SWK Holdings shares surge 18.53% premarket after Q3 adjusted net income jumps to $8.1M and effective yield hits 16.9%.

SWK Holdings surged 18.53% in premarket trading following the announcement of strong third-quarter 2025 financial results and a merger agreement. The company reported a 154% year-over-year increase in GAAP net income to $8.8 million and a $3.1 million share repurchase program, while its finance receivables segment delivered a $8.1 million adjusted non-GAAP net income. A 230-basis-point rise in the effective yield to 16.9% and a $4.00-per-share special dividend in Q2 further underscored operational strength. Additionally, SWK disclosed a merger agreement with Runway Growth Finance Corp., expected to close by early 2026, signaling strategic expansion. These results, coupled with the CEO’s emphasis on portfolio performance and transaction details, drove the sharp premarket rally.