Return on Average Equity hits 15.8% in Q1
Record Quarterly Net Investment Income of $44.5 million, or $0.53 per share
Q1 2026 Total Investment Income grows 37.8% year-over-year
PHOENIX, May 6, 2026 /PRNewswire/ -- Trinity Capital Inc. (Nasdaq: TRIN) ("the Company"), a leading alternative asset manager, today announced its financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Highlights
-- Total investment income of $90.1 million, an increase of 37.8%
year-over-year.
-- Net investment income ("NII") of $44.5 million, or $0.53 per basic share.
NII grew 37.4% year-over-year.
-- Net increase in net assets resulting from operations of $29.8 million, or
$0.36 per basic share.
-- 15.8% Return on Average Equity "ROAE" (NII/Average Equity).
-- 7.0% Return on Average Assets "ROAA" (NII/Average Assets).
-- Net Asset Value ("NAV") of $1.2 billion, or $13.27 per share at the end
of Q1.
-- Total gross investment commitments of $395.2 million.
-- Total gross investments funded of $306.3 million, which was comprised of
$175.8 million to 10 new portfolio companies, $129.5 million to 20
existing portfolio companies and $1.0 million to multi-sector holdings.
-- Total investment exits and repayments of $238.3 million, which was
comprised of $108.8 million from early debt repayments and refinancings,
$69.2 million from scheduled/amortizing debt payments, $51.4 million from
investments sold to multi-sector holdings and $8.9 million from warrant
and equity sales.
-- The Company announced $0.17 monthly distributions for each of April, May
and June 2026, totaling $0.51 for the second quarter and marking the 26th
consecutive quarter of a consistent regular dividend.
"Trinity Capital delivered a strong first quarter, increasing earnings per share while maintaining consistent credit quality and continued diversification across our portfolio," said Kyle Brown, CEO of Trinity Capital. "The strategic expansion of our managed funds platform is growing our ability to serve investors at scale while creating new sources of recurring income. We remain focused and confident in the durability of our earnings and our ability to consistently provide long-term benefits for our shareholders."
First Quarter 2026 Operating Results
For the three months ended March 31, 2026, total investment income was $90.1 million, compared to $65.4 million for the three months ended March 31, 2025. The effective yield on the average debt investments at cost was 15.8% for the first quarter of 2026, compared to 15.3% for the first quarter of 2025. Effective yields generally include the effects of fees and income accelerations attributed to early loan repayments and other one-time events, and may also fluctuate quarter-to-quarter depending on the amount of prepayment activity.
Total operating expenses and excise taxes, excluding interest expense, for the first quarter of 2026 were $21.5 million, compared to $15.3 million during the first quarter of 2025. The increase was primarily attributable to higher compensation, an increase in estimated excise tax, and higher G&A expenses offset by higher expenses allocated to the Company's registered investment adviser subsidiary.
Interest expense for the first quarter of 2026 was $24.1 million, compared to $17.7 million during the first quarter of 2025. The increase was primarily attributable to the increase in weighted average debt outstanding.
Net investment income was approximately $44.5 million, or $0.53 per share based on 83.6 million basic weighted average shares outstanding for the first quarter of 2026, compared to $32.4 million or $0.52 per share for the first quarter of 2025 based on 62.6 million basic weighted average shares outstanding.
During the three months ended March 31, 2026, the Company's net unrealized depreciation totaled approximately $4.7 million, which included net unrealized depreciation of $5.3 million from its debt investments, depreciation of $6.1 million from its warrant investments, and appreciation of $5.4 million from its equity investments. This was partially offset by $1.3 million net unrealized appreciation attributable to foreign currency forward contracts.
Net realized loss on investments was approximately $9.9 million, primarily due to the conversion of two debt positions, partially offset by the repayment of one equity position.
Net increase in net assets resulting from operations was $29.8 million, or $0.36 per share, based on 83.6 million basic weighted average shares outstanding. This compares to a net increase in net assets resulting from operations of $27.1 million, or $0.43 per share, based on 62.6 million basic weighted average shares outstanding for the first quarter of 2025.
