SSSSL — SuRo Capital Corp. 6.00% Notes due 2026

Summary of SuRo Capital's Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Net Asset Value (NAV): Increased from $6.68 at the end of 2024 to $8.09 per share at the end of 2025, representing a 21% year-over-year growth.
• Stock Price Performance: Rose from $5.88 at year-end 2024 to $9.44 by the end of 2025, a 60% increase. Total shareholder return, including a $0.50 dividend, approximated 70%.
• Investment Activity: Received $9 million in distributions from CW Opportunity 2 LP, with a realized gain of $6.7 million. Sold shares of Forge Global for a gain of $1.1 million.
• Liquidity: Ended the year with approximately $50.1 million in liquid assets, including $49 million in cash.

2. Strategic Updates and Business Highlights

• Investment Focus: Continued emphasis on AI infrastructure and applications, which constituted 31% of the investment portfolio. Other significant sectors included consumer goods/services (21%) and SaaS (20%).
• Recent Investments: Committed up to $20 million to TensorWave, reflecting a strategic focus on AI compute demand. This investment is seen as a significant opportunity aligned with AMD.
• Portfolio Composition: Top five positions (OpenAI, WHOOP, Blink Health, Canva, Learneo) accounted for 54% of the investment portfolio.

3. Forward Guidance and Outlook

• Future NAV Growth: Management anticipates potential increases in NAV from ongoing financings, estimating an additional $5 to $6.50 per share based on current portfolio developments, particularly in AI.
• Market Positioning: SuRo aims to capitalize on early-stage investments in private companies before they become publicly owned, leveraging the ongoing structural shift towards AI.

4. Bad News, Challenges, or Points of Concern

• Investment Losses: Realized a loss of approximately $1 million from the dissolution of ReBrick Inc. (Compliable).
• Market Volatility: Public market conditions remain mixed, which could impact future valuations and investor sentiment.
• Operational Expenses: While operating expenses have remained static, any unexpected increases could affect profitability.

5. Notable Q&A Insights

• Financing Timeline: Management indicated that several financings are expected to be completed by the end of Q1 2026, although specific details could not be disclosed due to restrictions.
• Valuation Discrepancies: There is a notable divergence between private and public market valuations, with private market valuations accelerating at a pace reminiscent of the late 1990s tech boom.
• Investment Strategy: The large commitment to TensorWave was characterized as a unique opportunity rather than a shift to consistently larger investments, indicating a selective approach to capital allocation.

Overall, SuRo Capital demonstrated strong financial performance in 2025, with a positive outlook driven by strategic investments in AI and a disciplined approach to portfolio management. However, challenges remain regarding market volatility and the need to navigate operational expenses effectively.