Trinity Capital Inc. Q1 FY2026 earnings call

• Trinity Capital has a diversified lending platform of five complementary verticals, an expanding managed funds platform, and an internally managed structure. - Net asset value grew 7% QoQ and 40% YoY to $1.2 billion; platform AUM up 36% YoY to over $2.9 billion. - Originations robust with $306 million fundings and $396 million commitments. - Strong credit with non-accruals at 1% of portfolio. - Paying $0.17 monthly dividend through end of Q2, scheduled Q3 dividend announcement. - TRIN's year-to-date total return leads BDC space, cumulative return since IPO 119% vs S&P 500's 86%. - ROE 15.8% in Q1. - Managed funds platform AUM $400 million, income contributed 4 cents to NII. - Investment pipeline robust with $1.2 billion unfunded commitments and $300 million term sheets accepted. - 94% unfunded commitments subject to diligence and investment committee approval. - Diversified lending verticals with no syndicated deals, low overlap with other BDCs. - Joint venture with Capital Southwest for lower middle market co-investment. - Enterprise SaaS 10% of portfolio, AI exposure on infrastructure side via equipment financing. - High-performance culture rooted in humility, trust, etc., attracting top talent.

Trinity Capital's net asset value grew 7% quarter-over-quarter and 40% year-over-year to a record $1.2 billion. Platform AUM increased to more than $2.9 billion, up 36% year-over-year. Originations engine achieved $306 million of fundings and $396 million of commitments. Non-accruals were 1% of the portfolio at fair value. Managed funds AUM sat at $400 million across four vehicles. Income generated from the managed funds platform contributed 4 cents to the 53 cents per share net investment income in Q1. Fundings in Q1 across five verticals were: 41% to life sciences, 22% to equipment financing, 13% to sponsor finance, 13% to tech lending, and 11% to asset-backed lending.

• Paying $0.17 monthly dividend through end of Q2, scheduled to announce Q3 dividend in June subject to board approval. - 197 warrant positions and 127 portfolio companies with upside potential. - Initial close of $45.3 million in equity commitments to SBIC fund, expect to deploy from fund this quarter. - Joint venture with Capital Southwest for lower middle market expansion provides new investment capacity.

• Certain statements may be forward-looking, review SEC filings for risks. - Non-accruals at 1% of portfolio. - Market valuation dynamics and mark-to-market adjustments causing unrealized depreciation. - Prepayment variability in portfolio. - Sector-specific pressures (e.g., software) affecting some verticals.

Q: How are you focusing on AI?

A: Not making many venture debt investments in AI, mostly lower middle market, small public companies, private equity-backed deals, and equipment financing for AI infrastructure.

Q: Why was life sciences the leader in origination this quarter?

A: Deal flow can be idiosyncratic; life sciences team had great quarter due to early quarter activity at J.P. Morgan, diversified platform means outsized performance from verticals can vary.

Q: Expense requirements for new fund vehicles?

A: Using same resources, limited back office/operations support for new vehicles, built platform to scale long-term.

Q: Pipeline across verticals and spreads?

A: Manufacturing, infrastructure, AI booming, some pressure on tech lending/life sciences, but lower middle market and equipment financing robust, not a race to the bottom in pricing.

Q: Are new vehicles co-investing same portfolio companies as TRIN?

A: SBIC fund co-invests eligible deals originated by TRIN; Capital Southwest joint venture has largely transactions originated by Capital Southwest with 50-50 governance.

Q: Higher leverage ratios with SBIC sub?

A: No, utilizing third party capital for SBIC fund, strategy to deleverage TRIN BDC over time.

Q: Equity investments in lower middle market?

A: Focused on being a lender, returns primarily rate and fee income, strategy not changing.