TriplePoint Venture Growth BDC Corp. Q1 FY2026 earnings call

• Continued to take steps to position TPVG to strengthen its portfolios while maintaining long-term emphasis on increasing durability, income-generating assets, and NAV to create shareholder value. Focused on portfolio diversification into high-quality venture growth stage companies in AI and other attractive sectors.
• Generated NII of 23 cents per share, covering dividend, and funded more than $26 million in debt investments. Weighted average annualized portfolio yield increased to 13.5%. Lowered gross leverage ratio and reduced unfunded commitment obligations by 20%. Pipeline of venture growth stage companies remains strong.
• Venture capital markets strengthened, with AI dominating market activity. AI companies now represent roughly 45% of all U.S. market value. Portfolio strategy focused on investment sector rotation and diversification across AI, verticalized software, fintech, etc. Proud to support AI innovators, several AI and AI-adjacent portfolio companies had value appreciation.
• Software investment posture is to finance disruptors not the disrupted. One AI debt investment, Observe AI, was acquired by Snowflake, prepaid loan and received Snowflake shares.
• Hold warrant positions in 117 portfolio companies and equity investments in 60, with potential for meaningful returns from exit activity. TPVG has strong support from platform sponsor TriplePoint Capital, which executed share purchase program. Board authorized 12-month stock buyback program.

During the first quarter, TPVG generated NII of 23 cents per share, covering its dividend. Weighted average annualized portfolio yield increased to 13.5% from 12.7% in the previous quarter. Funded more than $26 million in debt investments within guided range. Lowered gross leverage ratio and reduced outstanding unfunded commitment obligations by 20% to $207 million. Active TPVG debt portfolio companies raised approximately $1.2 billion of equity during the quarter, meaningfully higher than the fourth quarter. The weighted average annualized portfolio yield was 13.5%, with funded investments carrying a weighted average annualized portfolio yield of 12.9% during the quarter. Net investment income for the quarter was 9.1 million, or 23 cents per share, fully covering the dividend. Net asset value as of March 31, 2026 was $8.65 per share compared to $8.73 per share at December 31, 2025. Total liquidity as of March 31, 2026 was $112 million, including $9 million of cash and $103 million of availability under revolving credit facility.

• Quarterly target for new fundings continues to be in the 25 to $50 million range for 2026.
• Expect to increase allocation of new commitments as unfunded commitments expire and receive prepayments and repayment over the rest of the year.
• Capital management strategy focused on financial flexibility while optimizing overall fixed to floating debt mix and managing forward maturity profile.
• Board authorized a 12-month stock buyback program to repurchase up to $12.5 million of common stock in the open market.

• Credit risk from portfolio company downgrades leading to net unrealized losses on debt portfolio.
• Foreign currency risk causing unrealized losses.
• Risk related to debt maturities and leverage, including managing near-term liabilities and远期到期情况.
• Market volatility risk in AI and other investment sectors affecting portfolio value.

Q: Could you talk about where you're most interested in putting incremental capital today and on software specifically for debt investments?

A: Jim mentioned focus on AI investing, especially at the forefront of venture lending, and AI is a broad term including cybersecurity, robotics, etc. For software, interested in AI-native and AI-enabled companies, not legacy incumbents threatened by AI.

Q: Could you break down the unrealized losses this quarter?

A: $7 million of unrealized losses related primarily to three downgraded portfolio companies, about $2 million of FX-related unrealized losses, and $6.3 million of net unrealized gains on warrant and equity portfolio, mainly from Revolut.

Q: How interested are you in being active with the share repurchase?

A: Board authorized $12.5 million share buyback program, representing roughly 6% of current market cap. Timing and activity TBD, considering unfunded commitments and liquidity.