Revenue performance remains highly inconsistent, fluctuating between $8.0M and $41.2M over the last ten quarters, while operating margins plummeted to -79.2% in 2026Q1.
| Sales/Revenue | 101.27M | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 66.36M | 109.99M | 85.89M | 55.88M | 41.38M | 49.81M | 51.38M | 31.69M | 14.05M | 3.19M | 0 |
| Gross Margin % | 65.53% | 78.47% | 69.15% | 59.12% | 75.05% | 92.24% | 97.97% | 96.39% | 96.35% | 100% | - |
| Gross Profit Growth % | - | 28.06% | 53.72% | 35.02% | -16.91% | -3.06% | 62.13% | 125.55% | 340.48% | - | - |
| Operating Expenses | 58.5M | 33.27M | 12.28M | 11.54M | 9.13M | 4.19M | 4.4M | 4.04M | 2.29M | 4.63M | 903.04K |
| OpEx % of Revenue | - | 23.73% | 9.89% | 12.2% | 16.57% | 7.76% | 8.39% | 12.3% | 15.72% | 145.03% | - |
| Selling, General & Admin | 5.83M | 2.21M | 5.99M | 6.37M | 5.84M | 4.19M | 3.66M | 3.47M | 2.11M | 4.96M | 879.08K |
| SG&A % of Revenue | - | 1.57% | 4.82% | 6.74% | 10.59% | 7.76% | 6.98% | 10.54% | 14.44% | 155.39% | - |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 7.85M | 76.72M | 73.61M | 44.34M | 32.25M | 45.62M | 46.98M | 27.65M | 11.76M | -1.84M | -902.98K |
| Operating Margin % | 7.75% | 54.74% | 59.26% | 46.91% | 58.49% | 84.48% | 89.58% | 84.09% | 80.62% | -57.73% | - |
| Operating Income Growth % | - | 4.23% | 66.01% | 37.49% | -29.31% | -2.9% | 69.93% | 135.14% | 738.46% | -103.94% | - |
| EBITDA | 7.85M | 76.72M | 73.61M | 44.34M | 32.25M | 45.62M | 46.98M | 27.65M | 11.76M | 0 | 0 |
| EBITDA Margin % | 7.75% | 54.74% | 59.26% | 46.91% | 58.49% | 84.48% | 89.58% | 84.09% | 80.62% | - | - |
| EBITDA Growth % | -87.62% | 4.23% | 66.01% | 37.49% | -29.31% | -2.9% | 69.93% | 135.14% | - | - | - |
| D&A (Non-Cash Add-back) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.84M | 902.98K |
| EBIT | 7.85M | 76.72M | 73.61M | 44.34M | 32.25M | 45.62M | 46.98M | 27.65M | 11.76M | -1.84M | -902.98K |
| Net Interest Income | 90.3M | 94.66M | 82.82M | 120.44M | 91.26M | 62.14M | 53.95M | 53.26M | 19.03M | 0 | 0 |
| Interest Income | 128.83M | 137.33M | 127.05M | 159.09M | 105.02M | 66.33M | 55.01M | 54.45M | 19.57M | 3.02B | 0 |
| Interest Expense | 38.53M | 42.67M | 44.23M | 38.64M | 13.76M | 4.19M | 1.06M | 1.19M | 532.73K | 0 | 484 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | -2.63M | 34.05M | 73.61M | 44.34M | 32.25M | 45.62M | 46.98M | 27.65M | 11.76M | -1.44M | -903.04K |
| Pretax Margin % | -2.6% | 24.29% | 59.26% | 46.91% | 58.49% | 84.48% | 89.58% | 84.09% | 80.62% | -45.03% | - |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 405.25K | -61 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | -28.22% | 0.01% |
| Net Income | -2.63M | 34.05M | 73.61M | 44.34M | 32.25M | 45.62M | 46.98M | 27.65M | 11.76M | -1.44M | -903.04K |
| Net Margin % | -2.6% | 24.29% | 59.26% | 46.91% | 58.49% | 84.48% | 89.58% | 84.09% | 80.62% | -45.03% | - |
| Net Income Growth % | -104.15% | -53.74% | 66.01% | 37.49% | -29.31% | -2.9% | 69.93% | 135.14% | 918.6% | -59.05% | - |
| Net Income (Continuing) | -2.63M | 34.05M | 73.61M | 44.34M | 32.25M | 45.62M | 46.98M | 27.65M | 11.76M | -1.44M | -903.04K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 56.57M | 0 | 0 |
| EPS (Diluted) | -0.07 | 0.93 | 1.89 | 1.09 | 0.79 | 1.33 | 1.14 | 0.67 | 0.28 | -0.51 | -83.82 |
| EPS Growth % | -104.43% | -50.79% | 73.39% | 37.97% | -40.6% | 16.67% | 70.15% | 139.29% | 154.9% | 99.39% | - |
| EPS (Basic) | - | 0.93 | 1.89 | 1.09 | 0.79 | 1.33 | 1.14 | 0.67 | 0.28 | -0.51 | -83.82 |
| Diluted Shares Outstanding | 36.13M | 36.7M | 38.85M | 40.51M | 40.97M | 39.59M | 41.38M | 41.38M | 41.38M | 2.8M | 10.77K |
