Rand Capital : First Quarter 2026 Financial Results

Published: 2026-05-06 08:46:08 ET RAND

Published on 05/06/2026 at 08:46 am EDT

May 6, 2026

President & CEO

EVP & CFO

(Results compared with the prior-year period unless otherwise noted)

Lower income reflected non-accruals and prior repayments,

while liquidity, realized gains and selective redeployment demonstrated execution.

Earnings Reflect Transition

Portfolio Activity Resumed

Liquidity Supports Flexibility

Q1 2026 total investment

income of $1.2 million

Net investment income of

$0.18 per share

9.43% weighted average annualized yield, reflecting non-accrual impact

$5.1 million deployed into new

and follow-on investments

New $4.0 million AME Holdco investment

$1.1 million realized gain on

Seybert's exit

Approximately $20.1 million of credit facility availability at quarter-end

80% debt portfolio mix supports income focus

$0.29 per share quarterly

dividend and renewed

$1.5 million buyback authorization

(Results compared with the prior-year period unless otherwise noted)

Quarterly dividend maintained at $0.29 per share

Supported by strong liquidity and an income-focused portfolio strategy

18.00%

16.00%

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%

Dividend Yield LTM

Quarterly Declared Dividends

$4.20

$0.85

$0.63

$0.25 $0.25

$0.25 $0.29 $0.29

$0.29 $0.29 $0.29

$0.29 $0.29

Fair Value Portfolio Mix

($ in millions)

$38.5

$41.3

$10.2

$48.5

$10.0

$51.5

Portfolio Mix: 80% Debt | 20% Equity

Portfolio fair value increased to $51.5 million at March 31, 2026

YE 2025 Q1 2026

Portfolio Mix

(# of Companies)

Annualized weighted average yield on total debt investments was 9.43%, reflecting impact of non-accruals

Strategy remains focused on expanding income-producing investments

20 20

6 5

YE 2025 Q1 2026

Q1 2026 Investments

New investment of $4.0 million

($3.0 million term loan at 13% and a

$1.0 million equity investment)

Headquartered in Auburn Hills, MI,

AME Holdco is a provider of auto dealer service center design, equipment, installation and service.

Provider of maintenance, safety, fluid transfer, &

custom fabrication products

Buyout of MRES senior credit

$678,000 Senior Secured Promissory Note at SOFR + 3.25%

Services for commercial kitchens

and new builds

Funded follow-on debt investment of $400,000

Total investments at a fair value of $4.3 million

Pet product manufacturer and

distributor

Funded follow-on equity investment of $50,000

Total investments at a fair value of $5.1 million

Exits & Repayments

Seybert's represents a strong full-cycle investment outcome for Rand.

Rand previously received full repayment of its original $7.5 million debt investment.

In the first quarter, Rand sold its remaining equity holdings for $1.3 million in proceeds, which generated a realized gain of $1.1 million.

Taken together, Seybert's reflects the value of Rand's strategy of combining income-producing debt

with equity participation for upside. 6

March 31, 2026 December 31, 2025

Automotive

Software

Marketing,

Software

Marketing 4% 4%

Health & Wellness 6% 4%

Health & Wellness 6%

Consumer Products 10%

Distribution 13%

Professional & Business Services 43%

Manufacturing 14%

Automotive, 7%

Consumer Products 13%

Distribution

14%

Professional & Business Services 35%

Manufacturing 15%

Based on total investments at fair value of $51.5 million

Based on total investments at fair value of $48.5 million

Totals may not sum due to rounding

Company

Investments at Fair Value

Year Acquired

Industry

% of Total

Portfolio Investment Type

($ in millions)

Inter-National Electronic Alloys

$5.2 2023

Distribution - controlled expansion alloys, electronic grade nickels, refractory grade metals and alloys, and soft magnetic alloys

10%

Term note (12%)

Equity

Caitec, Inc.

$5.1

2020

Consumer Product - Pet product manufacturer and distributor

10%

Term note (12% +2% PIK)

Equity

Highland All About People Holdings

$4.3 2023

Professional Services - Full-service staffing and executive search firm with a focus on the healthcare industry

Term Note (12% +4% PIK)

Equity

AME Holdco LLC $4.0 2026

Professional Services - Auto center design and installation services

Term note (13%)

BMP Food Service Supply Holdco

$4.3

2022

Professional Services -

Services for commercial kitchens

and new builds

Term note (12% PIK)

Equity

Total Top 5 $22.9 44%

All values as of March 31, 2026. Totals may not sum due to rounding.

