Breaking Down SuRo Capital Corp. (SSSS) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments in venture-backed companies? SuRo Capital Corp. (SSSS), a publicly traded investment fund, recently released its financial results for 2024, revealing a mixed bag of results. The company's net asset value (NAV) stood at $6.68 per share as of December 31, 2024, a dip from $7.99 at the end of 2023. But, with strategic moves like a full exit from Oklo yielding over 20x the initial investment and a focus on AI infrastructure with $54.5 million invested, including stakes in CoreWeave and OpenAI, is there hidden potential? Dive in to uncover key insights into SuRo Capital's financial health and strategic initiatives, and decide if it aligns with your investment strategy.

SuRo Capital Corp. (SSSS) Revenue Analysis

Understanding SuRo Capital Corp.'s (SSSS) revenue streams is crucial for investors seeking to assess the company's financial health and future prospects. An analysis of revenue sources, growth rates, and segment contributions provides valuable insights.

Here's a breakdown of SuRo Capital Corp.'s (SSSS) revenue streams:

• Primary Revenue Sources: SuRo Capital generates revenue primarily through its investment activities in venture capital-backed emerging companies. These investments include direct investments, secondary marketplace transactions, and special purpose vehicles (SPVs).
• Year-over-Year Revenue Growth Rate: In 2024, SuRo Capital's revenue was reported as -$33.36 million USD. This represents a significant decrease of -264.75% compared to 2023, when the company made a revenue of $20.24 million USD. In 2022, the company's revenue was -$0.12 billion USD.
• Contribution of Different Business Segments to Overall Revenue: As of December 31, 2024, SuRo Capital's investment portfolio included positions in 37 portfolio companies, with an aggregate fair value of approximately $209.4 million. The company's top five investments accounted for about 44% of the total portfolio value. Notably, SuRo Capital invested $54.5 million in artificial intelligence infrastructure and applications during 2024, including investments in CoreWeave, OpenAI, and VAST Data.
• Analysis of Any Significant Changes in Revenue Streams: A significant change in SuRo Capital's revenue streams in 2024 was the decrease in total investment income to $4.67 million, down from $6.60 million in 2023. This decline was primarily attributed to the cessation of interest income from short-term U.S. Treasury bills and other investments.

To enhance shareholder value, SuRo Capital has engaged in several capital management activities:

• The company issued $30 million in 6.50% Convertible Notes due 2029 to strengthen its capital structure.
• It repurchased $30.3 million of its 6.00% Notes due 2026 under a discretionary note repurchase program.
• SuRo Capital did not repurchase any shares under its open-market Share Repurchase Program in 2024 but extended the program to allow for up to $64.3 million in repurchases until October 31, 2025.

Here is a summary of SuRo Capital Corp.'s (SSSS) Financial Highlights:

For further insights into SuRo Capital Corp.'s (SSSS) mission, vision, and core values, you can refer to Mission Statement, Vision, & Core Values of SuRo Capital Corp. (SSSS).

SuRo Capital Corp. (SSSS) Profitability Metrics

Assessing the profitability of SuRo Capital Corp. (SSSS) requires a detailed examination of its financial performance, specifically focusing on key metrics such as gross profit, operating profit, and net profit margins. These metrics provide insight into the company's efficiency in generating profits from its revenue and managing its operational costs.

Based on the most recent information, SuRo Capital Corp. reported total investment income of $18.4 million for the year ended December 31, 2023. However, the company experienced a net loss of $23.4 million, or $0.85 per share. This contrasts with a net income of $53.7 million, or $2.03 per share, for the same period in the previous year.

Here's a snapshot of SuRo Capital Corp.'s profitability metrics:

• Gross Profit: As an investment company, gross profit is reflected in the investment income. For 2023, SuRo Capital Corp. reported total investment income of $18.4 million.
• Operating Profit: The company's operating activities resulted in a loss, influenced by operating expenses.
• Net Profit Margin: SuRo Capital Corp. reported a net loss of $23.4 million for 2023, translating to a negative net profit margin.

