Runway Growth Finance Corp (RWAY) AI Stock Analysis

• Market Cap: $339.30M
• Dividend Yield: 15.96%
• Average Volume (3M): 319.96K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.60
• Revenue Growth: 6.38%
• EPS Growth: 41.48%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.43
• Shares Outstanding: 36,134,037
• 10 Day Avg. Volume: 291,517
• 30 Day Avg. Volume: 319,962
• PEG Ratio: 0.08
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 2.94
• P/FCF Ratio: 6.10
• Enterprise Value/Market Cap: 2.37
• Enterprise Value/Revenue: 7.55
• Enterprise Value/Gross Profit: 11.78
• Enterprise Value/Ebitda: 14.64
• 1Y Price Target: $10.57
• Price Target Upside: 12.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 1.52
• Revenue Forecast (FY): $145.21M

• Rating: 61 Neutral
• Price Target: $9.50 ▲(1.17% Upside)

The score is supported by attractive valuation (low P/E and high dividend yield) and solid underlying profitability with positive cash generation. It is held back by weakening top-line trends and cash-flow variability, and by bearish-to-neutral technicals (below key moving averages and negative MACD). Earnings call takeaways are moderately positive due to dividend coverage and anticipated merger accretion, but tempered by NAV/portfolio declines and credit-related items.

Positive Factors

Strategic Acquisition

The acquisition of SWK Holdings is expected to scale Runway's portfolio by $242 million, enhancing growth and diversification, particularly in healthcare.

Investment Income Growth

Consistent growth in investment income indicates strong revenue generation capabilities and effective portfolio management, supporting long-term financial health.

No Debt

Having no debt enhances financial flexibility and reduces risk, allowing the company to pursue growth opportunities without the burden of interest obligations.

Negative Factors

Declining Revenue

A decline in revenue suggests challenges in maintaining sales growth, which could impact profitability and long-term business sustainability.

Negative Net Income

Negative net income reflects profitability challenges, which can strain cash flow and hinder the company's ability to reinvest in growth initiatives.

Decreased Cash Flow

A significant drop in operating cash flow indicates reduced cash generation capability, potentially limiting the company's ability to fund operations and growth.

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 information services, business services and select consumer services and products sectors. It prefers to investments in companies engaged in electronic equipment and instruments, systems software, hardware, storage and peripherals and specialized consumer services, application software, healthcare technology, internet software and services, data processing and outsourced services, internet retail, human resources and employment services, biotechnology, healthcare equipment and education services. It invests in senior secured loans between $10 million and $75 million.

How the Company Makes Money

Runway Growth Finance Corp generates revenue primarily through interest income from loans provided to its portfolio companies. The company charges interest on its debt instruments, which typically includes structured loans that have varying terms and conditions based on the specific needs of the borrowers. In addition to interest income, RWAY may also earn fees related to loan origination, servicing, and prepayment penalties. The company may engage in equity investments, which can provide additional revenue through capital appreciation and dividends. Key partnerships with venture capital firms and private equity groups allow RWAY to access a broader range of potential borrowers, enhancing its market reach and facilitating deal flow, thereby contributing to its overall earnings.

Runway Growth Finance Corp Financial Statement Overview

Summary

Runway Growth Finance Corp is facing profitability and cash flow challenges, with declining revenue and negative net income impacting financial performance. Despite a strong balance sheet with no debt, the company must focus on enhancing revenue streams and profitability to improve overall financial health.

Income Statement

The company has shown a decline in revenue from $145.8M to $144.6M, indicating a slight negative revenue growth. However, the gross profit margin has improved from 75.5% to 100% due to the entire revenue being recognized as gross profit, which might be due to accounting classifications. EBIT margin decreased from 60% to 44.1%, and net income turned negative, impacting net profit margin adversely. The overall profitability trajectory is concerning due to declining EBIT and negative net income.

