Runway Growth Finance Corp (RWAY) AI Stock Analysis

• Market Cap: $355.92M
• Dividend Yield: 10.56%
• Average Volume (3M): 280.62K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.50
• 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: 257,217
• 30 Day Avg. Volume: 280,622
• 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: 2.26
• Enterprise Value/Revenue: 6.58
• Enterprise Value/Gross Profit: 14.21
• Enterprise Value/Ebitda: 17.06
• 1Y Price Target: $10.92
• Price Target Upside: 10.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $10.50 ▲(6.60% Upside)

The overall stock score of 67 reflects the company's strong valuation with a low P/E ratio and high dividend yield, which are attractive to investors. However, financial performance challenges, including declining revenue and negative net income, weigh heavily on the score. The mixed technical indicators and earnings call sentiment further contribute to a cautious outlook.

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 (RWAY) is a publicly traded finance company that specializes in providing flexible growth capital to innovative, high-growth companies primarily in the technology, healthcare, and other emerging sectors. The company focuses on delivering customized financing solutions, including loans and equity investments, to support businesses in their expansion and operational needs. RWAY aims to empower entrepreneurs and management teams by offering financial resources coupled with strategic guidance to enhance their growth trajectories.

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	122.16M	124.22M	94.52M	55.14M	54.00M	52.44M
Gross Profit	56.56M	85.89M	55.88M	41.38M	49.81M	51.38M
EBITDA	47.10M	73.61M	44.34M	32.25M	45.62M	46.98M
Net Income	46.88M	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	0.00	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	106.76M	69.76M	112.44M	-359.85M	-61.25M	-106.09M
Operating Cash Flow	106.76M	69.76M	112.44M	-359.85M	-61.25M	-106.09M
Investing Cash Flow	127.74M	-22.93M	95.94M	-453.82M	-120.84M	168.61M
Financing Cash Flow	-175.27M	-66.98M	-115.23M	360.91M	51.06M	75.18M

Runway Growth Finance Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 9.85 is below the 20-day moving average (MA) of 9.90, below the 50-day MA of 10.05, and below the 200-day MA of 9.92, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 47.03 is Neutral, neither overbought nor oversold. The STOCH value of 72.92 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFIN	76 Outperform	$229.07M	5.76	10.79%	4.77%	15.52%	2.05%
YRD	75 Outperform	$443.27M	2.50	13.64%	8.58%	12.69%	-35.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RWAY	67 Neutral	$355.92M	6.67	11.02%	10.56%	6.38%	41.48%
RM	67 Neutral	$364.91M	9.11	11.43%	3.04%	9.63%	77.14%
OPRT	51 Neutral	$212.70M	7.32	8.59%	―	-5.29%	―
LPRO	42 Neutral	$180.83M	―	-102.53%	―	-82.33%	-3365.80%

Runway Growth Finance Corp Corporate Events

Runway Growth Finance’s Earnings Call: Mixed Sentiments and Strategic Moves

The recent earnings call for Runway Growth Finance Corporation presented a mixed sentiment, highlighting both achievements and challenges. The company reported growth in investment income and strategic acquisitions, notably the acquisition of SWK Holdings, which is set to enhance growth and diversification. However, these positives were countered by decreases in portfolio value and net asset value, indicating some financial hurdles.

Runway Growth Finance Reports Q3 2025 Results

Runway Growth Finance Corp. is a specialty finance company that provides flexible capital solutions to late- and growth-stage companies, operating primarily in the investment sector as a business development company. In its third quarter of 2025, Runway Growth reported a total investment income of $36.7 million and a net investment income of $15.7 million. The company’s investment portfolio is valued at $0.9 billion, with a dollar-weighted annualized yield on debt investments of 16.8%. During the quarter, Runway Growth completed 11 investments totaling $128.3 million and repurchased nearly 398,000 shares for $4.4 million.

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.

Runway Growth Finance Enters Merger Agreement with SWK

On October 9, 2025, Runway Growth Finance Corp. (RWAY) announced its entry into a merger agreement with SWK Holdings Corporation, involving a series of mergers that will ultimately result in SWK becoming a wholly-owned subsidiary of RWAY. The agreement, approved by both companies’ boards, outlines the conversion of SWK shares into RWAY shares or cash, subject to certain conditions. The merger aims to streamline operations and potentially enhance RWAY’s market position, with significant implications for stakeholders, including a key stockholder agreement ensuring support for the merger.

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.

Runway Growth Finance Announces Merger with SWK Holdings

On October 9, 2025, Runway Growth Finance Corp. and SWK Holdings Corporation announced a definitive merger agreement. This merger involves a series of mergers where SWK will ultimately become a wholly-owned subsidiary of Runway Growth Finance Corp., potentially impacting the company’s market positioning and stakeholder interests.

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.

Runway Growth Finance Reports Q3 2025 Portfolio Activity

On October 9, 2025, Runway Growth Finance Corp. announced its portfolio activity for the third quarter of 2025, highlighting the completion of 11 investments totaling $128.3 million. These investments included new and existing portfolio companies across technology, healthcare, and consumer sectors, with significant investments in companies like Kin Insurance and Madison Reed. Additionally, the company experienced liquidity events totaling $201.2 million, including full principal repayments from several companies, enhancing its position as a preferred lender in the venture debt market.

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.

Runway Growth Finance’s Earnings Call Highlights Strategic Gains Amid Challenges

The recent earnings call of Runway Growth Finance Corporation conveyed a cautiously optimistic sentiment. The company highlighted strategic achievements such as the successful integration with BC Partners and efforts towards portfolio diversification. However, challenges like increased interest expenses and a decrease in net investment income were also acknowledged, reflecting a balanced outlook.

Runway Growth Finance Corp. Reports Steady Q2 2025 Results

Runway Growth Finance Corp. is a specialty finance company that provides flexible capital solutions to late- and growth-stage companies as an alternative to raising equity. The company operates as a closed-end investment fund and is managed by Runway Growth Capital LLC.