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

Q4 2024 Earnings

Reported Mar 20, 2025, 4:10pm ET · SEC source
$0.39
Miss −6.70%
EPS · est. $0.42
$33.8M
Miss −6.42%
Revenue · est. $36.1M
−6.6%
Trailing market
RWAY vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−0.9%0+0.9%+1.8%Mar 20Mar 21report 4:10pm ETearnings−0.3%−0.2%
−0.9%0+0.9%+1.8%Mar 20Mar 21earnings−0.3%−0.2%
RWAY −0.2%S&P 500 −0.3%
−0.9%0+0.9%+1.8%Mar 20Mar 21report 4:10pm ETearnings+0.3%−0.2%
−0.9%0+0.9%+1.8%Mar 20Mar 21earnings+0.3%−0.2%
RWAY −0.2%NASDAQ +0.3%
−2%0+2%Mar 19Mar 28report 4:10pm ETearnings−1.8%+1.3%
−2%0+2%Mar 19Mar 28earnings−1.8%+1.3%
RWAY +1.3%S&P 500 −1.8%
−2%0+2%Mar 19Mar 28report 4:10pm ETearnings−2.2%+1.3%
−2%0+2%Mar 19Mar 28earnings−2.2%+1.3%
RWAY +1.3%NASDAQ −2.2%
−1.03%
Day of report
−0.85%
Next session
+1.51%
One week
−11.61%
30 days

S&P 500 over the same 30 days: −5.06%.

Did RWAY Beat Earnings? Q4 2024 Results

Runway Growth Finance fell short of Wall Street expectations in Q4 2024, with softening investment income and a smaller portfolio weighing on both top and bottom lines. The business development company posted net investment income of $0.39 per share, missing the $0.42 consensus estimate by 6.70%, while total investment income of $33.78 million trailed the $36.10 million analyst forecast by 6.42%. The primary culprit was a declining interest rate environment paired with a reduced portfolio, which pushed total investment income down from $39.23 million in Q4 2023. A notable bright spot emerged in net realized and unrealized gains, which swung to $13.60 million from losses of $23.10 million a year earlier, lifting net assets from operations to $28.22 million. NAV per share edged up to $13.79. Looking ahead, management pointed to the January 2025 acquisition of its investment adviser by BC Partners Credit and Mount Logan Capital as a catalyst to diversify the portfolio and pursue opportunities at greater scale, with the company declaring a Q1 2025 regular dividend of $0.33 per share.

Key Takeaways
  • Dollar-weighted annualized yield on debt investments of 14.7% for Q4 2024
  • 97.9% of term loans are senior secured
  • Low credit loss ratio of an average 12 basis points per year on a gross basis since inception
  • Net unrealized gains of $16.5 million in Q4 2024 versus unrealized losses of $5.9 million in Q4 2023
  • $154.0 million in funded investments during Q4 across two new and five existing portfolio companies

“In 2024, Runway Growth advanced its strategy to optimize our portfolio, enhance our origination channels, and expand our product set. Notably, we believe the close of the combination between our investment adviser, Runway Growth Capital, and BC Partners Credit positions the Company to further diversify our go-forward composition and maximize the portfolio with attractive investment opportunities. Our stockholders and borrowers alike will benefit from the combined scale and expertise of our expanded platform as we seek to mitigate risk and drive heightened returns.”

Runway Growth Finance CEO, on the earnings call

Forward Guidance & Outlook

CEO David Spreng indicated that the combination of Runway Growth Capital with BC Partners Credit will enable the Company to diversify its portfolio composition and pursue attractive investment opportunities at greater scale. The Company expects its borrowers to navigate the dynamic macro environment ahead, supported by the team's credit-first investment philosophy. Post-quarter, the Company amended its credit facility to extend the maturity date and permit future financing subsidiaries, positioning for continued portfolio growth.

RWAY YoY Financials

Q4 2024 vs Q4 2023 · SEC filings Q4 2023 Q4 2024
$0$10.0M$20.0M$30.0M$8.0M$33.8MRevenue$3.6M$28.2MNet Income$2.9M$14.6MOperating Income
$0$10.0M$20.0M$30.0MRevenueNet IncomeOperating Income

RWAY Revenue by Segment

Term Loans$970.2M
Warrants and Equity-Related Investments$106.6M

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