Runway Growth Finance Corp.
- Open
- 5.62
- Day high
- 5.73
- Day low
- 5.60
- Prev close
- 5.61
- Volume
- 216K
- Mkt cap
- $240M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 0.5
- P/S
- 2.4
- Yield
- 23.92%
- Per share
- $1.35
- ▼Insiders net selling -$3.6M over the last 3 months (4 open-market buys, 1 sale)
- ◆Cluster buying — multiple insiders bought within days
- 🏛Institutions mixed (13F)
Runway Growth Finance Corp. (RWAY) is a Financial Services company listed on NASDAQ. The stock is down 47% over the past year. Over the trailing 3 months, insiders filed 4 open-market buys and 1 sale (SEC Form 4).
Runway Growth Finance Corp. (RWAY) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
RWAY earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $0.31 | $0.29 | -6.5% | $29M | -0.1% |
| Mar 12, 2026 | $0.35 | $0.32 | -7.5% | $30M | -6.2% |
| Nov 6, 2025 | $0.38 | $0.43 | +13.2% | $21M | -33.6% |
| Aug 7, 2025 | $0.39 | $0.38 | -2.6% | $34M | -4.2% |
| Mar 20, 2025 | $0.42 | $0.39 | -7.1% | $60M | +77.0% |
| Aug 8, 2024 | $0.43 | $0.37 | -14.0% | $34M | -11.6% |
| Mar 7, 2024 | $0.49 | $0.45 | -8.2% | $22M | -45.5% |
| Mar 2, 2023 | $0.39 | $0.45 | +15.4% | $21M | -47.2% |
| Nov 3, 2022 | $0.35 | $0.36 | +2.9% | $14M | -45.2% |
| Aug 4, 2022 | $0.32 | $0.35 | +9.4% | $910000 | -95.8% |
| May 5, 2022 | $0.29 | $0.30 | +3.4% | $5M | -75.3% |
| Mar 3, 2022 | $0.26 | $0.28 | +7.7% | $21M | +12.5% |
RWAY insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 27, 2026 | SPRENG R DAVIDdirector, officer: President and CEO | Buy | 3,000 | $6.37 |
| May 27, 2026 | Raterman Thomas B.officer: CFO, COO | Buy | 2,900 | $6.67 |
| May 27, 2026 | Raterman Thomas B.officer: CFO, COO | Buy | 100 | $6.67 |
| May 27, 2026 | Raterman Thomas B.officer: CFO, COO | Buy | 7,000 | $6.33 |
| May 22, 2026 | SPRENG R DAVIDdirector, officer: President, CEO and CIO | Grant | 3,000 | $6.37 |
| May 22, 2026 | Raterman Thomas B.officer: CFO, COO | Grant | 7,000 | $6.33 |
| May 18, 2026 | Raterman Thomas B.officer: CFO, COO | Grant | 2,900 | $6.67 |
| May 18, 2026 | Raterman Thomas B.officer: CFO, COO | Grant | 100 | $6.67 |
| Apr 13, 2026 | Carlson Capital, L.P.10 percent owner | Sell | 560,105 | $6.59 |
| Nov 19, 2025 | OCM Growth Holdings LLC10 percent owner | Sell | 1,250,000 | $9.05 |
| Aug 12, 2025 | OCM Growth Holdings LLC10 percent owner | Sell | 500,000 | $10.80 |
| Jul 3, 2025 | OCM Growth Holdings LLC10 percent owner | Sell | 1,000,000 | $10.45 |
| Apr 3, 2025 | OCM Growth Holdings LLC10 percent owner | Sell | 1,000,000 | $10.35 |
| Dec 19, 2024 | SPRENG R DAVIDdirector, officer: President and CEO | Buy | 1,000 | $10.34 |
| Nov 22, 2024 | Raterman Thomas B.officer: See Remarks | Buy | 8,803 | $10.18 |
Source: RWAY SEC Form 4 filings, latest May 27, 2026. For informational purposes only — not investment advice.
See the full RWAY insider & 13F page →Runway Growth Finance Corp. company profile
Overview
Runway Growth Finance Corp. (NYSE:RWAY) is a business development company that went public in October 2021, specializing in providing debt financing to late-stage growth companies. The company operates as an externally managed investment fund that focuses primarily on senior-secured loans to venture-backed technology, healthcare, and consumer services companies. In 2024, Runway was acquired by BC Partners Credit, expanding its origination capabilities and product offerings while maintaining its core investment strategy of providing non-dilutive capital to high-growth businesses.
Business
Runway Growth Finance operates in the venture debt market, which sits at the intersection of traditional banking and venture capital financing. The company provides senior-secured loans to late-stage growth companies that have typically already raised multiple rounds of venture capital funding but need additional capital without further diluting their equity ownership. The company's core product is venture debt - loans that are secured by a company's assets and typically rank senior to equity investments in the capital structure. These loans usually range from $10 million to $75 million per investment, though the company now targets larger deals of $30 million to $150 million following its acquisition by BC Partners Credit. Unlike traditional bank loans, venture debt is specifically designed for high-growth companies that may not yet be profitable but have strong venture capital backing and significant growth potential. Runway focuses on three primary sectors: technology companies (including software, internet services, and AI businesses), life sciences and healthcare (including biotechnology and medical devices), and select consumer services and products. The technology sector represents the largest portion of the portfolio, reflecting the concentration of venture-backed companies in this space. The company maintains a portfolio of approximately $1 billion in investments, with nearly 100% of its debt portfolio consisting of floating-rate, first-lien senior secured loans, providing protection against interest rate fluctuations and priority in repayment.
