Runway Growth Finance Corporation (RWAY)
NASDAQ:RWAY
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Runway Growth Finance Corp
(NASDAQ:RWAY)
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Rating:63Neutral
Price Target:
$6.00
▼(-11.37% Downside)
Action:Reiterated
Date:05/09/26
The score is primarily supported by solid financial performance (strong revenue growth and generally healthy cash generation) and a very high dividend yield. These positives are tempered by weak technicals (price below key moving averages and negative MACD) and earnings-call risks, including NAV decline, new nonaccruals with near-term NII drag, and higher pro forma leverage.
Positive Factors
Scale & Diversification
The SWK acquisition materially increases scale to a pro forma ~$1.1B, lowers single‑name concentration and brings additional origination resources and healthcare expertise. Larger, more diversified assets and stronger origination capability should steady NII, deepen deal flow and reduce idiosyncratic risk over the medium term.
Negative Factors
NAV Decline
A near 10% NAV decline and a materially lower net asset base reflect mark‑to‑market markdowns and transaction costs. Lower NAV erodes the equity cushion available to absorb future credit losses or support distributions, creating a more fragile capital position over the coming quarters unless reversed by gains or capital raises.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & Diversification
The SWK acquisition materially increases scale to a pro forma ~$1.1B, lowers single‑name concentration and brings additional origination resources and healthcare expertise. Larger, more diversified assets and stronger origination capability should steady NII, deepen deal flow and reduce idiosyncratic risk over the medium term.
Read all positive factors
Runway Growth Finance Corp (RWAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$236.53M
Dividend Yield15.96%
Average Volume (3M)700.91K
Price to Earnings (P/E)―
Beta (1Y)0.69
Revenue Growth-9.59%
EPS Growth-105.13%
CountryUS
Employees500
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)-0.09
Shares Outstanding42,464,546
10 Day Avg. Volume620,018
30 Day Avg. Volume700,910
Financial Highlights & Ratios
PEG Ratio-0.19
Price to Book (P/B)0.68
Price to Sales (P/S)2.34
P/FCF Ratio1.76
Enterprise Value/Market Cap2.70
Enterprise Value/Revenue6.30
Enterprise Value/Gross Profit9.61
Enterprise Value/Ebitda70.58
Forecast
1Y Price Target
$6.00Price Target Upside-11.37% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)1.27
Revenue Forecast (FY)$131.27M
Runway Growth Finance Corp Business Overview & Revenue Model
Company Description
Runway Growth Finance Corp. (RWAY) operates as a business development company (BDC), concentrating its efforts on providing senior-secured loan financing to late-stage and expanding enterprises. The firm primarily targets investments in companies ...
How the Company Makes Money
RWAY makes money primarily by earning investment income on its loan portfolio. Its core revenue stream is interest income from senior secured loans it originates or holds, typically including (a) cash interest paid periodically and (b) in some cas...
Runway Growth Finance Corp Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call described a transformative quarter driven by the SWK acquisition and leadership promotions that improved diversification, scale (pro forma $1.1 billion), and long-term origination capabilities. Operational and portfolio fundamentals (stable debt yield, software metrics, reduced top-10 concentration, liquidity and capital return actions) were highlighted as strengths. Offsetting these positives were near-term headwinds: NAV and net assets declined, two loans moved to nonaccrual with an expected ~$0.06 per share drag, higher risk ratings for select positions, fair value markdowns, and a pro forma increase in leverage and reduction in liquidity. Overall management framed the changes as temporary and part of a strategic repositioning to drive stronger returns over time.Positive Updates
SWK Acquisition and Platform Expansion
Closed SWK transaction (April 6) which meaningfully reconstructed the portfolio, producing a pro forma portfolio of $1.1 billion, increasing diversification and strengthening origination capabilities through BC Partners Credit integration and new healthcare expertise (JD Thomas).
Negative Updates
NAV and Net Assets Decline
Net assets decreased to $438.2 million from $485 million year-over-year; NAV per share fell to $12.13, a decline of 9.6% compared to $13.42 as of 12/31/2025 (post-close NAV estimated at $11.93 reflecting $7.7 million transaction costs).
Read all updates
Q1-2026 Updates
Positive
Negative
SWK Acquisition and Platform Expansion
Closed SWK transaction (April 6) which meaningfully reconstructed the portfolio, producing a pro forma portfolio of $1.1 billion, increasing diversification and strengthening origination capabilities through BC Partners Credit integration and new healthcare expertise (JD Thomas).
