Runway Growth Finance Corp. Common Stock (RWAY)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Runway Growth as an asset play: at the 2026-10-13 close of $6.40, FairStock calculates it trades at 0.54 times book, with a Graham Number of $8.02 and a 20.2% margin of safety. That discount is the main attraction. The business lends to late-stage technology, life sciences, healthcare, and related sectors through senior-secured loans, which can offer downside protection if underwriting is disciplined. But a BDC of this size has no obvious wide moat; capital is plentiful, and returns depend on credit selection and funding costs. The filed record is uneven. In fiscal year 2024, net income was $73.6M and diluted EPS was $1.89, then in fiscal year 2025 net income fell to $34.0M and EPS was $0.93. In fiscal Q1 2026, the quarter ended 2026-03-31, Runway reported a net loss of $34.8M and diluted EPS of -$0.96, while in fiscal Q2 2026, the quarter ended 2026-06-30, it rebounded to $27.2M of net income and $0.65 diluted EPS. FairStock’s P/E is 26.67 on EPS of $0.24, so earnings-based valuation is not cheap despite the asset discount. Financial health is the worry: Piotroski 3/9, Altman Z 0.15, D/E 1.38, trailing free cash flow -$75.4M, and FCF yield -28.1%. The 19.79% dividend yield is alluring but may be fragile if cash generation stays negative. I would want evidence that the fiscal Q2 2026 profit is durable, book value is real, and the dividend is covered before trusting the discount.

In plain English: Runway Growth Finance lends money to growing companies, mostly through loans that are supposed to be repaid first if a borrower gets into trouble. The business has been profitable but uneven, and it pays a very high dividend while its cash flow is negative. The stock looks cheap compared with the value of its assets, but weak financial signals mean that cheapness carries real risk.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer