Rand Capital Corporation Reports Decline in Financial Performance for Six Months Ending June 30, 2025

Rand Capital Corporation reported a significant decline in its financial performance for the six months ending June 30, 2025, compared to the same period in 2024. The company recorded total investment income of $3.61 million, a decrease of 14.1% from $4.20 million in the prior year. This decline was primarily driven by a 16.2% drop in interest income from portfolio companies, which fell to $3.19 million from $3.81 million. Additionally, dividend income plummeted by 94.2%, from $225,010 to just $13,125, reflecting reduced distributions from portfolio companies. The net investment income for the period was $3.70 million, a notable increase from $322,390 in the previous year, largely due to a decrease in expenses.

The company's total assets decreased by 20.5% to $57.64 million as of June 30, 2025, down from $72.46 million at the end of 2024. This decline was accompanied by a substantial reduction in total liabilities, which fell by 87% to $925,585, compared to $7.12 million at the end of the previous fiscal year. As a result, Rand's net assets decreased by 13.2% to $56.71 million, with a net asset value per share of $19.10, down from $25.31.

Operationally, Rand Capital's investment portfolio underwent significant changes, with total investments at fair value dropping to $52.36 million from $70.82 million. The company experienced a net unrealized depreciation of $11.61 million during the first half of 2025, primarily due to a write-down of its investment in Tilson Technology Management, which filed for bankruptcy. The portfolio's composition shifted, with a focus on higher-yielding debt instruments, as the company aims to generate current income while managing risks associated with its investments.

In terms of strategic developments, Rand Capital has extended its investment management and administration agreements with Rand Capital Management, LLC, which are set to expire on December 31, 2025. The company also declared quarterly cash dividends of $0.29 per share for the first and second quarters of 2025, maintaining its commitment to return value to shareholders. Looking ahead, Rand Capital anticipates continuing to fund its investment activities through cash generated from operations and available borrowings under its $25 million credit facility, which currently has no outstanding balance. The company remains focused on navigating market conditions and optimizing its investment strategy to enhance shareholder value.