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Mar 31
Runway Growth Q1 2025 Earnings Report
Runway Growth delivered solid investment income and maintained strong yields despite a drop in total revenue.
Key Takeaways
Runway Growth Finance Corp. reported $35.4M in total investment income and $15.6M in net investment income for Q1 2025, achieving an EPS of $0.42 and a high yield on debt investments, although revenues declined year-over-year.
Total investment income reached $35.4M, beating expectations
Net investment income came in at $15.6M, or $0.42 per share
Dollar-weighted annualized yield on debt investments stood at 15.44%
Net realized gains totaled $6.1M despite $19.8M in unrealized losses
Runway Growth
Runway Growth
Forward Guidance
Runway Growth anticipates continued selective investment activity and solid distribution coverage, with liquidity support from its credit facility and new capital sources.
Positive Outlook
- Strong liquidity with $315.4M available
- Declared Q2 regular and supplemental dividends
- Completed $40M in new debt commitments in Q2 to-date
- Repurchase program approved for up to $25M
- Continued platform integration with BC Partners enhances reach
Challenges Ahead
- Revenues declined 11.5% YoY
- Significant $19.8M unrealized investment losses in Q1
- NAV per share decreased to $13.48
- Portfolio contraction from $1.08B to $1.00B
- Earnings growth pressure due to lower fee and interest income