Runway Growth Finance Corp. 7.25% Notes due 2031 (RWAYI)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

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

I am looking at a fixed-income claim on a business development company, not at the common equity. Runway Growth lends to late-stage growth companies, often in technology, life sciences, healthcare, and business services, and it says it prefers senior-secured loans. That gives it a lender's position, but the filed figures show an issuer whose profits are uneven. In FY2024, the company earned $73.6M; in FY2025, net income fell to $34.0M. In fiscal Q1 2026, the quarter ended 2026-03-31, it lost $34.8M, or $0.96 per diluted share. Then in fiscal Q2 2026, the quarter ended 2026-06-30, it rebounded to $27.2M, or $0.65 per diluted share. I do not call that a stable stream backing a fixed 7.25% coupon due 2031. The FairStock Lynch category is SLOW GROWER — Shrinking, with profit down about 6.2% a year over five years. FairStock calculations show a return on equity of only 1.55% and return on capital of 5.54%, while debt-to-equity is 1.38. The data lists a market cap of $1.0B and a price-to-book ratio of 2.05, but that is not a margin of safety for a noteholder. The notes last traded at $24.41 on 2026-10-13, near the low end of a 52-week range of $24.25 to $25.93, with a beta of 0.63. A 7.25% coupon is attractive only if the issuer's credit remains sound; the earnings volatility and low returns argue for caution, and the filed figures do not give me interest coverage or asset coverage to verify safety. I would need a clearer cushion before treating the coupon as dependable.

In plain English: Runway Growth Finance Corp. is a lender that focuses on secured loans to later-stage growth companies. Its profits have been uneven and have shrunk over the last five years, so the business looks only fair to weak. The 7.25% notes due 2031 last traded at $24.41 on 2026-10-13, near the bottom of their 52-week range, so the price does not look expensive but reflects that weaker profit picture.

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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