Runway Growth Finance funds $37.8 million in new investments in Q2

Published 15/07/2025, 13:52
Runway Growth Finance funds $37.8 million in new investments in Q2

MENLO PARK - Runway Growth Finance Corp. (NASDAQ:RWAY), a specialty finance company with a market capitalization of $410 million and currently trading near its 52-week high of $12.09, funded three investments totaling $37.8 million during the second quarter of 2025, according to a company press release issued Tuesday. According to InvestingPro, the company maintains a healthy 25.11% dividend yield, making it an attractive option for income-focused investors.

The specialty finance company, which provides capital solutions to late- and growth-stage companies, completed two investments in new portfolio companies and one in an existing portfolio company during the quarter ended June 30. Trading at a modest P/E ratio of 5.82, InvestingPro analysis suggests the stock is currently undervalued relative to its peers.

The new investments included a $40 million commitment to Autobooks, Inc., with $27 million funded at closing. Autobooks provides integrated payment, invoice, and accounting solutions for small and medium-sized businesses. Runway Growth also committed $20 million to Swing Education, Inc., funding $8 million initially. Swing Education operates an online marketplace connecting schools with substitute teachers.

Additionally, the company provided $2.8 million to existing portfolio company Marley Spoon SE.

Following the quarter’s end, Runway Growth completed a new $10 million investment in Federal Hearings and Appeals Services (FHAS), funding $7.5 million at closing. FHAS provides business processing and outsourcing services to government agencies.

The company also reported liquidity events during the quarter, including full repayment of a $25 million senior secured term loan to SetPoint Medical Corporation and $4.1 million in scheduled loan principal amortization payments. After the quarter closed, Runway Growth received full repayment of a $21.1 million loan to Nalu Medical Inc.

As of June 30, Runway Growth’s portfolio included 48 debt investments across 31 portfolio companies and 89 equity investments in 49 portfolio companies. The company focuses on investments in technology, healthcare, and select consumer services sectors.

Runway Growth Finance is a business development company externally managed by Runway Growth Capital LLC.

In other recent news, Runway Growth Finance Corp reported impressive first-quarter 2025 earnings, surpassing market expectations. The company achieved earnings per share of $0.42, exceeding the projected $0.37, and recorded revenue of $35.4 million, beating the forecast of $33.27 million. Additionally, the firm announced a new $25 million stock repurchase program, reflecting management’s confidence in its financial performance. Runway Growth Finance’s first-quarter performance was bolstered by strategic investments and a focus on non-sponsored deals, maintaining a strong portfolio yield of 15.4% annualized. Furthermore, the company completed a merger with BC Partners Credit, expanding its investment opportunities. In corporate governance news, Runway Growth Finance held its 2025 Annual Meeting of Stockholders, re-electing three Class III directors and ratifying Deloitte & Touche LLP as its independent registered public accounting firm. These developments indicate a period of growth and strategic positioning for the company.

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