liquidity, primarily from its credit facility, with its core leverage ratio increasing to approximately 105% from 99% in the previous quarter - Total available liquidity was approximately $297.0 million, comprising $6.0 million in unrestricted cash and $291.0 million in available borrowing capacity12 - The core leverage ratio rose to 105% at the end of Q2 2025, up from 99% at the end of Q1 202512 Distributions On August 6, 2025, the Board of Directors declared total distributions of $0.36 per share for the third quarter of 2025, consisting of a $0.33 regular and $0.03 supplemental dividend Q3 2025 Distribution Details | Component | Amount per Share | | :--- | :--- | | Regular Distribution | $0.33 | | Supplemental Distribution | $0.03 | | Total Distribution | $0.36 | | Record Date | August 18, 2025 | | Payment Date | September 2, 2025 | Recent Developments Subsequent to the quarter's end, from July 1 to August 7, 2025, Runway Growth completed $20.0 million in new debt commitments and received $22.4 million in debt prepayments - From July 1, 2025, to August 7, 2025, the Company completed $20.0 million of additional debt commitments, funding $16.8 million; funded an additional $0.3 million in existing commitments; and received $22.4 million in debt prepayments and $0.2 million from equity sales15 Consolidated Financial Statements This section presents Runway Growth's consolidated balance sheets and statements of operations, detailing assets, liabilities, and financial performance Consolidated Statements of Assets and Liabilities As of June 30, 2025, total assets were $1.04 billion, with total investments at $1.02 billion, leading to total net assets of $498.9 million and a NAV per share of $13.66 Key Balance Sheet Data (in thousands) | Account | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total investments at fair value | $1,024,951 | $1,076,840 | | Total assets | $1,041,257 | $1,091,355 | | Total debt, less unamortized costs | $515,948 | $552,332 | | Total liabilities | $542,383 | $576,486 | | Total net assets | $498,874 | $514,869 | | Net asset value per share | $13.66 | $13.79 | Consolidated Statements of Operations For Q2 2025, total investment income was $35.1 million, yielding $13.9 million in net investment income, and a $16.8 million net increase in net assets from operations Statement of Operations Summary (Three Months Ended June 30, in thousands) | Account | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Total investment income | $35,147 | $34,193 | | Total operating expenses | $21,199 | $19,602 | | Net investment income | $13,948 | $14,591 | | Net realized and unrealized gain (loss) | $2,849 | ($6,300) | | Net increase in net assets | $16,797 | $8,291 | | Net investment income per share | $0.38 | $0.37 | | Net increase in net assets per share | $0.45 | $0.21 | Additional Information This section provides details on the upcoming conference call, an overview of Runway Growth Finance Corp., and important disclosures regarding forward-looking statements Conference Call Information Runway Growth will host a conference call and webcast to discuss its second quarter 2025 financial results on Thursday, August 7, 2025, at 5:00 p.m. ET - A conference call to discuss Q2 2025 results is scheduled for Thursday, August 7, 2025, at 5:00 p.m. ET (2:00 p.m. PT)16 About Runway Growth Finance Corp. Runway Growth Finance Corp. is a specialty finance company and regulated BDC providing flexible capital solutions to late- and growth-stage companies - Runway Growth is a specialty finance company and regulated BDC focused on providing capital to late- and growth-stage companies as an alternative to equity financing17 Forward-Looking Statements and Disclosures This report contains forward-looking statements subject to risks and uncertainties, and investors are advised to review the detailed risk factors in the company's SEC filings - The press release includes forward-looking statements subject to risks and uncertainties; actual results may differ materially1819 - Readers are directed to the company's SEC filings for a detailed discussion of risk factors1819