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Runway Growth Finance Corp
(NASDAQ:RWAY)
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Rating:49Neutral
Price Target:
$6.50
▼(-0.46% Downside)
Action:Reiterated
Date:10/13/26
RWAY scores below average primarily due to weakened financial performance, with TTM losses and negative operating/free cash flow outweighing balance-sheet improvements. Technical indicators also lean soft (negative MACD, RSI below 50, price below shorter-term averages). Offsetting support comes from earnings-call messaging around dividend coverage and SWK-related NII accretion, plus a very high dividend yield and positive recent financing actions, but these do not fully neutralize the near-term profitability and cash-flow risks.
Positive Factors
SWK-driven portfolio expansion
The SWK acquisition materially expanded the investment portfolio and increased yielding assets, creating a broader base for recurring interest income. Its contribution to NII and improved diversification can strengthen earnings capacity over the next several quarters if credit performance remains stable.
Negative Factors
Material realized credit losses
The sizable realized losses demonstrate that portfolio credit problems can materially reduce NAV and earnings in a single quarter. They also show that the venture-lending strategy remains exposed to borrower restructurings, making future income and asset values less predictable over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
SWK-driven portfolio expansion
The SWK acquisition materially expanded the investment portfolio and increased yielding assets, creating a broader base for recurring interest income. Its contribution to NII and improved diversification can strengthen earnings capacity over the next several quarters if credit performance remains stable.
Read all positive factors
Runway Growth Finance Corp Key Performance Indicators (KPIs)
Any
Investment Portfolio
Describes the size, composition and concentration of the company’s invested assets — loan types, seniority, sectors and borrower stages. Portfolio mix reveals where the firm is taking risk, how diversified it is, and how changes may affect future income and capital losses.
Describes the size, composition and concentration of the company’s invested assets — loan types, seniority, sectors and borrower stages. Portfolio mix reveals where the firm is taking risk, how diversified it is, and how changes may affect future income and capital losses.
Data provided by:
The Fly
The FlyRunway Growth Finance Corp (RWAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$269.48M
Dividend Yield15.4%
Average Volume (3M)286.16K
Price to Earnings (P/E)58.5
Beta (1Y)0.91
Revenue Growth-38.60%
EPS Growth-94.34%
CountryUS
Employees500
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.11
Shares Outstanding41,909,904
10 Day Avg. Volume228,318
30 Day Avg. Volume286,156
Financial Highlights & Ratios
PEG Ratio-0.19
Price to Book (P/B)0.68
Price to Sales (P/S)2.34
P/FCF Ratio1.76
Enterprise Value/Market Cap3.41
Enterprise Value/Revenue14.70
Enterprise Value/Gross Profit27.24
Enterprise Value/Ebitda29.41
Forecast
1Y Price Target
$8.33Price Target Upside27.62% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)1.4
Revenue Forecast (FY)$141.69M
Runway Growth Finance Corp Business Overview & Revenue Model
Company Description
Runway Growth Finance Corp. (RWAY) operates as a business development company (BDC), concentrating its efforts on providing senior-secured loan financing to late-stage and expanding enterprises. The firm primarily targets investments in companies ...
How the Company Makes Money
Runway Growth Finance Corp primarily makes money by investing in and earning income from a portfolio of loans it originates to growth-stage companies. Its main revenue and earnings drivers typically include: (1) Interest income: The largest compon...
Runway Growth Finance Corp Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed a generally constructive operational and strategic picture driven by the SWK acquisition: meaningful portfolio growth (+35% fair value), improved diversification, an accretive contribution to NII (+$0.05 per quarter from SWK), improved portfolio risk metrics, and strong valuation backtesting. Offsetting these positives were significant realized losses in the quarter ($45.3M) tied to two restructurings, a modest NAV per share decline (−2%), increased leverage, and the company’s shares trading at a large discount (>49%) to NAV. Management emphasized confidence in portfolio quality, dividend coverage, disciplined capital allocation (repurchases, selective originations), and alignment from BC Partners, supporting a constructive near- to mid-term outlook despite near-term volatility and mark-to-market pressure from the market.Positive Updates
Strong Quarter-over-Quarter Income Growth
Total investment income rose to $37.0M in Q2 2026 from $29.5M in Q1 2026 (≈+25.4%), and net investment income increased to $18.2M from $10.6M (≈+71.7% QoQ). NII per share was $0.43 for the quarter versus a base dividend of $0.33 per share.
