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Suro Capital Corp. (SSSS)
:SSSS
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SuRo Capital
(NASDAQ:SSSS)
Rating:45Neutral
Price Target:―
Positive Factors
Investment Gains
SuRo sold shares of CoreWeave and ServiceTitan, resulting in significant net gains and providing approximately $20MM for new investments.
IPO Impact
CoreWeave's IPO was the largest technology IPO since 2021 and its stock has risen significantly, adding approximately $2.20 to SuRo’s NAV since quarter end.
Performance
The second quarter marked SuRo’s strongest performance since its inception in 2011, fueled by broad market recognition of the value being created by AI infrastructure companies.
Negative Factors
Market Challenges
The first quarter was a particularly challenging period for the public markets, with NASDAQ posting its worst quarterly performance since 2022.
NAV Decline
Net asset value per share decreased by 20.0% year-over-year, reflecting a decline in the company's financial performance.
SuRo Capital (SSSS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$202.57M
Dividend Yield2.95%
Average Volume (3M)186.69K
Price to Earnings (P/E)4.4
Beta (1Y)0.89
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees10
SectorFinancial
Sector Strength69
IndustryAsset Management
Share Statistics
EPS (TTM)2.23
Shares Outstanding23,888,107
10 Day Avg. Volume162,764
30 Day Avg. Volume186,690
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.89
Price to Sales (P/S)-7.21
P/FCF Ratio59.31
Enterprise Value/Market Cap1.26
Enterprise Value/Revenue44.72
Enterprise Value/Gross Profit57.36
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$10.00Price Target Upside17.92% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
SuRo Capital Business Overview & Revenue Model
Company DescriptionSuRo Capital Corp. (NASDAQ: SSSS) is a publicly traded investment company that primarily focuses on investing in the equity securities of venture-backed, rapidly growing private companies across various sectors including technology, education, and finance. The company seeks to provide growth capital to its portfolio companies and aims to capitalize on the expansion and maturation of these businesses.
How the Company Makes MoneySuRo Capital makes money primarily through the appreciation and eventual sale of its equity investments in private companies. The company invests in early-to-late-stage venture-backed companies with high growth potential. Revenue is generated when these portfolio companies go public through an IPO, are acquired, or experience significant valuation increases, allowing SuRo Capital to sell its shares at a profit. Additionally, the company may earn income through interest and dividends from debt securities and other investment instruments. Key factors contributing to its earnings include market conditions, the performance of its portfolio companies, and strategic investment decisions.
SuRo Capital Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: -2.42%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call emphasized significant achievements, particularly in AI-focused investments with substantial net asset value growth and successful monetizations. However, there were some concerns about valuation discounts and the dividend payout relative to realized gains. Overall, the positive developments heavily outweighed the negative aspects.Q2-2025 Updates
Positive Updates
Record Net Asset Value Growth
SuRo Capital reported a net asset value of $9.18 per share, representing a 38% increase from the prior quarter and the largest increase since inception.
Successful Monetization of CoreWeave Investment
SuRo Capital sold approximately 40% of its initial CoreWeave investment, generating $25.3 million in net proceeds and $15.3 million in realized gains.
OpenAI's Landmark Financing
OpenAI closed a second tranche of its $40 billion financing round, achieving a $300 billion post-money valuation. Discussions are ongoing for a secondary sale at a $500 billion valuation.
ServiceTitan Investment Exit
The company fully exited its investment in ServiceTitan, realizing a gain of approximately $6 million.
Plaid Investment
SuRo Capital made a $5 million investment in Plaid, a key player in the fintech ecosystem, as part of a $575 million financing round.
Dividend Declaration
The Board of Directors declared a cash dividend of $0.25 per share, paid on July 31.
Negative Updates
Non-Registration and Fees Affecting CoreWeave Valuation
The CoreWeave position was marked at a material discount due to non-registration and fees, impacting net asset valuations.
Limited Dividend Payout Relative to Gains
Despite significant realized gains of $21 million from public holding exits, the dividend declared was only $0.25 per share, leading to potential expectations of higher distributions.
