Q3 24 EPS
$0.41
MISS 8.89%
Est. $0.45
Q3 24 Revenue
$36.7M
MISS 5.25%
Est. $38.7M
Did RWAY Beat Earnings? Q3 2024 Results
Runway Growth Finance Corp. Posted a mixed third quarter for 2024, with earnings reflecting a portfolio contraction that weighed on investment income even as a swing to unrealized gains lifted the broader bottom line. The business development company… Read more Runway Growth Finance Corp. Posted a mixed third quarter for 2024, with earnings reflecting a portfolio contraction that weighed on investment income even as a swing to unrealized gains lifted the broader bottom line. The business development company reported net investment income of $0.41 per share on total investment income of $36.65 million, both down from $0.54 per share and $43.78 million a year earlier, as lower interest income and reduced payment-in-kind interest followed a shrinking loan book. Yet the net increase in net assets from operations reached $25.05 million, or $0.65 per share, compared to $14.82 million, or $0.37 per share, in Q3 2023, propelled by a $9.17 million net unrealized gain on investments versus a $7.21 million unrealized loss in the prior-year period. Looking ahead, management pointed to the planned merger of external adviser Runway Growth Capital LLC with an affiliate of BC Partners Advisors L.P. As a catalyst for expanded origination opportunities, with a stockholder vote on the new advisory agreement scheduled for December 13, 2024.
Key Takeaways
- • Dollar-weighted annualized yield on debt investments of 15.9%
- • 98.6% of term loans are senior secured
- • Sequential net investment income growth
- • Net unrealized gain of $9.2 million on investments versus $7.2 million unrealized loss in prior year quarter
- • Seven investments funded during the quarter totaling $75.3 million
RWAY YoY Financials
Q3 2024 vs Q3 2023, source: SEC Filings
RWAY Revenue by Segment
Business unit performance breakdown
“Runway Growth delivered strong financial performance in the third quarter, reporting sequential net investment income growth and solid originations. Additionally, we funded seven investments during the quarter, expanding our high-quality portfolio of late and growth stage companies. Subsequent to quarter end, RWAY's investment adviser announced a business combination with BC Partners that will present the BDC with expanded origination opportunities, enhanced financing solutions, and continuity of leadership for years to come. As we near the end of 2024, we believe the Company is positioned to accelerate growth and drive long-term shareholder value.”
— David Spreng, Q3 2024 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% |