SuRo Capital Corp. Q2 FY2026 earnings call

• Investment Activity & Portfolio Realizations

  • Fully funded a $20 million commitment to Magnetar Opportunity 2025-4LP, a special purpose vehicle holding Series B preferred shares of TensorFlow, Inc., by June 8, 2026
  • Made additional secondary investments of ~$225,000 in Huntress Labs common shares and ~$9.5 million in Quick House Series A preferred shares during the quarter
  • Received four aggregate distributions totaling ~$6.5 million net proceeds from CW Opportunity 2LP (the vehicle holding CoreWeave Inc. Class A common shares), consisting of $1.9 million return of capital and $4.6 million realized gains; distributions to date represent 44.1% of the initial $15 million investment
  • Sold 147,135 common shares of GravaGun Digital Holdings Inc. for $467,000 net proceeds and $311,000 realized gain, retaining 44% of the original position as of quarter end
  • Completed a full exit from HL Digital Assets, Inc., receiving a $5.2 million distribution and realizing a $45,000 gain
  • Post-quarter-end, exercised 86,076 common warrants of Hearth (Shogun Enterprises, Inc.) for an aggregate exercise price of ~$861; sold an additional 143,655 GravaGun shares for $448,000 net proceeds and $295,000 realized gain, retaining 30% of the original position

• Strategic Transformation (Externalization)

  • Completed the transition from an internally managed BDC to an externally managed structure, effective July 15, 2026, following stockholder approval
  • Entered into an investment advisory agreement with Neo Stellar Advisors LLC, a joint venture between former Serow Capital Management Team members and Magnetar Holdings LLC
  • Eric Falk, Magnetar Partner and Head of Strategy, joined the company's board of directors in conjunction with the transformation
  • The company continues to trade on NASDAQ under ticker NSLR, with existing leadership Mark Klein and Alison Green remaining in their roles

• Capital & Liquidity Updates

  • Post-quarter-end, received $20 million gross proceeds from the issuance of a 6.5% three-year redeemable promissory note to a Magnetar affiliate
  • The note is mandatorily redeemable via common stock issuance following a qualifying equity financing of at least $230 million in new common equity
  • During the quarter, note holders converted $8 million of the $35 million 6.5% convertible notes due 2029 into 1,092,504 common shares; remaining principal balance was ~$27 million as of quarter end

Neo Stellar Capital's investment portfolio is segmented by investment theme, with the following fair value allocations as of Q2 2026 end: 1) Consumer goods and services: 41% of total portfolio fair value; 2) Artificial intelligence infrastructure and applications: 34% of total portfolio fair value; 3) Software as a Service: 10% of total portfolio fair value; 4) Education technology: 6% of total portfolio fair value; 5) Logistics and supply chain: 4% of total portfolio fair value; 6) Financial technology and services: 4% of total portfolio fair value; 7) Throw sports: 2% of total portfolio fair value. The top five portfolio holdings (Whoop, OpenAI, Vast Data, TensorFlow, and Blank Health) accounted for 69% of total investment portfolio fair value, and the top ten holdings accounted for 86% of total fair value. As of Q2 2026 end, the company reported net asset value (NAV) of $355.9 million, equal to $13.44 per diluted share, down from $14.24 per share at the end of Q1 2026. Total liquid assets (cash plus unrestricted public securities) stood at $14.6 million, including $12.9 million in cash and $1.7 million in unrestricted public securities.

No formal forward-looking financial or operational guidance was provided by management during this earning call.

No explicit discussion of business risks, operational challenges, or operational failures was included in this earning call transcript.

Q: Analyst Alex Furman asked management to share its strategy for the large, successful Whoop investment, including potential IPO timing and a monetization timeline. / A: Mark Klein confirmed that Whoop has grown to be a large portfolio holding after an initial $11 million investment, and noted that Whoop has recently executed key business initiatives including hiring senior leadership. Klein pointed out that competitor and peer smart device maker Aura confidentially filed for IPO two months prior, and that Whoop has historically been 2-6 months behind Aura in its business milestones. He added that Whoop has publicly stated its intention to go public, and management expects the offering will likely take place sometime in 2027, all else being equal.