What is Runway Growth's gross profit margin?

What guidance did Runway Growth's management provide for the next earnings period?

What is the revenue and EPS growth rate for Runway Growth year over year?

What factors drove the changes in Runway Growth's revenue and profit?

What does Runway Growth do and what are its main business segments?

Did Runway Growth beat or miss consensus estimates last quarter?

What is the market's earnings forecast for Runway Growth next quarter?

What is Runway Growth's latest dividend and current dividend yield?

- **$242M SWK Merger**: Expands healthcare/life sciences exposure to 31% of portfolio, expected to be accretive in Q1 2026.
- **Financial Performance**: Q3 net investment income $15.7M, up 13% YoY; liquidity of $371.9M supports growth.
- **Risk Management**: Portfolio risk rating 2.42, with 97% floating-rate assets and 0.2% nonaccrual loans.
- **Regulatory Delay**: Merger closing pushed to early 2026 due to SEC review delays.
- **Yield Outlook**: SWK portfolio offers higher yield, with potential for organic growth through upsizing.

**【CEO Summary Section】**
- Announced merger with SWK Holdings, adding $242 million to the portfolio and expanding healthcare/life sciences exposure to 31% of the portfolio.
- Merger expected to be accretive in the first full quarter post-closing, enhancing earnings power and diversification.
- Highlighted inorganic growth strategy through BC Partners Credit platform, with SWK as a prime example of complementary deal execution.
- Emphasized disciplined approach to portfolio optimization, including risk mitigation and monitoring.

**【CFO Financial Commentary】**
- Q3 2025 results: Total investment income $36.7M, net investment income $15.7M, up from Q2 2025.
- Weighted average portfolio risk rating increased to 2.42 (scale 1-5), loan-to-value ratio rose to 31.4%.
- Liquidity of $371.9M, with $143.7M in unfunded commitments.
- Merger with SWK expected to lower risk profile, enhance yield, and improve dividend coverage.
- Share repurchase program of $25M approved, with 397,983 shares repurchased in Q3.

**【Q&A Key Highlights】**
- **Merger Timeline**: Closing expected in early 2026, delayed by SEC regulatory review due to government shutdown.
- **Yield Profile**: SWK portfolio has slightly higher yield than Runway's, with potential for organic growth through upsizing loans.
- **Prepayment Activity**: Elevated repayments in Q3 ($199.7M), expecting normalization in Q4.
- **Competitive Dynamics**: Spread compression in venture debt, but less pronounced than broader markets.
- **Integration Plan**: SWK team to assist with transition, maintaining focus on healthcare/life sciences strategy.
- **Dividend Decision**: Q3 dividend of $0.33 covered by Q4 earnings expectations, considering prepayment income and portfolio rebuild.

Runway Growth Finance Corp. (RWAY) 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

RWAY

RWAY fundamentals

You can ask Aime