Negative Updates
Material Realized Losses in the Quarter
Runway recorded a net realized loss on investments of $45.3M in Q2 2026 versus a net realized gain of $1.3M in Q1 2026. Major contributors were Marley Spoon ($31.3M realized loss) and Blueshift ($16.5M realized loss).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarter-over-Quarter Income Growth
Total investment income rose to $37.0M in Q2 2026 from $29.5M in Q1 2026 (≈+25.4%), and net investment income increased to $18.2M from $10.6M (≈+71.7% QoQ). NII per share was $0.43 for the quarter versus a base dividend of $0.33 per share.
Read all positive updates
Company Guidance
The company guided to a capital‑allocation plan focused on maintaining a stable dividend (Q3 regular distribution declared at $0.33 per share), which management expects to be covered on a full‑year basis with >100% coverage, while balancing disciplined share repurchases and debt pay‑down to manage leverage; quarterly NII was $18.2 million ($0.43 per share) with spillover income of ~$0.68 per share and SWK contributing $0.05 of quarterly NII accretion, total investment income was $37.0 million, and management noted a $0.05 go‑forward accretion from SWK and 26% growth in yielding assets tied to that acquisition. On buybacks, BC Partners and affiliates committed to purchase up to 10% of outstanding common stock over the next two years while shares trade below 70% of NAV, Runway expects to restart a new Rule 10b5‑1 after the August 11 blackout, and the company has a $15 million repurchase authorization ( $3.1 million repurchased as of Aug 3, $11.9 million remaining). Liquidity and balance‑sheet targets include available liquidity of $210.8 million, $200 million undrawn KeyBank capacity, and a desire to reduce current leverage of 1.36x (asset coverage 1.74x, versus 0.98x/2.02x in Q1) as repayments occur; portfolio/fair‑value metrics cited in support of the guidance included a $1.2 billion fair‑value portfolio (up 35% q/q), net assets of $502.6 million, NAV per share of $11.91 (down 2% q/q), a dollar‑weighted average annualized debt yield of 14.2% (15% excluding non‑accruals), total Q2 realized net losses of $45.3 million (driven by Marley Spoon and Blueshift), total liquidity events of $36.5 million (assignments $15.9M, repayments $10.5M, equity $10.1M), and the view that current share pricing would imply >$250 million of realized losses at 0% recovery versus Runway’s historical 76% recovery rate.Runway Growth Finance Corp Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
61
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 62.51M | 140.16M | 124.22M | 94.52M | 55.14M | 54.00M |
| Gross Profit | 33.73M | 109.99M | 85.89M | 55.88M | 41.38M | 49.81M |
| EBITDA | 31.25M | 76.72M | 73.61M | 47.37M | 32.25M | 46.09M |
| Net Income | 7.76M | 34.05M | 73.61M | 44.34M | 32.25M | 45.62M |
Balance Sheet | ||||||
| Total Assets | 1.22B | 960.11M | 1.09B | 1.08B | 1.14B | 738.35M |
| Cash, Cash Equivalents and Short-Term Investments | 10.83M | 18.18M | 5.75M | 2.97M | 5.76M | 4.70M |
| Total Debt | 693.85M | 449.92M | 552.33M | 510.08M | 548.96M | 79.49M |
| Total Liabilities | 719.78M | 475.14M | 576.49M | 532.08M | 565.71M | 132.15M |
| Stockholders Equity | 502.58M | 484.97M | 514.87M | 547.07M | 576.05M | 606.20M |
Cash Flow | ||||||
| Free Cash Flow | -75.37M | 186.31M | 50.49M | 112.44M | 48.98M | -61.25M |
| Operating Cash Flow | -75.37M | 186.31M | 50.49M | 112.44M | 48.98M | -61.25M |
| Investing Cash Flow | 0.00 | 0.00 | -22.93M | 0.00 | -453.82M | -120.84M |
| Financing Cash Flow | 80.25M | -173.90M | -66.81M | -115.23M | 360.91M | 51.06M |
Runway Growth Finance Corp Technical Analysis
Positive
6.53
Price Trends
6.55
Negative
6.02
Positive
6.35
Positive
Market Momentum
-0.04
Negative
49.56
Neutral
65.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RWAY, the sentiment is Positive. The current price of 6.53 is above the 20-day moving average (MA) of 6.42, below the 50-day MA of 6.55, and above the 200-day MA of 6.35, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 49.56 is Neutral, neither overbought nor oversold. The STOCH value of 65.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RWAY.