$51.5 million portfolio fair value with 20 portfolio companies

Financial Review

Q1 2026

Q1 2025

Total investment income

$ 1,240

$ 2,008

Total expenses

642

791

Net investment income¹

545

1,218

Net investment income per share²

$ 0.18

$ 0.42

Adjusted net investment income per share³

$ 0.18

$ 0.40

Net realized and unrealized loss

on investments

$ (912)

$ (377)

Net (decrease) increase in net assets from

operations

(367)

841

Net (decrease) increase in net assets from

operations per share²

$ (0.12)

$ 0.29

($ in thousands, except per share data)

Investment income declined primarily due to repayments of five debt instruments over the past year, lower fee income and non-accruals

Non-cash PIK income was $244,000, or 20% of total investment income, compared with 31% in Q1 2025

Expenses declined 19%, reflecting lower base management fees and no income-based incentive fee accrual

Q1 2025 expenses reflected a $75,000 credit for capital gains incentive fees

¹ Net of income tax expense

² Per share amounts based on weighted average shares outstanding of 2,969,814 in Q1 2026 and 2,869,339 in Q1 2025.

³ Adjusted Net Investment Income per share is a non-GAAP financial measure. Please see supplemental slides for a description of

this non-GAAP financial measure and reconciliation table between GAAP and non-GAAP. 10

($ in thousands)

$52,183

$545

$1,076

$50,955

($1,988)

($861)

Net assets at 12/31/2025 Net investment income Net realized gain on sales

and dispositions of

Net change in unrealized appreciation/depreciation

Declaration of dividends Net assets at 3/31/2026

$52,183,453

investments

on investments

$50,954,855

Net Asset Value Composition

At March 31, 2026

Per Share

Assets and Liabilities

$0.11

$331,000 consolidated cash

$17.36

$51.5 million in private investments

$(0.31)

$(919,000) other assets & liabilities, net

$17.16

Net Asset Value (NAV) per share

Total assets of $52.5 million was down 1% from year-end 2025

$500,000 outstanding on the senior secured revolving credit facility at quarter-end

$20.1 million available credit capacity

Facility permits up to $25 million in borrowings subject to compliance with borrowing conditions and portfolio eligibility requirements

Did not repurchase any outstanding common stock during Q1 2026

Board of Directors renewed $1.5 million share

repurchase program

Deployment Priorities

Portfolio Discipline

Shareholder Focus

Deploy capital selectively into income-producing debt investments

Build on origination efforts established in 2025

Maintain flexibility to pursue new and follow-on opportunities

Preserve credit quality and active portfolio oversight

Manage through non-accruals and workout situations with a long-term value focus

Rebuild the portfolio thoughtfully rather than prioritizing growth for growth's sake

Support consistent earnings and the regular dividend over time

Reinforce NAV through

disciplined capital allocation

Maintain balance sheet strength while remaining opportunistic

Supplemental Information

Three months ended March 31, 2026

Three months ended March 31, 2025

Total expenses

$ 641,917

$ 791,065

Exclude credits for capital gains incentive fees

(75,000)

Adjusted total expenses

$ 641,917

$ 866,065

*In addition to reporting total expenses, which is a U.S. generally accepted accounting principle ("GAAP") financial measure, Rand presents adjusted expenses, which is a non-GAAP financial measure. Adjusted expenses is defined as GAAP total expenses removing the effect of any expenses/(credits) for capital gains incentive fees accrual. GAAP total expenses is the most directly comparable GAAP financial measure. Rand believes that adjusted expenses provides useful information to investors regarding financial performance because it is a method the Company uses to measure its financial and business trends related to its results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.

Three months ended March 31, 2026

Three months ended March 31, 2025

Net investment income per share

$ 0.18

$ 0.42

Exclude credits for capital gains incentive fees per share

(0.02)

Adjusted net investment income per share

$ 0.18

$ 0.40

The per share amounts for the first quarter of 2026 were computed using 2,969,814 weighted average shares outstanding. This compared with 2,869,339

weighted average shares outstanding for the first quarter of 2025.

*In addition to reporting Net Investment Income per Share, which is a GAAP financial measure, the Company presents Adjusted Net Investment Income per Share, which is a non-GAAP financial measure. Adjusted Net Investment Income per Share is defined as GAAP Net Investment Income per Share removing the effect of any expenses/(credits) for capital gains incentive fees. GAAP Net Investment Income per Share is the most directly comparable GAAP financial measure. Rand believes that Adjusted Net Investment Income per Share provides useful information to investors regarding financial performance because it is a method the Company uses to measure its financial and business trends related to its results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.

Totals may not sum due to rounding

May 6, 2026

President & CEO

EVP & CFO

Disclaimer

Rand Capital Corporation published this content on May 06, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 06, 2026 at 12:45 UTC.