SuRo Capital (SSSS)
NASDAQ:SSSS
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SuRo Capital
(NASDAQ:SSSS)
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Rating:70Outperform
Price Target:
$16.50
▲(24.15% Upside)
Action:Upgraded
Date:05/09/26
The score is driven by very attractive valuation (extremely low P/E plus dividend) and a constructive technical setup, supported by a positive earnings call featuring a large NAV step-up and a potentially stockholder-friendly externalization/strategic partner. The main constraint is financial quality risk from volatile results and weak/inconsistent cash flow, which reduces confidence in the durability of reported earnings.
Positive Factors
Strategic partnership & externalization
The board‑approved plan to externalize management and secure a $20M Magnetar anchor represents a structural change: it should lower operating costs, expand sourcing/diligence capabilities, and provide committed capital and distributional support. Over months this raises execution capacity and access to follow‑on capital while preserving realized gains from incentive calculations.
Negative Factors
Inconsistent cash generation
Near‑term cash flow is inconsistent and currently slightly negative, reflecting SuRo’s reliance on timing of exits and distributions. Over months, weak cash conversion limits the company’s ability to fund follow‑on commitments, pay operating expenses without asset sales, and increases dependence on external capital or strategic partners.
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Positive Factors
Negative Factors
Strategic partnership & externalization
The board‑approved plan to externalize management and secure a $20M Magnetar anchor represents a structural change: it should lower operating costs, expand sourcing/diligence capabilities, and provide committed capital and distributional support. Over months this raises execution capacity and access to follow‑on capital while preserving realized gains from incentive calculations.
Read all positive factors
SuRo Capital (SSSS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$357.16M
Dividend Yield5.39%
Average Volume (3M)210.28K
Price to Earnings (P/E)1.7
Beta (1Y)1.17
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees10
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)8.27
Shares Outstanding26,070,208
10 Day Avg. Volume258,576
30 Day Avg. Volume210,284
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)1.11
Price to Sales (P/S)6.55
P/FCF Ratio6.66
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue5.95
Enterprise Value/Gross Profit6.32
Enterprise Value/Ebitda1.88
Forecast
1Y Price Target
$16.00Price Target Upside20.39% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.67
Revenue Forecast (FY)$2.24M
SuRo Capital Business Overview & Revenue Model
Company Description
SuRo Capital Corp. operates as a business development company, primarily channeling investments into expanding, well-established private enterprises that have already attracted venture capital. Founded in 2010, the company maintains its principal ...
How the Company Makes Money
SuRo Capital makes money primarily through investment returns rather than operating revenue. Its main economic drivers are: (1) Realized gains on investments: when the company sells portfolio holdings (including following an IPO, direct listing, M...
SuRo Capital Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call highlights a very strong quarter driven by significant unrealized appreciation and multiple large private-market financings that validate SuRo's portfolio and strategy, along with decisive strategic action to externalize management and partner with Magnetar (including a $20M anchor investment). However, key risks include portfolio concentration, liquidity constraints relative to commitments, the contingent nature of follow-on investments, and the fact that most of the NAV gain is unrealized and dependent on future liquidity events and execution. The positive developments and strategic partnership appear to outweigh the risks disclosed.Positive Updates
Record Quarter-over-Quarter NAV Increase
Net asset value increased from $8.09 to $14.24 per share, a $6.15 per share increase or approximately 76% quarter-over-quarter—the largest QoQ NAV increase in company history; NAV totaled approximately $361.6 million as of March 31, 2026.
Negative Updates
High Portfolio Concentration and Sector Concentration Risk
Top 5 positions represent ~72% and top 10 ~88% of the portfolio, creating concentration risk. Consumer goods & services (driven by WHOOP) comprised ~43% of the portfolio, raising sector concentration concerns despite WHOOP's strong performance.
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Q1-2026 Updates
Positive
Negative
Record Quarter-over-Quarter NAV Increase
Net asset value increased from $8.09 to $14.24 per share, a $6.15 per share increase or approximately 76% quarter-over-quarter—the largest QoQ NAV increase in company history; NAV totaled approximately $361.6 million as of March 31, 2026.
