SWK (SWKH) investor relations material

Executive summary

• For 2025, operations focused on Finance Receivables after selling the Pharmaceutical Development segment in Q3 2025.

• The company entered into a merger agreement with Runway Growth Finance Corp., expected to close in the first half of 2026.

• Portfolio includes $218.6 million in net finance receivables as of year-end, with $876.1 million funded since inception.

Financial highlights

• Revenues decreased to $41.5 million in 2025 from $45.0 million in 2024, mainly due to lower interest, fees, and royalties from finance receivables paid off or sold.

• Net loss of $2.5 million in 2025 compared to net income of $13.5 million in 2024, driven by a $17.9 million deferred tax asset valuation allowance and lower revenues.

• Cash and cash equivalents increased to $42.8 million at year-end 2025 from $5.9 million in 2024, primarily from repayments and sales of finance receivables.

• Allowance for credit losses reduced to $7.3 million from $11.2 million year-over-year.

• Special cash dividend of $4.00 per share paid in May 2025 following a $34 million royalty portfolio sale.

Outlook and guidance

• Operations will focus solely on the Finance Receivables segment post-2025.

• The merger with Runway Growth Finance is expected to close in the first half of 2026, subject to shareholder approval and other conditions.