Trinity Capital (TRIN)
NASDAQ:TRIN
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Trinity Capital
(NASDAQ:TRIN)
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Rating:67Neutral
Price Target:
$16.50
â–²(9.13% Upside)
Action:ReiteratedDate:04/10/26
The score is led by attractive valuation (low P/E and high yield) and a positive earnings-call backdrop (record NII, solid dividend coverage, and low non-accruals). Offsetting these positives, the biggest constraint is weak cash generation with persistently negative operating/free cash flow, while technicals are moderately supportive rather than strongly bullish.
Positive Factors
High ROE and portfolio yield
Trinity's double-digit ROE and ~15% portfolio yield indicate durable spread generation typical of specialty venture lending. This persistent earning power supports dividend coverage and reinvestment ability, underpinning sustainable core profitability and shareholder returns over the medium term.
Negative Factors
Persistently negative operating and free cash flow
Recurring negative operating and free cash flow shows reported earnings do not consistently convert to cash. That forces reliance on external capital (ATMs, JV funding, debt facilities) to fund investments and distributions, limiting financial flexibility and raising funding risk over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High ROE and portfolio yield
Trinity's double-digit ROE and ~15% portfolio yield indicate durable spread generation typical of specialty venture lending. This persistent earning power supports dividend coverage and reinvestment ability, underpinning sustainable core profitability and shareholder returns over the medium term.
Read all positive factors
Trinity Capital (TRIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.26B
Dividend Yield13.53%
Average Volume (3M)1.28M
Price to Earnings (P/E)7.5
Beta (1Y)0.57
Revenue Growth33.44%
EPS Growth25.22%
CountryUS
Employees58
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.52
Shares Outstanding83,174,910
10 Day Avg. Volume1,080,680
30 Day Avg. Volume1,280,899
Financial Highlights & Ratios
PEG Ratio-0.71
Price to Book (P/B)0.93
Price to Sales (P/S)4.37
P/FCF Ratio-1.90
Enterprise Value/Market Cap1.87
Enterprise Value/Revenue9.28
Enterprise Value/Gross Profit11.97
Enterprise Value/Ebitda14.54
Forecast
1Y Price Target
$17.25Price Target Upside14.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.07
Revenue Forecast (FY)$360.92M
Trinity Capital Business Overview & Revenue Model
Company Description
Trinity Capital Inc. is a business development company. It is a venture capital firm specializing in venture debt to growth stage companies looking for loans and/or equipment financing. Trinity Capital Inc. was founded in 2019 is based in Phoenix,...
How the Company Makes Money
Trinity Capital primarily makes money by originating and holding debt investments (typically secured loans) made to venture-backed and growth-stage borrowers. Its core earnings are generated from: (1) interest income on its loan portfolio, includi...
Trinity Capital Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strong operational and financial outcomes — record net investment income, robust quarters of income growth, NAV expansion, significant AUM growth, high ROE and portfolio yield, expanding managed-fund revenue, and conservative credit metrics (non-accruals <1%, high first-lien exposure). The company acknowledged some sector valuation volatility (notably in AI/software markets), a couple of legacy non-accruals added in Q4, and execution/diligence gating on a large portion of the pipeline. Overall, positives (record metrics, capital-raising success, diversified platform and strong credit performance) materially outweigh the contained and manageable lowlights.Positive Updates
Record Annual Net Investment Income
Net investment income for FY2025 reached a record $144 million, or $2.08 per share, demonstrating strong operating profitability for the year.
Negative Updates
Nonaccrual Additions During Q4
Two relatively small debt financings were added to non-accrual status in Q4 (ZUUM and 3DEO cited as legacy borrowers that stopped payments), although two prior non-accruals were realized and rolled off; total non-accruals nonetheless remain under 1% of the portfolio ($15.2 million).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Net Investment Income
Net investment income for FY2025 reached a record $144 million, or $2.08 per share, demonstrating strong operating profitability for the year.
