ランウェイ・グロース・ファイナンス（RWAY）2026年第3四半期決算説明会：NIIは0.38ドル、自社株買い枠を拡大

主要なポイント

• Runway Growth Financeの2026年第3四半期の総投資収益は4,060万ドルと、第2四半期の3,700万ドルから増加した一方、純投資利益は1,820万ドルから1,590万ドルへと減少した。
• 1株当たり純投資利益（NII）は0.38ドルとなり、四半期配当の0.33ドルを上回った。経営陣によると、第3四半期のNIIには1株当たり約0.06ドルの純一時的利益が含まれている。
• 1株当たり純資産価値（NAV）は、自社株買いやローン返済に支えられ、マーリー・スプーン（Marley Spoon）に対する1,080万ドルの減損により一部相殺されたものの、11.91ドルから11.94ドルへと上昇した。
• 流動化イベント（回収）の総額は1億3,940万ドルの返済を含め1億4,000万ドルに達した一方、追加の投資実行は850万ドルにとどまった。その結果、ポートフォリオの公正価値は12億ドルから11億ドルへと減少した。
• 負債資本倍率（D/Eレシオ）は1.36倍から1.10倍に低下し、経営陣の目標レンジに復帰した。四半期末時点の利用可能な総流動性は2億1,660万ドルとなった。
• 取締役会はRWAYの自社株買い枠を2027年9月30日まで3,000万ドルに拡大した。決算説明会時点で2,210万ドルの取得可能枠が残っている。

主要財務データ

同社は純実現利益1万ドルを計上し、第2四半期の純実現損失4,530万ドルから改善した。純未実現損失は520万ドルとなり、前四半期の純未実現利益5,430万ドルから悪化した。

事業および運用実績

Runwayは返済、分散、バランスシート管理を重視し、意図的に新規融資を抑制した。第3四半期の資金投下は、既存の投資先企業4社に対する計850万ドルの追加投資にとどまった。

同社は流動化イベントにより1億4,000万ドルを回収した。これには、計1億3,070万ドルに上る4件の全額返済、870万ドルの予定元金返済、および60万ドルの株式売却収入が含まれる。

最大の返済は、デカルト（Descartes）による買収に伴う、エクステンシブ（Extensiv）としても知られる3PLへの7,230万ドルの融資返済であった。経営陣は、この返済によってポートフォリオの集中度が低下し、加重平均リスク格付けの改善に寄与したと述べた。四半期末時点で、公正価値ベースでポートフォリオの94%が「3」以上の良好なリスク格付けを維持している。

SWKの買収は、ソフトウェアへの集中度と平均融資規模を縮小させつつ、Runwayのヘルスケアおよびライフサイエンス分野へのエクスポージャー拡大に寄与し続けた。融資元本の平均規模は2025年初頭から21%縮小した。買収完了以降、RunwayはSWKの借入企業3社に対するコミットメント枠を合計3,400万ドル増額し、イートン（Eton）のワラントによる1,000万ドルの受取金から340万ドルの利益を実現した。

四半期末後、メドマインダー（MedMinder）向けの2,500万ドルのシニア担保付第一順位ローンが全額返済され、36.7%の内部収益率（IRR）を記録した。

Runwayは第3四半期中に480万ドルの自社株買いを実施した。四半期末後には、表面利率7.75%の少額額面社債（ベビーボンド）を発行し、約4,370万ドルの純手取金を調達した。調達資金は主に、2027年1月満期の表面利率9%のSWK社債3,300万ドルの償還に充当された。

経営陣の見通し

経営陣は、一部の案件が翌期以降にずれ込む可能性があるものの、高水準の繰上返済が2026年第4四半期まで続くと見込んでいる。返済規模の大きさを勘案すると、案件パイプラインが積み上がっているにもかかわらず、ポートフォリオの純増には時間を要する可能性があると指摘した。

同社は第4四半期および2026年通期の0.33ドルの基本配当を賄うことができると見込んでいる。経営陣は、2027年の配当の持続可能性について、返済の時期、新規融資への資金投下のペース、および自社株買いの規模に左右されると述べた。

経営陣は現在、SWKのポートフォリオが四半期ごとに1株当たり約0.05ドルのNIIに寄与すると予想している。この寄与は、SWKのローンが満期を迎えるか繰上返済されるにつれて減少する可能性がある。