Net Asset Value
Total net assets at the end of the first quarter of 2026 increased by 6.6% to $1.2 billion, compared to $1.1 billion at the end of the fourth quarter of 2025. The increase in total net assets was primarily due to accretive ATM issuances and net investment income exceeding the dividend declared, partially offset by net portfolio performance. NAV per share decreased to $13.27 per share in the first quarter from $13.42 per share as of December 31, 2025.
Portfolio and Investment Activity
As of March 31, 2026, the Company's investment portfolio had an aggregate fair value of approximately $2.5 billion and was comprised of approximately $1.9 billion in secured loans, $329.3 million in equipment financings, and $254.1 million in equity and warrants, across 180 portfolio companies. The Company's debt portfolio is comprised of 87.5% first-lien loans and 12.5% second-lien loans, with 82.5% of the debt portfolio at floating rates based on principal outstanding.
During the first quarter, the Company originated approximately $395.2 million of total new commitments. First quarter gross investments funded totaled approximately $306.3 million, which was comprised of $175.8 million of investments in 10 new portfolio companies, $129.5 million of investments in 20 existing portfolio companies and $1.0 million to multi-sector holdings. Gross investment fundings during the quarter for secured loans totaled $235.9 million, equipment financings totaled $53.9 million and warrant and equity investments totaled $16.5 million.
Proceeds received from exits and repayments of the Company's investments during the first quarter totaled approximately $238.3 million, which included $108.8 million from early debt repayments and refinancings, $69.2 million from scheduled/amortizing debt payments, $51.4 million from investments sold to multi-sector holdings and $8.9 million from warrant and equity sales. The investment portfolio increased by $71.5 million on a cost basis, an increase of 3.0%, and $65.5 million on a fair value basis, an increase of 2.7%, each as compared to December 31, 2025.
As of the end of the first quarter, loans to four portfolio companies and equipment financing to one portfolio company were on non-accrual status with a total fair value of approximately $24.4 million, or 1.1% of the Company's debt investment portfolio at fair value.
The following table shows the distribution of the Company's loan and equipment financing investments on the 1 to 5 investment risk rating scale at fair value as of March 31, 2026 and December 31, 2025 (dollars in thousands):
March 31, 2026 December 31, 2025
------------------------- -------------------------
Investment Investments Percentage Investments Percentage
Risk Rating at of at of
Total Total
Scale Range Designation Fair Value Portfolio Fair Value Portfolio
------------- ---------------- ------------- ---------- -------------
Very Strong
4.0 - 5.0 Performance $ 96,282 4.3% $ 101,432 4.5%
Strong
3.0 - 3.9 Performance 917,118 41.1% 740,303 33.7%
2.0 - 2.9 Performing 1,147,127 51.5% 1,264,773 57.5%
1.6 - 1.9 Watch 31,708 1.4% 65,343 3.0%
1.0 - 1.5 Default/Workout 24,393 1.1% 15,228 0.7%
--------- ---------- --------- ----------
Total Debt Investments excluding
Senior Credit Corp 2022 LLC 2,216,628 99.4% 2,187,079 99.4%
Senior Credit
Corp 2022 LLC
. (1) 12,885 0.6% 12,885 0.6%
--------- ---------- --------- ----------
Total Debt Investments $ 2,229,513 100.0% $ 2,199,964 100.0%
========= ========== ========= ==========
(1) An investment risk rating is not applied to Senior Credit Corp 2022 LLC.
As of March 31, 2026, the Company's loan and equipment financing investments had a weighted average risk rating score of 3.0, a slight increase compared to the rating score of 2.9 as of December 31, 2025. The Company's grading scale is comprised of numerous factors, two key factors being liquidity and performance to plan. A company may be downgraded as it approaches the need for additional capital or if it is underperforming relative to its business plans. Conversely, it may be upgraded upon a capitalization event or if it is exceeding its plan. As such, the overall grading may fluctuate quarter-to-quarter.