| Basic Shares Outstanding | 36.13M | 36.7M | 38.85M | 40.51M | 40.97M | 39.59M | 41.38M | 41.38M | 41.38M | 2.8M | 10.77K |
| Dividend Payout Ratio | - | 151.1% | - | 146.17% | - | 39.34% | 15.47% | 29.63% | 12.15% | - | - |
Portfolio credit quality volatility
As evidenced by the quarterly data, RWAY's top-line performance exhibits significant volatility, with revenue fluctuating between $8.0M and $41.2M over the last ten quarters, suggesting that the firm's growth trajectory is heavily dependent on the timing of loan originations and the realization of non-recurring fee income.
The erratic revenue pattern indicates that RWAY's growth is not yet characterized by a stable, predictable compounding of interest income. Investors should monitor whether the firm can achieve consistent portfolio expansion, as the current reliance on lumpy transactional events may obscure the underlying health of its core lending business.
Based on the provided financial statements, RWAY's gross margins have demonstrated extreme variance, ranging from a negative 12.3% in 2023Q4 to a peak of 77.6% in 2026Q1, highlighting the firm's vulnerability to credit-related adjustments and the inherent cyclicality of its venture-debt business model.
The wide swings in gross margin suggest that the cost of capital and potential credit losses are not being absorbed smoothly, leading to significant bottom-line impact. This instability warrants further investigation into the firm's underwriting standards and the extent to which fair value marks are driving these periodic margin contractions.
According to the reported income statement figures, RWAY's operating leverage appears inconsistent, as evidenced by the sharp divergence between gross profit and operating income during periods of portfolio stress, such as the 2026Q1 quarter where operating margins plummeted to negative 79.2% despite substantial gross profit.
The inability to maintain positive operating margins during periods of revenue volatility suggests that the firm's fixed cost structure, likely driven by management and incentive fees, does not scale efficiently with portfolio performance. This lack of operating leverage may limit the firm's ability to generate consistent shareholder returns during market downturns.
As reported in the quarterly filings, the significant discrepancy between net income and operating income in specific periods suggests that RWAY's earnings quality may be compromised by non-operating items or aggressive fair value adjustments that do not necessarily reflect the firm's actual cash-generating capacity.
Short-sellers would likely focus on the reliance on non-cash income and the potential for future write-downs within the loan portfolio. The inconsistency in EPS growth, which swung from 114.3% to negative 73.3% in recent periods, suggests that investors should be cautious about relying on reported net income as a proxy for sustainable dividend-paying ability.
Quick answers to the most common questions about buying RWAY stock.
Runway Growth Finance Corp. (RWAY) is profitable, generating $34.0M in net income for the fiscal year ending 2025 with a net profit margin of 24.3%.
Runway Growth Finance Corp. (RWAY) reported an operating income of $76.7M, resulting in an operating profit margin of 54.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Runway Growth Finance Corp. (RWAY) generated $110.0M in gross profit for the year, representing a gross profit margin of 78.5%. This demonstrates the company's core pricing power and production efficiency.