second quarter 2026
Filed Aug 6, 2026Runway Growth Finance Corp. Reports Second Quarter 2026 Financial Results Delivered Total and Net Investment Income of $37.0 million and $18.2 million, Respectively Investment Portfolio of $1.2 billion
Net investment income increased to $18.2 million, total operating expenses declined to $18.8 million, and the investment portfolio reached $1.2 billion following the SWK Holdings acquisition. However, the quarter included a $45.3 million net realized loss, net asset value per share declined to $11.91 from $12.13, and BlueShift and Marley Spoon transitioned to non-accrual status.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total investment incomeother | $37.0 million | – | – |
| Dollar-weighted annualized yield on average debt investmentsother | 14.2% | – | – |
| Total operating expensesother | $18.8 million | – | – |
| Net investment incomeother | $18.2 million, or $0.43 per share | – | – |
| Net realized lossother | $45.3 million | – | – |
| Net change in unrealized gainother | $54.3 million | – | – |
| Net increase in net assets resulting from operationsother | $27.2 million, or $0.65 per share | – | – |
| Total investment portfolio at fair valueother | $1.2 billion | – | – |
| Net asset valueother | $502.6 million, or $11.91 per share | an increase of 15% | – |
| Core leverage ratioother | approximately 136% | – | – |
Capital returns
- Repurchased 249,169 shares during the quarter for an aggregate purchase price of $1.4 million
- Declared third quarter 2026 dividend of $0.33 per share
- The quarterly distribution of $0.33 per share is payable on August 31, 2026 to stockholders of record as of August 17, 2026.
- The investment adviser and its affiliates recently announced their commitment to purchase up to 10% of our outstanding shares.
What drove it
- The successful integration of the SWK portfolio enhanced diversification, increased earnings capacity and broadened the opportunity set, according to management.
- The SWK Holdings acquisition added 13 acquired loan positions and acquired equity positions.
- New and existing portfolio-company investments represented $101.7 million in funded investments.
- 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.
- Michael Rovner was elected Co-Chief Executive Officer effective as of the close of business on August 6, 2026.
Concerns
- Net realized loss was $45.3 million, compared to a net realized loss of $1.5 million for the quarter ended June 30, 2025.
- BlueShift and Marley Spoon transitioned to non-accrual status at the end of the first quarter.
- Net asset value per share was $11.91, compared to $12.13 as of March 31, 2026.
- The core leverage ratio was approximately 136%, compared to 98% for the quarter ended March 31, 2026.
- The Credit Facility Amendment reduced total commitments under the Credit Facility from $550.0 million to $425.0 million.
What to watch
- The performance and non-accrual status of BlueShift and Marley Spoon.
- Realized and unrealized investment gains and losses following the $45.3 million net realized loss.
- Portfolio performance and earnings contribution from the investments acquired in connection with SWK Holdings.
- Liquidity and borrowing capacity following the reduction of Credit Facility commitments to $425.0 million.
- Capital deployment, repayments and opportunistic share repurchases.
Balance sheet and cash flow
- As of June 30, 2026, the Company had approximately $210.8 million in available liquidity.
- Unrestricted cash and cash equivalents were $10.8 million.
- Available borrowing capacity under the Company’s credit facility was $200.0 million, subject to existing terms, advance rates and regulatory and covenant requirements.
- The investment portfolio had an aggregate fair value of $1.2 billion in 79 companies, comprising $1.1 billion in loans and $70.0 million in warrants and other equity-related investments.
- 98.0% of loans were senior secured loans.
- 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.
- The SWK Holdings investments, net of the purchase discount, were $225.2 million.
- Ten investments in new and existing portfolio companies represented $101.7 million in funded investments, which net of assignments was $85.8 million.
- Total debt and equity fundings net of upfront loan origination fees and purchase discounts were $325.4 million.
- Received aggregate proceeds of $26.0 million in principal prepayments and equity sale proceeds.
- Received proceeds of $10.5 million in scheduled amortizations.
- From July 1, 2026 through August 6, 2026, the Company funded $1.9 million in unfunded commitments on existing investments and received $17.1 million in debt prepayments.
