Delivered Total and Net Investment Income of $40.6 million and $15.9 million, Respectively Investment Portfolio of $1.1 billion Conference Call on Thursday, November 5, 2026 at 5:00 p.m. ET MENLO PARK, Calif., November 5, 2026—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 announced its financial results for the third quarter ended September 30, 2026.
Third Quarter 2026 Highlights
•
Total investment portfolio of $1.1 billion at fair value
•
Total investment income of $40.6 million
•
Net investment income of $15.9 million, or $0.38 per share
•
Net asset value of $494.7 million, or $11.94 per share
•
Dollar-weighted annualized yield on debt investments of 15.8% • Four investments completed in existing portfolio companies, representing $8.5 million in funded investments • Aggregate proceeds of $140.0 million, including four full loan principal repayments totaling $130.7 million, $8.7 million in other scheduled loan principal amortization payments, and $0.6 million in equity proceeds • Repurchased 769,037 shares during the quarter for an aggregate purchase price of $4.8 million Fourth Quarter 2026 Distributions • Declared fourth quarter 2026 dividend of $0.33 per share “We are pleased to report solid third quarter results, reflecting strong earnings and stable NAV,” said Runway Growth Founder and Co-CEO David Spreng. “We intentionally moderated originations during the quarter as we continued to optimize the balance sheet, but remain well positioned to capitalize on demand for venture debt financing as the innovation economy grows.”
“It’s been an encouraging first few months at Runway as we continue to execute against our key priorities,” said Runway Growth Co-CEO Michael Rovner. “We have made meaningful progress diversifying the portfolio, bringing leverage back within our target range and expanding our share repurchase program. Looking ahead, we will continue to take a disciplined approach to capital allocation, with shareholder value at the center of our decision-making.”
Third Quarter 2026 Operating Results
Total investment income for the quarter ended September 30, 2026 was $40.6 million, compared to $36.7 million for the quarter ended September 30, 2025.
The Company's dollar-weighted annualized yield on average debt investments for the quarter ended September 30, 2026 was 15.8%. The Company calculates the yield on dollar-weighted debt investments for any period measured as (1) total investment-related income during the period divided by (2) the daily average of the fair value of debt investments outstanding during the period, including any investments on non-accrual status.
Total operating expenses for the quarter ended September 30, 2026 were $24.7 million, compared to $21.0 million for the quarter ended September 30, 2025.
Net investment income for the quarter ended September 30, 2026 was $15.9 million, or $0.38 per share, compared to $15.7 million, or $0.43 per share, for the quarter ended September 30, 2025.
Net realized gain was $10.0 thousand for the quarter ended September 30, 2026, compared to a net realized loss of $1.3 million for the quarter ended September 30, 2025.
For the quarter ended September 30, 2026, net change in unrealized loss was $5.2 million, compared to a net change in unrealized loss of $6.4 million for the quarter ended September 30, 2025.
For the quarter ended September 30, 2026, our net increase in net assets resulting from operations was $10.7 million, or $0.26 per share, compared to a net increase in net assets resulting from operations of $8.0 million, or $0.22 per share, for the quarter ended September 30, 2025.
Portfolio and Investment Activity
As of September 30, 2026, Runway Growth’s investment portfolio had an aggregate fair value of $1.1 billion in 77 companies, comprising $1.0 billion in loans, 96.2% of which are senior secured loans, and $69.7 million in warrants and other equity-related investments.
During the third quarter of 2026, Runway Growth completed four investments in existing portfolio companies, representing $8.5 million in funded investments. Total debt and equity fundings net of upfront loan origination fees were $8.4 million. Runway Growth received aggregate proceeds of $130.2 million in principal prepayments and equity sale proceeds and $9.7 million in scheduled amortizations.
