Trinity Capital Inc. Reports Third Quarter 2025 Financial Results
Record funding of $471 million
Total Investment Income grows 22.3% year-over-year
Net Asset Value reaches new high of $998 million
PHOENIX, Nov. 5, 2025 /PRNewswire/ -- Trinity Capital Inc. (Nasdaq: TRIN) ("the Company"), a leading alternative asset manager, today announced its financial results for the third quarter ended September 30, 2025.
Third Quarter 2025 Highlights
- Total investment income of $75.6 million, an increase of 22.3% year-over-year.
- Net investment income ("NII") of $37.0 million, or $0.52 per basic share. NII grew 25.9% year over year.
- Net increase in net assets resulting from operations of $27.6 million, or $0.39 per basic share.
- 15.3% Return on Average Equity "ROAE" (NII/Average Equity).
- 6.9% Return on Average Assets "ROAA" (NII/Average Assets).
- Net Asset Value ("NAV") of $998.3 million, or $13.31 per share at the end of Q3. NAV increased 31.9% year over year.
- Total gross investment commitments of $773.0 million.
- Total gross investments funded of $470.6 million, which was comprised of $272.0 million to 17 new portfolio companies, $175.5 million to 20 existing portfolio companies and $23.1 million to multi-sector holdings.
- Total investment exits and repayments of $255.7 million, which was comprised of $120.4 million from investments sold to multi-sector holdings, $79.0 million from scheduled/amortizing debt payments, $55.9 million from early debt repayments and refinancings and $0.4 million from warrant and equity sales.
- 23rd consecutive quarter of a consistent or increased regular dividend, with a third quarter distribution of $0.51 per share.
"Our strong third quarter results exhibit the power of our disciplined execution and rigid underwriting, as well as the growing demand across our credit strategies," said Kyle Brown, Chief Executive Officer of Trinity Capital. "We're seeing great momentum across our direct lending platform, and we're bullish on the opportunities ahead as we remain focused on driving exceptional value for our investors and partners."
Third Quarter 2025 Operating Results
For the three months ended September 30, 2025, total investment income was $75.6 million, compared to $61.8 million for the three months ended September 30, 2024. The effective yield on the average debt investments at cost was 15.0% for the third quarter of 2025, compared to 16.1% for the third quarter of 2024. Effective yields generally include the effects of fees and income accelerations attributed to early loan repayments and other one-time events, and may also fluctuate quarter-to-quarter depending on the amount of prepayment activity.
Total operating expenses and excise taxes, excluding interest expense, for the third quarter of 2025 were $17.6 million, compared to $15.5 million during the third quarter of 2024. The increase was primarily attributable to higher compensation associated with additional headcount, an increase in professional fees, and higher G&A expenses offset by expenses allocated to the Company's registered investment adviser subsidiary.
Interest expense for the third quarter of 2025 was $21.0 million, compared to $16.9 million during the third quarter of 2024. The increase was primarily attributable to the increase in weighted average debt outstanding.
Net investment income was approximately $37.0 million, or $0.52 per share based on 71.5 million basic weighted average shares outstanding for the third quarter of 2025, compared to $29.4 million or $0.54 per share for the third quarter of 2024 based on 54.4 million basic weighted average shares outstanding.
During the three months ended September 30, 2025, the Company's net unrealized appreciation totaled approximately $10.7 million, which included net unrealized appreciation of $8.2 million from its equity investments and net unrealized appreciation of $3.1 million from the Company's debt investments partially offset by net unrealized depreciation of $1.1 million from its warrant investments. Additionally, the Company had $0.5 million net unrealized appreciation attributable to foreign currency forward contracts.
Net realized loss on investments was approximately $20.0 million, primarily due to the extinguishment of one debt position and the conversion of one debt position.
Net increase in net assets resulting from operations was $27.6 million, or $0.39 per share, based on 71.5 million basic weighted average shares outstanding. This compares to a net increase in net assets resulting from operations of $24.4 million, or $0.45 per share, based on 54.4 million basic weighted average shares outstanding for the third quarter of 2024.
Net Asset Value
Total net assets at the end of the third quarter of 2025 increased by 8.1% to $998.3 million, compared to $923.6 million at the end of the second quarter of 2025. The increase in total net assets was primarily due to accretive ATM issuances and net investment income exceeding the dividend declared, partially offset by net portfolio performance. NAV per share increased to $13.31 per share in the third quarter from $13.27 per share as of June 30, 2025.