Read all positive updates
Company Guidance
Management guided that Trinity enters 2026 with strong momentum and reiterated a shareholder‑first outlook: they converted the dividend to monthly distributions of $0.17 per share (maintaining the $0.51 quarterly payout), reported record 2025 net investment income of $144M ($2.08/share) and Q4 NII of $40M ($0.52/basic share, 102% coverage), Q4 total investment income $83M, weighted average effective portfolio yield 15.2% and return on average equity 15.3%; NAV per share rose from $13.31 to $13.42 (full NAV $1.1B, +10% q/q, +33% y/y), platform AUM >$2.8B (+38% y/y), Q4 fundings $435M (FY investments $1.5B, +21% YoY) with $2.1B of commitments and $1.2B unfunded (93% subject to diligence), non‑accruals $15.2M (<1% of portfolio), net leverage 1.18x, managed vehicles $400M (co‑invests added ~$3.1M or $0.04/share NII in Q4), $95M equity ATM at a 12% premium and $28M debt ATM at 1% premium raised in Q4, SBIC expected to add >$260M of capacity, PIK <2% of income, estimated undistributed taxable income ~$69M ($0.84/share), and a 130‑company portfolio with 209 warrant positions — with management expecting rate cuts to have a muted earnings impact, potential for accelerated prepayments, and continued NAV and dividend growth as the managed‑funds platform scales.Trinity Capital Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 232.25M | 237.44M | 174.84M | 43.54M | 175.48M |
| Gross Profit | 232.25M | 175.49M | 141.75M | 9.39M | 155.09M |
| EBITDA | 216.17M | 118.27M | 121.19M | -27.99M | 132.57M |
| Net Income | 135.60M | 115.60M | 76.89M | -30.38M | 132.32M |
Balance Sheet | |||||
| Total Assets | 2.48B | 1.77B | 1.31B | 1.13B | 937.12M |
| Cash, Cash Equivalents and Short-Term Investments | 19.11M | 9.63M | 4.76M | 10.61M | 31.68M |
| Total Debt | 1.31B | 877.67M | 646.89M | 610.59M | 455.35M |
| Total Liabilities | 1.39B | 951.26M | 699.82M | 666.79M | 490.58M |
| Stockholders Equity | 1.09B | 822.98M | 611.16M | 459.65M | 446.53M |
Cash Flow | |||||
| Free Cash Flow | -535.50M | -317.33M | -99.00M | 54.72M | -242.88M |
| Operating Cash Flow | -535.50M | -316.91M | -96.26M | 54.91M | -241.67M |
| Investing Cash Flow | -785.00K | -420.00K | -2.74M | -290.85M | -1.20M |
| Financing Cash Flow | 545.77M | 322.19M | 93.15M | 199.81M | 228.52M |
Trinity Capital Technical Analysis
Positive
15.12
Price Trends
15.02
Positive
14.78
Positive
14.36
Positive
Market Momentum
0.06
Negative
57.73
Neutral
79.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRIN, the sentiment is Positive. The current price of 15.12 is above the 20-day moving average (MA) of 14.68, above the 50-day MA of 15.02, and above the 200-day MA of 14.36, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 57.73 is Neutral, neither overbought nor oversold. The STOCH value of 79.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRIN.
Trinity Capital Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.37B | 9.68 | 11.18% | 11.90% | 25.28% | -1.69% | |
72 Outperform | $817.99M | 9.13 | 8.72% | 13.18% | -26.08% | -27.65% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $1.26B | 7.49 | 14.09% | 13.53% | 33.44% | 25.22% | |
66 Neutral | $1.01B | 8.99 | 8.03% | 17.34% | -16.58% | 65.24% | |
61 Neutral | $805.44M | 59.29 | 1.29% | 14.17% | 36.15% | -38.59% | |
60 Neutral | $772.50M | 12.09 | 5.87% | 13.63% | -8.23% | -35.72% |
* Financial Sector Average
TRIN
Trinity Capital
15.12
2.78
22.49%
CSWC
Capital Southwest
22.83
5.73
33.54%
NMFC
New Mountain Finance
7.99
-0.13
-1.65%
GSBD
Goldman Sachs BDC
8.97
0.38
4.45%
CGBD
Carlyle Secured Lending Inc
10.93
-1.47
-11.85%
BCSF
Bain Capital Specialty Finance
12.61
-0.06
-0.46%
Trinity Capital Corporate Events
Business Operations and StrategyFinancial Disclosures
Trinity Capital Announces Strong Q1 2026 Investment Activity
Positive
Apr 10, 2026
On April 10, 2026, Trinity Capital reported that in the first quarter of 2026 it funded $306 million in total investments, including $236 million in secured loans, $54 million in equipment financings and $16 million in warrant and equity investmen...
Business Operations and StrategyDividendsFinancial Disclosures
Trinity Capital Posts Strong Q4 and 2025 Results
Positive
Feb 25, 2026
On February 25, 2026, Trinity Capital reported fourth-quarter and full-year 2025 results showing strong growth in income and scale. Total investment income reached $83.2 million in Q4, up 17.5% year-over-year, driving net investment income of $39....
Business Operations and StrategyFinancial Disclosures
Trinity Capital Reports Record 2025 Investment and Commitments
Positive
Jan 13, 2026
On January 13, 2026, Trinity Capital reported that in the fourth quarter of 2025 it funded approximately $435 million in investments and originated about $543 million in new commitments, underscoring strong demand for its secured loans, equipment ...
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.