Total portfolio investment activity for the three months ended September 30, 2026 and 2025 was as follows:
Three Months Ended September 30, |
|||||||
2026 |
2025 |
||||||
Beginning investment portfolio |
$ |
1,192,350 |
$ |
1,024,951 |
|||
Purchases of investments |
8,447 |
53,708 |
|||||
PIK interest |
1,998 |
4,096 |
|||||
Sales and prepayments of investments |
(130,228 |
) |
(126,074 |
) |
|||
Scheduled repayments of investments |
(9,737 |
) |
(1,536 |
) |
|||
Amortization of fixed income premiums or accretion of discounts |
3,880 |
(757 |
) |
||||
Net realized gain (loss) on investments |
(1,318 |
) |
|||||
Net change in unrealized gain (loss) on investments |
(5,193 |
) |
(7,106 |
) |
|||
Ending investment portfolio |
$ |
1,061,530 |
$ |
945,964 |
|||
Net Asset Value
As of September 30, 2026, net asset value per share was $11.94, compared to $11.91 as of June 30, 2026. Total net assets at the end of the third quarter of 2026 were $494.7 million, a decrease of 1.6% from $502.6 million as of June 30, 2026.
Liquidity and Capital Resources
As of September 30, 2026, the Company had approximately $216.6 million in available liquidity, including unrestricted cash and cash equivalents of $3.6 million and $213.0 million in available borrowing capacity under the Company’s credit facility, subject to existing terms, advance rates and regulatory and covenant requirements. The Company ended the quarter with a core leverage ratio of approximately 110%, compared to 136% for the quarter ended June 30, 2026.
Distributions
On November 4, 2026, the Company’s board of directors (the "Board of Directors") declared a quarterly distribution of $0.33 per share for stockholders of record as of November 17, 2026. Distributions are payable on or about December 3, 2026.
Recent Developments
The Company evaluated events subsequent to September 30, 2026 through November 5, 2026, the date the consolidated financial statements were issued. There have been no subsequent events that occurred during such period that would require recognition or disclosure, except as disclosed below.
October 2031 Notes
On October 1, 2026, the Company issued and sold approximately $46.3 million in aggregate principal amount of 7.75% interest-bearing unsecured Notes due October 1, 2031 (the "October 2031 Notes") under its shelf Registration Statement on Form N-2. The October 2031 Notes were issued pursuant to the Base Indenture and Fifth Supplemental Indenture, dated October 1, 2026, between the Company and U.S. Bank Trust Company, National Association, as trustee.
Interest on the October 2031 Notes is payable quarterly in arrears on March 1, June 1, September 1, and December 1 of each year. The October 2031 Notes may be redeemed in whole or in part at any time or from time to time at the Company's option on or after October 1, 2028, at a redemption price of $25 per note plus accrued and unpaid interest thereon to, but excluding, the date fixed for redemption. The October 2031 Notes are general unsecured obligations of the Company that rank pari passu with the Company's existing and future unsecured, unsubordinated indebtedness.
Redemption of SWK 2027 Notes
On November 3, 2026, the Company redeemed in full approximately $33.0 million in outstanding aggregate principal amount of its 9.00% Senior Notes due January 31, 2027, in accordance with the terms of the governing indenture, at a redemption price equal to 100% of the aggregate principal amount thereof plus accrued and unpaid interest thereon.
Fifth Share Repurchase Program
On November 4, 2026, the Board of Directors approved an expansion and extension of the Fifth Repurchase Program, which authorizes the Company to repurchase up to $30.0 million of its outstanding shares of common stock until September 30, 2027 at management’s discretion and in accordance with applicable securities laws and regulations. If not renewed, the Fifth Repurchase Program will terminate upon the earlier of (i) the repurchase of $30.0 million of the Company’s outstanding shares of common stock or (ii) September 30, 2027.
Recent Portfolio Activity
From October 1, 2026 through November 5, 2026, the Company completed $4.0 million of additional debt commitments and funded $4.8 million in unfunded commitments on existing investments. The Company also received $55.0 million in debt prepayments and $0.7 million in equity proceeds.
