Runway Growth Finance Corp.

deal close, as we described earlier. Looking ahead to next quarter, we expect contributions from the fully integrated SWK portfolio and a lag in associated management fees to benefit NII by approximately $0.03 per share. However, we expect this benefit will be more than offset by the impact of Marley Spoon and Blue Ship being placed on non-accrual late in Q1. The full quarter earnings impact of these new non-accruals of $0.06 per share will be reflected in Q2. We are actively working with the management teams at Marley Spoon, BlueShift, and Mingle Healthcare and seek to achieve optimal outcomes for the portfolio. These situations are dynamic and, in the case of Marley Spoon, very complex and, as we've seen in the past, can take time to fully resolve. We do not see any thematic drivers to these recent credit downgrades. There are situations we have been monitoring and decided this was the prudent course of action to take at this time. Although our team puts maximum effort into avoiding these situations, some level of defaults are unavoidable and we're working diligently to resolve them. With respect to the dividend, we believe that it is currently set at an appropriate level. We are committed to delivering for our shareholders, and our board continues to evaluate future distributions with the goal of maintaining consistency while maximizing returns. Our debt portfolio generated a dollar-weighted average annualized yield of 14.2% for the first quarter of 2026, consistent with 14.2% in the fourth quarter of 2025, and declining from 15.4% in the same period last year. Moving on to expenses, total operating expenses were $18.8 million, an increase from $18.4 million in the fourth quarter of 2025. We recorded a net realized gain on investments of $1.3 million during the first quarter of 2026 compared to a realized loss on investments of $380,000 during the fourth quarter of 2025. During the first quarter, we experienced one full repayment and one partial repayment totaling $15 million scheduled amortization of 1.9 million and 2.5 million in equity proceeds. We remain focused on maximizing value over both the short and long term and continue to monitor the portfolio closely. Overall, we believe that downside risk is manageable and that our portfolio is well positioned to deliver stable results. Our confidence in the portfolio is supported by several key metrics which support a more balanced and right-sized mix of investments. Prior to the closing of the SWK transaction, our top 10 investments accounted for 54% of the portfolio and now account for only 43%. When looking at the breakdown of verticals within the portfolio, they are now more balanced across technology, financials, healthcare, and select consumer products and services. And over half of our portfolio companies are cashflow positive, underscoring the strong fundamentals our portfolio is built on. Within our software portfolio specifically, 62% of the companies are cash flow positive, 100% of our loans have financial covenants, and the weighted average fair value as a percent of cost excluding non-accruals was 97%. And 94% of the loans in our software portfolio are sponsored. Each position in our portfolio undergoes a comprehensive valuation process internally on a quarterly basis and periodically by a third party. For perspective, Every material software investment in our portfolio was reviewed by a third-party valuation specialist in Q1. The portfolio was constructed intentionally with 98% first-link exposure and well-diversified exposure across end markets. These results underscore the strength of our software portfolio and the diligence we apply to loans in the space. Please refer to our earnings presentation for additional detail on our software exposure. As of March 31st, 2026, our leverage ratio and asset coverage ratio was 0.98 and 2.02, respectively, compared to 0.90 and 2.11, respectively, at the end of the fourth quarter of 2025. Our total available liquidity was 372.3 million, including unrestricted cash and equivalents. We have borrowing capacity of 370 million under our key bank credit facility. On a pro forma basis, immediately following the SWK transaction close, our leverage ratio, asset coverage ratio, and total available liquidity were approximately 1.2, 1.84, and 231.8 million, respectively. As of March 31st, 2026, we had a total of 179.2 million in unfunded commitments, which was comprised of 156.3 million to provide debt financing to our portfolio companies and 22.8 million to provide equity financing through our JV with CADMA. Approximately 23.3 million of our unfunded debt commitments are eligible to be drawn based on achieved milestones. On May 5th, 2026, our board declared a regular distribution for the second quarter of 2026 33 cents per share. While there may be some variability in earnings on a quarter-to-quarter basis, we're confident in the long-term trajectory of our return profile and the strength of our combined portfolio. Finally, today we are announcing a new share repurchase program for $15 million, which will expire on May 7, 2027. Thoughtful capital allocation remains a priority, and at current levels, we believe Runway's common shares present a highly attractive opportunity. We expect repurchases to be partly funded by proceeds from loan repayments in the coming quarters.

