SuRo Capital(US:SSSS)2025-11-06 02:20Investment Performance - The fair value of the investment portfolio as of September 30, 2025, was $252,195,540, an increase from $199,302,778 as of September 30, 2024, representing a growth of approximately 26.5% year-over-year[256][263] - The company realized a net gain on investments of $26,391,459 during the nine months ended September 30, 2025, compared to a net loss of $14,167,198 in the same period of 2024, marking a turnaround in performance[259][266] - The company exited or received proceeds from investments amounting to $49,066,513 during the nine months ended September 30, 2025, compared to $14,941,469 in the same period of 2024, indicating a significant increase in liquidity[259][266] - Net realized gain on investments for the three months ended September 30, 2025, was $5,196,799, compared to a net loss of $13,713,512 for the same period in 2024[278] - Net change in unrealized appreciation for the three months ended September 30, 2025, was $5,675,109, compared to $11,614,384 for the same period in 2024[279] - Net change in unrealized appreciation for the nine months ended September 30, 2025, was $53,401,606, compared to a depreciation of $(13,769,932) for the same period in 2024[282] Investment Strategy and Philosophy - The investment strategy focuses on non-controlling equity and equity-related investments, primarily in high-growth, venture-backed companies across various sectors, including Software-as-a-Service and Artificial Intelligence[249] - The company’s investment philosophy emphasizes a disciplined approach to identifying promising investments, with a focus on growth potential and recurring revenues[249] - The company primarily invests in growth companies with short operating histories and illiquid markets, which may impact the valuation of equity investments during periods of market disruption[321] - Valuation of investments is determined at fair value by the Board of Directors, with inherent uncertainty leading to potential fluctuations in estimated values from period to period[322] Financial Performance - Total investment income decreased to $459,269 for the three months ended September 30, 2025, from $888,717 for the same period in 2024, primarily due to a decrease in interest income[272] - Total investment income for the nine months ended September 30, 2025, was $1,125,667, down from $3,444,161 for the same period in 2024[273] - Net investment loss for the three months ended September 30, 2025, was $3,454,815, compared to a loss of $3,207,873 for the same period in 2024[276] - Net investment loss for the nine months ended September 30, 2025, was $10,838,744, compared to a loss of $10,086,400 for the same period in 2024[277] - Total operating expenses decreased to $3,914,084 for the three months ended September 30, 2025, from $4,096,590 for the same period in 2024, mainly due to reductions in compensation expense and professional fees[274] - Total operating expenses for the nine months ended September 30, 2025, decreased to $11,964,411 from $13,530,561 for the same period in 2024[275] Liquidity and Capital Management - Cash reserves increased significantly to $54,549,056 as of September 30, 2025, up from $20,035,640 at the beginning of the year[287] - Total cash reserves and liquid securities amounted to $63,112,189 as of September 30, 2025, compared to $37,626,760 at the end of 2024[287] - The company has ample liquidity to support near-term capital requirements and will continue to evaluate its liquidity position[289] - The company issued $25.0 million in 6.50% Convertible Notes due 2029 on August 14, 2024, with additional notes of $5.0 million issued on October 9, 2024, and January 16, 2025[301] - As of September 30, 2025, the company had $75.1 million in total contractual obligations, with $39.7 million due for the 6.00% Notes due 2026[290] Shareholder Returns and Distributions - The total distributions declared since formation through September 30, 2025, amount to $12.35 per share, with the latest distribution of $0.25 per share declared on July 3, 2025[304] - The distribution on July 31, 2025, included 2,860,903 shares issued in lieu of cash, representing approximately 14.8% of outstanding shares prior to the distribution[304] - The Board of Directors authorized a Share Repurchase Program extension until October 31, 2026, or until $64.3 million of common stock is repurchased[314] - A dividend of $0.25 per share was declared on November 3, 2025, payable on December 5, 2025, to stockholders of record as of November 21, 2025[318] - The company intends to focus on equity investments primarily for capital gains, with distributions expected to be less consistent than other BDCs[308] Share Repurchase Program - The dollar value of shares available for repurchase under the Share Repurchase Program is approximately $25.0 million as of September 30, 2025[292] - The company did not repurchase any shares under the Share Repurchase Program during the three and nine months ended September 30, 2025[292] - As of November 5, 2025, approximately $25.0 million remains available for repurchase under the Share Repurchase Program[316] - The discretionary Note Repurchase Program allows for the repurchase of up to an additional $40.0 million of 6.00% Notes due 2026, with approximately $39.7 million remaining as of November 5, 2025[317]