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Dec 31, 2024

Runway Growth Q4 2024 Earnings Report

Runway Growth reported solid Q4 2024 results with strong net investment income and a high dollar-weighted annualized yield on debt investments.

Key Takeaways

Runway Growth achieved total investment income of $33.8 million and net investment income of $14.6 million, or $0.39 per share, for Q4 2024. The company reported a dollar-weighted annualized yield on debt investments of 14.7% and made $80.1 million in new funded investments during the quarter. Net realized losses were significantly reduced compared to the prior year, and net assets per share increased to $13.79.

Total investment income was $33.8 million for Q4 2024.

Net investment income totaled $14.6 million, or $0.39 per share.

Dollar-weighted annualized yield on debt investments reached 14.7%.

Repurchased 555,104 shares under the share repurchase program.

Total Revenue
$33.8M
Previous year: $39.2M
-13.9%
EPS
$0.39
Previous year: $0.45
-13.3%
Weighted Annualized Yield
14.7%
Cash and Equivalents
$5.75M
Previous year: $2.97M
+93.6%
Total Assets
$1.09B
Previous year: $1.08B
+1.1%

Runway Growth

Runway Growth

Forward Guidance

Runway Growth plans to continue expanding its portfolio with diversified investments and expects strong income growth supported by the recent combination with BC Partners Credit.

Positive Outlook

  • Expanded investment platform through BC Partners Credit.
  • Strong liquidity of $244.8 million to support future investments.
  • Continued focus on senior secured loans with low credit losses.
  • Ongoing share repurchase program authorized up to $15 million.
  • Portfolio diversification with both new and existing portfolio investments.

Challenges Ahead

  • Potential macroeconomic challenges affecting portfolio performance.
  • Rising interest rates could impact borrowing costs.
  • Competition for high-quality lending opportunities may increase.
  • Regulatory and compliance requirements could add operational burdens.
  • Market volatility may affect unrealized gains and NAV fluctuations.