Rand Capital Corporation Reports Q1 2025 Financial Results with Decrease in Investment Income

Rand Capital Corporation reported its financial results for the first quarter of 2025, revealing a total investment income of $2,007,904, a decrease of 2.9% from $2,067,219 in the same period last year. The decline in income was primarily attributed to a 7.5% drop in interest from portfolio companies, which fell to $1,677,166 from $1,813,648. This reduction was offset slightly by a significant increase in interest from other investments, which surged to $10,383 from $1,914, and a notable rise in fee income, which increased to $307,230 from $99,822. The net investment income for the quarter was $1,218,115, compared to $839,585 in the prior year.

The company's total assets decreased by 6.4% to $67,821,430 as of March 31, 2025, down from $72,457,433 at the end of 2024. This decline was accompanied by a substantial reduction in total liabilities, which fell by 64.8% to $2,510,177, compared to $7,124,913 in the previous quarter. The net assets remained relatively stable, closing at $65,311,253, a slight decrease from $65,332,520. The net asset value per share also decreased to $21.99 from $25.31.

Operationally, Rand Capital's investment strategy continues to focus on higher-yielding debt instruments, with total investments at fair value amounting to $62,157,363, down from $70,818,041. The company reported a net change in unrealized depreciation of investments of $1,298,384, reflecting challenges in the valuation of certain portfolio companies. The total number of shares outstanding increased to 2,969,814 following a stock dividend declared in December 2024.

Looking ahead, Rand Capital anticipates continuing its investment activities funded by cash generated from operations and available credit under its $25 million revolving credit facility, which currently has no outstanding balance. The company remains committed to its strategy of investing in lower middle-market companies and aims to navigate the current market conditions while maintaining compliance with regulatory requirements as a business development company. The Board has also approved a new share repurchase plan, allowing for the repurchase of up to $1.5 million in shares, which may enhance shareholder value moving forward.