Rand Capital (RAND) investor relations material

Executive summary

• Accelerated capital deployment in Q2 2026, with $6.9 million invested in new portfolio companies, but portfolio pressure persisted due to non-accruals and a full write-down at BMP Swanson.

• Net investment income was $710,000 ($0.24 per share), supported by a $959,000 realized gain from an exit, while the regular quarterly dividend was maintained at $0.29 per share.

• Net asset value per share was $17.33 at June 30, 2026, with net assets at $51.5 million, reflecting capital recycling and portfolio growth.

• Investment portfolio at fair value grew to $56.5 million, up 16.5% from year-end 2025, driven by new and follow-on investments.

• The company remains externally managed, focused on higher-yielding debt investments in lower middle market companies, and maintains RIC status for tax efficiency.

Financial highlights

• Total investment income for Q2 2026 was $1.4 million, down from $1.6 million in Q2 2025, mainly due to non-accruals.

• Net investment income was $710,000 ($0.24 per share), compared to $2.5 million ($0.83 per share) in Q2 2025.

• Net realized gains on investments were $958,948 for the quarter, primarily from the sale of a warrant investment.

• Net asset value per share increased to $17.33 at June 30, 2026, up from $17.16 at March 31, 2026.

• Portfolio fair value increased to $56.5 million, up 16.5% from December 31, 2025.

Outlook and guidance

• Focus remains on disciplined origination and deploying capital into income-producing debt investments in the lower middle market.

• Continued active oversight of challenged positions and support for regular dividends are priorities.

• The company expects to continue funding investments through operating cash flow and its $25 million credit facility, with $12.4 million undrawn as of June 30, 2026.