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Runway Growth Finance Corp
(NASDAQ:RWAY)
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Rating:52Neutral
Price Target:
$6.00
▼(-8.12% Downside)
Action:Reiterated
Date:08/07/26
RWAY’s score is held back primarily by weakening financial performance, with TTM losses and negative free cash flow outweighing the benefit of lower leverage in the TTM balance sheet. Offsetting factors include moderately improving technical momentum (above short-term moving averages with positive MACD) and a constructive earnings call focused on dividend coverage and SWK-driven portfolio/NII improvements, though realized losses, NAV pressure, and higher leverage keep the overall outlook only mid-range.
Positive Factors
Portfolio growth via SWK acquisition
The SWK transaction materially enlarged the portfolio (35% q/q fair-value increase to $1.2B), providing scale that can improve yield diversification and fee/income stability. Larger, diversified holdings reduce idiosyncratic exposure and support steadier NII over the medium term.
Negative Factors
Material realized investment losses
Large realized losses in the quarter materially reduced NAV and demonstrated real credit risk in the portfolio. Persisting realized losses can erode capital, raise provisioning needs, and pressure ability to generate positive retained earnings, affecting dividend durability longer-term.
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Positive Factors
Negative Factors
Portfolio growth via SWK acquisition
The SWK transaction materially enlarged the portfolio (35% q/q fair-value increase to $1.2B), providing scale that can improve yield diversification and fee/income stability. Larger, diversified holdings reduce idiosyncratic exposure and support steadier NII over the medium term.
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
$275.77M
Dividend Yield15.02%
Average Volume (3M)619.33K
Price to Earnings (P/E)59.9
Beta (1Y)0.87
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. Volume587,371
30 Day Avg. Volume619,328
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$8.75Price Target Upside34.00% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)1.39
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
RWAY makes money primarily by earning investment income on its loan portfolio. Its core revenue stream is interest income from senior secured loans it originates or holds, typically including (a) cash interest paid periodically and (b) in some cas...
Runway Growth Finance Corp Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 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).
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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 | 45.62M |
| 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 Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $271.16M | 8.54 | 8.86% | 5.12% | 5.42% | -24.04% | |
71 Outperform | $343.98M | 18.40 | 4.95% | ― | -2.34% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $301.50M | 6.54 | 12.49% | 2.88% | 9.63% | 40.75% | |
54 Neutral | $94.33M | -0.30 | -7.18% | 37.29% | -13.83% | -154.13% | |
52 Neutral | $275.77M | 59.91 | 1.62% | 25.21% | -38.60% | -94.34% |
* Financial Sector Average
RWAY
Runway Growth Finance Corp
6.59
-2.54
-27.79%
MFIN
Medallion Financial
11.95
1.93
19.27%
RM
Regional Management
32.55
-9.80
-23.15%
YRD
Yiren Digital
1.05
-4.58
-81.33%
OPRT
Oportun Financial
7.36
0.75
11.35%
Runway Growth Finance Corp Corporate Events
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...
Executive/Board ChangesShareholder Meetings
Runway Growth Stockholders Reaffirm Board and Auditor Choices
Positive
Jun 25, 2026
On June 23, 2026, Runway Growth Finance Corp. held its 2026 Annual Meeting of Stockholders, where investors voted on board composition and the company’s audit arrangements. Stockholders re-elected Alexander Duka and Gary Kovacs as Class I di...
Business Operations and StrategyPrivate Placements and Financing
Runway Growth Finance Issues New 2029 Unsecured Notes
Neutral
May 29, 2026
Runway Growth Finance Corp., a specialty finance company focused on providing debt capital to late-stage and growth companies, operates in the venture and growth lending market through senior secured loans and related instruments. Its business mod...
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.