同社はまた、最近の米連邦準備理事会（FRB）による利上げが第4四半期のポートフォリオ利回りを下支えすると見込んでいる。経営陣は、Runwayの借入金の50%超が固定金利である点に言及した。

リスクと注視すべき分野

マーリー・スプーンは、開示されているポートフォリオ上の最も重大な課題であり続けている。Runwayは第3四半期中に約2,890万ドルの未実行コミットメント枠を解消し、約960万ドルのブリッジローン枠を設定した。四半期末後、同ブリッジローン枠は約410万ドル増額された。同社は1,080万ドルの減損を計上し、コスト削減と財務の持続可能性の確保を目指すマーリー・スプーンと連携している。

新規の投資実行が追いつかなければ、高水準の返済によって経常的な投資収益が圧迫される可能性がある。第3四半期に報告された利回り15.8%には一時的収益が含まれており、コア・ポートフォリオ利回りは14.0%であった。

経営陣はまた、ベンチャー融資市場の一部で審査・引受基準の緩和が見られると言及した。Runwayは選別的なスタンスを維持する方針であり、これが短期的な新規融資を抑制する可能性がある。また、金利上昇がディールフローを冷え込ませる恐れもあるが、経営陣は案件パイプラインと投資機会の多様化は改善傾向にあると述べた。

自社株買いには1日当たりの買入上限や出来高の制約が適用される。経営陣は、RWAYの出来高が時として薄くなる傾向があることを認めた。

アナリスト質疑応答の主なポイント

• 利回りの質：経営陣は、第3四半期のNIIに1株当たり0.08ドルの繰上返済手数料と0.02ドルのその他手数料が含まれていたと述べた。約0.02ドルの一時的な負債コストを考慮すると、試算される純一時的利益は1株当たり約0.06ドルとなった。
• ポートフォリオの成長：経営陣は、第4四半期の返済額が第3四半期の水準と同等かそれを上回る可能性があると予想している。返済資金は、Runwayの与信基準に従い、新規融資と自社株買いの間でバランスよく配分される見通しである。
• 配当見通し：Runwayは第4四半期および2026年通期の配当原資の確保を見込んでいるが、返済、新規融資、自社株買いを巡る不確実性を理由に、経営陣は2027年の確固たる見通しを示さなかった。
• 関係会社による買入：経営陣は、関係会社による買入とは、投資資産の譲渡ではなく、BCパートナーズ（BC Partners）の関連事業体がRWAY株を購入する可能性があることを指すと説明した。
• 追加の資本還元オプション：経営陣は、取締役会および経営陣が検討する選択肢の中に自社株公開買付（テンダーオファー）の議論も含まれていたと述べたものの、確約事項は発表されなかった。

決算説明会の全文文字起こし

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Please be advised that today's conference is being recorded. I would now like to hand the conference over to Quinlan Abel, Assistant Vice President, Investor Relations. Please go ahead.

Quinlan Abel

Thank you, Operator. Good evening, everyone, and welcome to the Runway Growth Finance Conference Call for the third quarter ended September 30, 2026. Joining us on the call today are David Spreng and Mike Rovner, Co-Chief Executive Officers of Runway Growth Finance and Co-Chief Investment Officers of Runway Growth Capital LLC, our Investment Advisor, and Carmela Thomson, Chief Financial Officer. Our Investment Advisor's Chief Credit Officer, Avisha Khubani, will join us for Q&A.

Runway Growth Finance's third quarter 2026 financial results were released just after market close today and can be accessed from Runway Growth Finance's investor relations website at investors.runwaygrowth.com. We have arranged for a replay of the call to be available on the Runway Growth Finance webpage.

During this call, I want to remind you that we may make forward-looking statements based on current expectations. The statements on this call that are not purely historical are forward-looking statements. Forward-looking statements are not a guarantee of future performance and are subject to uncertainties and other factors that could cause actual results to differ materially from those expressed in the forward-looking statements, including, without limitation, market conditions caused by uncertainty surrounding interest rates, changing economic conditions, and other factors we identify in our filings with the SEC.

Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions can prove to be inaccurate. And as a result, the forward-looking statements based on those assumptions can be incorrect. You should not place undue reliance on these forward-looking statements. The forward-looking statements contained on this call are made as of the date hereof, and Runway Growth Finance assumes no obligation to update the forward-looking statements or subsequent events. To obtain copies of SEC-related filings, please visit our website. With that, I will turn the call over to David.

David Spreng

Thank you, Quinlan, and thank you, everyone, for joining us this evening to discuss our third quarter 2026 results. Today I will discuss our strategy and notable developments for the quarter. Mike will reflect on our portfolio activity, and Carmela will unpack our financial results.

Before I dive into the quarter, I want to provide additional color on our recent leadership appointments and how we structure our team. Earlier this year, we were thrilled to promote 2 longstanding members of our leadership team, Carmela Thomson and Avisha Khubani, to Chief Financial Officer and Chief Credit Officer, respectively. Carmela has been with Runway since before our IPO and has overseen the company's financial operations for several years. Avisha has played an integral role in our investment advisor's portfolio and credit monitoring team for the past 8 years.

In August, we also welcomed Mike Rovner as co-CEO of the BDC and co-CEO and co-CIO of our advisor. Mike brings with him an expansive network and unique perspective shaped by his career as a founder, investor, and venture lender, as well as his time as a managing director at BC Partners.

These appointments represent a meaningful expansion and strengthening of the leadership team at the BDC and our investment advisor. As we've grown the company and continue to promote from within, our evolution reflects the stability and continuity of our organization, the depth of our existing talent, and our commitment to maintaining strong underwriting and high credit standards. I look forward to working alongside this team in the months ahead as we continue to execute upon the disciplined investment strategy that has guided Runway since its founding.

Turning now to the quarter. In the third quarter, we continued to make progress on our objectives related to optimizing the portfolio, increasing diversification, lowering our risk profile, and maintaining the competitive positioning of our business. As we previously discussed, our acquisition of SWK, which closed in Q2 of this year, was an important step in advancing these objectives, increasing our exposure to the healthcare and life sciences sector, lowering our software concentration, and reducing our average loan size.

Beyond the positive impacts of the acquisition, we also had multiple levers available to us as we continue to optimize our portfolio, including sourcing new and attractive loans, refinancing loans, and selectively syndicating portions of new originations. We posted a strong earnings quarter delivering NII of 38 cents per share and an improved net asset value of $11.94 per share. Carmela will discuss our results in greater detail shortly, but we believe our performance reflects strong execution and a commitment to active portfolio management.

Let's turn to our capital allocation strategy. During the third quarter, we operated against a continuation of the market dynamics we observed in the first half of the year, including an evolving macroeconomic backdrop that has put pressure on the BDC sector as a whole. As a result, we continue to believe current trading levels of our shares do not accurately reflect the fundamentals of our business and significantly misprice our credit profile. In addition to portfolio optimization, we are continuing to take a thoughtful approach to capital allocation.

This includes a measured approach to new origination and a greater focus on capital return, including affiliate purchases and stock buybacks. Last quarter, BC Partners and its affiliates made a commitment to potentially purchase up to 10% of the company's outstanding common stock over the next 2 years. In line with that approach, today we've announced that our board has expanded our share repurchase program to $30 million. This expanded program is authorized through September 30, 2027.

The management team also continues to purchase shares independently of these initiatives, underscoring our deep confidence in the Runway platform and its ability to deliver results over time. While originations were intentionally moderated during the quarter, our deal pipeline remains active. That said, we remain highly selective with a continued focus on credit quality and prudent balance sheet management.

We believe patience is a virtue, particularly in the current venture lending environment, where we are seeing some loosening of underwriting standards in certain parts of the market. Looking ahead, I remain highly confident in our team, our strategy, the strength of our portfolio, and our ability to deliver strong, consistent results. Now I will turn it over to Mike for more detail on portfolio activity during the quarter.

Unknown Speaker

Thank you, David. It's a pleasure to participate in my first official earnings call as co-CEO and co-CIO. One of the most important lessons I've learned from leading organizations over the years is that setting the right goals is important, but execution is what ultimately matters. Under David's leadership, Runway established a clear set of priorities to strengthen the portfolio, position the business for sustainable earnings power, and create value for our shareholders. Through the commitment and hard work of the broader Runway team, we've made notable progress this year on each of those priorities.

