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 , /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 at Percentage of Investments at Percentage of Scale Range Designation Fair Value Total Portfolio Fair Value Total Portfolio 4.0 - 5.0 Very Strong Performance $ 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 Senior Credit Corp 2022 LLC 1,983,656 99.4 % 1,821,538 99.3 % Senior Credit Corp 2022LLC (1) 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, respectively) 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 deferredfinancing costs and premium/discount 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 61,669,059 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively) 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 Ended Three MonthsEnded Nine Months Ended Nine Months Ended 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 APPRECIATION/(DEPRECIATION) FROMINVESTMENTS: 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 investments 10,704 8,920 22,434 7,493 NET INCREASE/(DECREASE) IN NET ASSETSRESULTING FROM OPERATIONS $ 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 OPERATIONS PER SHARE - BASIC $ 0.39 $ 0.45 $ 1.44 $ 1.38 NET CHANGE IN NET ASSETS RESULTING FROMOPERATIONS PER SHARE - DILUTED $ 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 - DILUTED 71,467,831 58,373,696 66,677,623 54,416,503 SOURCE Trinity Capital Inc.

Trinity Capital Inc. Reports Third Quarter 2025 Financial Results

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