Portfolio and Investment Activity
As of September 30, 2025, Trinity Capital's investment portfolio had an aggregate fair value of approximately $2.2 billion and was comprised of approximately $1.7 billion in secured loans, $318.2 million in equipment financings, and $195.9 million in equity and warrants, across 178 portfolio companies. The Company's debt portfolio is comprised of 84.3% first-lien loans and 15.7% second-lien loans, with 82.4% of the debt portfolio at floating rates based on principal outstanding.
During the third quarter, the Company originated approximately $773.0 million of total new commitments. Third quarter gross investments funded totaled approximately $470.6 million, which was comprised of $272.0 million of investments in 17 new portfolio companies, $175.5 million of investments in 20 existing portfolio companies and $23.1 million to multi-sector holdings. Gross investment fundings during the quarter for secured loans totaled $370.5 million, equipment financings totaled $56.0 million and warrant and equity investments totaled $44.1 million.
Proceeds received from exits and repayments of the Company's investments during the third quarter totaled approximately $255.7 million, which included $120.4 million from investments sold to multi-sector holdings, $79.0 million from scheduled/amortizing debt payments, $55.9 million from early debt repayments and refinancings and $0.4 million from warrant and equity sales. The investment portfolio increased by $203.8 million on a cost basis, an increase of 10.2%, and $214.0 million on a fair value basis, an increase of 10.8% as compared to June 30, 2025.
As of the end of the third quarter, loans to three portfolio companies and equipment financings to one portfolio company were on non-accrual status with a total fair value of approximately $20.7 million, or 1.0% of the Company's debt investment portfolio at fair value.
The following table shows the distribution of the Company's loan and equipment financing investments on the 1 to 5 investment risk rating scale at fair value as of September 30, 2025 and June 30, 2025 (dollars in thousands):
|
|
|
|
|
September 30, 2025 |
|
|
June 30, 2025 |
|
||||||||||
|
Investment Risk Rating |
|
|
|
Investments |
|
|
Percentage |
|
|
Investments |
|
|
Percentage |
|
||||
|
Scale Range |
|
Designation |
|
Fair Value |
|
|
Total |
|
|
Fair Value |
|
|
Total |
|
||||
|
4.0 - 5.0 |
|
Very Strong |
|
$ |
102,624 |
|
|
|
5.3 |
% |
|
$ |
97,881 |
|
|
|
5.3 |
% |
|
3.0 - 3.9 |
|
Strong Performance |
|
|
668,545 |
|
|
|
33.5 |
% |
|
|
589,329 |
|
|
|
32.1 |
% |
|
2.0 - 2.9 |
|
Performing |
|
|
1,148,937 |
|
|
|
57.5 |
% |
|
|
1,021,331 |
|
|
|
55.7 |
% |
|
1.6 - 1.9 |
|
Watch |
|
|
42,811 |
|
|
|
2.1 |
% |
|
|
97,396 |
|
|
|
5.3 |
% |
|
1.0 - 1.5 |
|
Default/Workout |
|
|
20,739 |
|
|
|
1.0 |
% |
|
|
15,601 |
|
|
|
0.9 |
% |
|
Total Debt Investments excluding |
|
|
|
|
1,983,656 |
|
|
|
99.4 |
% |
|
|
1,821,538 |
|
|
|
99.3 |
% |
|
|
|
Senior Credit Corp 2022 |
|
|
12,885 |
|
|
|
0.6 |
% |
|
|
12,885 |
|
|
|
0.7 |
% |
|
Total Debt Investments |
|
|
|
$ |
1,996,541 |
|
|
|
100.0 |
% |
|
$ |
1,834,423 |
|
|
|
100.0 |
% |
|
_____________ |
||||||||||||||||||
|
(1) An investment risk rating is not applied to Senior Credit Corp 2022 LLC. |
||||||||||||||||||
As of September 30, 2025, Trinity Capital's loan and equipment financing investments had a weighted average risk rating score of 2.9, consistent with the score as of June 30, 2025. The Company's grading scale is comprised of numerous factors, two key factors being liquidity and performance to plan. A company may be downgraded as it approaches the need for additional capital or if it is underperforming relative to its business plans. Conversely, it may be upgraded upon a capitalization event or if it is exceeding its plan. As such, the overall grading may fluctuate quarter-to-quarter.
Liquidity and Capital Resources
As of September 30, 2025, the Company had approximately $217.9 million in available liquidity, including $9.5 million in unrestricted cash and cash equivalents. At the end of the period, the Company had approximately $208.4 million in available borrowing capacity under its KeyBank credit facility, subject to existing terms and advance rates and regulatory and covenant requirements. This excludes capital raised by Senior Credit Corp 2022 LLC and funds managed by the Company's wholly owned registered investment adviser subsidiary.
The KeyBank credit facility was expanded under the existing accordion feature by $90 million, bringing total commitments from $600 million to $690 million.
During the quarter, the Company issued and sold $125.0 million in aggregate principal amount of its unsecured 6.750% Notes due 2030 (the "July 2030 Notes") under its shelf Registration Statement on Form N-2. The proceeds were used to pay down a portion of the existing indebtedness outstanding under the KeyBank credit facility.
As of September 30, 2025, Trinity's leverage, or debt-to-equity ratio, was approximately 119% as compared to 115% as of June 30, 2025.
During the three months ended September 30, 2025, Trinity utilized its equity ATM offering program to sell 5,318,978 million shares of its common stock at a weighted average price of $15.78 per share, raising $83.0 million of net proceeds.
During the three months ended September 30, 2025, Trinity utilized its debt ATM offering program and during the period issued and sold $0.1 million of its March 2029 Notes and $0.4 million of its September 2029 Notes and raised $0.1 million and $0.4 million, respectively, of net proceeds.
Distributions
On September 17, 2025, the Company's Board of Directors declared a regular dividend totaling $0.51 per share with respect to the quarter ended September 30, 2025, which was paid on October 15, 2025, to stockholders of record as of September 30, 2025. The Board of Directors generally determines and announces the Company's dividend distribution on a quarterly basis.
Recent Developments
For the period from October 1, 2025 to November 3, 2025, the Company issued and sold 663,974 shares of its common stock at a weighted-average price of $14.99 per share and raised $9.9 million of net proceeds under its equity ATM offering program.
For the period from October 1, 2025 to November 3, 2025, the Company issued and sold $25.4 million of its ATM March 2029 Notes and $2.6 million of its September 2029 Notes and raised $25.3 million and $2.6 million, respectively, of net proceeds under its debt ATM offering.
Conference Call
Trinity Capital will hold a conference call to discuss its third quarter 2025 financial results at 12:00 p.m. Eastern Time on Wednesday, November 5, 2025.
To listen to the call, please dial (800) 267-6316, or (203) 518-9783 internationally, and reference Conference ID: TRINQ325 if asked, approximately 10 minutes prior to the start of the call. The conference call and presentation will also be available on the investor relations section of the Company's website at ir.trinitycapital.com.
A taped replay will be made available approximately two hours after the conclusion of the call and will remain available until November 12, 2025. To access the replay, please dial (800) 757-4761 or (402) 220-7215. You may also access the webcast replay of the call and the presentation on the investor relations section of the Company's website.
About Trinity Capital Inc.
Trinity Capital Inc. (Nasdaq: TRIN) is an international alternative asset manager that seeks to deliver consistent returns for investors through access to private credit markets. Trinity Capital sources and structures investments in well-capitalized growth-oriented companies. With five distinct business verticals — Sponsor Finance, Equipment Finance, Tech Lending, Asset-Based Lending, and Life Sciences — Trinity Capital stands as a long-term trusted partner for innovative companies seeking tailored debt solutions. Headquartered in Phoenix, Arizona, Trinity Capital's dedicated team is strategically located across the United States and in London (UK). For more information on Trinity Capital, please visit trinitycapital.com and stay connected to the latest activity via LinkedIn and X (@trincapital).
Forward-Looking Statements
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission ("SEC"). The Company undertakes no duty to update any forward-looking statement made herein, except as required by law. All forward-looking statements speak only as of the date of this press release. More information on risks and other potential factors that could affect the Company's financial results, including important factors that could cause actual results to differ materially from plans, estimates or expectations included herein or on the webcast/conference call, is included in the Company's filings with the SEC, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's most recently filed annual report on Form 10-K and subsequent SEC filings.
