Runway Growth Finance Corp. (RWAY) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

deal close, as we described earlier. Looking ahead to next quarter, we expect contributions from the fully integrated SWK portfolio and a lag in associated management fees to benefit NII by approximately $0.03 per share. However, we expect this benefit will be more than offset by the impact of Marley Spoon and Blue Ship being placed on non-accrual late in Q1. The full quarter earnings impact of these new non-accruals of $0.06 per share will be reflected in Q2. We are actively working with the management teams at Marley Spoon, BlueShift, and Mingle Healthcare and seek to achieve optimal outcomes for the portfolio. These situations are dynamic and, in the case of Marley Spoon, very complex and, as we've seen in the past, can take time to fully resolve. We do not see any thematic drivers to these recent credit downgrades. There are situations we have been monitoring and decided this was the prudent course of action to take at this time. Although our team puts maximum effort into avoiding these situations, some level of defaults are unavoidable and we're working diligently to resolve them. With respect to the dividend, we believe that it is currently set at an appropriate level. We are committed to delivering for our shareholders, and our board continues to evaluate future distributions with the goal of maintaining consistency while maximizing returns. Our debt portfolio generated a dollar-weighted average annualized yield of 14.2% for the first quarter of 2026, consistent with 14.2% in the fourth quarter of 2025, and declining from 15.4% in the same period last year. Moving on to expenses, total operating expenses were $18.8 million, an increase from $18.4 million in the fourth quarter of 2025. We recorded a net realized gain on investments of $1.3 million during the fi...