Conference Call
Runway Growth will hold a conference call to discuss its third quarter ended September 30, 2026 financial results at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, November 5, 2026. To participate in the conference call or webcast, participants should register online at the Runway Investor Relations website. The earnings call can also be accessed through the following links:
•
Conference Call
•
Webcast
A live webcast will be available in the investor section of the Company’s website, and will be archived for 90 days following the call.
About Runway Growth Finance Corp.
Runway Growth is a specialty finance company focused on providing flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity. Runway Growth is a closed-end investment fund that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. Runway Growth is externally managed by Runway Growth Capital LLC, an affiliate of BC Partners Advisors L.P. and led by industry veterans David Spreng and Michael Rovner. For more information, please visit www.runwaygrowth.com.
Forward-Looking Statements
Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in forward-looking statements as a result of a number of factors, including those described from time to time in Runway Growth’s filings with the Securities and Exchange Commission. Runway Growth undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Important Disclosures
Strategies described involve special risks that should be evaluated carefully before a decision is made to invest. Not all of the risks and other significant aspects of these strategies are discussed herein. Please see a more detailed discussion of these risk factors and other related risks in the Company’s most recent annual report on Form 10-K in the section entitled “Risk Factors,” which may be obtained on the Company’s website, www.runwaygrowth.com, or the SEC’s website, www.sec.gov.
IR Contacts
Taylor Donahue, Prosek Partners, rway@prosek.com
Carmela Thomson, Chief Financial Officer, ct@runwaygrowth.com
RUNWAY GROWTH FINANCE CORP.
Consolidated Statements of Assets and Liabilities
(In thousands, except share and per share data)
September 30, 2026 |
December 31, 2025 |
|||
(Unaudited) |
||||
Assets |
||||
Investments at fair value: |
||||
Non-control/non-affiliate investments at fair value (cost of $1,094,910 and $961,646, respectively) |
$ |
1,048,654 |
$ |
912,656 |
Affiliate investments at fair value (cost of $4,551 and $4,551, respectively) |
- |
- |
||
Control investments at fair value (cost of $12,180 and $13,233, respectively) |
12,876 |
14,746 |
||
Total investments at fair value (cost of $1,111,641 and $979,430, respectively) |
1,061,530 |
927,402 |
||
Cash and cash equivalents |
3,619 |
18,175 |
||
Interest and fees receivable |
10,202 |
7,594 |
||
Deferred financing costs on credit facility |
3,000 |
4,217 |
||
Other assets |
2,187 |
2,726 |
||
Total assets |
1,080,538 |
960,114 |
||
Liabilities |
||||
Debt: |
||||
Credit facility |
212,000 |
173,000 |
||
2026 Notes |
- |
25,000 |
||
2027 Notes |
73,219 |
132,250 |
||
2028 Notes |
107,000 |
107,000 |
||
2029 Notes |
50,000 |
- |
||
2031 Notes |
103,250 |
- |
||
Deferred financing costs, net |
(4,518) |
(1,913) |
||
Total debt, net |
540,951 |
435,337 |
||
Incentive fees payable |
15,028 |
14,444 |
||
Interest payable |
11,267 |
6,756 |
||
Foreign currency forward contracts |
- |
|||
Secured borrowings |
14,938 |
14,578 |
||
Accrued expenses and other liabilities |
3,659 |
3,319 |
||
Total liabilities |
585,843 |
475,145 |
||
Net assets |
||||
Common stock, par value |
