Runway Growth Finance Corp. (RWAY), a specialty finance company focused on providing senior secured loans to high-growth potential companies, reported its financial results for the year ended December 31, 2025. The company's investment portfolio stood at $927.4 million at fair value, with a net asset value of $485.0 million. Total investment income for 2025 was $137.3 million, which included $136.7 million in interest, fee, and dividend income, and $0.6 million in other income. The debt investment portfolio had a dollar-weighted annualized yield of 14.6% for the year.
Compared to the previous fiscal year, Runway Growth Finance experienced a decrease in total investment income from $144.6 million in 2024 to $137.3 million in 2025. This decline was primarily attributed to falling interest rates and a decrease in the average outstanding principal on interest-earning debt investments. Net investment income also decreased from $63.8 million in 2024 to $56.9 million in 2025. The company reported a net realized gain of $2.8 million, a shift from the $2.9 million net realized loss in the prior year. However, there was a net change in unrealized loss on investments of $25.7 million, contrasting with a net change in unrealized gain of $12.8 million in 2024.
Key operational developments included funding $85.2 million in seven new portfolio companies and $65.1 million in nine existing companies, net of upfront loan origination fees and refinances. The company received $11.6 million in scheduled principal repayments and $287.0 million in sales and prepayments. As of December 31, 2025, the debt portfolio was 99.3% senior secured loans. The company's debt investments had a dollar-weighted average outstanding term of 53 months at origination and a dollar-weighted average remaining term of 31 months.
Looking ahead, Runway Growth Finance intends to continue its investment strategy, focusing on high-growth potential companies in technology, healthcare, business services, financial services, and select consumer services and products. The company aims to maximize total return to stockholders through current income and capital gains. The company is also seeking a new co-investment exemptive order from the SEC to allow for greater flexibility in co-investing with affiliates. The company's ability to execute its strategy and achieve its investment objective is subject to various risks, including market conditions, competition, and regulatory factors.
About Runway Growth Finance Corp.
Runway Growth Finance Corp. is a specialty finance company providing senior secured loans and hybrid debt/equity financing to high-growth companies in technology, healthcare, business services, and financial sectors. It targets late and growth-stage venture-backed firms, offering flexible funding solutions with a focus on maximizing total returns through current income and capital gains. Managed by Runway Growth Capital LLC, it operates as a regulated investment company and business development company.
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