Runway Growth Finance Corp changes its accountant

Runway Growth Finance Corp (NASDAQ:RWAY), a Maryland-based specialty finance company with a market capitalization of $427 million and an attractive P/E ratio of 10x, announced the dismissal of RSM US LLP as its independent registered public accounting firm on January 23, 2025.

The decision was made by the company’s Board of Directors. According to InvestingPro data, RWAY maintains a healthy dividend yield of 26% and has demonstrated profitability over the last twelve months.

The reports on the company’s financial statements for the fiscal years ended December 31, 2022, and December 31, 2023, by RSM did not contain any adverse opinion or disclaimer of opinion. Furthermore, they were not qualified or modified regarding uncertainty, audit scope, or accounting principles. While the company maintains a GOOD overall Financial Health Score according to InvestingPro, investors should note its current ratio of 0.36 indicates tight liquidity management.

The company stated that there were no disagreements with RSM on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure that would have required RSM to reference any such disagreements in its reports. Additionally, there were no reportable events as defined in the Securities Exchange Act of 1934 during the two most recent fiscal years up to January 23, 2025.

In conjunction with this change, Runway Growth Finance Corp has appointed Deloitte & Touche LLP to audit its consolidated financial statements for the fiscal year ending December 31, 2024. This appointment was also made on January 23, 2025, upon the recommendation of the Audit Committee and approval by the Board.

Prior to the appointment of Deloitte & Touche LLP, the company confirms that it had not consulted Deloitte on any matters that would require disclosure, including any disagreements or reportable events.

Runway Growth Finance Corp provided RSM with a copy of the disclosures in the Form 8-K filed with the SEC and requested that RSM furnish a letter addressed to the SEC stating whether it agrees with the statements made in the filing. RSM’s letter, dated January 28, 2025, has been attached as an exhibit to the company’s recent Form 8-K filing.

This information is based on a press release statement from Runway Growth Finance Corp and is intended to provide investors with key facts regarding the change in the company’s certifying accountant.

For a deeper understanding of RWAY’s financial position and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro, which offers detailed research reports covering over 1,400 US stocks.

In other recent news, Runway Growth Finance Corp. has seen a series of noteworthy developments.

The company’s stockholders have approved a new advisory agreement with Runway Growth Capital LLC, set to be acquired by RGC Group Acquisition, an affiliate of BC Partners Advisors L.P. Wells Fargo (NYSE:WFC) has upgraded Runway Growth’s stock from Equal Weight to Overweight, indicating a positive shift in the firm’s financial health.

The company’s third-quarter financial results revealed a total investment income of $36.7 million and a net investment income of $15.9 million, comfortably covering its quarterly dividend. Runway Growth Finance’s fair value investment portfolio was valued at approximately $1.07 billion, with net assets increasing to $507.4 million and net asset value per share rising to $13.39.

In addition, the company announced a definitive agreement to be acquired by BC Partners Credit, aiming to enhance capabilities while maintaining independence. The resignation of director Gregory M. Share was also announced, with the vacancy to be filled by a nominee from OCM Growth Holdings, LLC.

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