RWAY Stock Analysis: Runway Growth Finance | NASDAQ
Asset Management | NASDAQ, USA | Market Cap: 230m USD | 12M Return: -38.6% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 3.18M
EPS Trend: -87.7%
Qual. Beats: 0
Rev. Trend: 1.2%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 4.7 years of data
Average return per month, with how dependable it is below — did the month move the same way every year (high) or randomly (low). Above 60 is a pattern worth trusting; under 40 is noise.
Runway Growth Finance Corp. (NASDAQ: RWAY) is a U.S.-based business development company (BDC) that provides senior-secured loans to late-stage and growth-oriented companies, typically in the range of $10 million to $75 million. The firm focuses its investments across several core verticals, including technology, life sciences, healthcare and information services, business services, and select consumer services and products, with a particular emphasis on sub-sectors such as software, hardware, healthcare technology, biotechnology, internet services, data processing, and education services. As a BDC structured under the Investment Company Act of 1940, Runway Growth Finance operates as a specialty lender targeting venture-backed and emerging growth businesses that are generally underserved by traditional banks, and it is required by regulation to distribute the majority of its taxable income to shareholders in the form of dividends.
- Net interest margin widens on floating-rate loan repricing
- Non-accruals inch higher as growth-stage borrowers face refinancing pressure
- New loan origination pipeline drives net investment income growth
| 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: -11.06% < 20% (prev 5.29%; Δ -16.35% < -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: 0.49 > 1.5 & < 3 |
| 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 22.1m) / 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'' = 0.61 = B |
As of July 01, 2026, the stock is trading at USD 5.61 with a total of 466,294 shares traded. Over the past week, the price has changed by +4.08%, over one month by -14.22%, over three months by -14.08% and over the past year by -38.56%.
Current recommended Stop Loss: 5.30 (which is 5.5% or 1.6 ATR below the current price).
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 | 8.1 | 44.6% |
P/E Forward = 4.2319
P/S = 1.7499
P/B = 0.5126
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 = 669.3m USD (229.9m + Debt 441.7m - CCE 2.31m)
Interest Coverage Ratio = 0.20 (Ebit TTM 7.85m / Interest Expense TTM 38.5m)
EV/FCF = 5.73x (Enterprise Value 669.3m / FCF TTM 116.7m)
FCF Yield = 17.44% (FCF TTM 116.7m / Enterprise Value 669.3m)
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 = 0.74 (Enterprise Value 669.3m / 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 = 0.49 (Total Current Assets 10.9m / Total Current Liabilities 22.1m)
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 = 0.89% (EBIT 7.85m / Capital Employed (Total Assets 904.9m - Current Liab 22.1m))
RoIC = 0.70% (NOPAT 6.20m / Invested Capital 880.6m)
WACC = 7.36% (E(229.9m)/V(671.6m) * Re(8.27%) + D(441.7m)/V(671.6m) * Rd(8.72%) * (1-Tc(0.21)))
Discount Rate = 8.27% (= 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 next Quarter (2026-09-30): EPS=0.32 | Chg30d=-1.03% | Revisions=-50% | Analysts=6
EPS current Year (2026-12-31): EPS=1.23 | Chg30d=-0.54% | Revisions=-50% | GrowthEPS=-20.4% | GrowthRev=-3.7%
EPS next Year (2027-12-31): EPS=1.28 | Chg30d=-1.08% | Revisions=-43% | GrowthEPS=+3.8% | GrowthRev=+9.4%
[Analyst] Revisions Ratio: -50%