Runway Growth's Q2 Earnings Coming Up: What's in Store?

Runway Growth Finance Corp. RWAY is slated to report second-quarter 2025 results on Aug. 7, after market close. Its revenues are expected to have declined, while earnings are likely to have risen on a year-over-year basis.

In the last reported quarter, RWAY’s earnings beat the Zacks Consensus Estimate. Results were aided by lower expenses and robust portfolio activities. However, lower total investment income acted as a spoilsport.

Runway Growth has a weak earnings surprise history. The company’s earnings lagged the Zacks Consensus Estimate in three of the trailing four quarters and beat it in one.

Runway Growth Finance Corp. Price and EPS Surprise

Runway Growth Finance Corp. price-eps-surprise | Runway Growth Finance Corp. Quote

Earnings & Sales Projections for RWAY’s Q2

The Zacks Consensus Estimate for RWAY’s earnings is pegged at 39 cents, stable over the past seven days. The figure indicates a 5.4% increase from the prior-year quarter.

The consensus estimate for sales is pegged at $34 million, which suggests a marginal fall.

Other Factors to Impact RWAY’s Q2 Earnings

The Federal Reserve kept interest rates unchanged at 4.25-4.5% during the second quarter of 2025, which is likely to have aided Runway Growth’s interest income given higher loan yields.

Runway Growth has been witnessing higher expenses over the past several quarters. As the company has been investing in venture growth stage companies, operating costs are expected to have been elevated in the second quarter.

Earnings Whispers for RWAY

Our quantitative model does not conclusively predict an earnings beat for Runway Growth this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Runway Growth has an Earnings ESP of 0.00%.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Finance Stocks

Moody's MCO second-quarter 2025 adjusted earnings of $3.56 per share outpaced the Zacks Consensus Estimate of $3.44. The bottom line grew 8.5% from the year-ago quarter figure.

MCO’s results were primarily aided by an improvement in revenues. Steady demand for analytics further supported results. The company’s liquidity position was strong in the quarter. However, an increase in operating expenses posed a headwind.

Moelis & Company MC second-quarter 2025 adjusted earnings of 53 cents per share surpassed the Zacks Consensus Estimate of 32 cents. The bottom line improved significantly from 18 cents per share in the prior-year quarter.

Results benefited from a rise in revenues and other income. Also, the company had a solid liquidity position in the quarter. However, an increase in expenses was a headwind for MC.

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This article originally published on Zacks Investment Research (zacks.com).

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