Trinity Capital Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 6 May 2026: press release. Guidance figures: 1 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Total investment income grew 37.8%: Total investment income was $90.1 million, up from $65.4 million a year earlier. Interest and dividend income from non-control, non-affiliate investments was $75.6 million. Source
• Net investment income reached $44.5 million: Net investment income was $44.5 million, or $0.53 per basic share, on 83.6 million basic weighted average shares. The year-earlier figures were $32.4 million and $0.52 per share. Source
• Portfolio fair value reached $2.5 billion: Fair value was about $2.5 billion: $1.9 billion of secured loans, $329.3 million of equipment financings and $254.1 million of equity and warrants, across 180 portfolio companies. Source
• Non-accrual loans totaled $24.4 million: Four loans and one equipment financing were on non-accrual, at $24.4 million fair value or 1.1% of debt investments at fair value. The year-end figure was $15.2 million, or 0.7%. Source
• Weighted risk rating rose to 3.0: The weighted average risk rating for loans and equipment financings was 3.0, up from 2.9 at December 31, 2025. Management described the change as a slight increase. Source
• Net leverage fell to 115%: Net leverage, or net debt-to-equity, was about 115%, down from 118% at December 31, 2025. Source
• Equity ATM raised $78.4 million: The equity ATM program sold 5,277,274 shares at a weighted average price of $15.01 in the quarter, raising $78.4 million of net proceeds. The company described these as accretive. Source

“The strategic expansion of our managed funds platform is growing our ability to serve investors at scale while creating new sources of recurring income.”

Kyle Brown, CEO of Trinity Capital

Guidance

Results and earnings growth

• Total investment income grew 37.8%: Total investment income was $90.1 million, up from $65.4 million a year earlier. Interest and dividend income from non-control, non-affiliate investments was $75.6 million. Source
• Net investment income reached $44.5 million: Net investment income was $44.5 million, or $0.53 per basic share, on 83.6 million basic weighted average shares. The year-earlier figures were $32.4 million and $0.52 per share. Source
• Net increase in net assets $29.8 million: Net increase in net assets from operations was $29.8 million, or $0.36 per basic share, against $27.1 million, or $0.43 per share, in the first quarter of 2025. Source
• Debt yield rose to 15.8%: Effective yield on average debt investments at cost was 15.8%, compared with 15.3% a year earlier. Yields include fees and early-repayment income and can move with prepayment activity. Source

Portfolio and investment activity

• Portfolio fair value reached $2.5 billion: Fair value was about $2.5 billion: $1.9 billion of secured loans, $329.3 million of equipment financings and $254.1 million of equity and warrants, across 180 portfolio companies. Source
• Debt mostly first-lien and floating rate: The debt portfolio was 87.5% first-lien and 12.5% second-lien loans. Of the debt portfolio, 82.5% was at floating rates based on principal outstanding. Source
• Fundings spread across new and existing companies: Gross fundings were $306.3 million: $175.8 million to 10 new portfolio companies, $129.5 million to 20 existing companies and $1.0 million to multi-sector holdings. Source
• Exits and repayments reached $238.3 million: Exits and repayments totaled $238.3 million, including $108.8 million of early debt repayments and refinancings and $69.2 million of scheduled or amortizing payments. Source
• Five verticals serve growth-oriented companies: The company lists five verticals: Sponsor Finance, Equipment Finance, Tech Lending, Asset-Based Lending and Life Sciences. Its team is located across the United States and in London. Source

“We remain focused and confident in the durability of our earnings and our ability to consistently provide long-term benefits for our shareholders.”

Kyle Brown, CEO of Trinity Capital

Credit quality and risk ratings

• Non-accrual loans totaled $24.4 million: Four loans and one equipment financing were on non-accrual, at $24.4 million fair value or 1.1% of debt investments at fair value. The year-end figure was $15.2 million, or 0.7%. Source
• Weighted risk rating rose to 3.0: The weighted average risk rating for loans and equipment financings was 3.0, up from 2.9 at December 31, 2025. Management described the change as a slight increase. Source
• Watch category fell; default rose: The Watch category fell to 1.4% of debt investments at fair value from 3.0%. Default/Workout rose to 1.1% from 0.7%. Source

Costs and gains or losses

• Operating expenses rose to $21.5 million: Operating expenses and excise taxes, excluding interest expense, were $21.5 million, against $15.3 million a year earlier. Source
• Compensation drove the cost increase: Management attributed the increase mainly to higher compensation, an estimated excise tax increase and higher G&A. Expenses allocated to the registered adviser subsidiary partly offset it. Source
• Interest expense rose with debt: Interest expense was $24.1 million, against $17.7 million a year earlier, attributed to higher weighted average debt outstanding. Source
• Realized loss on debt conversions: Net realized loss was $9.9 million, mainly from converting two debt positions, partly offset by the repayment of one equity position. Source
• Unrealized depreciation was $4.7 million: Net unrealized depreciation was $4.7 million: $5.3 million on debt and $6.1 million on warrants, partly offset by $5.4 million on equity and $1.3 million on foreign currency forwards. Source

Capital, liquidity and equity issuance

• Liquidity stood at $282.1 million: Available liquidity was $282.1 million, including $19.6 million of unrestricted cash and cash equivalents. Source
• KeyBank borrowing capacity was $262.5 million: Available capacity under the KeyBank facility was $262.5 million, subject to terms, advance rates and covenants. It excludes Senior Credit Corp 2022 and managed fund capital. Source
• Net leverage fell to 115%: Net leverage, or net debt-to-equity, was about 115%, down from 118% at December 31, 2025. Source
• Equity ATM raised $78.4 million: The equity ATM program sold 5,277,274 shares at a weighted average price of $15.01 in the quarter, raising $78.4 million of net proceeds. The company described these as accretive. Source
• April to May ATM sales added $29.8 million: From April 1 to May 4, 2026, the company sold 1,985,521 shares at a weighted-average price of $15.14, raising $29.8 million of net proceeds under the equity ATM program. Source

Net asset value and returns

• Total net assets rose 6.6%: Total net assets rose 6.6% to $1.2 billion from $1.1 billion at December 31, 2025. Source
• NAV per share declined to $13.27: NAV per share was $13.27 at March 31, 2026, down from $13.42 at December 31, 2025. Source
• Accretive ATM and NII lifted net assets: Management attributed the rise in net assets mainly to accretive ATM issuance and net investment income above the dividend declared. Net portfolio performance partly offset it. Source
• Return on average equity was 15.8%: Return on average equity, defined as NII over average equity, was 15.8% for the quarter. Source

Risks management discussed

• Financial: Management noted that a company's grade may fall if it nears a need for more capital or underperforms its plan, so grades can fluctuate quarter to quarter. Source

Other quarters

• Q3 FY2026 earnings call
• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.