MENLO PARK, Calif., May 01, 2025 (GLOBE NEWSWIRE) -- Runway Growth Finance Corp. (Nasdaq: RWAY) (“Runway Growth”), a leading provider of flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity, today announced that it has rescheduled its previously announced release of first quarter 2025 financial results to after market close on Monday, May 12, 2025. Runway Growth will now host a conference call and simultaneous webcast to discuss its first quarter 2025 finan ...

MENLO PARK, Calif., April 17, 2025 (GLOBE NEWSWIRE) -- Runway Growth Finance Corp. (NASDAQ:RWAY) ("Runway Growth" or the "Company"), a leading provider of flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity, today provided an operational and portfolio update for the first quarter ended March 31, 2025. "In the first quarter of 2025, Runway Growth originated high quality financing solutions to several of our existing portfolio companies within the resilient ...

MENLO PARK, Calif., April 16, 2025 (GLOBE NEWSWIRE) -- Runway Growth Finance Corp. (NASDAQ:RWAY) ("Runway Growth"), a leading provider of flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity, today announced that it will release its first quarter 2025 financial results after market close on Tuesday, May 13, 2025. Runway Growth will discuss its financial results on a conference call that day at 2:00 p.m. PT (5:00 p.m. ET). To participate in the conference ca ...

Core Insights - Runway Growth Finance Corp. has made significant operational updates, including an amended credit agreement and an expanded Board of Directors [1][2] Credit Agreement - The amended credit agreement extends the maturity date and revolving period for the Company's credit facility, allowing for expanded financing solutions such as cash flow based loans, asset based loans, and recurring revenue loans [3] Board Refreshment - The Board of Directors has been expanded from five to eight members, with new appointments aimed at enhancing industry expertise and governance [4][7] - Ted Goldthorpe has been appointed as Chairman of the Board, while Alexander Duka and Robert Warshauer have been appointed as independent directors [7]

Financial Data and Key Metrics Changes - For Q4 2024, total investment income was $33.8 million and net investment income was $14.6 million, compared to $36.7 million and $15.9 million in Q3 2024 [10][34] - The weighted average portfolio risk rating decreased to 2.33% in Q4 2024 from 2.48% in Q3 2024 [27] - The dollar-weighted loan-to-value ratio decreased from 29.3% to 26.6% [31] - Net assets increased to $514.9 million from $507.4 million in Q3 2024, with NAV per share rising to $13.79, a 3% increase [32] - Total operating expenses decreased to $19.2 million from $20.8 million in Q3 2024 [35] Business Line Data and Key Metrics Changes - In Q4 2024, the company executed two investments in new companies and five investments in existing companies, totaling $154 million in funded loans [16][27] - The loan portfolio is comprised almost exclusively of first-lien senior secured loans, with 97% being floating rate assets [32] Market Data and Key Metrics Changes - Venture debt deal value increased to over $53 billion in 2024, up from approximately $27 billion in 2023, driven by significant deals in the AI sector [23] - The company noted that the venture debt space experienced explosive growth in 2024, which is expected to continue [22] Company Strategy and Development Direction - The company aims to grow originations in the total loan size of $30 million to $150 million, with an ideal allocation to the BDC remaining at $20 million to $45 million [13][15] - The acquisition of Runway Growth Capital by BC Partners Credit is expected to enhance deal flow and diversify the portfolio [11][12] - The company maintains a credit-first investment philosophy and focuses on high-growth sectors such as technology, healthcare, and consumer products [18][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's performance and the ability of borrowers to operate effectively against the macro backdrop [17] - The company anticipates that the focus on high-growth sectors and senior loans will provide additional security for the portfolio [22] Other Important Information - The company declared aggregate distributions of $0.36 per share for Q1 2025, which includes a base dividend of $0.33 and a supplemental dividend of $0.03 [40] - The company extended its credit facility with KeyBank by three years, enhancing availability and lending verticals [38] Q&A Session Summary Question: Expectations for new originations in the first quarter - Management indicated that originations are typically back-ended and additional originations may close before the quarter ends [44] Question: Percentage of loan book trading at interest rate floors - The majority of loans are at or above their interest rate floors [46] Question: Impact of Fed cuts on yield - The decline in yield was primarily due to lower interest rates and fewer prepayment accelerations [50] Question: Discussion on dividend policy and capital allocation - The Board aims for a stable and predictable dividend while also considering building NAV [56][57] Question: Broader origination opportunities post-BC Partners acquisition - The integration is expected to expand the origination funnel and provide access to a broader set of products [62][66] Question: Size of equity portfolio and management strategy - The company is primarily a debt investor and will manage equity positions proactively, focusing on realizing gains when appropriate [88][90]

