Rand Capital(US:RAND)2026-03-05 13:05Investment Performance - Total investment income for Q4 2025 was $1.3 million, a decrease of $852,000, or 40%, compared to the same period last year, primarily due to a 46% reduction in interest income from portfolio companies [6]. - The fair value of Rand's investment portfolio decreased by $22.3 million, or 32%, to $48.5 million as of December 31, 2025, driven by loan repayments and valuation adjustments [9]. - Net investment income for the year ended December 31, 2025, was $5,288,911, compared to $3,425,077 in 2024, reflecting a year-over-year increase of 54.4% [27]. - Net investment income per share for 2025 was $1.80, an increase of 35% over $1.33 per share in the prior year [11]. - Adjusted net investment income per share for the year ended December 31, 2025, was $1.26, compared to $1.72 in 2024, reflecting a decrease of 26.7% [33]. - The net realized loss on sales and dispositions of investments for the year ended December 31, 2025, was $(2,001,313), compared to a gain of $11,124,864 in 2024 [27]. Financial Position - Rand ended 2025 with over $23 million in total liquidity and no debt outstanding, providing substantial balance sheet flexibility for future investments [5]. - The company reported total net assets at the end of the year of $52,183,453, down from $65,332,520 at the end of 2024 [27]. - Net asset value (NAV) per share was $17.57 at year-end 2025, down from $25.31 at year-end 2024 [5]. Dividends and Shareholder Returns - Total dividends paid in 2025 were $1.72 per share, with a regular quarterly cash dividend of $0.29 per share declared on February 25, 2026 [14]. - The company declared dividends totaling $5,109,447 for the year ended December 31, 2025, down from $12,982,536 in 2024 [27]. Expenses and Costs - Total expenses for Q4 2025 were $666,000, compared to a net credit of $376,000 in the prior-year period, primarily due to capital gains incentive fees [6]. - Total expenses for the quarter ended December 31, 2025, were $665,562, significantly higher than the negative expenses of $(376,286) in the same quarter of 2024 [30]. Investment Activity - Rand received $17.8 million from loan repayments and select equity realizations while deploying $6.6 million into new and follow-on investments during 2025 [18]. - Rand committed $3.25 million to Bauer Sheet Metal and Fabricating Inc. in Q4 2025, consisting of a 13% term loan and warrants for a 12% ownership interest [10]. Market Volatility - The net change in unrealized appreciation/depreciation on investments for the year ended December 31, 2025, was $(11,327,218), compared to $(5,722,329) in 2024, indicating increased volatility [27]. Shareholder Metrics - Basic and diluted net increase in net assets from operations per share for the quarter ended December 31, 2025, was $0.37, compared to $(1.14) in the same quarter of 2024 [25]. - The weighted average shares outstanding increased to 2,969,814 for the quarter ended December 31, 2025, from 2,581,021 in the same quarter of 2024 [32].