Runway Growth Finance Corp. — Second Quarter 2026 Earnings Summary

Financial Performance

• Total investment income was $37.0 million for the quarter ended June 30, 2026, compared to $35.1 million in the same period of 2025.
• Net investment income was $18.2 million ($0.43 per share) for the quarter, compared to $13.9 million ($0.38 per share) in the prior year period.
• Total operating expenses were $18.8 million for the quarter, down from $21.2 million in the prior year period.
• Net realized loss was $45.3 million for the quarter, compared to a net realized loss of $1.5 million in the prior year period.
• Net change in unrealized gain was $54.3 million for the quarter, compared to $4.4 million in the prior year period.
• Net increase in net assets resulting from operations was $27.2 million ($0.65 per share) for the quarter, compared to $16.8 million ($0.45 per share) in the prior year period.
• Dollar-weighted annualized yield on debt investments was 14.2% for the quarter.
• Net asset value per share was $11.91 as of June 30, 2026, compared to $12.13 as of March 31, 2026.
• Total net assets were $502.6 million as of June 30, 2026, a 15% increase from $438.2 million as of March 31, 2026.
• Total investment portfolio fair value was $1.2 billion as of June 30, 2026, comprising $1.1 billion in loans (98.0% senior secured) and $70.0 million in warrants and other equity-related investments.
• Core leverage ratio was approximately 136% as of June 30, 2026, compared to 98% for the quarter ended March 31, 2026.
• Available liquidity was approximately $210.8 million, including $10.8 million in unrestricted cash and $200.0 million in borrowing capacity under the credit facility.

Guidance and Future Outlook

• The company declared a third quarter 2026 dividend of $0.33 per share.
• Management expressed confidence in Runway's long-term value and alignment with shareholders through capital allocation strategies.
• The investment adviser and its affiliates recently announced a commitment to purchase up to 10% of outstanding shares.

Business Segments and Product Lines

• Funded approximately $239.6 million of investments acquired in connection with the acquisition of SWK Holdings, including $216.2 million across 13 acquired loan positions and $23.4 million in acquired equity positions.
• Completed ten investments in new and existing portfolio companies representing $101.7 million in funded investments, which net of assignments was $85.8 million.
• Received aggregate proceeds of $36.5 million, consisting of $15.9 million in assignments, $10.5 million from scheduled repayments, and $10.1 million in sale proceeds from equity.
• Received $17.1 million in debt prepayments and funded $1.9 million in unfunded commitments on existing investments between July 1, 2026, and August 6, 2026.

Market and Competitive Landscape

• The portfolio consists of 79 companies as of June 30, 2026.
• The successful integration of the SWK portfolio has enhanced diversification, increased earnings capacity, and broadened the opportunity set.

Risks and Challenges

• The dollar-weighted annualized yield was modestly impacted by the transition of BlueShift and Marley Spoon to non-accrual status at the end of the first quarter.
• The company faces risks associated with the strategies described, which involve special risks not fully detailed in the press release.

Management Commentary and Tone

• David Spreng, Founder and Co-Chief Executive Officer, stated that the company made meaningful progress executing its strategy while strengthening the business foundation.
• Management highlighted a disciplined approach to capital allocation, balancing new investments with opportunistic share repurchases.
• Mike Rovner was appointed Co-Chief Executive Officer and Co-Chief Investment Officer, bringing over 30 years of experience in technology, venture capital, private credit, and growth lending.
• The tone reflects strong alignment with shareholders and confidence in long-term value creation.

Other Key Points

• Repurchased 249,169 shares during the quarter for an aggregate purchase price of $1.4 million.
• On July 13, 2026, the Company entered into the Eighth Amendment to its credit agreement, reducing total commitments from $550.0 million to $425.0 million.
• The Credit Facility Amendment permitted non-pro rata prepayment and termination of a certain lender's commitments, amended financial covenants, updated key-person trigger events, and amended loan eligibility criteria and borrowing-base concentration limitations.
• Michael Rovner joined the Board of Directors and the Investment Committee of Runway Growth Capital LLC effective August 6, 2026.
• The 2026 Notes were fully repaid or retired as they are not listed in the June 30, 2026 balance sheet, while the 2029 Notes and 2031 Notes were newly issued or increased to $50.0 million and $103.25 million respectively.
• The 2027 Notes balance decreased to $73.219 million from $132.25 million as of December 31, 2025.
• The 2028 Notes balance remained at $107.0 million.
• The credit facility balance increased to $350.0 million from $173.0 million as of December 31, 2025.