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Total operating expenses for the quarter ended June 30, 2024 were $19.6 million, compared to $22.2 million for the quarter ended June 30, 2023.

Net realized gain (loss) on investments was zero for both quarters ended June 30, 2024 and June 30, 2023.

For the quarter ended June 30, 2024, net change in unrealized loss on investments was $6.3 million, compared to a net change in unrealized gain on investments of $2.6 million for the comparable prior year period.

Portfolio and Investment Activity

As of June 30, 2024, Runway Growth’s investment portfolio had an aggregate fair value of approximately $1.06 billion in 55 portfolio companies, and was comprised of approximately $1.02 billion in term loans, 98.6% of which are senior secured loans, and $48.2 million in warrants and other equity-related investments.

During the second quarter of 2024, Runway Growth funded $0.7 million in the Runway-Cadma I LLC joint venture, and completed two investments in new portfolio companies, representing $75.4 million in funded loans, net of upfront loan origination fees.

Total portfolio investment activity for the three and six months ended June 30, 2024 was as follows:

Net Asset Value

As of June 30, 2024, net asset value (“NAV”) per share was $13.14, compared to $14.17 as of June 30, 2023. Total net assets at the end of the second quarter was $506.4 million, down 12% from $573.9 million as of June 30, 2023.

For the quarter ended June 30, 2024, net increase in net assets resulting from operations was $8.3 million, or $0.21 per share, compared to a net increase in net assets resulting from operations of $22.3 million, or $0.55 per share, for the quarter ended June 30, 2023.

Liquidity and Capital Resources

As of June 30, 2024, the Company had approximately $249.8 million in available liquidity, including unrestricted cash and cash equivalents of $8.8 million and $241.0 million in available borrowing capacity under the Company’s credit facility, subject to existing terms, advance rates and regulatory and covenant requirements.

The Company ended the quarter with a core leverage ratio of approximately 110%, compared to 91% for the quarter ended March 31, 2024.

Distributions

On July 30, 2024, the Company’s board of directors declared a regular quarterly distribution of $0.40 per share for the third quarter of 2024, payable on August 26, 2024, to stockholders of record as of August 12, 2024. In addition, the Company’s board of directors declared a supplemental distribution of $0.05 per share for the third quarter of 2024 that is also payable on August 26, 2024 to stockholders of record as of August 12, 2024.

Share Repurchase Program

On November 2, 2023, the Company’s board of directors approved a share repurchase program (the “Repurchase Program”), under which the Company may repurchase up to $25.0 million of its outstanding shares of common stock. Under the Repurchase Program, purchases may be made at management’s discretion from time to time in open-market transactions, in accordance with all applicable securities laws and regulations. In the second quarter, the Company repurchased approximately 1,074,842 shares under the Repurchase Program. The Repurchase Program will terminate upon the earlier of (i) November 1, 2024 or (ii) the repurchase of $1.5 million remaining availability under the Repurchase Program.

On July 30, 2024, the Company’s board of directors approved a new share repurchase program (the “New Repurchase Program”) under which the Company may repurchase up to $15.0 million of its outstanding shares of common stock. Under the New Repurchase Program, purchases may be made at management’s discretion from time to time in open-market transactions, in accordance with all applicable securities laws and regulations. If not renewed, the New Repurchase Program will terminate upon the earlier of (i) July 30, 2025 or (ii) the repurchase of $15.0 million of the Company's shares of common stock.

Recent Developments

The Company evaluated events subsequent to June 30, 2024 through August 8, 2024, the date the consolidated financial statements were issued.

On July 17, 2024, the Company increased its commitment to Elevate Services Inc. by $20.0 million, of which $3.0 million was funded at close.

On July 30, 2024, the Company's board of directors declared a regular distribution of $0.40 per share and a supplemental distribution of $0.05 per share for stockholders of record as of August 12, 2024, payable on or before August 26, 2024.

On July 31, 2024, Cloudpay, Inc. prepaid its outstanding principal balance of $75.0 million on the Company's senior secured loan.

Conference Call

Runway Growth will hold a conference call to discuss its second quarter ended June 30, 2024 financial results at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, August 8, 2024. To participate in the conference call or webcast, participants should register online at the Runway Investor Relations website. The earnings call can also be accessed through the following links:

• Conference Call

• Webcast

A live webcast will be available in the investor section of the Company’s website, and will be archived for 90 days following the call.

About Runway Growth Finance Corp.

Runway Growth is a growing specialty finance company focused on providing flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity. Runway Growth is a closed-end investment fund that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. Runway Growth is externally managed by Runway Growth Capital LLC, an established registered investment advisor that was formed in 2015 and led by industry veteran David Spreng. For more information, please visit www.runwaygrowth.com.

Forward-Looking Statements

Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Runway Growth’s filings with the Securities and Exchange Commission. Runway Growth undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Important Disclosures

Strategies described involve special risks that should be evaluated carefully before a decision is made to invest. Not all of the risks and other significant aspects of these strategies are discussed herein. Please see a more detailed discussion of these risk factors and other related risks in the Company’s most recent annual report on Form 10-K in the section entitled “Risk Factors”, which may be obtained on the Company’s website, www.runwaygrowth.com, or the SEC’s website, www.sec.gov.

IR Contacts:

Stefan Norbom, Prosek Partners, snorbom@prosek.com

Thomas B. Raterman, Chief Financial Officer and Chief Operating Officer, tr@runwaygrowth.com