# Runway Growth Finance (RWAY.US)

Canonical: https://gigainvestors.com/s/RWAY

Analysis as of: 2026-10-16T07:31:43.647Z. Financial observations: FY2017–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $6.52 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 9 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.90×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.58×

- FY2018: 0.87×

- FY2019: 0.87×

- FY2020: 0.82×

- FY2021: 0.64×

- FY2022: 0.30×

- FY2023: 0.27×

- FY2024: 0.51×

- FY2025: 0.56×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 20.7pp below the typical margin (limit 4pp)

- ROIC, median of available years: 6.5%

- ROIC, second-lowest year: 2.7%

- Typical minus recent gross margin: 20.7 pp

- Typical gross margin (annual median): 80.1%

- Recent gross margin (lower of latest and 3-year median): 59.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.0%

- ROIC including acquisitions, ten-year median: -19.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -1223.6%

- FY2018: 3.4%

- FY2019: 4.6%

- FY2020: 8.6%

- FY2021: 6.5%

- FY2022: >100%

- FY2023: 2.7%

- FY2024: 6.9%

- FY2025: 8.1%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: -1.35×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$311M

- Net income, five-year total: $230M

- Return on incremental invested capital: 1131.5%

- Working capital / revenue, annual change: 98.2 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: -1.34×

- FY2022: -11.16×

- FY2023: 2.54×

- FY2024: -0.47×

- FY2025: 0.94×

### management: pass

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 3.4% vs 6.9%

- Per-share earnings: 1.07 to 1.09 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 5.9%

- Diluted shares, 5-year annual growth: 5.9%

- Per-share value growth: 0.4%

- Per-share value change: $0.02

- Per-share value, starting three-year median: $1.07

- Per-share value, ending three-year median: $1.09

- Buybacks concentrated in cheaper years (correlation): 0.20

- Average buyback yield: 11.0%

- Buyback history: 5 years

- Debt-funded buybacks: Yes

- ROIC, first three-year median: 3.4%

- ROIC, last three-year median: 6.9%

Chart: Earnings per share; fiscal year observations.

- FY2017: -$0.24

- FY2018: $1.07

- FY2019: $1.24

- FY2020: $1.70

- FY2021: $1.33

- FY2022: $0.79

- FY2023: $1.09

- FY2024: $1.89

- FY2025: $0.93

### accounting: pass

- Sloan accruals: -15.9%

- Receivables to sales index (DSRI): 0.98×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 5.47×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 78.0%

- FY2018: 132.8%

- FY2019: 31.2%

- FY2020: 23.9%

- FY2021: 14.5%

- FY2022: 34.3%

- FY2023: -6.3%

- FY2024: 2.1%

- FY2025: -15.9%

## Holders

- [Howard Marks](https://gigainvestors.com/oc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 55% since Apr 2022 · sales -5%

Story as of 2026-10-16T09:59:32.370Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales -5%; source https://www.sec.gov/Archives/edgar/data/1653384/000119312526104117/rway-20251231.htm; observed 2026-03-12.

- FY2017: $3.2B 

- FY2018: $14M 

- FY2019: $32M 

- FY2020: $58M 

- FY2021: $71M 

- FY2022: $108M 

- FY2023: $164M 

- FY2024: $145M 

- FY2025: $137M 

### Gross margin · FY2025

gross margin 80.1%; source https://www.sec.gov/Archives/edgar/data/1653384/000119312526104117/rway-20251231.htm; observed 2026-03-12.

- FY2020: 89.2% 

- FY2021: 72.7% 

- FY2022: 38.4% 

- FY2023: 34.0% 

- FY2024: 59.4% 

- FY2025: 80.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in asset management; annual sales are USD 137.3 million.

- Source: https://www.sec.gov/Archives/edgar/data/1653384/000119312526104117/rway-20251231.htm#000119312526104117 (filed 2026-03-12); FY2025: revenue 137329000; grossProfit 109988000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 34% to 80.1% during 2023–25; it earns 6.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-12); FY2023: grossProfit / revenue = 34%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-12); FY2024: grossProfit / revenue = 59.4%.

