Runway Growth Tackles Volatility with SWK Buy, Share Repurchase Plan

MENLO PARK, Calif. – May 07, 2026 – Runway Growth Finance Corp. (Nasdaq: RWAY) today reported first-quarter 2026 financial results that reveal a company in a pivotal period of strategic transition amidst challenging market conditions. While key performance metrics showed a year-over-year decline, the specialty finance company underscored its long-term strategy with the post-quarter completion of its major acquisition of SWK Holdings and a newly authorized share repurchase program, signaling management's confidence in its future trajectory.

Runway Growth, a leading provider of flexible capital to growth-stage companies, announced total investment income of $29.5 million and net investment income of $10.6 million, or $0.29 per share. These figures represent a decrease from the $35.4 million in total investment income and $15.6 million, or $0.42 per share, in net investment income reported in the first quarter of 2025.

“In the first quarter, Runway Growth focused on the close and integration of the SWK Holdings acquisition, while navigating a volatile macroeconomic backdrop,” said David Spreng, Founder and CEO of Runway Growth, in the company’s press release. The quarter’s results reflect this dual focus on internal strategic initiatives and external market pressures.

A Quarter of Contrasting Figures

A deeper look at the financial results shows the headwinds the company faced. The reported net investment income per share of $0.29 fell short of analyst expectations, while the company’s Net Asset Value (NAV) per share saw a notable decline. As of March 31, 2026, NAV per share stood at $12.13, down from $13.48 a year prior and representing a 9.6% drop from the $13.42 reported at the end of Q4 2025.

The company’s total investment portfolio was valued at $886.3 million at fair value, spread across 56 companies. This is a decrease from the $1.0 billion portfolio value at the end of Q1 2025. The decline in NAV was driven in part by a net change in unrealized losses on investments, which amounted to $46.7 million for the quarter, a significant increase from the $19.8 million in unrealized losses recorded in the same period last year.

These unrealized losses were attributed to a combination of factors, including the impact of market multiples on portfolio valuations and specific credit-related issues. The company's weighted average portfolio risk rating increased from 2.45 in the fourth quarter of 2025 to 2.67 in the first quarter of 2026. This increase was primarily driven by the downgrading of two loans to Category 5, placing them on non-accrual status, which is expected to have a full-quarter earnings impact of approximately $0.06 per share in the second quarter.

A Strategic Bet on Healthcare

Despite the challenging quarter, Runway Growth made a significant strategic leap with the completion of its acquisition of SWK Holdings Corporation on April 6, 2026, just after the quarter's close. This transaction is central to the company’s strategy to pivot more aggressively into the healthcare and life sciences sectors.

The acquisition is expected to be transformative, meaningfully diversifying and optimizing Runway Growth’s portfolio. On a pro forma basis, the deal expands the company's balance sheet to approximately $1.2 billion in total assets and increases the concentration of healthcare and life sciences investments in the portfolio to around 32%, up from just 14% at the end of 2025.

Management anticipates the transaction will be accretive to net investment income, with initial contributions to earnings per share expected in the second quarter and full accretion anticipated by the third quarter of 2026. The move also brings experienced investment talent from SWK into the Runway Growth organization, deepening its expertise in this specialized and lucrative sector.

Bolstering Shareholder Confidence

In a direct move to bolster investor confidence and signal faith in the company's intrinsic value, Runway Growth’s Board of Directors announced two key capital allocation decisions. First, the company declared a second-quarter 2026 dividend of $0.33 per share, maintaining its commitment to providing shareholder returns. This dividend is well-supported by the company's substantial spillover income, which stood at approximately $0.65 per share at the end of the quarter.

Second, and perhaps more significantly, the Board approved a new share repurchase program authorizing the company to buy back up to $15.0 million of its outstanding common stock. This move comes as the company’s stock trades at a discount to its NAV.

CEO David Spreng stated that the company expects to utilize the authorization as “we believe our shares present an extremely compelling value relative to the outlook of the business.” Such a program is immediately accretive to NAV per share when shares are purchased below their book value, providing a direct mechanism to create shareholder value.

Leadership Reshuffle for a New Era

Underpinning the strategic shift is a series of key leadership changes designed to align the company's management structure with its future goals. Thomas B. Raterman, the long-serving Chief Operating Officer and Chief Financial Officer, will retire from his roles on June 30, 2026, and transition to a new position as Vice Chairman of Runway Growth Capital. In this strategic capacity, he will focus on portfolio optimization, mergers and acquisitions, and capital formation.

Carmela Thomson, an internal successor who joined the firm in 2021, has been elected to step into the roles of Chief Financial Officer, Treasurer, and Corporate Secretary, ensuring a smooth transition. Furthermore, CEO David Spreng has returned to his role as Chief Investment Officer of the investment adviser, placing the firm's founder in direct oversight of investment strategy at this critical juncture. These moves, combined with the promotion of a new Chief Credit Officer and the integration of healthcare investment leadership from SWK, position the firm with a refreshed team built to execute on its expanded vision in the quarters ahead.