- On July 13, 2026, the Credit Facility Amendment reduced total commitments under the Credit Facility from $550.0 million to $425.0 million.
Analysis
Runway Growth reported stronger recurring investment-income results in the second quarter. Total investment income was $37.0 million, compared to $35.1 million for the quarter ended June 30, 2025, while total operating expenses were $18.8 million, compared to $21.2 million. Net investment income reached $18.2 million, or $0.43 per share, compared to $13.9 million, or $0.38 per share. The dollar-weighted annualized yield on average debt investments was 14.2%, although management said this was modestly impacted by BlueShift and Marley Spoon moving to non-accrual status at the end of the first quarter.
Portfolio expansion was driven by the SWK Holdings acquisition and additional new and existing portfolio-company activity. The investment portfolio had an aggregate fair value of $1.2 billion across 79 companies, including $1.1 billion in loans, of which 98.0% were senior secured, and $70.0 million in warrants and other equity-related investments. The Company funded approximately $239.6 million of investments acquired in connection with SWK Holdings and completed ten investments representing $101.7 million in funded investments. Total debt and equity fundings net of upfront loan origination fees and purchase discounts were $325.4 million.
The earnings result was offset by meaningful realized losses. Net realized loss was $45.3 million, compared to a net realized loss of $1.5 million in the prior-year quarter. A $54.3 million net change in unrealized gain, compared to $4.4 million in the prior-year period, supported a net increase in net assets resulting from operations of $27.2 million, or $0.65 per share. Net asset value was $502.6 million, an increase of 15% from $438.2 million as of March 31, 2026, but net asset value per share declined to $11.91 from $12.13.
Liquidity stood at approximately $210.8 million, including $10.8 million of unrestricted cash and cash equivalents and $200.0 million of available borrowing capacity. Core leverage rose to approximately 136% from 98% for the quarter ended March 31, 2026. Subsequent to quarter end, the Company reduced total Credit Facility commitments from $550.0 million to $425.0 million. Capital allocation included repurchases of 249,169 shares for an aggregate purchase price of $1.4 million and a declared third quarter 2026 distribution of $0.33 per share.
The filing does not provide financial guidance. The principal reported items to monitor are the performance of the expanded SWK portfolio, the two non-accrual investments, realized investment losses, leverage, and repayment activity. From July 1, 2026 through August 6, 2026, the Company funded $1.9 million in unfunded commitments on existing investments and received $17.1 million in debt prepayments.
Management, verbatim
During the second quarter, we made meaningful progress executing our strategy while further strengthening the foundation of the business. The successful integration of the SWK portfolio has enhanced our diversification, increased our earnings capacity and broadened our opportunity set. At the same time, we remain disciplined in our capital allocation, balancing new investments with opportunistic share repurchases. Complementing these efforts, our investment adviser and its affiliates recently announced their commitment to purchase up to 10% of our outstanding shares. Together, these actions reflect strong alignment with our shareholders and confidence in Runway’s long-term value.
David Spreng, Founder and Co-Chief Executive Officer of Runway Growth
I also want to welcome Mike Rovner, who has been appointed Co-Chief Executive Officer of Runway Growth Finance and Co-Chief Investment Officer of Runway Growth Capital. Mike brings more than 30 years of experience spanning technology, venture capital, private credit and growth lending. His experience building and leading investment platforms, together with his connectivity across the BC Partners platform, further strengthens our leadership team and investment capabilities. Mike's disciplined investment philosophy and deep understanding of the innovation economy closely align with the culture we've built at Runway, and I look forward to partnering with him as we remain focused on maximizing shareholder returns.
David Spreng, Founder and Co-Chief Executive Officer of Runway Growth
Not in the filing
stated, not guessed- GAAP and non-GAAP basis designations for reported earnings metrics
- GAAP net income
- GAAP earnings per share
- Non-GAAP earnings metrics
- Gross profit and gross margin
- Segment revenue and segment profitability
- Operating cash flow
- Free cash flow
- Debt outstanding
- Forward financial guidance
- Prior-quarter comparisons for total investment income, total operating expenses, net investment income, net realized loss, net change in unrealized gain, and net increase in net assets resulting from operations
- Year-over-year percentage changes for reported operating metrics
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.