We have broadened and diversified our portfolio over the last several quarters with a key catalyst being our acquisition of SWK earlier this year. As a result, our concentration metrics have shown marked improvement, with our average principal loan size decreasing by 21% since the beginning of 2025. Our efforts as active managers have also led to the improvement of the average risk rating of our portfolio.

As we committed to earlier in the year, we have reduced the leverage level in our portfolio. We ended Q3 at approximately 1.1x debt-to-equity after running it nearly 1.4x during Q2 after using debt to help fund the SWK acquisition. We believe this deleveraging, funded largely by repayments from our borrowers, demonstrates the overall quality of our portfolio. Although there may be quarterly variances, we are actively managing our balance sheet to ensure we operate within our target range over time to maintain optionality as we ramp origination activities. Finally, we have initiated and expanded our share repurchase program, which further aligns our capital allocation strategy with shareholders and takes advantage of a very attractive valuation in our shares.

We know there is more work ahead, but the progress we have made reinforces my confidence in the foundation we are building and in our ability to execute on the priorities that matter most to our shareholders. While we cannot control every market outcome, we can control how we allocate capital, underwrite risk, and manage the business. The areas we can control will continue to be our focus.

Now turning to portfolio activity for the quarter, as David touched on, we deliberately paced new originations and focused on portfolio optimization. Our deployments in Q3 were comprised of follow-on investments in an aggregate amount of $8.5 million to 4 existing portfolio companies. We also generated liquidity events totaling $140 million, including 4 full repayments totaling $130.7 million, $8.7 million in other scheduled loan principal amortization payments, and $600,000 in equity proceeds.

Notably, this quarter we experienced the full repayment of our loan to 3PL, also known as Extensiv, after the company was acquired by Descartes. This was the largest loan in our portfolio, totaling $72.3 million. This full repayment marked an important step forward in our ongoing efforts to reduce concentration, contributing to a lower average principal loan size and a lower proportion of the top 10 loans in our portfolio.

The repayment also contributed to a lower weighted average risk rating of 2.26 compared to 2.33 last quarter. 3PL is just 1 example of how our active portfolio management and close engagement with borrowers help support positive outcomes for both our portfolio companies and our investors. We believe a healthy level of repayment actively demonstrates the underlying strengths of our portfolio.

I would also like to provide an update on our loan to Marley Spoon. During the quarter, we amended our facility to eliminate approximately $28.9 million of unfunded commitments, reducing our exposure. As of quarter end, we had also provided access to approximately $9.6 million bridge loan, and subsequent to quarter end, we increased the bridge facility by approximately $4.1 million. The bridge is intended to preserve value and protect our position while the company executes a revised operating plan focused on cost reduction and financial sustainability. We remain actively engaged with the management team as the restructuring process evolves and we continue to evaluate multiple paths to maximizing our recovery.

Looking more closely at SWK's contributions since the acquisition closed, the portfolio continues to create value through both liquidity events and the opportunity to upsize existing commitments. For example, since the deal closed, we upsized loans to 3 strong SWK borrowers, with a total upsized value of $34 million and had a realized gain of $3.4 million on $10 million in proceeds from our Eton warrants. Subsequent to quarter end, we also experienced the full repayment of a $25 million senior secured first lien loan, MedMinder, generating a 36.7% IRR.

In our view, there is sustained long-term demand for venture debt, and Runway is well positioned to capitalize on that opportunity. While we moderated originations during the quarter, we remain in active dialogue with sponsors and founders across the ecosystem. Over the next 12 months, we believe our expanded sourcing channels can support continued pipeline growth. While the pace of new investment may not always match the timing of portfolio repayments, we believe that the continued performance of our portfolio combined with disciplined loan origination and our commitment to repurchase shares while they remain undervalued collectively represent the most balanced approach to creating long-term, sustainable shareholder value while narrowing the discount to NAV. Now I'll turn it over to Carmela to provide a deeper dive into our financial results and portfolio performance.

Carmela Thomson

Thank you, Mike, and thank you everyone for joining us today. Turning to the third quarter's financial performance, we generated total investment income of $40.6 million and net investment income of $15.9 million, compared to $37 million and $18.2 million, respectively, in the second quarter of 2026. Our total investment portfolio had a fair value of $1.1 billion compared to $1.2 billion in the second quarter. The change primarily reflects the impact of repayments. As of September 30, 2026, Runway had net assets of $494.7 million, down 2% from $502.6 million in the second quarter of 2026. NAV per share was $11.94 compared to $11.91 as of June 30, 2026. The quarter's NAV per share growth was driven by share repurchases and repayments, but was offset by an additional write-down on Marley Spoon.

