Trinity Capital Inc. Reports Second Quarter 2025 Financial Results

Total Investment Income grows 27.3% year-over-year Net Asset Value reaches new high of $923.6 million Return on Average Equity increases to 15.9% , /PRNewswire/ -- Trinity Capital Inc. (NASDAQ: TRIN) ("Trinity Capital" or "the Company"), a leading alternative asset manager, today announced its financial results for the second quarter ended June 30, 2025. Second Quarter 2025 Highlights Total investment income of $69.5 million, an increase of 27.3% year-over-year Net investment income ("NII") of $34.8 million, or $0.53 per basic share. NII grew 30.3% year over year. Net increase in net assets resulting from operations of $41.4 million, or $0.63 per basic share 15.9% Return on Average Equity "ROAE" (NII/Average Equity) 7.2% Return on Average Assets "ROAA" (NII/Average Assets) Net Asset Value ("NAV") of $923.6 million, or $13.27 per share at the end of Q2. NAV increased 35.8% year over year. Total gross investment commitments of $519.8 million Total gross investments funded of $365.5 million, which was comprised of $292.3 million in 15 new portfolio companies and $73.2 million in 14 existing portfolio companies Total investment exits and repayments of $195.0 million, including $109.3 million from early debt repayments and refinancings, $51.3 million from scheduled/amortizing debt payments, $34.2 million from investments sold to multi-sector holdings and $0.2 million from warrant and equity sales 22nd consecutive quarter of a consistent or increased regular dividend, with a second quarter distribution of $0.51 per share "Our second-quarter performance rounded out a solid first half of 2025, reflecting disciplined execution across our credit strategies and sustained demand from growth-oriented companies," said Kyle Brown, Chief Executive Officer of Trinity Capital. "We enter the second half of 2025 with strong momentum in our direct lending businesses in addition to our RIA platform growth as we maintain a focus on delivering increasing value to our borrowers, partners, and investors." Second Quarter 2025 Operating Results For the three months ended June 30, 2025, total investment income was $69.5 million, compared to $54.6 million for the three months ended June 30, 2024. The effective yield on the average debt investments at cost was 15.7% for the second quarter of 2025, compared to 16.0% for the second 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 second quarter of 2025 were $16.7 million, compared to $14.0 million during the second 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 second quarter of 2025 was $18.0 million, compared to $13.9 million during the second quarter of 2024. The increase was primarily attributable to the increase in weighted average debt outstanding as well as borrowing rate. Net investment income was approximately $34.8 million, or $0.53 per share based on 65.9 million basic weighted average shares outstanding for the second quarter of 2025, compared to $26.7 million or $0.53 per share for the second quarter of 2024 based on 50.2 million basic weighted average shares outstanding. During the three months ended June 30, 2025, the Company's net unrealized appreciation totaled approximately $14.9 million, which included net unrealized appreciation of $7.4 million from its warrant investments, net unrealized appreciation of $5.5 million from its equity investments, and net unrealized appreciation of $2.3 million from the Company's debt investments. This is partially offset by $0.3 million net unrealized depreciation attributable to foreign currency forward contracts. Net realized loss on investments was approximately $8.3 million, primarily due to the workout of one secured loan. Net increase in net assets resulting from operations was $41.4 million, or $0.63 per share, based on 65.9 million basic weighted average shares outstanding. This compares to a net increase in net assets resulting from operations of $30.8 million, or $0.61 per share, based on 50.2 million basic weighted average shares outstanding for the second quarter of 2024. Net Asset Value Total net assets at the end of the second quarter of 2025 increased by 10.8% to $923.6 million, compared to $833.4 million at the end of the first quarter of 2025. The increase in total net assets was primarily due to net portfolio performance, accretive ATM issuances, and net investment income exceeding the dividend declared. NAV per share increased to $13.27 per share in the second quarter from $13.05 per share as of March 31, 2025. Portfolio and Investment Activity As of June 30, 2025, Trinity Capital's investment portfolio had an aggregate fair value of approximately $1,978.3 million and was comprised of approximately $1,491.8 million in secured loans, $342.6 million in equipment financings, and $143.9 million in equity and warrants, across 163 portfolio companies. The Company's debt portfolio is comprised of 81.4% first-lien loans and 18.6% second-lien loans, with 80% of the debt portfolio at floating rates based on principal outstanding. During the second quarter, the Company originated approximately $519.8 million of total new commitments. Second quarter gross investments funded totaled approximately $365.5 million, which was comprised of $292.3 million of investments in 15 new portfolio companies and $73.2 million of investments in 14 existing portfolio companies. Gross investment fundings during the quarter for secured loans totaled $290.8 million, equipment financings totaled $66.5 million and warrant and equity investments totaled $8.2 million. Proceeds received from exits and repayments of the Company's investments during the second quarter totaled approximately $195.0 million, which included $109.3 million from early debt repayments and refinancings, $51.3 million from scheduled/amortizing debt payments, $34.2 million from investments sold to multi-sector holdings and $0.2 million from warrant and equity sales. The investment portfolio increased by $170.5 million on a cost basis, an increase of 9.3%, and $185.6 million on a fair value basis, an increase of 10.4% as compared to March 31, 2025. As of the end of the second 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 $15.6 million, or 0.9% 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 June 30, 2025 and March 31, 2025 (dollars in thousands): June 30, 2025 March 31, 2025 Investment Risk Rating Scale Range Designation Investments at Fair Value Percentageof Total Portfolio Investments at FairValue Percentage of Total Portfolio 4.0 - 5.0 Very Strong Performance $ 97,881 5.3 % $ 92,956 5.6 % 3.0 - 3.9 Strong Performance 589,329 32.1 % 567,581 34.0 % 2.0 - 2.9 Performing 1,021,331 55.7 % 928,455 55.7 % 1.6 - 1.9 Watch 97,396 5.3 % 50,072 3.0 % 1.0 - 1.5 Default/Workout 15,601 0.9 % 15,156 0.9 % Total Debt Investments excluding Senior Credit Corp 2022 LLC 1,821,538 99.3 % 1,654,220 99.2 % Senior Credit Corp 2022 LLC (1) 12,885 0.7 % 12,885 0.8 % Total Debt Investments $ 1,834,423 100.0 % $ 1,667,105 100.0 % _____________ (1) An investment risk rating is not applied to Senior Credit Corp 2022 LLC. As of June 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 March 31, 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 June 30, 2025, the Company had approximately $143.3 million in available liquidity, including $26.3 million in unrestricted cash and cash equivalents. At the end of the period, the Company had approximately $117.0 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 the JV and funds managed by the Company's wholly owned RIA subsidiary. As of June 30, 2025, Trinity's leverage, or debt-to-equity ratio, was approximately 115% as compared to 116% as of March 31, 2025. During the three months ended June 30, 2025, Trinity utilized its equity ATM offering program to sell 5,717,121 million shares of its common stock at a weighted average price of $14.43 per share, raising $81.5 million of net proceeds. During the three months ended June 30, 2025, Trinity utilized its debt ATM offering program and during the period issued and sold $2.2 million in aggregate principal amount of its March and September 2029 Notes. Distributions On June 18, 2025, the Company's Board of Directors declared a regular dividend totaling $0.51 per share with respect to the quarter ended June 30, 2025, which was paid on July 15, 2025, to stockholders of record as of June 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 July 1, 2025 to August 4, 2025, the Company issued and sold 717,285 shares of its common stock at a weighted-average price of $14.32 per share and raised $10.2 million of net proceeds after deducting commissions to the sales agents on shares sold under the Equity ATM Program. On July 3, 2025, 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. On July 8, 2025, the Company and certain of its affiliates were granted an exemptive relief order (the "Order") from the SEC that permits the Company to enter into certain negotiated co-investment transactions alongside certain of its affiliates in a manner consistent with its investment objective, positions, policies, strategies, and restrictions as well as regulatory requirements and other pertinent factors, subject to compliance with the Order. Conference Call Trinity Capital will hold a conference call to discuss its second quarter 2025 financial results at 12:00 p.m. Eastern Time on Wednesday, August 6, 2025. To listen to the call, please dial (800) 267-6316, or (203) 518-9783 internationally, and reference Conference ID: TRINQ225 if asked, approximately 10 minutes prior to the start of the call. A taped replay will be made available approximately two hours after the conclusion of the call and will remain available until August 13, 2025. To access the replay, please dial (800) 757-4761 or (402) 220-7215. 