Rand Capital Corporation Q1 FY2026 earnings call

• Q1 is seen as a transition quarter for RAND, with results impacted by non-accruals in a smaller income-producing portfolio due to debt repayments in 2025. • Investment income for the quarter was $1.2 million, net investment income was 18 cents per share, which were below the prior year period mainly because of reduced interest income from current portfolio companies compared to 2025. • A realized gain of approximately $1.1 million was generated from the exit of Syberts. • $5.1 million was deployed into new and follow-on investments during the quarter, including a $4.0 million investment in AME Holdco. • At the end of the quarter, the net asset value was $17.16 per share, approximately 80% of the portfolio was in debt investments, and there was over $20 million available liquidity. • Regular quarterly cash dividend of 29 cents per share was paid, and another regular dividend for the second quarter of 2026 was declared. • The portfolio had a fair value of $51.5 million at March 31st, with 80% in debt investments and 20% in equity investments. • The annualized weighted average yield on debt investments decreased from the prior period due to non-accruals. • Key portfolio actions: $4.0 million investment in AME Holdco, participation in the buyout of MRES' senior credit position, $400,000 follow-on debt investment in FSS, $50,000 follow-on equity investment in Kitech, and the final monetization of Cyberts which generated a realized gain. • Balanced industry exposure with professional and business services being the largest area of exposure, followed by manufacturing, etc. • The top five portfolio investments represented 44% of the total portfolio at March 31, 2026.

Investment income for the quarter was $1.2 million, net investment income was 18 cents per share. The portfolio had a fair value of $51.5 million across 20 portfolio companies at March 31st, with approximately 80% in debt investments and 20% in equity investments. The annualized weighted average yield on debt investments, including PIK interest, was 9.43% at quarter end. The top five portfolio investments represented approximately $22.9 million in fair value, or 44% of the total portfolio, at March 31, 2026.

• 2026 objectives involve executing a long-term strategy based on a resilient, income-focused investment model, with early signs of improved sponsor activity and deal flow in the market. • Intend to use liquidity and available credit capacity to support new investments and follow-on capital where there are compelling risk-adjusted returns. • Goal is to support a consistent, earnings-driven dividend while reinforcing NAV through disciplined capital allocation. • Confident in guiding through market disruption due to decades of experience and a strong management team.

• The broader BDC market is experiencing significant volatility. • Private credit has become more challenging for many newer public and private funds. • Portfolio positions with non-accruals are weighing on current income.