Rand Capital (RAND) investor relations material

Executive summary

• Q1 2026 was a transition period with lower investment income due to non-accruals and prior repayments, but $5.1 million was deployed into new and follow-on investments, including a $4 million investment in AME Holdco.

• Realized gain of $1.1 million from the exit of Seybert's Billiards, reflecting the value of combining debt and equity strategies.

• Net assets decreased to $50.95 million, with NAV per share at $17.16 at March 31, 2026.

• A quarterly cash dividend of $0.29 per share was declared and paid in March 2026, with the same amount declared for Q2.

Financial highlights

• Total investment income for Q1 2026 was $1.24 million, down 38% year-over-year due to lower interest and fee income and non-accruals.

• Net investment income was $545,000 ($0.18 per share), a 55% decrease from Q1 2025.

• Total expenses decreased 19% to $642,000, mainly due to lower management fees and no incentive fee accrual.

• Net realized gain on investments was $1.1 million, while net unrealized depreciation was $2 million.

• Portfolio fair value increased to $51.5 million across 20 companies.

Outlook and guidance

• Focus remains on rebuilding the portfolio, supporting consistent earnings-driven dividends, and maintaining balance sheet flexibility.

• Management anticipates continued funding of investments through operating cash flow and the $25 million credit facility.

• Early signs of improved sponsor activity and deal flow; intent to scale portfolio prudently as opportunities arise.