Runway Growth Finance Corp. Reports Fourth Quarter and Fiscal Year 2024 Financial Results

Delivered Total and Net Investment Income of $33.8 million and $14.6 million, Respectively

Investment Portfolio of $1.1 billion

Conference Call Today, Thursday, March 20, 2025 at 5:00 p.m. ET

MENLO PARK, Calif., March 20, 2025 (GLOBE NEWSWIRE) -- Runway Growth Finance Corp. (Nasdaq: RWAY) ("Runway Growth" or the "Company"), a leading provider of flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2024.

Fourth Quarter 2024 Highlights

   -- Total investment income of $33.8 million 
 
   -- Net investment income of $14.6 million, or $0.39 per share 
 
   -- Net asset value of $514.9 million, or $13.79 per share 
 
   -- Dollar-weighted annualized yield on debt investments of 14.7% for the 
      quarter 
 
   -- Two investments completed in new portfolio companies and five investments 
      in existing portfolio companies, representing $154.0 million in funded 
      investments 
 
   -- Aggregate proceeds of $152.6 million in principal prepayments and $2.4 
      million from scheduled amortizations 
 
   -- Repurchased 555,104 shares of the Company's outstanding common stock 
      during the fourth quarter under previously authorized share repurchase 
      program 

Fiscal Year 2024 Highlights

   -- Total investment portfolio of $1.1 billion at fair value 
 
   -- Net investment income of $63.8 million, or $1.64 per share 
 
   -- Net asset value of $514.9 million, or $13.79 per share 
 
   -- Total investment fundings of $330.5 million: $223.2 million in seven new 
      portfolio companies, $101.7 million in nine existing portfolio companies, 
      and $5.6 million in Runway-Cadma I LLC 
 
   -- Aggregate proceeds of $287.4 million in principal prepayments and $4.8 
      million from scheduled amortizations 
 
   -- Low credit loss ratio of an average 12 basis points per year on a gross 
      basis and an average 10 basis points per year on a net (debt and equity) 
      basis, based on cumulative commitments since inception 
 
   -- Repurchased 3,161,805 shares of the Company's outstanding common stock 
      under previously authorized share repurchase programs 

First Quarter 2025 Distributions

   -- Declared first quarter 2025 regular dividend of $0.33 per share 
 
   -- Declared first quarter 2025 supplemental dividend of $0.03 per share 

"In 2024, Runway Growth advanced its strategy to optimize our portfolio, enhance our origination channels, and expand our product set," said David Spreng, Founder and CEO of Runway Growth. "Notably, we believe the close of the combination between our investment adviser, Runway Growth Capital, and BC Partners Credit positions the Company to further diversify our go-forward composition and maximize the portfolio with attractive investment opportunities. Our stockholders and borrowers alike will benefit from the combined scale and expertise of our expanded platform as we seek to mitigate risk and drive heightened returns."

Spreng continued, "Our team's diligent underwriting and credit-first investment philosophy will drive the strength of our portfolio and enable our borrowers to perform against the dynamic macro environment taking shape in the year ahead."

Fourth Quarter 2024 Operating Results

Total investment income for the quarter ended December 31, 2024 was $33.8 million, compared to $39.2 million for the quarter ended December 31, 2023.

Net investment income for the quarter ended December 31, 2024 was $14.6 million, or $0.39 per share, compared to $18.3 million, or $0.45 per share, for the quarter ended December 31, 2023.

The Company's dollar-weighted annualized yield on average debt investments for the quarter ended December 31, 2024 was 14.7%. The Company calculates the yield on dollar-weighted debt investments for any period measured as (1) total investment-related income during the period divided by (2) the daily average of the fair value of debt investments, including investments on non-accrual status, outstanding during the period.

Total operating expenses for the quarter ended December 31, 2024 were $19.2 million, compared to $20.9 million for the quarter ended December 31, 2023.

Net realized loss on investments was $2.9 million for the quarter ended December 31, 2024, compared to a net realized loss of $17.2 million for the quarter ended December 31, 2023.

For the quarter ended December 31, 2024, net change in unrealized gain on investments was $16.5 million, compared to a net change in unrealized loss on investments of $5.9 million for the comparable prior year period.

