RAND CAPITAL CORP Q1 FY2025 earnings call

• Net investment income saw a 45% year-over-year increase to $1.2 million or $0.42 per share. - Total expenses declined 36% to $791,000 due to lower interest costs and favorable management fee changes. - Realized a gain of $925,000 from portfolio redemptions and redeployed proceeds into a follow-on investment in ITA. - Repaid $600,000 of revolver debt, ending the quarter with nearly $5 million in cash and over $22 million in available credit capacity. - Had three notable exits: full repayment of $5.6 million from Mattison Avenue Holdings, $1.7 million from Pressure Pro, and $1.1 million from HDI Acquisition.

The portfolio is split between debt and equity. Debt investments represent 72% of the portfolio, with an annualized weighted average yield of 12.2% (down due to one non-accrual position). Equity positions make up 28% of the portfolio. Total investment income for the quarter was $2 million, a slight decline from the prior year period. Net investment income increased 45% to $1.2 million or $0.42 per share.

• Focus remains on disciplined execution, proactive portfolio oversight, and building sustainable shareholder value. - Despite macroeconomic and political uncertainty affecting new investment opportunities, remains well-positioned to capitalize as conditions improve. - Actively looking to scale income generating assets with high-quality debt investments while being prudent in capital deployment and risk management.

• Ongoing macroeconomic and political uncertainty which could slow down new investment opportunities. - Factors like tariffs, consumer spending, changes in government regulation, and weaknesses in the M&A markets pose risks.

Q: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.

A: Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.