||||
Additional paid-in capital |
579,914 |
534,508 |
||
Accumulated undistributed (overdistributed) earnings |
(85,633) |
(49,900) |
||
Total net assets |
$ |
494,695 |
$ |
484,969 |
Shares of common stock outstanding ($0.01 par value, 100,000,000 shares authorized) |
41,446,340 |
36,134,037 |
||
Net asset value per share |
$ |
11.94 |
$ |
13.42 |
RUNWAY GROWTH FINANCE CORP.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||
2026 |
2025 |
2026 |
2025 |
||||||||||||
Investment income |
|||||||||||||||
From non-control/non-affiliate investments: |
|||||||||||||||
Interest income |
$ |
37,283 |
$ |
30,715 |
$ |
95,581 |
$ |
91,314 |
|||||||
Payment-in-kind interest income |
1,999 |
4,219 |
8,178 |
11,857 |
|||||||||||
Dividend income |
|||||||||||||||
Fee income |
1,403 |
1,322 |
1,946 |
||||||||||||
From affiliate investments: |
|||||||||||||||
Interest income |
- |
- |
- |
||||||||||||
Fee income |
- |
- |
- |
||||||||||||
From control investments: |
|||||||||||||||
Interest income |
- |
1,120 |
- |
||||||||||||
Other income |
|||||||||||||||
Total investment income |
40,564 |
36,747 |
107,040 |
107,292 |
|||||||||||
Operating expenses |
|||||||||||||||
Management fees |
4,620 |
3,963 |
11,711 |
11,916 |
|||||||||||
Incentive fees |
4,277 |
4,075 |
6,679 |
11,527 |
|||||||||||
Interest and other debt financing expenses |
13,282 |
10,630 |
36,769 |
32,681 |
|||||||||||
Professional fees |
2,498 |
1,687 |
|||||||||||||
Administration agreement expenses |
1,979 |
1,993 |
|||||||||||||
Insurance expense |
|||||||||||||||
Tax expense |
|||||||||||||||
Other expenses |
1,202 |
||||||||||||||
Total operating expenses |
24,681 |
21,011 |
62,342 |
62,009 |
|||||||||||
Net investment income |
15,883 |
15,736 |
44,698 |
45,283 |
|||||||||||
Net realized and net change in unrealized gain (loss) |
|||||||||||||||
Net realized gain (loss): |
|||||||||||||||
Non-control/non-affiliate investments |
(1,318 |
) |
(44,164 |
) |
(5,705 |
) |
|||||||||
Affiliate investments |
- |
- |
- |
8,943 |
|||||||||||
Control investments |
- |
- |
1,050 |
- |
|||||||||||
Net realized gain (loss) on investments |
(1,318 |
) |
(43,114 |
) |
3,238 |
||||||||||
Net realized gain (loss) on forward contracts and foreign currency transactions |
(3 |
) |
(12 |
) |
(881 |
) |
(23 |
) |
|||||||
Net realized gain (loss) |
(1,330 |
) |
(43,995 |
) |
3,215 |
||||||||||
Net change in unrealized gain (loss): |
|||||||||||||||
Non-control/non-affiliate investments |
(5,034 |
) |
(7,473 |
) |
2,734 |
(11,677 |
) |
||||||||
Affiliate investments |
- |
- |
- |
(9,925 |
) |
||||||||||
Control investments |
(159 |
) |
(817 |
) |
|||||||||||
Net change in unrealized gain (loss) on investments |
(5,193 |
) |
(7,106 |
) |
1,917 |
(21,176 |
) |
||||||||
Net change in unrealized gain (loss) on forward contracts and foreign currency transactions |
- |
(640 |
) |
||||||||||||
Net change in unrealized gain (loss) on secured borrowings |
- |
(251 |
) |
- |
|||||||||||
Net change in unrealized gain (loss) |
(5,189 |
) |
(6,387 |
) |
2,377 |
(21,816 |
) |
||||||||
Net realized and unrealized gain (loss) |
(5,179 |
) |
(7,717 |
) |
(41,618 |
) |
(18,601 |
) |
|||||||
Net increase (decrease) in net assets resulting from operations |
$ |
10,704 |
$ |
8,019 |
$ |
3,080 |
$ |
26,682 |
|||||||
Net increase (decrease) in net assets resulting from operations per common share (basic and diluted) |
$ |
0.26 |
$ |
0.22 |
$ |
0.08 |
$ |
0.72 |
|||||||
Weighted average shares outstanding (basic and diluted) |
41,886,707 |
36,225,742 |
40,052,910 |
36,887,968 |
|||||||||||