Portfolio and Investment Activity

As of December 31, 2024, Runway Growth's investment portfolio had an aggregate fair value of approximately $1.1 billion in 56 portfolio companies and one joint venture, and was comprised of approximately $970.2 million in term loans, 97.9% of which are senior secured loans, and $106.6 million in warrants and other equity-related investments.

During the fourth quarter of 2024, Runway Growth funded two investments in new portfolio companies and five investments in existing portfolio companies, representing $80.1 million in funded loans, net of refinances and upfront loan origination fees.

Total portfolio investment activity for the three and twelve months ended December 31, 2024, and 2023 was as follows:

 
                  Three Months Ended 
                     December 31,         Year Ended December 31, 
                   2024         2023         2024         2023 
                ----------   ----------   ----------   ---------- 
Beginning 
 investment 
 portfolio      $1,066,100   $1,010,927   $1,067,009   $1,126,309 
Purchases of 
 investments        80,077       94,937      254,106      200,464 
Purchases of 
 U.S. Treasury 
 Bills                  --       41,999           --       76,973 
PIK interest         2,683        4,590       12,265       19,924 
Sales and 
 prepayments 
 of 
 investments       (81,736)     (63,407)    (226,397)    (289,078) 
Scheduled 
 repayments of 
 investments        (2,400)        (285)      (4,780)      (7,331) 
Sales and 
 maturities of 
 U.S. Treasury 
 Bills                  --           --      (42,029)     (35,000) 
Amortization 
 of fixed 
 income 
 premiums or 
 accretion of 
 discounts          (1,485)       1,350        6,808        8,682 
Net realized 
 gain (loss) 
 on 
 investments        (2,939)     (17,209)      (2,939)     (18,387) 
Net change in 
 unrealized 
 gain (loss) 
 on 
 investments        16,540       (5,893)      12,797      (15,547) 
                 ---------    ---------    ---------    --------- 
Ending 
 investment 
 portfolio      $1,076,840   $1,067,009   $1,076,840   $1,067,009 
                 =========    =========    =========    ========= 
 
 

Net Asset Value

As of December 31, 2024, net asset value ("NAV") per share was $13.79, compared to $13.50 as of December 31, 2023. Total net assets at the end of the fourth quarter of 2024 was $514.9 million, down 5.9% from $547.1 million as of December 31, 2023.

For the quarter ended December 31, 2024, our net increase in net assets resulting from operations was $28.2 million, or $0.75 per share, compared to a net decrease in net assets resulting from operations of $4.8 million, or $0.12 per share, for the quarter ended December 31, 2023.

Liquidity and Capital Resources

As of December 31, 2024, the Company had approximately $244.8 million in available liquidity, including unrestricted cash and cash equivalents of $5.8 million and $239.0 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 108%, compared to 95% for the quarter ended December 31, 2023.

Distributions

On March 20, 2025, the Company's board of directors (the "Board of Directors") declared a regular quarterly distribution of $0.33 per share and a supplemental distribution of $0.03 per share for the first quarter of 2025, each payable on April 14, 2025, to stockholders of record as of March 31, 2025.

Share Repurchase Program

On November 2, 2023, the Board of Directors approved a share repurchase program (the "Second Repurchase Program"), under which the Company was authorized to repurchase up to $25.0 million of its outstanding shares of common stock, at management's discretion from time to time in open-market transactions and in accordance with all applicable securities laws and regulations. The Company repurchased 1,961,938 shares in connection with the Second Repurchase Program for an aggregate purchase price of $23.5 million. The Second Repurchase Program expired on November 2, 2024.

On July 30, 2024, the Board of Directors approved a share repurchase program (the "Third Repurchase Program") under which the Company may repurchase up to $15.0 million of its outstanding shares of common stock, at management's discretion from time to time in open-market transactions and in accordance with all applicable securities laws and regulations. If not renewed, the Third Repurchase Program will terminate upon the earlier of (i) July 30, 2025 or (ii) the repurchase of $15.0 million of the Company's shares of common stock. As of December 31, 2024, the Company had repurchased 1,199,867 shares in connection with the Third Repurchase Program for an aggregate purchase price of $12.5 million.

Recent Developments

The Company evaluated events subsequent to December 31, 2024 through March 20, 2025, the date the consolidated financial statements were issued.

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