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 across five distinct lending verticals: Sponsor Finance, Equipment Finance, Tech Lending, Asset-Based Lending, and Life Sciences. As a long-term, trusted partner for innovative companies seeking tailored debt solutions, Trinity Capital has deployed more than $4.5 billion across over 400 investments since inception in 2008 (As of June 30, 2025). Headquartered in Phoenix, Arizona, Trinity Capital's dedicated team is strategically located across the United States and Europe. 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. 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) June 30, December 31, 2025 2024 (Unaudited) ASSETS Investments at fair value: Control investments (cost of $103,725 and $82,391, respectively) $ 118,496 $ 89,249 Affiliate investments (cost of $39,114 and $34,309, respectively) 39,227 34,727 Non-Control / Non-Affiliate investments (cost of $1,858,099 and $1,643,526, respectively) 1,820,607 1,601,594 Total investments (cost of $2,000,938 and $1,760,226, respectively) 1,978,330 1,725,570 Cash and cash equivalents 26,251 9,627 Interest receivable 17,664 16,542 Deferred credit facility costs 5,870 6,586 Other assets 16,909 15,916 Total assets $ 2,045,024 $ 1,774,241 LIABILITIES KeyBank Credit Facility $ 483,000 $ 113,000 Unsecured Notes, net of $8,523 and $10,327, respectively, of unamortized deferredfinancing costs 569,808 764,673 Distribution payable 35,483 31,451 Security deposits 5,918 8,472 Accounts payable, accrued expenses and other liabilities 27,247 33,663 Total liabilities 1,121,456 951,259 NET ASSETS Common stock, $0.001 par value per share (200,000,000 authorized, 69,574,146 and 61,669,059 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively) 70 62 Paid-in capital in excess of par 929,767 829,626 Distributable earnings/(accumulated deficit) (6,269) (6,706) Total net assets 923,568 822,982 Total liabilities and net assets $ 2,045,024 $ 1,774,241 NET ASSET VALUE PER SHARE $ 13.27 $ 13.35 TRINITY CAPITAL INC.Consolidated Statements of Operations(In thousands, except share and per share data)(Unaudited) Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 INVESTMENT INCOME: Interest and dividend income: Control investments $ 2,430 $ 783 $ 4,758 $ 1,635 Affiliate investments 977 474 2,250 859 Non-Control / Non-Affiliate investments 63,306 50,580 122,379 98,735 Total interest and dividend income 66,713 51,837 129,387 101,229 Fee and other income: Affiliate investments 597 835 1,289 1,702 Non-Control / Non-Affiliate investments 2,173 1,969 4,192 2,163 Total fee and other income 2,770 2,804 5,481 3,865 Total investment income 69,483 54,641 134,868 105,094 EXPENSES: Interest expense and other debt financing costs 18,044 13,885 35,700 26,029 Compensation and benefits 12,489 9,944 23,134 19,808 Professional fees 1,787 1,338 3,814 2,058 General and administrative 2,246 2,092 4,713 4,021 Total gross expenses 34,566 27,259 67,361 51,916 Allocated expenses to Trinity Capital Adviser, LLC (508) — (916) — Total net expenses 34,058 27,259 66,445 51,916 NET INVESTMENT INCOME/(LOSS) BEFORE TAXES 35,425 27,382 68,423 53,178 Excise tax expense 621 639 1,238 1,278 NET INVESTMENT INCOME 34,804 26,743 67,185 51,900 NET REALIZED GAIN/(LOSS) FROM INVESTMENTS: Control investments — (3,916) — (3,916) Non-Control / Non-Affiliate investments (8,262) (2,572) (10,416) (1,220) Net realized gain/(loss) from investments (8,262) (6,488) (10,416) (5,136) NET CHANGE IN UNREALIZED APPRECIATION/(DEPRECIATION) FROM INVESTMENTS: Control investments 7,912 5,691 7,913 7,655 Affiliate investments 52 1,673 482 1,926 Non-Control / Non-Affiliate investments 6,908 3,209 3,335 (11,008) Net change in unrealized appreciation/(depreciation) from investments 14,872 10,573 11,730 (1,427) NET INCREASE/(DECREASE) IN NET ASSETS RESULTINGFROM OPERATIONS $ 41,414 $ 30,828 $ 68,499 $ 45,337 NET INVESTMENT INCOME PER SHARE - BASIC $ 0.53 $ 0.53 $ 1.05 $ 1.07 NET INVESTMENT INCOME PER SHARE - DILUTED $ 0.53 $ 0.51 $ 1.05 $ 1.03 NET CHANGE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE - BASIC $ 0.63 $ 0.61 $ 1.07 $ 0.94 NET CHANGE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE - DILUTED $ 0.63 $ 0.59 $ 1.07 $ 0.90 WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 65,911,570 50,161,680 64,242,822 48,455,033 WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 65,911,570 54,064,395 64,242,822 52,357,748 SOURCE Trinity Capital Inc. 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Trinity Capital Inc. Reports Second Quarter 2025 Financial Results

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