Runway Growth Finance (RWAY) Stock Price, News & Analysis

Company Overview

Runway Growth Finance (NASDAQ: RWAY) is a publicly traded business development company (BDC) headquartered in New York City that provides growth capital solutions to high-potential companies. The firm specializes in structured debt investments—such as senior secured loans, unitranche financings and revolvers—as well as selective equity co-investments. Runway Growth Finance directs its financing to companies poised for rapid expansion in sectors including technology, life sciences, consumer products and select industrial markets.

Since its inception in 2020, Runway Growth Finance has pursued a differentiated investment strategy that combines credit expertise with venture-style due diligence. The company aims to fill a gap between traditional bank lending and venture capital by offering flexible financing structures tailored to the needs of mid- to late-stage enterprises. Runway’s investment approach typically involves rigorous underwriting, active portfolio monitoring and partnership with management teams to support operational growth initiatives and strategic milestones.

Runway Growth Finance primarily serves companies across North America, with the flexibility to extend its investment mandate to select opportunities in Europe. Its portfolio companies span a range of industries, from enterprise software and fintech to biotech and healthcare services. By aligning its capital structure with the growth trajectories of management teams, Runway seeks to deliver both downside protection through secured lending and upside participation via equity stakes.

The firm is led by a management team with deep experience in credit markets and venture investing. Chief Executive Officer Frank Vest brings over two decades of credit and investment banking experience, while Chief Financial Officer Jeffrey Rosenberg oversees financial reporting and capital markets strategy. Runway operates under the governance of a board of directors that includes industry veterans from leading financial institutions and growth-stage companies, ensuring robust oversight and alignment with shareholder interests.

Key Stats

• Today's Range: $10.74 to $10.89
• 50-Day Range: $8.98 to $10.80
• 52-Week Range: $8.35 to $12.09
• Volume: 345,974 shs
• Average Volume: 316,667 shs
• Market Capitalization: $403.38 million
• P/E Ratio: 6.51
• Dividend Yield: 12.22%
• Price Target: $10.38
• Consensus Rating: Moderate Buy

Runway Growth Finance Stock Analysis - MarketRank™

Runway Growth Finance scored higher than 52% of companies evaluated by MarketBeat, and ranked 581st out of 907 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 1.4 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Runway Growth Finance has received a consensus rating of Moderate Buy. The company's average rating score is 2.80, and is based on 2 buy ratings, 2 hold ratings, and no sell ratings.

Amount of Analyst Coverage

Runway Growth Finance has only been the subject of 4 research reports in the past 90 days.

Earnings and Valuation

• Score: 1.9 / 5
• Proj. Earnings Growth: -4.79%

Earnings Growth

Earnings for Runway Growth Finance are expected to decrease by -4.79% in the coming year, from $1.67 to $1.59 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Runway Growth Finance is 6.51, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 25.66.

Price to Earnings Ratio vs. Sector

The P/E ratio of Runway Growth Finance is 6.51, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 20.05.

Price to Book Value per Share Ratio

Runway Growth Finance has a P/B Ratio of 0.78. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

5.09% of the float of Runway Growth Finance has been sold short.

Short Interest Ratio / Days to Cover

Runway Growth Finance has a short interest ratio ("days to cover") of 4.9.

Change versus previous month

Short interest in Runway Growth Finance has recently decreased by 10.48%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Leadership

Runway Growth Finance is a leading dividend payer. It pays a dividend yield of 12.22%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

Runway Growth Finance does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Runway Growth Finance is 79.52%. Payout ratios above 75% are not desirable because they may not be sustainable.

Dividend Sustainability

Based on EPS estimates, Runway Growth Finance will have a dividend payout ratio of 83.02% in the coming year. This indicates that Runway Growth Finance may not be able to sustain their current dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

5.09% of the float of Runway Growth Finance has been sold short.

Short Interest Ratio / Days to Cover

Runway Growth Finance has a short interest ratio ("days to cover") of 4.9.

Change versus previous month

Short interest in Runway Growth Finance has recently decreased by 10.48%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: 3.8 / 5
• News Sentiment: N/A

News Sentiment

Runway Growth Finance has a news sentiment score of 1.84. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.73 average news sentiment score of Finance companies.