Liquidity and Capital Resources
As of March 31, 2026, the Company had approximately $282.1 million in available liquidity, including $19.6 million in unrestricted cash and cash equivalents. At the end of the period, the Company had approximately $262.5 million in available borrowing capacity under its KeyBank credit facility, subject to existing terms and advance rates and regulatory and covenant requirements. This excludes capital raised by Senior Credit Corp 2022 LLC and funds managed by the Company's wholly owned registered investment adviser subsidiary.
As of March 31, 2026, the Company's net leverage, or net debt-to-equity ratio, was approximately 115%, compared to 118% as of December 31, 2025.
During the three months ended March 31, 2026, the Company utilized its equity ATM offering program to sell 5,277,274 accretive shares of its common stock at a weighted average price of $15.01 per share, raising $78.4 million of net proceeds.
Distributions
On March 18, 2026, the Company's Board of Directors declared regular monthly dividends of $0.17 per share for each of April, May and June 2026, totaling $0.51 for the second quarter. The Board of Directors generally determines and announces the Company's dividend distributions on a quarterly basis, with distributions paid monthly.
Recent Developments
For the period from April 1, 2026 to May 4, 2026, the Company issued and sold 1,985,521 shares of its common stock at a weighted-average price of $15.14 per share and raised $29.8 million of net proceeds under its equity ATM offering program.
Conference Call
Trinity Capital will hold a conference call to discuss its first quarter 2026 financial results at 12:00 p.m. Eastern Time on Wednesday, May 6, 2026.
To listen to the call, please dial (800) 267-6316, or (203) 518-9783 internationally, and reference Conference ID: TRINQ126 if asked, approximately 10 minutes prior to the start of the call. The conference call and presentation will also be available on the investor relations section of the Company's website at ir.trinitycapital.com.
A taped replay will be made available approximately two hours after the conclusion of the call and will remain available until May 13, 2026. To access the replay, please dial (800) 757-4761 or (402) 220-7215. You may also access the webcast replay of the call and the presentation on the investor relations section of the Company's website at ir.trinitycapital.com.
About Trinity Capital Inc.
Trinity Capital Inc. (Nasdaq: TRIN) is an international alternative asset manager that seeks to deliver consistent returns for investors through access to private credit markets. Trinity Capital sources and structures investments in well-capitalized growth-oriented companies. With five distinct business verticals -- Sponsor Finance, Equipment Finance, Tech Lending, Asset-Based Lending, and Life Sciences -- Trinity Capital stands as a long-term trusted partner for innovative companies seeking tailored debt solutions. Headquartered in Phoenix, Arizona, Trinity Capital's dedicated team is strategically located across the United States and in London (UK). For more information on Trinity Capital, please visit trinitycapital.com and stay connected to the latest activity via LinkedIn.
Forward-Looking Statements
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission ("SEC"). The Company undertakes no duty to update any forward-looking statement made herein, except as required by law. All forward-looking statements speak only as of the date of this press release. More information on risks and other potential factors that could affect the Company's financial results, including important factors that could cause actual results to differ materially from plans, estimates or expectations included herein or on the webcast/conference call, is included in the Company's filings with the SEC, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's most recently filed annual report on Form 10-K and subsequent SEC filings.
TRINITY CAPITAL INC.