A closer look at the operational efficiency reveals the following:

• Cost Management: Operating expenses totaled $39.5 million for the year ended December 31, 2023, compared to $21.2 million for the prior year. The increase was primarily due to an increase in the base management fee, professional fees, and other general and administrative expenses.
• Gross Margin Trends: Given the nature of SuRo Capital Corp.'s business, the focus is more on managing investment income and operating expenses rather than traditional gross margin. The decrease in net investment income and the increase in operating expenses contributed to the net loss.

To provide a clearer picture, the following table summarizes key financial figures:

Understanding these metrics and trends is crucial for investors looking to assess the financial health and future prospects of SuRo Capital Corp. For further insights, you can explore Breaking Down SuRo Capital Corp. (SSSS) Financial Health: Key Insights for Investors.

SuRo Capital Corp. (SSSS) Debt vs. Equity Structure

Understanding how SuRo Capital Corp. (SSSS) finances its growth involves examining its debt and equity structure. This analysis provides insights into the company's financial leverage, risk profile, and overall financial health.

As of 2024, SuRo Capital Corp. (SSSS) reported a total debt of $30 million, consisting entirely of long-term debt. The company has no short-term debt obligations.

The debt-to-equity ratio is a critical metric for evaluating a company's financial leverage. For SuRo Capital Corp. (SSSS), the debt-to-equity ratio can be calculated using the total debt and total equity figures from its balance sheet. As of 2024, the company's debt-to-equity ratio is approximately 0.29, based on a total debt of $30 million and total equity of $102.99 million. This ratio indicates that SuRo Capital Corp. (SSSS) relies more on equity than debt to finance its operations, suggesting a relatively conservative approach to financial leverage.

Here's a breakdown of SuRo Capital Corp.'s (SSSS) debt and equity components:

• Long-Term Debt: $30 million
• Short-Term Debt: $0 million
• Total Equity: $102.99 million

Recent activities, such as new debt issuances, credit ratings, or refinancing, can significantly impact a company's debt profile. However, based on the available information, there have been no recent debt issuances, credit ratings, or refinancing activities for SuRo Capital Corp. (SSSS).

Balancing debt and equity is crucial for sustainable growth. SuRo Capital Corp. (SSSS) primarily relies on equity funding, which reduces financial risk. The debt-to-equity ratio of 0.29 indicates a preference for equity over debt, aligning with a strategy focused on long-term stability.

For more insights into the company's strategic direction, explore the Mission Statement, Vision, & Core Values of SuRo Capital Corp. (SSSS).

SuRo Capital Corp. (SSSS) Liquidity and Solvency

Understanding SuRo Capital Corp.'s financial health requires a close look at its liquidity and solvency. These metrics reveal the company's ability to meet its short-term obligations and long-term financial stability. Let's delve into key indicators that provide insights into SuRo Capital Corp.'s financial positioning.

Assessing SuRo Capital Corp.'s Liquidity:

Liquidity ratios are essential tools for evaluating a company's ability to cover its immediate liabilities. The current and quick ratios offer a snapshot of SuRo Capital Corp.'s short-term financial health. As of the fiscal year 2024, these ratios provide valuable context:

• Current Ratio: This ratio measures a company's ability to pay short-term obligations with its current assets. For SuRo Capital Corp., analyzing the trend in the current ratio helps investors understand whether the company is becoming more or less liquid.
• Quick Ratio: Similar to the current ratio, the quick ratio excludes inventories from current assets, providing a more conservative view of liquidity. Monitoring this ratio helps assess SuRo Capital Corp.'s capacity to meet immediate obligations without relying on the sale of inventories.

Working Capital Trends:

Analyzing working capital trends involves examining the difference between a company's current assets and current liabilities over a period. A positive working capital balance indicates that a company has enough short-term assets to cover its short-term liabilities. Conversely, a negative working capital balance may signal potential liquidity issues. Tracking these trends for SuRo Capital Corp. offers insights into its operational efficiency and financial stability.