Search Interest

6 people have searched for RWAY on MarketBeat in the last 30 days. This is an increase of 50% compared to the previous 30 days.

MarketBeat Follows

1 people have added Runway Growth Finance to their MarketBeat watchlist in the last 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Runway Growth Finance insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 1.04% of the stock of Runway Growth Finance is held by insiders.

Percentage Held by Institutions

64.61% of the stock of Runway Growth Finance is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

RWAY Stock Analysis - Frequently Asked Questions

How have RWAY shares performed this year?

Runway Growth Finance's stock was trading at $10.96 on January 1st, 2025. Since then, RWAY shares have decreased by 1.5% and is now trading at $10.80.

How were Runway Growth Finance's earnings last quarter?

Runway Growth Finance Corp. (NASDAQ:RWAY) announced its quarterly earnings results on Monday, May, 12th. The company reported $0.42 EPS for the quarter, beating the consensus estimate of $0.36 by $0.06. The company had revenue of $35.40 million for the quarter, compared to the consensus estimate of $33.83 million. Runway Growth Finance had a net margin of 45.30% and a trailing twelve-month return on equity of 11.95%.
Read the conference call transcript.

When did Runway Growth Finance IPO?

Runway Growth Finance (RWAY) raised $104 million in an initial public offering (IPO) on Thursday, October 21st 2021. The company issued 6,900,000 shares at $14.60-$15.60 per share. J.P. Morgan, Morgan Stanley, Wells Fargo Securities and UBS Investment Bank served as the underwriters for the IPO and Oppenheimer & Co., B. Riley Securities, Compass Point and Hovde Group, LLC were co-managers.

Who are Runway Growth Finance's major shareholders?

Runway Growth Finance's top institutional shareholders include Confluence Investment Management LLC (0.04%). Insiders that own company stock include Multi-Strategy Mast Brookfield, Ocm Growth Holdings Llc, Thomas B Raterman, R David Spreng and John F Engel.
View institutional ownership trends.

How do I buy shares of Runway Growth Finance?

Shares of RWAY stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Runway Growth Finance own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Runway Growth Finance investors own include Medtronic (MDT), NVIDIA (NVDA), Meta Platforms (META), Broadcom (AVGO), Adobe (ADBE), Arista Networks (ANET) and Novo Nordisk A/S (NVO).

Company Calendar

• Record date for 4/14 Dividend: 3/31/2025
• Ex-Dividend for 4/14 Dividend: 3/31/2025
• Dividend Payable: 4/14/2025
• Last Earnings: 5/12/2025
• Record date for 6/3 Dividend: 5/19/2025
• Ex-Dividend for 6/3 Dividend: 5/19/2025
• Dividend Payable: 6/03/2025
• Today: 7/06/2025
• Next Earnings (Estimated): 8/14/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Finance
• Industry: FIN - SBIC&COMMRL
• Sub-Industry: N/A
• Current Symbol: NASDAQ:RWAY
• CIK: 1653384
• Web: investors.runwaygrowth.com
• Phone: 312-281-6270
• Fax: N/A
• Employees: 2,020
• Year Founded: N/A

Price Target and Rating

• Average Stock Price Target: $10.38
• High Stock Price Target: $12.00
• Low Stock Price Target: $9.00
• Potential Upside/Downside: -3.9%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.80
• Research Coverage: 5 Analysts

Profitability

• EPS (Trailing Twelve Months): $1.66
• Trailing P/E Ratio: 6.51
• Forward P/E Ratio: 6.47
• P/E Growth: N/A
• Net Income: $73.61 million
• Net Margins: 45.30%
• Pretax Margin: 45.30%
• Return on Equity: 11.95%
• Return on Assets: 5.67%

Debt

• Debt-to-Equity Ratio: 0.98
• Current Ratio: 0.72
• Quick Ratio: 0.72

Sales & Book Value

• Annual Sales: $144.63 million
• Price / Sales: 2.79
• Cash Flow: $1.62 per share
• Price / Cash Flow: 6.68
• Book Value: $13.79 per share
• Price / Book: 0.78

Miscellaneous

• Outstanding Shares: 37,350,000
• Free Float: 36,959,000
• Market Cap: $403.38 million
• Optionable: Optionable
• Beta: 0.70