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Company Guidance
Management summarized a clear strategic pivot and provided a host of metrics: Q1 NAV rose to ~$361.6M ($14.24/share) from $8.09/share at year‑end — a $6.15 per‑share (~76%) quarter‑over‑quarter increase (the largest in company history), driven by a $6.25/share net change in unrealized appreciation, $0.04/share net realized gains and $0.02/share stock‑based compensation, partially offset by $0.16/share net investment loss, with 25,387,393 shares outstanding; liquidity at 3/31 was ~ $46M (≈$43.3M cash + $2.7M unrestricted public securities) plus ~$15.9M of public securities subject to lockup. They announced a Board‑approved externalization to Neostellar Advisors (a joint vehicle with Magnetar, which has ~ $18B AUM), subject to a June 10 shareholder vote and an anticipated July 1 rebrand, with a Magnetar affiliate expected to invest $20M and pre‑existing investments excluded from any new incentive‑fee calculation to preserve stockholder value and deliver annual expense savings. Deployment and portfolio activity highlighted $5M funded to a $20M commitment (Magnetar SPV) for TensorWave (up to $15M remaining subject to milestones), a subsequent ~ $9.5–$10M investment in ClickHouse, a $225k Huntress Labs secondary, realized proceeds including ~$3M from CW Opportunity 2 LP (≈$902k return of capital + $2.1M realized gain), ~$1.4M net proceeds (≈$891k realized gain) from sales of 440,246 GrabAGunDigital shares (retaining 599,754 shares, ~58% of original), and a $246k distribution from True Global Ventures; other market markers cited included WHOOP’s $575M Series G at a $10.1B valuation (2.5M members, 103% YoY bookings growth in 2025, $1.1B exit run rate, positive operating cash flow), OpenAI’s financing with $122B committed at an $852B post‑money, VAST valued at $30B (vs. $9.1B in 2023), and Canva at a reported $42B valuation.SuRo Capital Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
71
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 65.27M | 34.89M | 4.67M | 6.60M | 3.46M | 1.47M |
| Gross Profit | 61.44M | 34.89M | -24.34M | 20.25M | -118.86M | 157.78M |
| EBITDA | 206.53M | 53.71M | -38.12M | 5.07M | -132.18M | 147.07M |
| Net Income | 205.25M | 48.81M | -38.12M | 5.07M | -132.18M | 147.07M |
Balance Sheet | ||||||
| Total Assets | 433.27M | 276.02M | 231.60M | 277.60M | 284.41M | 462.32M |
| Cash, Cash Equivalents and Short-Term Investments | 43.32M | 49.03M | 20.04M | 28.18M | 40.12M | 198.44M |
| Total Debt | 69.88M | 69.77M | 73.25M | 73.75M | 73.39M | 73.03M |
| Total Liabilities | 71.71M | 70.70M | 74.03M | 74.24M | 74.39M | 97.47M |
| Stockholders Equity | 361.55M | 205.32M | 157.57M | 203.36M | 210.02M | 364.85M |
Cash Flow | ||||||
| Free Cash Flow | -2.64M | 34.32M | 2.37M | -10.35M | -11.84M | -142.06M |
| Operating Cash Flow | -2.64M | 34.32M | 2.37M | -10.35M | -11.84M | -142.06M |
| Investing Cash Flow | 34.92M | 0.00 | 0.00 | 12.73M | -98.72M | 325.71M |
| Financing Cash Flow | -5.15M | -5.28M | -10.51M | -14.32M | -47.76M | -31.01M |
SuRo Capital Technical Analysis
Neutral
13.29
Price Trends
13.31
Positive
11.47
Positive
10.31
Positive
Market Momentum
0.23
Positive
50.43
Neutral
41.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSSS, the sentiment is Neutral. The current price of 13.29 is below the 20-day moving average (MA) of 13.81, below the 50-day MA of 13.31, and above the 200-day MA of 10.31, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 50.43 is Neutral, neither overbought nor oversold. The STOCH value of 41.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $228.21M | 6.67 | 11.28% | 13.03% | 92.11% | 73.34% | |
70 Outperform | $357.16M | 1.69 | 80.64% | 5.39% | ― | ― | |
68 Neutral | $143.50M | 15.68 | 3.58% | 21.24% | -58.30% | 2.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
49 Neutral | $226.14M | 5.27 | 12.12% | 17.28% | 18.91% | 14.29% |
* Financial Sector Average
SSSS
SuRo Capital
13.70
6.77
97.55%
WHF
WhiteHorse
6.64
-1.11
-14.37%
TPVG
TriplePoint Venture Growth
5.57
-0.34
-5.69%
NXDT
NexPoint Diversified Real Estate Trust
4.93
1.56
46.33%
LIEN
Chicago Atlantic BDC
10.00
1.28
14.71%
SuRo Capital Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
SuRo Capital Plans Shift to Externally Managed Structure
Positive
Apr 7, 2026
On April 2, 2026, SuRo Capital’s board unanimously approved a plan to shift from an internally managed BDC to an externally managed structure via a new advisory agreement with Neostellar Advisors LLC, a joint venture between certain SuRo emp...
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.