Runway Growth Finance Corp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $38.33B | 10.32 | 13.63% | 2.84% | 13.24% | 65.45% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $4.19B | 11.14 | 26.36% | ― | 20.08% | 33.74% | |
62 Neutral | $2.15B | 11.11 | 13.13% | 3.09% | 31.16% | 7.63% | |
61 Neutral | $1.34B | 9.20 | 23.09% | 16.39% | 83.72% | 35.89% | |
57 Neutral | $11.78B | 8.76 | 9.67% | 3.10% | 4.86% | 161.37% | |
49 Neutral | $269.48M | 58.45 | 1.62% | 15.40% | -38.60% | -94.34% |
* Financial Sector Average
RWAY
Runway Growth Finance Corp
6.43
-1.86
-22.42%
AGM
Federal Agricultural
204.02
51.70
33.94%
IX
Orix
36.93
12.62
51.91%
ALLY
Ally Financial
38.72
-0.13
-0.32%
ATLC
Atlanticus Holdings
88.28
32.00
56.86%
ENVA
Enova International
171.31
49.93
41.14%
Runway Growth Finance Corp Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Runway Growth Finance Highlights Q3 Portfolio Optimization Efforts
Positive
Oct 13, 2026
During the third quarter of 2026, Runway Growth Finance Corp. focused on optimizing its portfolio while maintaining a measured approach to new originations, reflecting management’s emphasis on disciplined capital deployment. The company repo...
Business Operations and StrategyPrivate Placements and Financing
Runway Growth Finance completes notes offering and redemption
Positive
Oct 1, 2026
On October 1, 2026, Runway Growth Finance Corp. closed a public offering of $46.3 million aggregate principal amount of 7.75% unsecured notes due October 1, 2031, issued under a supplemental indenture with U.S. Bank Trust Company as trustee. The n...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Runway Growth Finance Prices New 2031 Debt Offering
Positive
Sep 25, 2026
Runway Growth Finance Corp. entered into an underwriting agreement on September 24, 2026, with Runway Growth Capital LLC and Oppenheimer Co. Inc. for a $45 million issuance of 7.75% notes due 2031. The deal, conducted under an existing SEC shelf ...
Business Operations and StrategyDividends
Runway Growth Finance Declares Third-Quarter Cash Dividend
Positive
Aug 5, 2026
On August 5, 2026, Runway Growth Finance Corp.’s board declared a regular third-quarter cash dividend of $0.33 per share, reinforcing its income-focused profile for shareholders. The dividend will be paid to stockholders of record as of Augu...
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Runway Growth Finance Unveils Share Purchase Commitment Plan
Positive
Jul 15, 2026
Runway Growth Finance Corp., a leading provider of venture debt and flexible credit solutions to late- and growth-stage companies in technology, healthcare and select consumer sectors, operates as a business development company regulated under the...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.