Trinity Capital Inc. Reports Third Quarter 2025 Financial Results

Core Insights - Trinity Capital Inc. reported strong financial results for Q3 2025, with total investment income increasing by 22.3% year-over-year to $75.6 million [3][12] - The company's net asset value (NAV) reached a new high of $998 million, reflecting an 8.1% increase from the previous quarter and a 31.9% increase year-over-year [10][12] - The CEO highlighted the momentum in their direct lending platform and expressed optimism about future opportunities [3] Financial Performance - Total investment income for Q3 2025 was $75.6 million, up from $61.8 million in Q3 2024 [3][12] - Net investment income was approximately $37.0 million, or $0.52 per share, compared to $29.4 million or $0.54 per share in the same quarter last year [6][12] - The effective yield on average debt investments at cost was 15.0%, down from 16.1% year-over-year [3] Expenses and Liabilities - Total operating expenses, excluding interest, were $17.6 million, an increase from $15.5 million in Q3 2024, primarily due to higher compensation and professional fees [4] - Interest expense rose to $21.0 million from $16.9 million in the prior year, attributed to increased debt outstanding [5] Investment Activity - The company originated approximately $773.0 million in new commitments during Q3 2025, with gross investments funded totaling $470.6 million [12] - The investment portfolio had a fair value of approximately $2.2 billion, consisting of $1.7 billion in secured loans and $318.2 million in equipment financings [11][12] Asset Management - The net unrealized appreciation for the quarter was approximately $10.7 million, with contributions from equity and debt investments [7] - The company reported a net realized loss on investments of approximately $20.0 million, mainly due to the extinguishment and conversion of debt positions [8] Shareholder Returns - The company declared a regular dividend of $0.51 per share for Q3 2025, marking the 23rd consecutive quarter of consistent or increased dividends [21] - The NAV per share increased to $13.31 from $13.27 as of June 30, 2025 [10] Liquidity and Capital Resources - As of September 30, 2025, the company had approximately $217.9 million in available liquidity, including $9.5 million in unrestricted cash [17] - The KeyBank credit facility was expanded by $90 million, increasing total commitments to $690 million [18] Risk Assessment - As of the end of Q3 2025, loans to three portfolio companies and equipment financings to one portfolio company were on non-accrual status, totaling approximately $20.7 million [15]