Revenue model
Runway generates revenue primarily through interest income from its loan portfolio, earning spreads over benchmark rates on its floating-rate loans. The company's loans typically carry interest rates that float above reference rates like SOFR (Secured Overnight Financing Rate), with most loans having interest rate floors to protect against declining rates. The portfolio yield has ranged from approximately 14.7% to 15.9% annualized across recent quarters. The company's customers are late-stage growth companies that have already raised significant venture capital funding but need additional capital for growth initiatives, acquisitions, or working capital without further equity dilution. These borrowers are typically backed by reputable venture capital firms and have demonstrated revenue traction, though they may not yet be profitable. Revenue is also generated through prepayment fees when borrowers repay loans early, often due to successful exits through acquisitions or IPOs. Additionally, the company may receive equity warrants as part of loan agreements, providing potential upside participation in borrower success, though this represents a smaller portion of total returns. Several factors influence Runway's profitability margins. Interest rate environments significantly impact spreads, as the company's floating-rate portfolio benefits from rising rates while its own borrowing costs may also increase. Credit quality affects margins through potential losses - the company has maintained relatively low credit losses historically. Competition in the venture debt market can compress spreads, particularly from traditional banks entering the space or other specialty lenders. Venture capital market conditions influence both deal flow and borrower quality, as companies with strong VC backing are generally better credit risks. Prepayment activity can create volatility in quarterly results but generally indicates portfolio company success.
Competitive moat
Runway's competitive position relies on several factors, though its moat is moderate rather than strong. The company benefits from specialized expertise in underwriting venture-backed companies, which requires understanding both the technology/healthcare sectors and venture capital ecosystem dynamics that traditional banks may lack. This expertise helps in risk assessment and structuring appropriate loan terms. The company's relationship network with venture capital firms provides deal flow advantages, as VCs often recommend debt financing to their portfolio companies. However, this network effect is not exclusive, as multiple venture debt providers cultivate similar relationships. Runway's recent acquisition by BC Partners Credit has expanded these origination channels and added capabilities in structured equity and asset-based lending. The venture debt market has natural barriers to entry including regulatory requirements for business development companies, need for substantial capital, and specialized underwriting capabilities. However, these barriers are not insurmountable, and the market faces competition from traditional banks, other BDCs, and specialty finance companies. Competitive threats include traditional banks expanding into venture debt (particularly during favorable credit cycles), other specialized lenders, and direct lending funds. Additionally, improved venture capital funding conditions could reduce demand for venture debt as companies opt for equity financing instead. The company's focus on larger loan sizes ($30-150 million) following the BC Partners acquisition may help differentiate it from smaller players but also intensifies competition with larger financial institutions. The moat is further limited by the commoditized nature of debt financing - while relationships and expertise matter, borrowers ultimately focus on terms and pricing, limiting pricing power during competitive periods.
Risks & safety
Runway maintains a moderate margin of safety with manageable leverage and adequate liquidity, though typical BDC risks remain. **Liquidity and Debt:** - Total available liquidity of $315.4 million as of Q1 2025 - Leverage ratio of 0.99x, well below regulatory maximums for BDCs - Cash and short-term investments of $18.4 million - Strong operating cash flow generation of $73.6 million in Q1 2025 **Credit Quality:** - Portfolio concentrated in senior-secured, first-lien loans (97%+ of portfolio) - Minimal non-accrual loans (0.5% of portfolio in recent quarters) - Weighted average portfolio risk rating of 2.33 (improved from 2.48) - Zero realized credit losses historically **Valuation Metrics:** - Trading at 0.77x price-to-book ratio, below net asset value - Dividend yield of approximately 14-15% annually - NAV per share of $13.48 vs. stock price around $9.43 **Other Considerations:** - BDC structure requires distribution of most taxable income - Interest rate sensitivity on both assets and liabilities - Concentration in venture-backed growth companies creates sector risk
Recent development
Over the past few years, Runway has undergone significant strategic evolution. The most transformative development was the acquisition by BC Partners Credit announced in Q3 2024, which expanded the company's origination channels and introduced new investment capabilities including structured equity, preferred investments, and asset-based lending. This acquisition allows Runway to target larger loan sizes of $30-150 million while maintaining its core BDC allocation focus of $20-45 million. The company has significantly expanded its operational capacity, growing its investment and finance teams by over 40% and opening new offices in Boston and Dallas. Portfolio growth has been substantial, with the investment portfolio increasing from approximately $670 million in 2022 to over $1 billion by 2024, representing a 65% year-over-year growth. Runway has also enhanced its capital structure flexibility through the formation of a joint venture with Cadma Capital Partners providing up to $200 million in additional financing capacity. The company has implemented a more sophisticated capital allocation strategy, including stock repurchase programs ($25 million authorized in Q1 2025) and a flexible dividend policy combining base dividends with supplemental distributions based on excess net investment income. Recent strategic focus has shifted toward optimizing portfolio quality in the current market environment, with management emphasizing credit-first underwriting and seeking investments in companies with demonstrated revenue traction and controlled cash burn rates. The company has particularly focused on AI and healthcare investments, though with emphasis on mature, revenue-generating businesses rather than early-stage companies.
RWAY company profile · for informational purposes only — not investment advice.
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