We delivered 38 cents per share of net investment income and a base dividend of 33 cents per share. At quarter end, we had spillover income of approximately 76 cents per share. NII during the quarter was positively impacted by prepayment fees and accelerated end-of-term payments related to prepayments. This quarter, our debt portfolio generated a dollar-weighted average annualized yield of 15.8%, up from 14.2% in the second quarter of 2026. We expect the recent Fed rate hike to benefit portfolio yields in Q4, with further hikes as currently priced by the market providing additional upside. With more than 50% of our borrowings at fixed rates, we expect higher base rates will also support our earnings power.

Looking at our weighted average risk rating, our system is based on a scale of 1 to 5, where 1 represents the most favorable credit rating. Within our scale, a Category 3 loan represents a situation where we have identified early indicators that warrant enhanced oversight, such as performance trending below plan, increased monitoring requirements, or higher loan-to-value levels while the collateral remains intact. Importantly, a Category 3 designation reflects a proactive monitoring framework rather than an impaired credit.

Our weighted average risk rating during the quarter improved to 2.26 compared to 2.33 in the second quarter and 2.66 in the first quarter, as 3PL paid off and we saw improvements in risk ratings across other names in the portfolio. As of September 30, 2026, 94% of the portfolio at fair value had a risk rating of 3 or better, underscoring the quality of the names in our portfolio and our confidence in their performance.

The consistent improvement in our weighted average risk rating, which is the lowest it has been since September 30, 2023, is a testament to the quality of the names in our portfolio, the strength of our monitoring framework, and the hard work our team has done to create a more balanced portfolio. We believe our disciplined risk and valuation process provides a clear, consistent framework for evaluating our portfolio, which reinforces our confidence in its underlying credit quality and long-term performance.

Looking at expenses, total operating expenses were $24.7 million, compared to $18.8 million for the second quarter of 2026. The sequential increase in our operating expenses primarily reflected the absence of a 1-time incentive fee reversal that benefited the second quarter of 2026, as well as a higher management fee base in the third quarter that now includes the acquired SWK assets.

We recorded a net realized gain of $10,000 during the third quarter of 2026 compared to a net realized loss of $45.3 million during the second quarter of 2026. We recorded a net change in unrealized losses of $5.2 million compared to a net change in unrealized gains of $54.3 million in the second quarter of 2026. The change in net unrealized losses was driven by a $10.8 million write-down on our investment in Marley Spoon, which offset net unrealized gains of $5.6 million across the rest of the portfolio primarily related to the repayment of our loan to 3PL.

During the third quarter, we experienced total liquidity events of $140 million, including $139.4 million in repayments. As Mike mentioned, the most significant component of this figure was 3PL. We currently expect elevated prepayments to continue through the fourth quarter, although some could be pushed into subsequent periods.

As of September 30, 2026, our leverage ratio and asset coverage were 1.10x and 1.91x, respectively, compared to 1.36x and 1.74x at the end of the second quarter. Our leverage is now back within its target range after running at elevated levels during the second quarter. Our total available liquidity was $216.6 million, including unrestricted cash and cash equivalents, and we had borrowing capacity of $213 million under our KeyBank credit facility.

To further strengthen our balance sheet and lower our cost of capital, subsequent to quarter end, we issued 7.75% baby bonds, generating net proceeds of approximately $43.7 million. We are pleased with the pricing on the baby bonds, which reflects a narrower spread than the baby bonds we issued earlier in the year. We primarily used the proceeds to repay our $33 million 9% SWK notes due January 2027, which we redeemed in full on November 3, 2026.

In line with our capital allocation strategy and increased emphasis on share repurchases, we repurchased $4.8 million of shares during the quarter. In addition, as previously noted, today we announced that our board has authorized an expanded share repurchase program of $30 million, which will run through September 30, 2027. We have $22.1 million in share repurchases remaining as of today. We believe the Expanded Share Repurchase Program presents an attractive option to reallocate capital towards repurchasing shares while they trade at a significant discount to NAV. Finally, on November 4, 2026, our Board declared a regular distribution for the fourth quarter of 2026 of 33 cents per share. With that, operator, we can open the line for Q&A.