Company Performance - Runway Growth Finance Corp. reported quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.42 per share, and down from $0.45 per share a year ago, representing an earnings surprise of -7.14% [1] - The company posted revenues of $33.78 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 7.81%, and down from $39.23 million year-over-year [2] - Over the last four quarters, the company has not surpassed consensus EPS estimates and has topped consensus revenue estimates only once [2] Market Comparison - Runway Growth Finance Corp. shares have lost about 1.9% since the beginning of the year, while the S&P 500 has declined by 3.5% [3] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.40 on revenues of $35.67 million, and for the current fiscal year, it is $1.60 on revenues of $143.2 million [7] - The estimate revisions trend for Runway Growth Finance Corp. is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Financial - SBIC & Commercial Industry, to which Runway Growth Finance Corp. belongs, is currently in the bottom 43% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Runway Growth Finance Corp. Fourth Quarter 2024 Investor Presentation NASDAQ Listed I RWAY I RWAYL I RWAYZ March 2025 © Runway Growth Capital LLC 2025 Forward-looking Statements This presentation dated March 2025 is being provided by Runway Growth Finance Corp. ("Runway Growth" or the "Company") for discussion purposes only and is neither an offer to sell, nor a solicitation of an offer to purchase, an interest in the Company. It is solely intended to describe the general business, investment objectives and ...

Investment Income - Total investment income for Q4 2024 was $33.8 million, down from $39.2 million in Q4 2023[6] - Net investment income for Q4 2024 was $14.6 million, or $0.39 per share, compared to $18.3 million, or $0.45 per share, in Q4 2023[6] - Investment income for the year ended December 31, 2024, totaled $144,632,000, down from $164,209,000 in 2023, a decrease of 11.9%[35] Portfolio and Assets - The investment portfolio had a fair value of approximately $1.1 billion, consisting of 56 portfolio companies[10] - Total assets increased to $1,091,355,000 as of December 31, 2024, compared to $1,079,153,000 in 2023, reflecting a growth of 1.9%[33] - Total investments at fair value rose to $1,076,840,000 from $1,067,009,000, marking an increase of 0.7% year-over-year[33] Debt and Financing - Total debt, less unamortized deferred financing costs, increased to $552,332,000 from $510,078,000, an increase of 8.3%[33] - The dollar-weighted annualized yield on debt investments for Q4 2024 was 14.7%[7] Shareholder Returns - The company declared a regular dividend of $0.33 per share and a supplemental dividend of $0.03 per share for Q1 2025[15] - The company repurchased 555,104 shares of common stock during Q4 2024[5] Net Asset Value - Net asset value (NAV) per share increased to $13.79 as of December 31, 2024, from $13.50 a year earlier[12] - The net asset value per share increased to $13.79 from $13.50, representing a growth of 2.1%[33] Operational Performance - Net increase in net assets resulting from operations for the year ended December 31, 2024, was $73,609,000, compared to $44,341,000 in 2023, an increase of 66.1%[35] - Management fees for the three months ended December 31, 2024, were $3,931,000, a decrease from $4,113,000 in 2023, down by 4.4%[35] - The weighted average shares outstanding decreased to 37,465,536 from 40,509,269, a reduction of 7.5%[35] Investment Gains - The company reported a net realized and unrealized gain on investments of $13,601,000 for the three months ended December 31, 2024, compared to a loss of $23,102,000 in 2023[35] Liquidity - The company had approximately $244.8 million in available liquidity as of December 31, 2024[14] Strategic Initiatives - The combination with BC Partners Credit is expected to diversify the company's portfolio and enhance investment opportunities[4]

Core Insights - Runway Growth Finance Corp. reported total investment income of $33.8 million and net investment income of $14.6 million for Q4 2024, showing a decrease from $39.2 million and $18.3 million respectively in Q4 2023 [6][8] - The company's investment portfolio reached a fair value of approximately $1.1 billion, consisting of 56 portfolio companies and one joint venture [12] - The company declared a regular quarterly dividend of $0.33 per share and a supplemental dividend of $0.03 per share for Q1 2025 [17] Financial Performance - Total investment income for the fiscal year 2024 was $144.6 million, down from $164.2 million in 2023 [37] - Net investment income for the fiscal year 2024 was $63.8 million, or $1.64 per share, compared to $78.3 million, or $1.93 per share, in 2023 [7][37] - The net asset value (NAV) per share increased to $13.79 as of December 31, 2024, from $13.50 a year earlier, despite total net assets decreasing by 5.9% to $514.9 million [14] Investment Activity - In Q4 2024, the company completed two investments in new portfolio companies and five investments in existing portfolio companies, totaling $154.0 million in funded investments [7][13] - The dollar-weighted annualized yield on debt investments for Q4 2024 was 14.7% [9] - The company reported a low credit loss ratio of an average of 12 basis points per year on a gross basis since inception [7] Share Repurchase and Capital Management - The company repurchased 555,104 shares during Q4 2024 under its share repurchase program [7] - As of December 31, 2024, the company had approximately $244.8 million in available liquidity, including $5.8 million in cash and $239.0 million in borrowing capacity [16] Recent Developments - The company underwent a significant transaction with BC Partners Credit, which is expected to enhance its investment capabilities and diversify its portfolio [5][21] - The board of directors has seen changes, with new appointments made to fill vacancies [22][23][29]

