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- **Resilient Dividend**: Maintained $0.29 quarterly dividend for 3rd straight quarter, supported by $28M liquidity and 100% coverage ratio.
- **Expense Efficiency**: 54% YoY expense reduction enabled 12% growth in net investment income to $993K.
- **Portfolio Shift**: 39% of income now来自PIK interest, reflecting market need for flexible capital.
- **Liquidity Strength**: Debt-free balance sheet with $18.3M undrawn credit facility to capitalize on improving deal flow.
- **Growth Catalysts**: Potential interest rate cuts could unlock new origination opportunities in 2026.

**【CEO Summary Section】**
- **Revenue Performance**: Total investment income of $1.6 million, down 27% YoY due to repayments and slower origination. However, net investment income grew to $993,000 (up 12% YoY) due to expense control.
- **Portfolio Activity**: Deployed $2.9 million in new investments, including a $2.5 million sub-debt/equity deal with BlackJet Direct Marketing. Repayments totaled $7.6 million from Seybert's/Rack Group, reducing portfolio exposure to consumer products.
- **Dividend Resilience**: Maintained $0.29 quarterly dividend for the 3rd consecutive quarter, supported by strong liquidity ($28M) and expense management.
- **Portfolio Mix**: 83% debt/17% equity with a 12.2% weighted average yield. Top 5 positions (INEAEA, Caitec, FSS, BlackJet, Verta) account for ~50% of portfolio value.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income of $1.6M (down 38% YoY), but Non-GAAP NII of $993K (up 12% YoY). Non-GAAP EPS of $0.29 (unchanged YoY) despite 10% share dilution.
- **Expense Control**: Total expenses fell 54% YoY to $596K, driven by lower incentive fees (-75%), interest expense (-67%), and base management fees (-33%).
- **Liquidity**: $9.5M cash on hand with $18.3M undrawn credit facility. NAV per share declined 5% QoQ to $18.06 due to valuation adjustments.
- **Dividend Sustainability**: 100% dividend coverage ratio, with $28M liquidity to support future payouts despite muted origination.

**【Q&A Key Highlights】**
- **Market Dynamics**: CEO noted 39% of income now来自PIK interest (vs. 24% YoY), reflecting borrowers' need for flexible financing. However, management aims to reduce PIK exposure over time.
- **Competitive Position**: CFO highlighted Rand's debt-free balance sheet and 100% dividend coverage as key differentiators vs. peers with higher leverage.
- **Outlook**: CEO sees early signs of improving deal flow due to potential interest rate cuts, positioning Rand to deploy $28M liquidity into high-yield sub-debt structures.


Rand Capital (RAND) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

RAND

RAND fundamentals

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