- Source: https://www.sec.gov/Archives/edgar/data/1653384/000119312526104117/rway-20251231.htm (filed 2026-03-12); FY2025: grossProfit / revenue = 80.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-12); 9-year return on capital observations [[2017,-12.235804446251846],[2018,0.03369091760614846],[2019,0.0460142794942011],[2020,0.08560874812038469],[2021,0.06464972899629508],[2022,4.860306051472293],[2023,0.027340375780583754],[2024,0.06897074756229686],[2025,0.08148065107766672]]; median 0.06464972899629508. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 8 of 9 years; bought back USD 12.5 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-12); FY2023: growth capex 0; upkeep 0; owner earnings 112437000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1653384/000119312526104117/rway-20251231.htm (filed 2026-03-12); FY2025: growth capex 0; upkeep 0; owner earnings 32067000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-12); Dividend observations: [[2017,0],[2018,1428498],[2019,8192547],[2020,7265785],[2021,17948131],[2022,51593000],[2023,73321999],[2024,69860000],[2025,51449000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1653384/000119312526104117/rway-20251231.htm (filed 2026-03-12); FY2025: cash repurchases 12500000 USD.

### Are managers owners

Insiders own 1.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); RWAY.US SharesStats.PercentInsiders = 1.137 percentage points; cache date 2026-10-05.

### What the price says

The price is 1.7 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-12); Closing price 6.52 USD; reporting-to-trading FX 1; FY2025 annual sales per share 3.742145062327211; price multiple 1.7423162093949567. FY2025 cash earnings/share 0.8738093608316282. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2021-10: $12.95 per share

- 2021-11: $13.92 per share

- 2021-12: $12.82 per share

- 2022-01: $12.99 per share

- 2022-02: $13.73 per share

- 2022-03: $13.58 per share

- 2022-04: $14.37 per share

- 2022-05: $13.48 per share

- 2022-06: $11.31 per share

- 2022-07: $12.98 per share

- 2022-08: $12.37 per share

- 2022-09: $11.37 per share

- 2022-10: $13.52 per share

- 2022-11: $12.02 per share

- 2022-12: $11.59 per share

- 2023-01: $12.99 per share

- 2023-02: $12.84 per share

- 2023-03: $12.13 per share

- 2023-04: $11.74 per share

- 2023-05: $11.48 per share

- 2023-06: $12.35 per share

- 2023-07: $12.85 per share

- 2023-08: $13.04 per share

- 2023-09: $12.82 per share

- 2023-10: $12.18 per share

- 2023-11: $12.57 per share

- 2023-12: $12.62 per share

- 2024-01: $13.21 per share

- 2024-02: $13.42 per share

- 2024-03: $12.12 per share

- 2024-04: $12.65 per share

- 2024-05: $11.98 per share

- 2024-06: $11.76 per share

- 2024-07: $11.84 per share

- 2024-08: $10.59 per share

- 2024-09: $10.29 per share

- 2024-10: $10.13 per share

- 2024-11: $10.41 per share

- 2024-12: $10.96 per share

- 2025-01: $11.61 per share

- 2025-02: $11.51 per share

- 2025-03: $10.35 per share

- 2025-04: $9.13 per share

- 2025-05: $9.93 per share

- 2025-06: $10.73 per share

- 2025-07: $10.75 per share

- 2025-08: $10.89 per share

- 2025-09: $10.16 per share

- 2025-10: $9.89 per share

- 2025-11: $9.19 per share

- 2025-12: $8.93 per share

- 2026-01: $9.16 per share

- 2026-02: $7.75 per share

- 2026-03: $6.87 per share

- 2026-04: $6.73 per share

- 2026-05: $6.47 per share

- 2026-06: $5.61 per share

- 2026-07: $5.46 per share

- 2026-08: $6.68 per share

- 2026-09: $6.62 per share

- 2026-10: $6.52 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1653384/000119312526104117/rway-20251231.htm); period 2025-12-31, filed 2026-03-12.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.