Cash Flow Statements Overview:

Cash flow statements provide a comprehensive view of a company's cash inflows and outflows, categorized into operating, investing, and financing activities. Examining these trends for SuRo Capital Corp. can reveal its ability to generate cash from its core business operations, make strategic investments, and manage its capital structure effectively.

• Operating Cash Flow: This section reflects the cash generated from the company's regular business activities. Consistent positive operating cash flow is a sign of financial health.
• Investing Cash Flow: This includes cash spent on investments in assets, such as property, plant, and equipment (PP&E), as well as proceeds from the sale of assets.
• Financing Cash Flow: This section covers activities related to debt, equity, and dividends. It shows how the company raises capital and returns it to investors.

Potential Liquidity Concerns or Strengths:

Based on the analysis of liquidity ratios, working capital trends, and cash flow statements, investors can identify potential liquidity concerns or strengths for SuRo Capital Corp. Factors to consider include:

• Consistent positive operating cash flow
• Adequate current and quick ratios
• Efficient management of working capital

Conversely, investors should be wary of:

• Declining liquidity ratios
• Negative working capital
• Dependence on external financing

For more insights into investor behavior and stock dynamics, explore Exploring SuRo Capital Corp. (SSSS) Investor Profile: Who’s Buying and Why?.

SuRo Capital Corp. (SSSS) Valuation Analysis

Determining whether SuRo Capital Corp. (SSSS) is overvalued or undervalued requires analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield, payout ratios, and analyst consensus.

Currently, up-to-date, specific valuation ratios such as P/E, P/B, and EV/EBITDA for SuRo Capital Corp. (SSSS) are not available as of late April 2025. Financial data sources may not have published updated figures reflecting the most recent fiscal year. For the most accurate valuation, consulting real-time financial data services is essential.

Stock price trends provide insight into market sentiment and historical performance. Examining SuRo Capital Corp.'s stock performance over the past 12 months (or longer) can reveal patterns, volatility, and overall investor confidence. As of now, specific stock trends need to be checked on financial analysis platforms for the latest updates.

Dividend yield and payout ratios are crucial for assessing income-generating potential, if applicable. Since SuRo Capital Corp. is a business development company (BDC), it is required to distribute a large percentage of its taxable income to shareholders, which often results in high dividend yields. Any details on current dividend yield and payout ratios would be useful in determining valuation.

Analyst consensus offers a summarized view of expert opinions on the stock's valuation. Ratings such as 'buy,' 'hold,' or 'sell' reflect collective analysis and expectations. To get this, checking recent analyst reports is important for any recommendations and price targets.

To perform a comprehensive valuation analysis, consider the following:

• Compare valuation ratios: Benchmark SuRo Capital Corp.’s P/E, P/B, and EV/EBITDA ratios against industry averages and competitors to gauge relative valuation.
• Review historical stock performance: Analyze stock price trends, volatility, and trading volumes over different periods to understand market behavior.
• Assess dividend sustainability: Evaluate the company's dividend yield, payout ratio, and cash flow stability to determine the sustainability of dividend payments.
• Consider qualitative factors: Assess the company's management quality, competitive positioning, and growth prospects to complement quantitative analysis.

For more in-depth information, you can explore: Breaking Down SuRo Capital Corp. (SSSS) Financial Health: Key Insights for Investors

SuRo Capital Corp. (SSSS) Risk Factors

Understanding the risks associated with SuRo Capital Corp. (SSSS) is crucial for investors. These risks can be categorized into internal and external factors that may impact the company's financial health. Risk factors, cautionary statements, and other conditions which could cause SuRo Capital's actual results to differ from management's current expectations are contained in SuRo Capital's filings with the Securities and Exchange Commission.

Here's an overview of key risks:

• Industry Competition: The venture capital and investment fund industry is highly competitive.
• Regulatory Changes: Changes in regulations governing investment companies could adversely affect SuRo Capital's operations.
• Market Conditions: Economic downturns or market volatility can impact the valuation of portfolio companies.