Operator

[Operator Instructions] Our first question comes from Mickey Schleien with Clear Street.

質疑応答

Mickey Schleien

The weighted average debt investment yield increased nicely from 14.2% to 15.8%, despite the significant repayments, which I assume would be repayments on higher-yielding investments. So how much of the improvement reflected that accelerated OID and end-of-term payment income from those repayments versus higher recurring portfolio yields?

Carmela Thomson

Hi, Mickey. So, our yield does incorporate some non-recurring income, so our 38 cents of NII per share incorporates 10 cents per share of non-recurring, and this is comprised of prepayment fees of 8 cents, and then another 2 cents related to other fees, such as amendment fees, commitment fees, and such. And while that's non-recurring in nature, we do tend to have 1 to 2 cents per share each quarter in other fees. So not as unique as the prepayment fees that tend to be more one-off each quarter.

And so with that, that brings us down to a net 10 cents, and then this is partially offset by a 1-time 2-cent expense related to debt costs. And so the net 1-time impact would likely be around 6 cents per share, comprised of the 8 cents of prepayment and the 2 cents of 1-time debt costs. In terms of the yield, so that's what you'll see with the yield of the 15.8%, so that incorporates those non-recurring fees that I just mentioned. Core yield, which I also believe is in our presentation, is 14%. So that's more of the core portfolio yield, not including the non-recurring fees to get a better comparison quarter-over-quarter.

Mickey Schleien

I understand that. I appreciate your explanation. And if I could, just 1 follow-up. You received approximately $140 million of proceeds in the quarter. You funded only $9 million, and I think you received another $55 million of prepayments this quarter. How much of this runoff was anticipated? What does the pipeline look like? And when do you think the portfolio might resume growth on a net basis?

Unknown Speaker

Sure, Mickey, I'll go ahead and handle that question. Well, obviously we've had a very strong repayment quarter in Q3 and as you noted Q4 is also off to a strong start. It's a little early to be able to predict where we would end up in Q4. Obviously we have 2 months left, but we are certainly on pace to achieve or even outpace what we saw in Q3. The pipeline is building and we remain actively engaged with sponsors and founders. We're working on our sourcing. And though I think it may be a little while before we see that growth in the portfolio, given the size of the repayments. Carmela, I don't know if you wanted to add anything.

Carmela Thomson

No, I think that's right. I think as repayments come in in the coming quarter, and in our prepared remarks, we noted elevated prepayments. We will use that also to balance repurchases of shares as well as new loans, but obviously keeping in mind our credit strategy and in making sure that we're bringing on loans that still continue to meet that high credit mark.

Mickey Schleien

I understand. I appreciate your time this evening and thank you for taking my questions.

Operator

Thank you. Our next question comes from Richard Shane with J.P. Morgan.

Unknown Speaker

Yes, hey, this is Tong on for Rick. I guess just thinking about the SWK accretion, you talked about how it was $0.05 accretive quarterly NII. Going forward, do you expect any incremental benefits to the run rate?

Carmela Thomson

I think the 5 cents is pretty much what you should expect. I think the difference that you may see as loans mature, that could taper off or prepayments on any SWK loans. But 0.05 is still currently what we're projecting and what we see in the portfolio today.

Unknown Speaker

Got it. Thank you.

Operator

Our next question comes from Erik Zwick with Lucid Capital Markets.

Erik Zwick

Good afternoon, everyone. I guess maybe starting with a bit of a follow-up to 1 of Mickey's questions and he mentioned it maybe a little bit before we start to see net portfolio growth again just given the pace of prepayments as well as the balance between new investments and share buyback. I know you said you'll take a measured approach to new investments. If I understood Carmela's math correctly, it sounds like there was a 6-cent kind of net benefit to the results this quarter. So without those, you'd be at about a 32-cent run rate. So a penny below the current dividend level. So obviously the opportunity to repurchase shares at a massive discount with a stock trading today is very compelling and the math there is strong and with measured investments, kind of a measured approach to investments.

