Companies /Financial Services

Runway Growth Finance Corp

NASDAQ: RWAY Asset Management
$6.58
â–² $0.05 (+0.77%) today
Markets closed · 4:49pm ET

Q3 2024 Earnings

Reported Nov 12, 2024, 4:00pm ET · SEC source
$0.41
Miss −8.89%
EPS · est. $0.45
$36.7M
Miss −5.25%
Revenue · est. $38.7M
−1.2%
Trailing market
RWAY vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−4%−2%0Nov 12Nov 13report 4:00pm ETearnings+0.1%−0.5%
−4%−2%0Nov 12Nov 13earnings+0.1%−0.5%
RWAY −0.5%S&P 500 +0.1%
−4%−2%0Nov 12Nov 13report 4:00pm ETearnings−0.1%−0.5%
−4%−2%0Nov 12Nov 13earnings−0.1%−0.5%
RWAY −0.5%NASDAQ −0.1%
−6%−4%−2%0Nov 11Nov 20report 4:00pm ETearnings−1.1%−3.2%
−6%−4%−2%0Nov 11Nov 20earnings−1.1%−3.2%
RWAY −3.2%S&P 500 −1.1%
−6%−4%−2%0Nov 11Nov 20report 4:00pm ETearnings−1.9%−3.2%
−6%−4%−2%0Nov 11Nov 20earnings−1.9%−3.2%
RWAY −3.2%NASDAQ −1.9%
−0.57%
Day of report
−0.76%
Next session
−2.67%
One week
+0.38%
30 days

S&P 500 over the same 30 days: +1.61%.

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 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

“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.”

Runway Growth Finance CEO, on the earnings call

Forward Guidance & Outlook

CEO David Spreng expressed confidence that the company is positioned to accelerate growth and drive long-term shareholder value as it nears the end of 2024. The announced business combination between Runway Growth Capital LLC and BC Partners is expected to expand origination opportunities, enhance financing solutions, and provide continuity of leadership. A stockholder vote on the new advisory agreement is planned for December 13, 2024.

RWAY YoY Financials

Revenue$36.7M
Operating Income$15.9M
Net Income$25.0M

RWAY Revenue by Segment

Term Loans
Warrants and Equity-Related Investments

Figures from SEC filings and company reports. Not investment advice.