Investment Portfolio - As of December 31, 2024, the company had investments in 57 portfolio companies, an increase from 52 companies as of December 31, 2023[339]. - The fair value of total investments as of December 31, 2024, was $1,076,840,000, compared to $1,067,009,000 as of December 31, 2023[340]. - The ending investment portfolio as of December 31, 2024, was $1,076.8 million, an increase from $1,067.0 million at the end of 2023[343]. - Total investments amount to $1,103,883,000 with a fair value of $1,076,840,000, representing a total investment growth of 209.17%[438]. - Total investments in Application Software accounted for 44.64% of the portfolio, with a principal amount of $237,196,000 and a fair value of $229,817,000[426]. - Total investments in Data Processing & Outsourced Services represented 22.32% of the portfolio, with a principal amount of $117,820,000 and a fair value of $114,902,000[426]. - Total investments in Human Resource & Employment Services are valued at $3,774,000, with a fair value of $3,431,000, showing a decrease[429]. - Total equity investments amount to $53,737,000 with a fair value of $48,119,000, representing a decrease of approximately 10.1%[431]. - The company holds warrants in various sectors, with a total fair value of $7,333,000 and a cost of $2,961,000, indicating a significant potential upside[431]. Financial Performance - Net investment income for the year ended December 31, 2024, was $63.8 million, a decrease from $78.3 million in 2023[347]. - Total investment income for the year ended December 31, 2024, was $144.6 million, down from $164.2 million in 2023[351]. - Operating expenses for the year ended December 31, 2024, were $80.9 million, a decrease from $85.9 million in 2023, primarily due to lower performance-based incentive fees and management fees[353]. - The net increase in net assets resulting from operations for the year ended December 31, 2024, was $73.6 million, up from $44.3 million in 2023[361]. - Net cash provided by operating activities decreased to $69,758,000 in 2024 from $112,437,000 in 2023, reflecting a decline of 38.0%[423]. - Dividends paid to stockholders decreased to $69,860,000 in 2024 from $73,322,000 in 2023, a reduction of 4.0%[423]. Debt and Liquidity - As of December 31, 2024, the company had $244.8 million in available liquidity, including $5.8 million in cash and cash equivalents[370]. - The company had $558.3 million of debt outstanding, with none due within the next year[373]. - The company maintains sufficient liquidity to fund unfunded commitments, with approximately $24.8 million available based on achieved milestones[375]. - The asset coverage ratio as of December 31, 2024, was 192%, compared to 205% in 2023[371]. Investment Strategy - The company aims to maximize total return primarily through current income on its loan portfolio and secondarily through capital gains on warrants and equity positions[334]. - The company’s investment strategy focuses on high growth-potential companies in sectors such as technology and healthcare[334]. - The company has the ability to co-invest with other accounts managed by its investment adviser, enhancing investment opportunities and diversification[338]. Regulatory Compliance - The company is regulated as a business development company (BDC) and a regulated investment company (RIC), requiring compliance with various regulatory requirements[335]. - The Company intends to maintain its status as a RIC, which generally exempts it from U.S. federal income taxes on distributed income and gains, provided it meets certain requirements[503]. Valuation and Fair Value - The fair value of the company's debt investments is determined using a discounted cash flow model, comparing the cost basis to the fair value, with interest rate spreads based on similar borrowers' credit profiles[491]. - The fair value of investments is determined using a multi-step valuation process, with significant management judgment involved for Level 3 assets[486]. - The Audit Committee assists the Board of Directors in reviewing the fair value of investments that are not publicly traded or for which current market values are not readily available[487]. Shareholder Actions - The company repurchased 1,961,938 shares for an aggregate purchase price of $23.5 million under the Second Repurchase Program, which expired on November 2, 2024[378]. - The company had repurchased 1,199,867 shares for an aggregate purchase price of $12.5 million under the Third Repurchase Program as of December 31, 2024[379]. Market Risks - The company is subject to financial market risks, including changes in interest rates, which could materially impact its net investment income[385]. - A hypothetical 200 basis point increase in interest rates could increase the company's investment income by a maximum of $17.2 million annually[388].