With that, operator, we can open the line for Q&A.

Thank you. As a reminder, to ask a question, you will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again. Again, that's star 11 on your telephone to ask a question. please stand by while we compile the Q&A roster. Our first question comes from the line of Eric Zwick of Lucid Capital Markets. Your question, please, Eric.

Thanks. Good afternoon, everyone. First, David, you mentioned a lot of kind of personnel changes and promotions, and I know Tom's on the line, so Tom, congratulations on your next position, and congrats to any of those else listening online. One, I wanted to start maybe with a question for Tom, just trying to potentially understand the kind of one-time expenses that may have been recorded in the quarter related to both the SWK acquisition and also, I think you mentioned, some accelerated debt expense as well, just trying to kind of drill down to maybe what a more kind of core run rate might have been.

Yeah, there was about two or three cents related to the early redemption of our baby bonds. If you recall, at the end of January, beginning of February, we did a new baby bond offering and we redeemed our 8% notes. So that's the number there. There were no SWK expenses directly. Most all of those would be capitalized into the transaction. There's a could be some modest amount just in terms of allocation of personnel that caused our allocations to the BDC change a little bit, but it would be a rounding error. Got it.

That's helpful. Thanks. And thanks for the congrats. Yeah, absolutely. You're welcome. Other one I wanted to ask, just along the lines of the new share repurchase authorization, given Blue Shift Labs and Marley Spoon moving to non-accrual and creating a little bit of earnings headwind. Just how do you weigh in your mind, how do you evaluate the use of capital in terms of investing into new portfolio companies that would generate income versus buying back shares?

Yeah, it's always a tough balancing act between those two because purchasing shares at this level, at this percent of NAV is immediately accretive. And what really guides that is our excess borrowing base, if you will, and our leverage ratio that we calculate. So we want to keep those two in check. We want to make sure we maintain adequate dry powder. And so we'll just be biased towards for the deals that come in for those that have the best risk return trade up, choose the higher yielding ones, probably the smaller size transactions, all within our stated risk parameters.

Great. Thanks for taking my questions. Sure.

Thank you. Once again, to ask a question, you will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again. Our next question comes from the line of Christopher Nolan of Leidenberg Thalmann. Your line is open, Christopher.

Hi, and echo on congratulations, Tom, on your next move and congratulations to everyone who got the step. What was the driver for the unrealized depreciation charges again? I think you addressed it in the comments, but I missed it.

So the changes in fair value, the impact on NAV were really related primarily to, you put it into two buckets, about a third or just under a third was related to declines in the market multiples. But the majority of it was related to the watch list names, primarily BlueShift and MarleySpin.

Great. And I think you mentioned that the drag on earnings from those two would be roughly six cents a quarter?

That's correct. And, you know, our watch list, you know, is about six names. A number of them are marked, you know, at that 50% range. And we think those are very fair marks. Those workouts will take varying times to sort through. They've got different levels of complexity. And so it will take a little bit of time to replace those with earning assets. But there's a game plan for each of them that's being fully adjudicated.

Okay. And then turning to SWK, I know you mentioned earlier that in earlier calls that it would be accretive to earnings. Do you have any sort of timeframe when you expect it to be accretive to EPS?

It should be beginning to be accretive to EPS in Q2 and then fully accretive in Q3. And the reason I say partially accretive is because it closed on April 6th as opposed to March 31st.

Great. Thank you.

thank you i would now like to turn the call back over to david spring for closing remarks sir thank you operator and thank you all for joining us today we look forward to updating you on our second quarter financial results in august this concludes today's conference call thank you for participating you may now disconnect