Runway Growth Finance Corporation (RWAY)
NASDAQ:RWAY
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Runway Growth Finance Corp
(NASDAQ:RWAY)
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Rating:59Neutral
Price Target:
$7.00
▲(3.40% Upside)
Action:ReiteratedDate:04/07/26
The score is driven primarily by solid multi-year operating performance and cash flow improvement, but is held back by leverage risk and uncertainty from inconsistent 2025 (annual) reported fundamentals. Technically, the stock remains in a clear downtrend, while valuation is supported by a low-to-moderate P/E and very high yield. The latest earnings call was broadly constructive on post-acquisition earnings/dividend coverage, but near-term NII pressure and yield compression limit upside.
Positive Factors
Strategic Acquisition & Scale
Closing SWK materially increases scale and sector diversification, growing health care/life sciences weight to ~32%. Larger asset base and added specialty finance capabilities strengthen market position, broaden deal flow, and reduce idiosyncratic position risk over the medium term.
Negative Factors
Balance Sheet Data Uncertainty
Inconsistent 2025 balance‑sheet reporting (debt shown as zero) hinders reliable assessment of leverage, covenant headroom, and liquidity needs. Persistent data uncertainty complicates monitoring of funded leverage and stress testing, increasing the risk of unforeseen covenant or refinancing pressure.
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Positive Factors
Negative Factors
Strategic Acquisition & Scale
Closing SWK materially increases scale and sector diversification, growing health care/life sciences weight to ~32%. Larger asset base and added specialty finance capabilities strengthen market position, broaden deal flow, and reduce idiosyncratic position risk over the medium term.
Read all positive factors
Runway Growth Finance Corp (RWAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$285.79M
Dividend Yield15.96%
Average Volume (3M)674.78K
Price to Earnings (P/E)9.6
Beta (1Y)0.66
Revenue Growth-1.08%
EPS Growth-51.56%
CountryUS
Employees500
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.32
Shares Outstanding42,464,676
10 Day Avg. Volume954,245
30 Day Avg. Volume674,782
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 Cap2.33
Enterprise Value/Revenue4.76
Enterprise Value/Gross Profit6.06
Enterprise Value/Ebitda8.69
Forecast
1Y Price Target
$8.00Price Target Upside18.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.4
Revenue Forecast (FY)$137.44M
Runway Growth Finance Corp Business Overview & Revenue Model
Company Description
Runway Growth Finance Corp. is a business development company specializing investments in senior-secured loans to late stage and growth companies. It prefers to make investments in companies engaged in the technology, life sciences, healthcare and...
How the Company Makes Money
RWAY makes money primarily from investment income generated by its lending activities and, to a lesser extent, from equity-linked upside and other fees. The main revenue streams are: (1) Interest income on debt investments: The bulk of earnings co...
Runway Growth Finance Corp Earnings Call Summary
Earnings Call Date:Mar 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed a generally constructive outlook centered on strategic actions that strengthen the company’s balance sheet and diversify the portfolio — particularly the pending SWK acquisition, strong liquidity, active originations, and improvements in operating efficiency. These positives were tempered by near-term earnings pressure from normalized prepayment income, lower quarter-over-quarter yield and NII declines, and timing-related softness tied to the SWK close and debt redemptions. Overall, management emphasized conservative underwriting, low nonaccruals, and concrete actions (debt issuance, note redemptions, and expected accretion from SWK) to stabilize and modestly enhance long-term earnings power.Positive Updates
Investment Income and NII Delivered
Generated total investment income of $30.0M and net investment income (NII) of $11.6M in the fourth quarter, delivering $0.32 of NII per share and maintaining a base dividend of $0.33 per share with approximately $0.65 per share of spillover income at year-end.
Negative Updates
Decline in Investment Income and NII
Total investment income decreased from $36.7M to $30.0M (≈ -18%), and net investment income decreased from $15.7M to $11.6M (≈ -26%), driven in part by normalized lower prepayment fee income and sequencing of portfolio activity.
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Q4-2025 Updates
Positive
Negative
Investment Income and NII Delivered
Generated total investment income of $30.0M and net investment income (NII) of $11.6M in the fourth quarter, delivering $0.32 of NII per share and maintaining a base dividend of $0.33 per share with approximately $0.65 per share of spillover income at year-end.
