Runway Growth Finance Corp. Reports Third Quarter 2025 Financial Results

Core Insights - Runway Growth Finance Corp. reported total investment income of $36.7 million and net investment income of $15.7 million for Q3 2025, maintaining similar levels compared to Q3 2024 [4][6][7] - The company declared a fourth quarter dividend of $0.33 per share, reflecting its ongoing commitment to return value to shareholders [3][13] - The investment portfolio as of September 30, 2025, had a fair value of $0.9 billion, with a focus on senior secured loans [9][11] Financial Performance - Total investment income for Q3 2025 was $36.7 million, unchanged from Q3 2024 [4] - Net investment income for Q3 2025 was $15.7 million, or $0.43 per share, compared to $15.9 million, or $0.41 per share, in Q3 2024 [6][8] - Operating expenses increased slightly to $21.0 million in Q3 2025 from $20.8 million in Q3 2024 [6] Investment Activity - The company completed 11 investments totaling $128.3 million during the third quarter, net of refinances [7][10] - The investment portfolio included $878.8 million in loans, with 97.6% being senior secured loans [9] - The company experienced a net realized loss on investments of $1.3 million in Q3 2025, compared to no realized gains or losses in Q3 2024 [7] Net Asset Value - As of September 30, 2025, the net asset value per share was $13.55, a decrease of 0.8% from $13.66 as of June 30, 2025 [11] - Total net assets at the end of Q3 2025 were $489.5 million [11] Liquidity and Capital Resources - The company had approximately $371.9 million in available liquidity, including $7.9 million in cash and $364.0 million in borrowing capacity [12] - The core leverage ratio improved to approximately 92% from 105% in the previous quarter [12] Recent Developments - The company announced a proposed acquisition of SWK Holdings, which is expected to enhance its healthcare and life sciences exposure [3] - The merger agreement with SWK Holdings includes provisions for share conversions and cash considerations for SWK shareholders [16][17]