SuRo Capital Corp. Q4 FY2025 earnings call

1. 2025 saw stock price increase from $5.88 per share at year end to $9.44, an increase of over 60%, including $0.50 dividend per share, total shareholder return approximated 70%. 2. NAV grew meaningfully from $6.68 at end of 2024 to $8.09 at end of 2025, year-over-year growth of approximately 21%, dividend-adjusted NAV growth approximately 29%. 3. Strong execution across portfolio, several portfolio companies completed or in process of finalizing significant financings. 4. Top five positions as of December 31st were OpenAI, Whoop, Blink Health, Canva, and Learnio, accounting for approximately 54% of investment portfolio at fair value. 5. Segmented by seven general investment themes, artificial intelligence, infrastructure, and applications was top allocation at 31%. 6. Ended fourth quarter with NAV of approximately $205.3 million, or $8.09 per share. 7. Sold shares under ATM program, Board approved extensions of note repurchase and share repurchase programs, received distributions from various funds, etc.

No explicit detailed financial performance for traditional product segments. Mainly related to investment portfolio performance, such as top five positions as of December 31st were OpenAI, Whoop, Blink Health, Canva, and Learnio, accounting for approximately 54% of the investment portfolio at fair value. Segmented by seven general investment themes, artificial intelligence, infrastructure, and applications represented approximately 31% of the investment portfolio at fair value, consumer goods and services and software as a service were next largest with approximately 21 and 20% respectively, etc.

1. Financings in 2026 could contribute at least $5 and as much as $6.50 per share to current net asset value, but not reflected in 2025 fourth quarter NAV. 2. AI is a multi-year structural transformation in early stages, with value creation happening in private companies where Suro Capital seeks to invest. 3. Progress in 2026 developments is real, more to be shared in first quarter pre-release and earnings call.

1. Market volatility may be detrimental to business, portfolio companies, industry, and global economy, causing results to differ materially from forward-looking statements. 2. Limits to what can be shared today due to some transactions not yet publicly disclosed.

Q: My question will be related to the $5 to $6.50 per share expected as a result of financings either completed or being finalized. How many do you, how much do you expect to be completed in Q1? And then how much do you expect to be completed between the end of Q1 and the end of 2026?

A: Unfortunately, because of certain restrictions, we can't really discuss it. We believe that they will all be completed certainly by the end of the quarter.

Q: Hi guys thanks for taking my quote Strong 2024, 2025, sorry. My question relates to the $5 to $6.50. What are some of the drivers you guys are seeing there? What are some things that are kind of leading to appreciation that extreme? And are they things you're seeing across your entire portfolio or is it a little bit more concentrated? And then I guess on the other side of that, are there any offsets that we should maybe be aware of?

A: There's been multiple financings that have either occurred or are occurring and have not necessarily been announced. Obviously, when you have drivers of that type of magnitude, there are significant portfolio positions that are driving that. As to what we're seeing around our other portfolio, I think it's market conditions which drive market multiples will have some impact on other parts of our portfolio.

Q: Can you help us just kind of level set some of the less exciting parts of the model for this year? What are kind of some base case numbers we should be thinking about given the portfolio you have this year for think investment income and just operating expenses on a quarterly basis, given how much you've grown the portfolio?

A: So to start with, and thank you for your kind words, 2024 was a really good year. 2025, as we've spoken about extensively now over the last 20 minutes, is starting out to be extraordinary. As to the specific questions, we don't really generate income outside of realized capital gains, so we don't have a yield, as you know. And our operating expenses have been pretty static over the last two years, and we wouldn't expect them to be significantly different at all.

Q: My question is on the latest investment in TensorFlow, and not so much on TensorFlow itself, but the $20 million commitment, I believe, is one of your largest ever, more than OpenAI, in fact. Could you just kind of comment on whether this was sort of a special case, or do you feel like your regular size will be increasing, or is it sort of that appetite focused primarily on AI?

A: What we saw in TensorFlow is an opportunity to invest on the AMD side of the chipset as opposed to the NVIDIA side. We saw it in a structure that allows us to invest a little bit, and upon certain obligations being fulfilled, that would be extremely valuing to TensorFlow and to the investment. to have a springing effect in our investment. So we got very excited to be able to be in early with a company that is fully aligned with AMD, with AMD's full support, and do it in a way that limits our initial exposure till things prove out in the way that we think, and then make it a significant investment. I don't think it speaks necessarily to all of our investments would be $20 million, obviously, given the size of the portfolio. But it does speak to our, you know, feeling that this is an opportunity that we wanted to lean into more fully.

Q: Could you give us some comments about your thoughts on private market valuations versus what's going on in the public side?

A: John, I'll zoom out a little bit. And we spent an awful lot of time looking at this internally because, And I think we probably talked about it on our last earnings call. The acceleration and both the acceleration in pricing and the acceleration in rounds that are occurring is pretty unprecedented. We went back and looked at sort of the 2019-2021 time to see the acceleration of valuation and the rapid levels, the rapid different capital raises. And we look back at the effectively public venture market, which was the 1999 to 2001, to sort of see where we sit relative to what's gone on historically. And what is clear is that the rapid nature of the growth of value and the rapid amount of consistent grant raises is more akin to 1999 to 2001. And you are seeing separation now from what the public valuations are versus the private valuations. Clearly, the acceleration in the private markets has exceeded what's going on in the public markets.