Read all positive updates
Company Guidance
The company guided that the SWK Holdings acquisition is expected to close in early April (around April 6) and will add a portfolio of 13 loans with ~ $235M fair value (total portfolio yield ~14%, debt-only ~16%), driving post-close leverage to just under 1.2x (targeting a 1.2x–1.3x run rate, generally not above 1.35x) and reducing average position size to $23.5M (2.2% of the portfolio) from $30.3M (3.1%), with run‑rate net investment income (NII) accretion in the mid‑single digits and modest ROE expansion and improved dividend coverage; they warned of Q1 earnings softness due to the slight timing delay and a $0.02 one‑time headwind from redemption of 8% and partial 7.5% 2027 notes. Key recent metrics referenced: Q4 total investment income $30.0M and NII $11.6M ($0.32 per share) with a base dividend of $0.33 and ~ $0.65 spillover income for year‑end; 2025 dollar‑weighted loan yield 14.2% (down from 16.8% sequentially and 14.7% year‑over‑year); total investment portfolio fair value $927.4M (‑2%), NAV $13.42 (‑1%), net assets $484.9M; liquidity $395.2M with $377M borrowing capacity; unfunded commitments $145.5M ( $122.8M debt, $22.7M JV equity; $32.4M milestone‑eligible); one nonaccrual (cost $4.8M, FV $2.4M, 0.25% of portfolio); and capital actions including a $103.25M 2031 note offering at 7.25% and redemptions of 7.5%/8% 2027 notes.Runway Growth Finance Corp Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
54
Neutral
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 140.16M | 124.22M | 94.52M | 55.14M | 54.00M |
| Gross Profit | 109.99M | 85.89M | 55.88M | 41.38M | 49.81M |
| EBITDA | 76.72M | 73.61M | 44.34M | 32.25M | 45.62M |
| Net Income | 34.05M | 73.61M | 44.34M | 32.25M | 45.62M |
Balance Sheet | |||||
| Total Assets | 960.11M | 1.09B | 1.08B | 1.14B | 738.35M |
| Cash, Cash Equivalents and Short-Term Investments | 18.18M | 5.75M | 2.97M | 5.76M | 4.70M |
| Total Debt | 449.92M | 552.33M | 510.08M | 548.96M | 79.49M |
| Total Liabilities | 475.14M | 576.49M | 532.08M | 565.71M | 132.15M |
| Stockholders Equity | 484.97M | 514.87M | 547.07M | 576.05M | 606.20M |
Cash Flow | |||||
| Free Cash Flow | 186.31M | 50.49M | 112.44M | 48.98M | -61.25M |
| Operating Cash Flow | 186.31M | 50.49M | 112.44M | 48.98M | -61.25M |
| Investing Cash Flow | 148.26M | -22.93M | 0.00 | -453.82M | -120.84M |
| Financing Cash Flow | -170.37M | -66.81M | -115.23M | 360.91M | 51.06M |
Runway Growth Finance Corp Technical Analysis
Neutral
6.77
Price Trends
7.34
Negative
8.05
Negative
8.78
Negative
Market Momentum
-0.19
Negative
44.79
Neutral
57.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RWAY, the sentiment is Neutral. The current price of 6.77 is below the 20-day moving average (MA) of 6.78, below the 50-day MA of 7.34, and below the 200-day MA of 8.78, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 44.79 is Neutral, neither overbought nor oversold. The STOCH value of 57.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $166.76M | -0.32 | 0.54% | 10.37% | -1.41% | -98.13% | |
71 Outperform | $215.54M | 5.44 | 11.82% | 4.44% | 9.67% | -6.40% | |
70 Outperform | $348.47M | 8.66 | 12.12% | 2.99% | 10.51% | 53.17% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $271.01M | 10.05 | 6.66% | ― | -4.50% | ― | |
59 Neutral | $285.79M | 9.62 | 6.89% | 15.96% | -1.08% | -51.56% | |
52 Neutral | $208.06M | -43.40 | -5.53% | ― | 288.02% | 96.83% |
* Financial Sector Average
RWAY
Runway Growth Finance Corp
6.73
-1.12
-14.25%
MFIN
Medallion Financial
9.16
0.73
8.72%
RM
Regional Management
37.35
10.47
38.96%
YRD
Yiren Digital
1.93
-4.40
-69.51%
LPRO
Open Lending
1.76
0.48
37.50%
OPRT
Oportun Financial
6.09
0.97
18.95%
Runway Growth Finance Corp Corporate Events
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...
Dividends
Runway Growth Finance Declares First-Quarter 2026 Dividend
Positive
Feb 26, 2026
Runway Growth Finance Corp., a specialty finance company providing flexible capital to late- and growth-stage firms as an alternative to equity, operates as a business development company and is externally managed by Runway Growth Capital LLC, an ...
Business Operations and StrategyPrivate Placements and Financing
Runway Growth Finance Issues New Notes for Refinancing
Positive
Feb 3, 2026
On February 3, 2025, Runway Growth Finance Corp. entered into a third supplemental indenture with U.S. Bank Trust Company to support the issuance and sale of $103.25 million of 7.25% unsecured notes due 2031, which rank pari passu with its other u...
Business Operations and StrategyPrivate Placements and Financing
Runway Growth Finance Announces New 2031 Notes Offering
Positive
Jan 29, 2026
On January 27, 2026, Runway Growth Finance Corp. entered into an underwriting agreement with Runway Growth Capital LLC and Oppenheimer Co. Inc., as representative of a group of underwriters, to issue and sell $100 million in aggregate principal a...
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.