Q3 23 EPS
$0.54
BEAT +14.89%
Est. $0.47
Q3 23 Revenue
$43.8M
BEAT +8.44%
Est. $40.4M
Did RWAY Beat Earnings? Q3 2023 Results
Runway Growth Finance Corp. Delivered a strong third quarter for 2023, posting earnings per share of $0.54 on total investment income of $43.78 million, as sharply higher interest rates and a larger loan portfolio drove meaningful year-over-year gain… Read more Runway Growth Finance Corp. Delivered a strong third quarter for 2023, posting earnings per share of $0.54 on total investment income of $43.78 million, as sharply higher interest rates and a larger loan portfolio drove meaningful year-over-year gains. Net investment income climbed to $22.04 million from $14.50 million in Q3 2022, with the company's dollar-weighted annualized yield on debt investments reaching 18.3% for the quarter, underscoring how the elevated rate environment has flowed through to its senior-secured lending book. The $1.01 billion investment portfolio, spanning 50 companies and comprised almost entirely of senior secured term loans, anchored those results even as net repayments of $125.30 million trimmed the portfolio from its prior-quarter level. NAV per share settled at $14.08, and the board declared a combined Q4 dividend of $0.46 per share. With core leverage declining to approximately 79% and roughly $311.90 million in available liquidity, management indicated the company is well positioned to accelerate deployment into what it described as a capital-starved market heading into 2024.
Key Takeaways
- • Dollar-weighted annualized yield on debt investments of 18.3% for the quarter
- • Growing management fees, incentive fees and interest expenses related to a larger loan portfolio and an increase in total borrowings at higher interest rates
- • 99% senior secured loan portfolio across 50 portfolio companies
- • No credit losses during Q3 or year-to-date 2023
RWAY YoY Financials
Q3 2023 vs Q3 2022, source: SEC Filings
RWAY Revenue by Segment
Business unit performance breakdown
“Runway Growth's third quarter demonstrates the resilience of our high quality, late-stage portfolio purpose-built to deliver superior credit performance. Runway's pipeline remains healthy and demand from companies for creative financing solutions is accelerating. Our team's evaluation standards have never been higher as we seek to underwrite the right deals for Runway's stable and consistent portfolio.”
— Greg Greifeld, Q3 2023 Earnings Press Release
RWAY Earnings Trends
RWAY vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
RWAY EPS Trend
Earnings per share: estimate vs actual
RWAY Revenue Trend
Quarterly revenue: estimate vs actual
RWAY Quarterly Results
12 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 MISS | $0.31 | $0.29 | -7.05% | $29.5M | -0.18% |
| Q4 25 MISS FY | $0.35 | $0.32 | -7.35% | $30.0M | -4.96% |
| FY Full Year | — | $1.55 | — | $137.3M | — |
| Q3 25 BEAT | $0.39 | $0.43 | +10.40% | $36.7M | +4.91% |
| Q2 25 MISS | $0.39 | $0.38 | -1.66% | $35.1M | +2.57% |
| Q1 25 BEAT | $0.37 | $0.42 | +13.61% | $35.4M | +5.63% |
| Q4 24 MISS FY | $0.42 | $0.39 | -6.70% | $33.8M | -6.42% |
| FY Full Year | $1.67 | $1.64 | -1.60% | $144.6M | -1.72% |
| Q3 24 MISS | $0.45 | $0.41 | -8.89% | $36.7M | -5.25% |
| Q2 24 MISS | $0.44 | $0.37 | -15.91% | $34.2M | -9.66% |
| Q1 24 BEAT | $0.45 | $0.46 | +2.22% | $40.0M | +0.00% |
| Q4 23 MISS FY | $0.49 | $0.45 | -8.16% | $39.2M | +0.00% |
| FY Full Year | — | $1.93 | — | $164.2M | — |
| Q3 23 BEAT | $0.47 | $0.54 | +14.89% | $43.8M | +8.44% |
| Q2 23 BEAT | $0.45 | $0.49 | +8.89% | $41.9M | +99,650.00% |