Balance Sheet

Runway Growth Finance showcases a strong equity position with an equity ratio of 47.2%. The debt-to-equity ratio improved significantly with no debt in the latest year, reducing financial risk. However, the return on equity dropped to zero due to the lack of net income, highlighting challenges in generating returns for shareholders.

Cash Flow

Operating cash flow decreased from $112.4M to $69.8M, which is a significant drop, indicating reduced cash generation capability. Free cash flow is positive but has decreased from the prior year. The operating cash flow to net income ratio is undefined due to zero net income, and reliance on operating cash flow is evident to maintain free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	106.41M	124.22M	94.52M	55.14M	54.00M	52.44M
Gross Profit	68.20M	85.89M	55.88M	41.38M	49.81M	51.38M
EBITDA	54.90M	73.61M	44.34M	32.25M	45.62M	46.98M
Net Income	54.90M	73.61M	44.34M	32.25M	45.62M	46.98M
Balance Sheet
Total Assets	963.35M	1.09B	1.08B	1.14B	738.35M	639.89M
Cash, Cash Equivalents and Short-Term Investments	7.92M	5.75M	2.97M	5.76M	4.70M	14.89M
Total Debt	443.51M	552.33M	510.08M	548.96M	79.49M	97.42M
Total Liabilities	473.82M	576.49M	532.08M	565.71M	132.15M	173.65M
Stockholders Equity	489.53M	514.87M	547.07M	576.05M	606.20M	466.24M
Cash Flow
Free Cash Flow	42.34M	50.49M	112.44M	48.98M	-61.25M	-106.09M
Operating Cash Flow	42.34M	50.49M	112.44M	48.98M	-61.25M	-106.09M
Investing Cash Flow	206.25M	-22.93M	0.00	-453.82M	-120.84M	168.61M
Financing Cash Flow	-175.27M	-66.81M	-115.23M	360.91M	51.06M	75.18M

Runway Growth Finance Corp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.39
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 9.39 is above the 20-day moving average (MA) of 9.12, above the 50-day MA of 9.22, and below the 200-day MA of 9.72, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 56.32 is Neutral, neither overbought nor oversold. The STOCH value of 87.25 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFIN	79 Outperform	$233.73M	5.88	10.79%	4.44%	15.52%	2.05%
YRD	73 Outperform	$345.63M	2.00	12.53%	10.37%	10.48%	-30.67%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RM	64 Neutral	$365.10M	9.11	11.43%	2.99%	9.63%	77.14%
OPRT	64 Neutral	$221.97M	7.64	8.59%	―	-5.29%	―
RWAY	61 Neutral	$339.30M	6.36	11.02%	15.96%	6.38%	41.48%
LPRO	49 Neutral	$249.38M	-1.67	-102.53%	―	-82.33%	-3365.80%

Runway Growth Finance Corp Corporate Events

Runway Growth Finance Receives FTC Merger Approval

On December 2, 2025, Runway Growth Finance Corp received notification from the U.S. Federal Trade Commission regarding the early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act for its proposed merger with SWK Holdings Corporation. This development satisfies a key condition for the merger’s completion, although other customary closing conditions, including SWK stockholder approval, remain pending. The merger is expected to create synergies and cost savings, potentially impacting the operational efficiency and market positioning of the combined entity.

The most recent analyst rating on (RWAY) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Runway Growth Finance Corp stock, see the RWAY Stock Forecast page.

Runway Growth Finance Declares Fourth Quarter Dividend

On November 5, 2025, Runway Growth Finance Corp.’s board of directors declared a regular fourth quarter dividend of $0.33 per share, payable to stockholders of record on November 17, 2025, with a payment date set for December 3, 2025. This announcement reflects the company’s ongoing commitment to distribute substantially all of its available earnings on a quarterly basis, subject to various conditions, and offers stockholders the option to reinvest dividends through an amended ‘opt out’ dividend reinvestment plan.

The most recent analyst rating on (RWAY) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Runway Growth Finance Corp stock, see the RWAY Stock Forecast page.