Consolidated Statements of Assets and Liabilities
(In thousands, except share and per share data)
March 31, December 31,
2026 2025
---------- --------------
ASSETS
Investments at fair value:
Control investments (cost of $91,431
and $107,747, respectively) $ 102,495 $ 123,760
Affiliate investments (cost of
$96,967 and $63,422, respectively) 69,093 50,495
Non-Control / Non-Affiliate
investments (cost of $2,279,982 and
$2,225,715, respectively) 2,311,966 2,243,820
--------- ----------
Total investments (cost of $2,468,380
and $2,396,883, respectively) 2,483,554 2,418,075
Cash and cash equivalents 19,631 19,110
Interest receivable 18,074 19,031
Deferred credit facility costs 5,463 5,872
Other assets 29,110 22,431
--------- ----------
Total assets $2,555,832 $ 2,484,519
========= ==========
LIABILITIES
Credit Facility $ 427,500 $ 373,900
Secured Notes, net of $1,333 and
$1,467, respectively, of unamortized
deferred financing costs 198,667 198,533
Unsecured Notes, net of $9,273 and
$10,118, respectively, of unamortized
deferred financing costs and
premium/discount 722,608 721,763
Distribution payable -- 41,574
Security deposits 2,234 3,008
Accounts payable, accrued expenses and
other liabilities 38,568 51,742
--------- ----------
Total liabilities 1,389,577 1,390,520
NET ASSETS
Common stock, $0.001 par value per
share (200,000,000 authorized,
87,903,645 and 81,518,294 shares
issued and outstanding as of
March 31, 2026 and December 31, 2025,
respectively) 88 82
Paid-in capital in excess of par 1,185,441 1,100,343
Distributable earnings/(accumulated
deficit) (19,274) (6,426)
--------- ----------
Total net assets 1,166,255 1,093,999
--------- ----------
Total liabilities and net assets $2,555,832 $ 2,484,519
========= ==========
NET ASSET VALUE PER SHARE $ 13.27 $ 13.42
========= ==========
TRINITY CAPITAL INC.
Consolidated Statements of Operations
(In thousands, except share and per share data)
Three Months Ended Three Months Ended
March 31, 2026 March 31, 2025
------------------ ------------------
INVESTMENT INCOME:
Interest and dividend
income:
Control investments $ 5,602 $ 2,328
Affiliate investments 2,119 1,272
Non-Control /
Non-Affiliate
investments 75,598 59,073
-------------- --------------
Total interest and
dividend income 83,319 62,673
Fee and other income:
Affiliate investments 613 693
Non-Control /
Non-Affiliate
investments 6,197 2,019
-------------- --------------
Total fee and other
income 6,810 2,712
-------------- --------------
Total investment income 90,129 65,385
-------------- --------------
EXPENSES:
Interest expense and other
debt financing costs 24,104 17,656
Compensation and benefits 17,270 10,645
Professional fees 1,219 2,027
General and administrative 3,146 2,466
-------------- --------------
Total gross expenses 45,739 32,794
Allocated expenses to
Trinity Capital Adviser,
LLC (1,133) (408)
-------------- --------------
Total net expenses 44,606 32,386
-------------- --------------
NET INVESTMENT INCOME/(LOSS)
BEFORE TAXES 45,523 32,999
Excise tax expense 1,035 616
-------------- --------------
NET INVESTMENT INCOME 44,488 32,383
NET REALIZED GAIN/(LOSS)
FROM INVESTMENTS:
Affiliate investments (3,071) --
Non-Control / Non-Affiliate
investments (6,859) (2,154)
-------------- --------------
Net realized gain/(loss)
from investments (9,930) (2,154)
NET CHANGE IN UNREALIZED
APPRECIATION/(DEPRECIATION)
FROM INVESTMENTS:
Control investments (4,949) 2
Affiliate investments (8,904) 430
Non-Control / Non-Affiliate
investments 9,127 (3,574)
-------------- --------------
Net change in unrealized
appreciation/(depreciation)
from investments (4,726) (3,142)
-------------- --------------
NET INCREASE/(DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS $ 29,832 $ 27,087
============== ==============
NET INVESTMENT INCOME PER
SHARE - BASIC $ 0.53 $ 0.52
============== ==============
NET INVESTMENT INCOME PER
SHARE - DILUTED $ 0.53 $ 0.52
============== ==============
NET CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
PER SHARE - BASIC $ 0.36 $ 0.43
============== ==============
NET CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS
PER SHARE - DILUTED $ 0.36 $ 0.43
============== ==============
WEIGHTED AVERAGE SHARES
OUTSTANDING - BASIC 83,643,311 62,555,531
============== ==============
WEIGHTED AVERAGE SHARES
OUTSTANDING - DILUTED 83,643,311 62,555,531
============== ==============
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SOURCE Trinity Capital Inc.
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May 06, 2026 08:05 ET (12:05 GMT)