(RWAY) Runway Growth Finance - Overview
Sector: Financial Services | Industry: Asset Management | Exchange: NASDAQ (USA) | Market Cap: 275m USD | Total Return: -22.5% in 12m
Avg Turnover: 3.43M
EPS Trend: -87.7%
Qual. Beats: 0
Rev. Trend: 1.2%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Runway Growth Finance Corp. (RWAY) operates as a business development company (BDC) focused on providing senior-secured loans to late-stage and growth-oriented private companies. The firm targets high-growth sectors including technology, life sciences, healthcare, and specialized business services, typically originating loan facilities ranging from $10 million to $75 million.
As a BDC, the company’s business model involves generating income through interest payments and commitment fees while benefiting from the senior-secured position which provides priority claim on borrower assets in the event of default. This lending structure is often utilized by companies seeking non-dilutive capital to scale operations without issuing additional equity. Investors seeking deeper insights into the underlying credit quality and portfolio risk of RWAY may find ValueRay a useful resource for further analysis.
- Floating rate senior secured loan yields drive net interest income margins
- Venture capital funding cycles dictate loan demand and portfolio growth velocity
- Credit quality stability in late-stage tech and life sciences prevents valuation loss
- Federal Reserve interest rate policy shifts impact core lending profitability spreads
- Strategic acquisition by BC Partners provides capital scale for larger deal execution
| Net Income: -2.63m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA 7.08 > 1.0 |
| NWC/Revenue: 10.72% < 20% (prev 5.29%; Δ 5.43% < -1%) |
| CFO/TA 0.13 > 3% & CFO 116.7m > Net Income -2.63m |
| Net Debt (439.4m) to EBITDA (7.27m): 60.46 < 3 |
| Current Ratio: error (cannot be calculated; needs correct Total Current Assets and Liabilities) |
| Outstanding Shares: last quarter (36.1m) vs 12m ago -3.25% < -2% |
| Gross Margin: 65.53% > 18% (prev 66.38%; Δ -0.86% > 0.5%) |
| Asset Turnover: 10.45% > 50% (prev 10.96%; Δ -0.51% > 0%) |
| Interest Coverage Ratio: 0.20 > 6 (EBIT TTM 7.85m / Interest Expense TTM 38.5m) |
| A: 0.01 (Total Current Assets 10.9m - Total Current Liabilities 0.0) / Total Assets 904.9m |
| B: -0.11 (Retained Earnings -96.4m / Total Assets 904.9m) |
| C: 0.01 (EBIT TTM 7.85m / Avg Total Assets 968.9m) |
| D: 0.94 (Book Value of Equity 438.2m / Total Liabilities 466.7m) |
| Altman-Z'' = 0.77 = B |
As of June 03, 2026, the stock is trading at USD 6.52 with a total of 466,632 shares traded.
Over the past week, the price has changed by +1.40%,
over one month by -0.43%,
over three months by -9.36% and
over the past year by -22.45%.
Runway Growth Finance has received a consensus analysts rating of 3.67. Therefore, it is recommended to hold RWAY.
- StrongBuy: 3
- Buy: 0
- Hold: 6
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 8.5 | 31% |
P/E Forward = 5.0684
P/S = 2.0944
P/B = 0.6139
P/EG = 1.1571
Revenue TTM = 101.3m USD
EBIT TTM = 7.85m USD
EBITDA TTM = 7.27m USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 441.7m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 439.4m USD (calculated: Debt 441.7m - CCE 2.31m)
Enterprise Value = 714.6m USD (275.2m + Debt 441.7m - CCE 2.31m)
Interest Coverage Ratio = 0.20 (Ebit TTM 7.85m / Interest Expense TTM 38.5m)
EV/FCF = 6.12x (Enterprise Value 714.6m / FCF TTM 116.7m)
FCF Yield = 16.34% (FCF TTM 116.7m / Enterprise Value 714.6m)
FCF Margin = 115.3% (FCF TTM 116.7m / Revenue TTM 101.3m)
Net Margin = -2.60% (Net Income TTM -2.63m / Revenue TTM 101.3m)
Gross Margin = 65.53% ((Revenue TTM 101.3m - Cost of Revenue TTM 34.9m) / Revenue TTM)
Gross Margin QoQ = 77.65% (prev 54.54%)
Tobins Q-Ratio = 0.79 (Enterprise Value 714.6m / Total Assets 904.9m)
Interest Expense / Debt = 8.72% (Interest Expense 38.5m / Debt 441.7m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 6.20m (EBIT 7.85m * (1 - 21.00%))
Current Ratio = unknown (Total Current Assets 10.9m / Total Current Liabilities 0.0)
Debt / Equity = 1.01 (Debt 441.7m / totalStockholderEquity, last quarter 438.2m)
Debt / EBITDA = 60.46 (Net Debt 439.4m / EBITDA 7.27m)
Debt / FCF = 3.76 (Net Debt 439.4m / FCF TTM 116.7m)
Total Stockholder Equity = 477.9m (last 4 quarters mean from totalStockholderEquity)
RoA = -0.27% (Net Income -2.63m / Total Assets 904.9m)
RoE = -0.55% (Net Income TTM -2.63m / Total Stockholder Equity 477.9m)
RoCE = 0.87% (EBIT 7.85m / Capital Employed (Total Assets 904.9m - Current Liab 0.0))
RoIC = 0.87% (EBIT 7.85m / (Assets 904.9m - Curr.Liab 0.0 - Cash 2.31m))
WACC = 7.42% (E(275.2m)/V(716.9m) * Re(8.28%) + D(441.7m)/V(716.9m) * Rd(8.72%) * (1-Tc(0.21)))
Discount Rate = 8.28% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.56 | Cagr: -4.95%
[DCF] Terminal Value 77.97% ; FCFF base≈94.1m ; Y1≈107.9m ; Y5≈158.8m
[DCF] Fair Price = 45.91 (EV 2.39b - Net Debt 439.4m = Equity 1.95b / Shares 42.5m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -87.69 | EPS CAGR: -9.20% | SUE: -0.47 | # QB: 0
Revenue Correlation: 1.21 | Revenue CAGR: 0.19% | SUE: 0.13 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.30 | Chg30d=-17.32% | Revisions=-50% | Analysts=5
EPS next Quarter (2026-09-30): EPS=0.32 | Chg30d=-13.51% | Revisions=-50% | Analysts=5
EPS current Year (2026-12-31): EPS=1.24 | Chg30d=-13.29% | Revisions=-50% | GrowthEPS=-20.0% | GrowthRev=-3.7%
EPS next Year (2027-12-31): EPS=1.29 | Chg30d=-10.14% | Revisions=-43% | GrowthEPS=+4.3% | GrowthRev=+9.4%
[Analyst] Revisions Ratio: -50%