Operational, financial, and strategic risks are often detailed in SuRo Capital's earnings reports and filings with the SEC. These reports provide insights into the company's performance and potential challenges.

Some specific risks and mitigation strategies include:

• Valuation of Portfolio Companies: As of December 31, 2024, SuRo Capital held positions in 37 portfolio companies, with an aggregate fair value of approximately $209.4 million. The company's top five portfolio company investments accounted for approximately 44% of the total portfolio at fair value as of December 31, 2024. Fluctuations in the market value of these holdings can significantly impact SuRo Capital's net asset value (NAV).
• Liquidity Risk: SuRo Capital's liquid assets were approximately $23.6 million as of December 31, 2024, consisting of cash and securities of publicly traded portfolio companies not subject to certain restrictions at year-end. Maintaining sufficient liquidity is essential to meet operational needs and capitalize on investment opportunities.
• Convertible Notes: On August 6, 2024, SuRo Capital entered into a Note Purchase Agreement, potentially issuing up to a maximum of $75.0 million in aggregate principal amount of 6.50% Convertible Notes due 2029. As of January 2025, $35.0 million had been issued. These notes introduce financial leverage and potential dilution risks.
• Note Repurchase Program: To manage its debt, SuRo Capital's Board of Directors approved a discretionary note repurchase program, allowing the company to repurchase up to $35.0 million of its 6.00% Notes due 2026.

Here's a summary of SuRo Capital Corp.'s financial performance in 2024:

Mitigation strategies often involve diversifying investments, actively managing debt, and closely monitoring market conditions. For instance, in 2024, SuRo Capital invested $54.5 Million in AI infrastructure.

For more insights into SuRo Capital Corp.'s mission, vision, and core values, check out: Mission Statement, Vision, & Core Values of SuRo Capital Corp. (SSSS).

SuRo Capital Corp. (SSSS) Growth Opportunities

SuRo Capital Corp. (SSSS) faces a dynamic landscape of growth prospects, influenced by strategic initiatives, market conditions, and investment decisions. The company's ability to identify and capitalize on emerging opportunities within the venture capital and growth equity sectors is crucial for its future performance. These opportunities often involve investments in technology, consumer, and other high-growth industries.

Key growth drivers for SuRo Capital Corp. (SSSS) include:

• Product Innovations: Investing in companies that are developing innovative products or services can lead to significant returns if these ventures achieve commercial success.
• Market Expansions: Companies expanding into new geographic or demographic markets can experience rapid growth, providing opportunities for SuRo Capital Corp. (SSSS) to benefit from increased valuations.
• Acquisitions: Strategic acquisitions can enhance the portfolio of SuRo Capital Corp. (SSSS), adding synergistic value and expanding its reach within key sectors.

Future revenue growth projections and earnings estimates for SuRo Capital Corp. (SSSS) are contingent upon the performance of its investment portfolio and the overall market environment. While specific public projections may vary, the company's success is closely tied to the growth and profitability of its portfolio companies. Investors should monitor the performance of these underlying investments, as they are key indicators of SuRo Capital Corp. (SSSS)'s financial health.

Strategic initiatives and partnerships play a vital role in driving future growth for SuRo Capital Corp. (SSSS). These may include:

• Forming alliances with other investment firms to access deal flow and expertise.
• Providing strategic guidance to portfolio companies to help them scale and achieve their business objectives.
• Actively managing its investment portfolio to optimize returns and mitigate risks.

Competitive advantages that position SuRo Capital Corp. (SSSS) for growth include its experienced management team, its established network within the venture capital ecosystem, and its ability to identify and invest in promising early-stage companies. These factors enable the company to differentiate itself from competitors and generate attractive returns for its shareholders.

More insights into SuRo Capital Corp. (SSSS)'s financial health can be found at: Breaking Down SuRo Capital Corp. (SSSS) Financial Health: Key Insights for Investors