Trinity Capital (NASDAQ:TRIN) Issues Quarterly Earnings Results, Misses Estimates By $0.16 EPS

Key Points

• Trinity reported Q1 EPS of $0.36, missing the consensus $0.52, and revenue of $51.37M versus expected $85.87M; the quarter included about $10M of realized losses and ~$5M of unrealized depreciation.
• The company delivered strong growth and originations with record net assets of $1.2 billion (up 40% YoY), $306M funded in Q1, $396M of commitments and $1.2B of unfunded commitments, plus managed funds AUM of $400M supporting further deployment.
• Q1 net investment income of $0.53 per share covers the monthly dividend of $0.17 (104% coverage) with estimated undistributed taxable income of ~$68M (~$0.78/share); the dividend yields ~11.8% and insiders recently added to their positions.

Trinity Capital (NASDAQ:TRIN - Get Free Report) released its earnings results on Wednesday. The company reported $0.36 earnings per share for the quarter, missing the consensus estimate of $0.52 by ($0.16), FiscalAI reports. Trinity Capital had a return on equity of 14.97% and a net margin of 46.18%.The business had revenue of $51.37 million for the quarter, compared to analysts' expectations of $85.87 million.

Here are the key takeaways from Trinity Capital's conference call:

• Record net assets grew 7% QoQ and 40% YoY to $1.2 billion; Q1 net investment income was $0.53 per share, covering the $0.17 monthly dividend (104% coverage) and leaving estimated undistributed taxable income of ~$68M (~$0.78/share).
• Originations and pipeline remain strong with $306M funded in Q1 (up 39% YoY), $396M of commitments, and $1.2B of unfunded commitments (94% conditional), supporting continued deployment growth.
• Managed funds AUM reached $400M; the SBIC fund had an initial $45.3M close and is expected to add ~ $260M of low‑cost leverage capacity, with managed funds contributing ~$0.04 to Q1 NII.
• Credit metrics are largely strong—non‑accruals ~1%, 99% of debt performing, 88% of principal secured and a 19% weighted‑average LTV—but Q1 included ~$10M of realized losses, ~$5M of unrealized depreciation, and elevated early repayments.
• Capital and liquidity position is solid: $78.4M raised via ATM at ~12% premium, net leverage ~1.15x and platform liquidity of > $500M, enabling opportunistic growth while minimizing shareholder dilution.

Trinity Capital Trading Up 2.1%

Shares of Trinity Capital stock traded up $0.36 during trading hours on Wednesday, reaching $17.33. The stock had a trading volume of 1,451,838 shares, compared to its average volume of 1,302,183. The firm has a 50 day simple moving average of $15.15 and a two-hundred day simple moving average of $15.26. The firm has a market capitalization of $1.54 billion, a price-to-earnings ratio of 8.85 and a beta of 0.63. Trinity Capital has a 1 year low of $13.75 and a 1 year high of $17.35.

Trinity Capital Announces Dividend

The company also recently disclosed a monthly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Thursday, June 11th will be issued a $0.17 dividend. This represents a c) dividend on an annualized basis and a dividend yield of 11.8%. The ex-dividend date is Thursday, June 11th. Trinity Capital's dividend payout ratio (DPR) is 104.08%.

Insider Transactions at Trinity Capital

In other news, CEO Kyle Steven Brown acquired 3,532 shares of the business's stock in a transaction dated Monday, March 16th. The shares were bought at an average cost of $14.16 per share, for a total transaction of $50,013.12. Following the acquisition, the chief executive officer directly owned 620,709 shares in the company, valued at $8,789,239.44. This trade represents a 0.57% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Chairman Steve Louis Brown acquired 27,109 shares of the business's stock in a transaction dated Thursday, March 12th. The stock was purchased at an average price of $14.75 per share, for a total transaction of $399,857.75. Following the completion of the acquisition, the chairman owned 940,745 shares in the company, valued at approximately $13,875,988.75. This trade represents a 2.97% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders bought 37,682 shares of company stock worth $553,902. Company insiders own 6.38% of the company's stock.

Hedge Funds Weigh In On Trinity Capital

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Goldman Sachs Group Inc. grew its position in Trinity Capital by 609.9% in the first quarter. Goldman Sachs Group Inc. now owns 136,672 shares of the company's stock valued at $2,072,000 after acquiring an additional 117,420 shares in the last quarter. Empowered Funds LLC acquired a new stake in Trinity Capital in the first quarter valued at approximately $234,000. JPMorgan Chase & Co. acquired a new stake in Trinity Capital in the second quarter valued at approximately $54,000. Invesco Ltd. grew its position in Trinity Capital by 2.7% in the second quarter. Invesco Ltd. now owns 838,194 shares of the company's stock valued at $11,793,000 after acquiring an additional 21,729 shares in the last quarter. Finally, Marshall Wace LLP acquired a new stake in Trinity Capital in the second quarter valued at approximately $346,000. Hedge funds and other institutional investors own 24.62% of the company's stock.

Wall Street Analyst Weigh In

TRIN has been the topic of several recent analyst reports. Clear Str upgraded Trinity Capital to a "strong-buy" rating in a research report on Wednesday, February 4th. Wall Street Zen upgraded Trinity Capital from a "sell" rating to a "hold" rating in a report on Sunday, March 29th. Finally, Citigroup restated an "outperform" rating on shares of Trinity Capital in a report on Tuesday, January 27th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $16.29.

Trinity Capital Company Profile

Trinity Capital Corporation NASDAQ: TRIN is a publicly traded business development company that provides flexible financing solutions to venture-backed and growth-stage companies. As a venture lender, Trinity Capital offers customized capital structures, including secured debt and equity co-investment, designed to support companies that have progressed beyond early-stage funding but still require non-dilutive growth capital.

The company focuses its investments on technology-driven sectors such as software, fintech, healthcare, life sciences and cleantech.

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