|
TRINITY CAPITAL INC. |
||||||||
|
Consolidated Statements of Assets and Liabilities |
||||||||
|
(In thousands, except share and per share data) |
||||||||
|
|
||||||||
|
|
|
September 30, |
|
|
December 31, |
|
||
|
|
|
2025 |
|
|
2024 |
|
||
|
|
|
(Unaudited) |
|
|
|
|
||
|
ASSETS |
|
|
|
|
|
|
||
|
Investments at fair value: |
|
|
|
|
|
|
||
|
Control investments (cost of $102,382 and $82,391, respectively) |
|
$ |
116,743 |
|
|
$ |
89,249 |
|
|
Affiliate investments (cost of $57,095 and $34,309, respectively) |
|
|
50,153 |
|
|
|
34,727 |
|
|
Non-Control / Non-Affiliate investments (cost of $2,045,286 and $1,643,526, |
|
|
2,025,465 |
|
|
|
1,601,594 |
|
|
Total investments (cost of $2,204,763 and $1,760,226, respectively) |
|
|
2,192,361 |
|
|
|
1,725,570 |
|
|
Cash and cash equivalents |
|
|
9,467 |
|
|
|
9,627 |
|
|
Interest receivable |
|
|
19,464 |
|
|
|
16,542 |
|
|
Deferred credit facility costs |
|
|
6,263 |
|
|
|
6,586 |
|
|
Other assets |
|
|
19,380 |
|
|
|
15,916 |
|
|
Total assets |
|
$ |
2,246,935 |
|
|
$ |
1,774,241 |
|
|
|
|
|
|
|
|
|
||
|
LIABILITIES |
|
|
|
|
|
|
||
|
KeyBank Credit Facility |
|
$ |
481,600 |
|
|
$ |
113,000 |
|
|
Unsecured Notes, net of $10,858 and $10,327, respectively, of unamortized deferred |
|
|
693,041 |
|
|
|
764,673 |
|
|
Distribution payable |
|
|
38,244 |
|
|
|
31,451 |
|
|
Security deposits |
|
|
4,413 |
|
|
|
8,472 |
|
|
Accounts payable, accrued expenses and other liabilities |
|
|
31,373 |
|
|
|
33,663 |
|
|
Total liabilities |
|
|
1,248,671 |
|
|
|
951,259 |
|
|
|
|
|
|
|
|
|
||
|
NET ASSETS |
|
|
|
|
|
|
||
|
Common stock, $0.001 par value per share (200,000,000 authorized, 74,988,962 and |
|
|
75 |
|
|
|
62 |
|
|
Paid-in capital in excess of par |
|
|
1,015,057 |
|
|
|
829,626 |
|
|
Distributable earnings/(accumulated deficit) |
|
|
(16,868) |
|
|
|
(6,706) |
|
|
Total net assets |
|
|
998,264 |
|
|
|
822,982 |
|
|
Total liabilities and net assets |
|
$ |
2,246,935 |
|
|
$ |
1,774,241 |
|
|
NET ASSET VALUE PER SHARE |
|
$ |
13.31 |
|
|
$ |
13.35 |
|
|
TRINITY CAPITAL INC. |
|||||||||||||||||||
|
Consolidated Statements of Operations |
|||||||||||||||||||
|
(In thousands, except share and per share data) |
|||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months |
|
|
Three Months |
|
|
Nine Months |
|
|
Nine Months |
|
||||||||
|
|
September 30, 2025 |
|
|
September 30, 2024 |
|
|
September 30, 2025 |
|
|
September 30, 2024 |
|
||||||||
|
INVESTMENT INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Interest and dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Control investments |
$ |
|
2,809 |
|
|
$ |
|
2,287 |
|
|
$ |
|
7,567 |
|
|
$ |
|
6,223 |
|
|
Affiliate investments |
|
|
1,866 |
|
|
|
|
940 |
|
|
|
|
4,116 |
|
|
|
|
1,806 |
|
|
Non-Control / Non-Affiliate investments |
|
|
67,900 |
|
|
|
|
55,964 |
|
|
|
|
190,278 |
|
|
|
|
152,390 |
|
|
Total interest and dividend income |
|
|
72,575 |
|
|
|
|
59,191 |
|
|
|
|
201,961 |
|
|
|
|
160,419 |
|
|
Fee and other income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Affiliate investments |
|
|
731 |
|
|
|
|
807 |
|
|
|
|
2,020 |
|
|
|
|
2,509 |
|
|
Non-Control / Non-Affiliate investments |
|
|
2,244 |
|
|
|
|
1,768 |
|
|
|
|
6,436 |
|
|
|
|
3,931 |
|
|
Total fee and other income |
|
|
2,975 |
|
|
|
|
2,575 |
|
|
|
|
8,456 |
|
|