Company Guidance
During SuRo Capital's second quarter 2025 earnings call, substantial growth was highlighted, with a net asset value of $9.18 per share, marking a 38% increase from the previous quarter. This was driven by significant gains from AI-focused investments, notably CoreWeave, whose stock price surged over 200% post-IPO. SuRo Capital realized $25.3 million in net proceeds and $15.3 million in gains from partially selling its CoreWeave investment. OpenAI also featured prominently, having closed a $40 billion financing round at a $300 billion valuation, with discussions underway for a $500 billion secondary sale. Additionally, SuRo Capital reported a $6 million gain from its full exit of ServiceTitan and a declared dividend of $0.25 per share. With ongoing portfolio activity and expected monetizations, further distributions are anticipated in the remaining quarters.SuRo Capital Financial Statement Overview
Summary
SuRo Capital's financial performance is characterized by erratic revenue spikes and fluctuating profitability, with a significant but potentially unsustainable revenue increase in 2024. The high debt levels pose leverage risks, despite solid equity, and unstable cash flow growth suggests the need for financial stabilization.Income Statement
SuRo Capital's income statement reflects significant volatility, with a recent massive revenue increase to $4.67 trillion in 2024 from $6.60 million in 2023, indicating a possible one-time event or accounting anomaly. Despite this, the company shows a negative EBIT of $13.95 trillion. The absence of net income in 2024 and erratic revenue growth over the years suggest instability and potential concerns in sustainable earnings.30
Negative
Balance Sheet
The balance sheet shows a high level of stockholders' equity at $157.57 trillion, but also a substantial amount of total debt at $29.05 trillion, resulting in a moderate debt-to-equity ratio. The equity ratio is relatively healthy, but the presence of high debt and liabilities raises caution regarding financial leverage and risk.45
Neutral
Cash Flow
SuRo Capital's cash flow shows positive operating cash flow of $2.37 trillion in 2024 and stable free cash flow, though the free cash flow growth is unsteady. The operating cash flow to net income ratio is not calculable due to zero net income in 2024, highlighting potential cash generation issues. Financing activities show significant cash outflows, indicating possible debt servicing or capital restructuring.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.72M | -19.50M | 6.60M | 3.46M | 1.47M | 1.82M |
| Gross Profit | 4.46M | -24.34M | 6.60M | 3.46M | 1.47M | 1.82M |
| EBITDA | -3.21T | -38.12M | 0.00 | 0.00 | 156.31M | 0.00 |
| Net Income | -16.87M | -38.12M | 5.07M | -132.18M | 147.07M | 75.34M |
Balance Sheet | ||||||
| Total Assets | 231.67M | 231.60M | 277.60M | 284.41M | 462.32M | 478.88M |
| Cash, Cash Equivalents and Short-Term Investments | 16.18M | 20.04M | 28.18M | 40.12M | 198.44M | 45.79M |
| Total Debt | 73.25M | 73.25M | 73.75M | 73.68M | 73.03M | 38.03M |
| Total Liabilities | 74.86M | 74.03M | 74.24M | 74.39M | 97.47M | 177.29M |
| Stockholders Equity | 156.80M | 157.57M | 203.36M | 210.02M | 364.85M | 301.58M |
Cash Flow | ||||||
| Free Cash Flow | -3.72T | 2.37M | 2.38M | -110.56M | 183.65M | -23.62M |
| Operating Cash Flow | -3.72T | 2.37M | 2.38M | -110.56M | 183.65M | -23.62M |
| Investing Cash Flow | -30.97M | 0.00 | 0.00 | -98.72M | 325.71M | -100.19M |
| Financing Cash Flow | -136.05B | -10.51M | -14.32M | -47.76M | -31.01M | 24.56M |
SuRo Capital Technical Analysis
Positive
8.48
Price Trends
7.84
Positive
6.47
Positive
5.95
Positive
Market Momentum
0.18
Positive
55.28
Neutral
64.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSSS, the sentiment is Positive. The current price of 8.48 is above the 20-day moving average (MA) of 8.48, above the 50-day MA of 7.84, and above the 200-day MA of 5.95, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 55.28 is Neutral, neither overbought nor oversold. The STOCH value of 64.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SSSS.
SuRo Capital Risk Analysis
SuRo Capital disclosed 72 risk factors in its most recent earnings report. SuRo Capital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SuRo Capital Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $54.11M | 5.75 | -11.50% | 30.28% | ― | ― | |
70 Outperform | $111.34M | 10.87 | 6.82% | 16.37% | ― | ― | |
69 Neutral | $148.41M | 21.08 | 3.63% | 14.60% | ― | ― | |
65 Neutral | £5.11B | 9.39 | 5.51% | 4.90% | 24.62% | -23.11% | |
48 Neutral | $162.79M | 41.01 | -4.79% | 19.37% | ― | ― | |
48 Neutral | $126.67M | 6.98 | 13.18% | 13.15% | 32.38% | -90.38% | |
45 Neutral | $202.57M | 4.37 | 29.40% | 2.95% | ― | ― |
* Financial Sector Average
Performance Comparison
SSSS
SuRo Capital
8.48
4.77
128.57%
PTMN
Portman Ridge Finance
12.34
-3.79
-23.50%
RAND
Rand Capital
16.74
-0.30
-1.76%
OFS
OFS Capital
8.31
1.45
21.14%
MRCC
Monroe Capital
6.85
0.30
4.58%
GECC
Great Elm Capital
10.95
2.32
26.88%
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.