Runway Growth Finance Corp. Reports Third Quarter 2026 Financial Results
| 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 | 13 | (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 .
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,, or the SEC's website,
IR Contacts
Taylor Donahue, Prosek Partners,...
Carmela Thomson, Chief Financial Officer,...
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 | - | 711 | ||||||
| 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 | 414 | 361 | ||||||
| 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 | 253 | 252 | 559 | 758 | ||||||||||||||||
| Fee income | 661 | 1,403 | 1,322 | 1,946 | ||||||||||||||||
| From affiliate investments: | ||||||||||||||||||||
| Interest income | - | - | - | 646 | ||||||||||||||||
| Fee income | - | - | - | 256 | ||||||||||||||||
| From control investments: | ||||||||||||||||||||
| Interest income | 256 | - | 1,120 | - | ||||||||||||||||
| Other income | 112 | 158 | 280 | 515 | ||||||||||||||||
| 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 | 848 | 556 | 2,498 | 1,687 | ||||||||||||||||
| Administration agreement expenses | 706 | 705 | 1,979 | 1,993 | ||||||||||||||||
| Insurance expense | 204 | 163 | 563 | 479 | ||||||||||||||||
| Tax expense | 360 | 560 | 941 | 810 | ||||||||||||||||
| Other expenses | 384 | 359 | 1,202 | 916 | ||||||||||||||||
| 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 | 13 | (1,318) | (44,164) | (5,705) | ||||||||||||||||
| Affiliate investments | - | - | - | 8,943 | ||||||||||||||||
| Control investments | - | - | 1,050 | - | ||||||||||||||||
| Net realized gain (loss) on investments | 13 | (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) | 10 | (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) | 367 | (817) | 426 | ||||||||||||||||
| 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 | - | 719 | 711 | (640) | ||||||||||||||||
| Net change in unrealized gain (loss) on secured borrowings | 4 | - | (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 |
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