|
|
6,440 |
|
|
Total investment income |
|
|
75,550 |
|
|
|
|
61,766 |
|
|
|
|
210,417 |
|
|
|
|
166,859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Interest expense and other debt financing costs |
|
|
20,981 |
|
|
|
|
16,868 |
|
|
|
|
56,681 |
|
|
|
|
42,896 |
|
|
Compensation and benefits |
|
|
13,388 |
|
|
|
|
11,528 |
|
|
|
|
36,522 |
|
|
|
|
31,336 |
|
|
Professional fees |
|
|
1,936 |
|
|
|
|
1,296 |
|
|
|
|
5,750 |
|
|
|
|
3,354 |
|
|
General and administrative |
|
|
2,590 |
|
|
|
|
2,221 |
|
|
|
|
7,303 |
|
|
|
|
6,241 |
|
|
Total gross expenses |
|
|
38,895 |
|
|
|
|
31,913 |
|
|
|
|
106,256 |
|
|
|
|
83,827 |
|
|
Allocated expenses to Trinity Capital Adviser, LLC |
|
|
(955) |
|
|
|
|
(126) |
|
|
|
|
(1,871) |
|
|
|
|
(126) |
|
|
Total net expenses |
|
|
37,940 |
|
|
|
|
31,787 |
|
|
|
|
104,385 |
|
|
|
|
83,701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
NET INVESTMENT INCOME/(LOSS) BEFORE TAXES |
|
|
37,610 |
|
|
|
|
29,979 |
|
|
|
|
106,032 |
|
|
|
|
83,158 |
|
|
Excise tax expense |
|
|
644 |
|
|
|
|
619 |
|
|
|
|
1,881 |
|
|
|
|
1,897 |
|
|
NET INVESTMENT INCOME |
|
|
36,966 |
|
|
|
|
29,360 |
|
|
|
|
104,151 |
|
|
|
|
81,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
NET REALIZED GAIN/(LOSS) FROM INVESTMENTS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Control investments |
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
(3,916) |
|
|
Affiliate investments |
|
|
(19,039) |
|
|
|
|
— |
|
|
|
|
(19,039) |
|
|
|
|
— |
|
|
Non-Control / Non-Affiliate investments |
|
|
(986) |
|
|
|
|
(13,880) |
|
|
|
|
(11,402) |
|
|
|
|
(15,100) |
|
|
Net realized gain/(loss) from investments |
|
|
(20,025) |
|
|
|
|
(13,880) |
|
|
|
|
(30,441) |
|
|
|
|
(19,016) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
NET CHANGE IN UNREALIZED |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Control investments |
|
|
(411) |
|
|
|
|
1,151 |
|
|
|
|
7,503 |
|
|
|
|
7,407 |
|
|
Affiliate investments |
|
|
308 |
|
|
|
|
1,516 |
|
|
|
|
(2,153) |
|
|
|
|
3,442 |
|
|
Non-Control / Non-Affiliate investments |
|
|
10,807 |
|
|
|
|
6,253 |
|
|
|
|
17,084 |
|
|
|
|
(3,356) |
|
|
Net change in unrealized appreciation/(depreciation) from |
|
|
10,704 |
|
|
|
|
8,920 |
|
|
|
|
22,434 |
|
|
|
|
7,493 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
NET INCREASE/(DECREASE) IN NET ASSETS |
$ |
|
27,645 |
|
|
$ |
|
24,400 |
|
|
$ |
|
96,144 |
|
|
$ |
|
69,738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
NET INVESTMENT INCOME PER SHARE - BASIC |
$ |
|
0.52 |
|
|
$ |
|
0.54 |
|
|
$ |
|
1.56 |
|
|
$ |
|
1.61 |
|
|
NET INVESTMENT INCOME PER SHARE - DILUTED |
$ |
|
0.52 |
|
|
$ |
|
0.52 |
|
|
$ |
|
1.56 |
|
|
$ |
|
1.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
NET CHANGE IN NET ASSETS RESULTING FROM |
$ |
|
0.39 |
|
|
$ |
|
0.45 |
|
|
$ |
|
1.44 |
|
|
$ |
|
1.38 |
|
|
NET CHANGE IN NET ASSETS RESULTING FROM |
$ |
|
0.39 |
|
|
$ |
|
0.43 |
|
|
$ |
|
1.44 |
|
|
$ |
|
1.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC |
|
|
71,467,831 |
|
|
|
|
54,412,566 |
|
|
|
|
66,677,623 |
|
|
|
|
50,455,373 |
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING - |
|
|
71,467,831 |
|
|
|
|
58,373,696 |
|
|
|
|
66,677,623 |
|
|
|
|
54,416,503 |
|
SOURCE Trinity Capital Inc.
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