Read all positive updates
Company Guidance
The company guided that the SWK acquisition should begin to be accretive to EPS in Q2 and fully accretive in Q3, with SWK contributions and lagged management fees expected to boost NII by ~ $0.03 per share in Q2 but more than offset by a ~$0.06 per‑share full‑quarter drag from Marley Spoon and BlueShift moving to nonaccrual; Q1 metrics included total investment income $29.5M, NII $10.6M ($0.29/share), a base dividend of $0.33/share and spillover income of ~$0.65/share. Balance‑sheet and portfolio guidance highlighted a Q1 fair value portfolio of $886.3M (pro forma $1.1B post‑SWK), NAV $12.13 (pro forma NAV disclosed $11.93 reflecting ~$7.7M transaction costs), leverage 0.98 (pro forma 1.20), asset coverage 2.02 (pro forma 1.84), total available liquidity $372.3M (pro forma $231.8M) with $370M KeyBank capacity, $179.2M unfunded commitments, and a $15M share‑repurchase program through 05/07/2027; other cited metrics: debt yield 14.2%, top‑10 concentration down to 43%, health care ~32% of portfolio, and strong software stats (62% cash‑flow positive, 100% covenants, weighted fair value ~97% of cost ex‑nonaccruals, 94% sponsored, 98% first‑lien).Runway Growth Finance Corp Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
63
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 101.27M | 140.16M | 124.22M | 94.52M | 55.14M | 54.00M |
| Gross Profit | 66.36M | 109.99M | 85.89M | 55.88M | 41.38M | 49.81M |
| EBITDA | 9.04M | 76.72M | 73.61M | 47.37M | 32.25M | 45.62M |
| Net Income | -2.63M | 34.05M | 73.61M | 44.34M | 32.25M | 45.62M |
Balance Sheet | ||||||
| Total Assets | 904.93M | 960.11M | 1.09B | 1.08B | 1.14B | 738.35M |
| Cash, Cash Equivalents and Short-Term Investments | 2.31M | 18.18M | 5.75M | 2.97M | 5.76M | 4.70M |
| Total Debt | 441.70M | 449.92M | 552.33M | 510.08M | 548.96M | 79.49M |
| Total Liabilities | 466.70M | 475.14M | 576.49M | 532.08M | 565.71M | 132.15M |
| Stockholders Equity | 438.23M | 484.97M | 514.87M | 547.07M | 576.05M | 606.20M |
Cash Flow | ||||||
| Free Cash Flow | 116.75M | 186.31M | 50.49M | 112.44M | 48.98M | -61.25M |
| Operating Cash Flow | 116.75M | 186.31M | 50.49M | 112.44M | 48.98M | -61.25M |
| Investing Cash Flow | 1.94M | 0.00 | -22.93M | 0.00 | -453.82M | -120.84M |
| Financing Cash Flow | -134.73M | -173.90M | -66.81M | -115.23M | 360.91M | 51.06M |
Runway Growth Finance Corp Technical Analysis
Negative
6.77
Price Trends
6.24
Negative
6.75
Negative
7.68
Negative
Market Momentum
-0.20
Positive
32.76
Neutral
10.50
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RWAY, the sentiment is Negative. The current price of 6.77 is above the 20-day moving average (MA) of 6.14, above the 50-day MA of 6.24, and below the 200-day MA of 7.68, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 32.76 is Neutral, neither overbought nor oversold. The STOCH value of 10.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RWAY.
Runway Growth Finance Corp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $220.26M | 5.56 | 9.85% | 4.44% | 9.67% | -6.40% | |
69 Neutral | $342.54M | 6.98 | 13.16% | 2.99% | 10.51% | 53.17% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $236.53M | -76.41 | -0.55% | 15.96% | -9.59% | -105.13% | |
60 Neutral | $100.44M | 6.43 | 0.54% | 10.37% | -1.41% | -98.13% | |
59 Neutral | $236.01M | 14.00 | 4.63% | ― | -3.81% | ― | |
56 Neutral | $367.98M | -68.94 | -7.04% | ― | 405.40% | 96.15% |
* Financial Sector Average
RWAY
Runway Growth Finance Corp
5.57
-3.10
-35.76%
MFIN
Medallion Financial
9.53
0.63
7.13%
RM
Regional Management
37.20
10.28
38.18%
YRD
Yiren Digital
1.15
-4.55
-79.84%
LPRO
Open Lending
3.11
1.16
59.49%
OPRT
Oportun Financial
5.16
-1.66
-24.34%
Runway Growth Finance Corp Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Runway Growth Finance Issues New 2029 Unsecured Notes
Neutral
May 29, 2026
Runway Growth Finance Corp., a specialty finance company focused on providing debt capital to late-stage and growth companies, operates in the venture and growth lending market through senior secured loans and related instruments. Its business mod...
Dividends
Runway Growth Finance Declares Second-Quarter 2026 Cash Dividend
Positive
May 6, 2026
Runway Growth Finance Corp., listed on Nasdaq as RWAY, is a specialty finance business development company that provides flexible debt capital to late- and growth-stage companies as an alternative to equity financing. The firm operates as a closed...
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsPrivate Placements and Financing
Runway Growth Completes SWK Acquisition, Expands Healthcare Focus
Positive
Apr 7, 2026
On April 6, 2026, Runway Growth Finance Corp. completed its previously announced acquisition of SWK Holdings Corporation, a life-science-focused specialty finance firm, in a $249 million cash-and-stock deal that expanded Runway Growth’s bala...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.