And I realize it's a long-winded question. So I guess the crux of it is, how do you feel about the sustainability of the dividend at this level as you approach 2027, given the fact that the portfolio may shrink again and you're devoting repayment dollars toward the buyback as well?

Carmela Thomson

Sure. So, we do expect to cover our base dividend in the following quarter and full year. Beyond that for 2027, it's hard to predict at this point in time because it does depend on a few variables. And you noted that as well. So, how much and how quickly our loans repay, and then also how fast we deploy that capital into high-quality new loans, and then also the level of share repurchases. So, we're anticipating picking up the pace of our share repurchases as well as our loans prepay. Then we'll use those funds towards that as well. So it really depends on that mix and where we'll land towards that end of the year, going into '27.

Erik Zwick

Thanks, Carmela. And then just my other question, Mike, I think you used the language sustained long-term demand referring to the venture lending market. I'm just curious, do higher rates now in the prospect for rates potentially even going higher, how does that impact kind of the opportunity there? Do certain borrowers tend to back away or but just kind of curious and maybe a question for David as well, just in his experience, how do higher rates impact the venture lending opportunities?

Unknown Speaker

I was pausing to see if David wanted to take that one, but my view is that it's obviously going to be difficult to predict what we see in the coming 12 months. I'd say that higher rates can dampen deal flow, but as things stand right now, we're feeling pretty good about the growth in our pipeline and the number and diversification of opportunities that we're seeing.

Erik Zwick

Thanks Mike, that's all for me.

Operator

[Operator Instructions] Our next question comes from Merrill Ross with Compass Point Research and Trading.

Unknown Speaker

Thank you and good evening. Just thinking about how you hold your pipeline together when you're funding so few loans. It seems like that's part of your franchise value is that you continue to meet the needs of your borrowers and with your activity so subdued, I'm wondering when you feel concerned that you're not funding enough loans to stay in the mix.

Unknown Speaker

That's a great question. Obviously it's a bit of a balancing act. As we've said in prior quarters, we want to take a measured approach to new loan origination while we focus on seeing repayment in our current portfolio, looking to add diversification while supporting our existing borrowers. And I think we've at least done a good job so far of that balancing act. We were active in a smaller way this quarter, looking more to focus on liquidity generation and also support for our existing borrowers. But I do think that it is important for us to continue to be active in the market and to continue to build our pipeline, a good question to watch as we execute in Q4 and beyond.

Operator

Thank you. Our next question comes from Christopher Nolan with Ladenburg Thalmann.

Christopher Nolan

Hi, David mentioned affiliate purchases in his comments. What does that mean?

David Spreng

It means affiliates of Runway and BDC, so management team, other funds within the BDC family, that kind of stuff. So think of it as BDC broadly defined.

Christopher Nolan

Okay, so you might be buying assets from BC affiliated entities?

David Spreng

No, the other way around. Like, BC affiliated entities may be buying shares of Runway.

Christopher Nolan

Okay, so this is related to the share repurchase commitment that BC, okay, it's not a transfer of investment assets. And for your share repurchase program, what sort of window do you have quarterly to do that?

Carmela Thomson

Yes, we can set up the 10b5-1 program to occur through the quarter as long as we're setting it up prior to the blackout period, which is around a week prior to quarter end. And so we can set that up to be active during that process.

Christopher Nolan

And does the stock really have enough liquidity to really help you guys really move the needle on an ongoing basis like this?

Carmela Thomson

We have limitations in terms of how much we can buy in a day. We think it helps bring the stock price up marginally on a daily basis that we've seen. But yes, volume certain times can be thin.

Christopher Nolan

All right. And you know, you sit in an interesting spot here where you're guiding for slower portfolio growth for various reasons. Leverage ratios are way down, your stock price is way down, and you're making really good headway on the buybacks. Have you considered doing a share tender?

Unknown Speaker

It's certainly something that has been discussed as our board and management team consider all the options that are available to us.

Christopher Nolan

Okay. That's it for me. Thank you.

Operator

That concludes today's question-and-answer session. I'd like to turn the call back to David Spreng for closing remarks.

David Spreng

Thank you, Operator, and thank you all for joining us today. We wish you a happy and healthy end to 2026 and look forward to discussing our year-end results in 2027.

Operator

This concludes today's conference call. Thank you for participating. You may now disconnect.

This live transcript is auto-generated without human intervention or review.