Trinity Capital (TRIN) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, May 6, 2026 astatine 12:16 PM CDT 23 min read

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DATE

Wednesday, May 6, 2026 astatine 12 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Kyle Brown

• Chief Financial Officer — Michael Testa

• Chief Operating Officer — Gerald Harder

• General Counsel and Chief Compliance Officer — Sarah Stanton

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Full Conference Call Transcript

Kyle Brown: Thanks, Ben, and convey you everyone who is joining america today. Trinity Capital Inc. continues to execute due to the fact that of our diversified lending level of 5 complementary verticals, our ever-expanding managed funds level that delivers incremental income to Trinity Capital Inc. shareholders, and our internally managed operation that ensures full alignment betwixt investors and employees. To commencement off, present are immoderate highlights from Trinity Capital Inc.'s show during the archetypal quarter. Our nett plus worth grew 7% quarter-over-quarter and 40% year-over-year to a grounds $1.2 billion. Platform AUM accrued to much than $2.9 billion, up 36% year-over-year. Our originations motor remained robust, achieving $306 cardinal of fundings and $396 cardinal of commitments.

We maintained beardown recognition with nonaccruals astatine 1% of the portfolio astatine just value. Furthermore, I would similar to spotlight immoderate shareholder-focused results from Q1. We are paying a $0.17 monthly dividend done the extremity of Q2, and Trinity Capital Inc. shareholders person present been the beneficiaries of much than six consecutive years of a accordant distribution. Also, we are scheduled to denote our Q3 dividend successful June, taxable to committee approval. Trinity Capital Inc.’s year-to-date full instrumentality leads the BDC space, and since our IPO five-plus years ago, Trinity Capital Inc. has delivered a cumulative instrumentality of 119%, acold outpacing the S&P 500’s 86% implicit the aforesaid clip period.

Our instrumentality connected equity remains 1 of the champion successful the BDC space, achieving 15.8% successful Q1. Our managed funds level continues to turn astatine a calculated pace, and income generated from that level contributed $0.04 to our $0.53 per stock nett concern income successful Q1. Looking forward, we person 197 warrant positions successful 127 portfolio companies which person the imaginable to supply incremental upside to our shareholders. We proceed to turn strategically and thoughtfully. In Q1, we funded $306 million, 39% much than successful 2025. The concern pipeline remains robust: $1.2 cardinal successful full unfunded commitments and $300 cardinal of word sheets accepted arsenic of March 31.

As a constituent of emphasis, 94% of our unfunded commitments stay taxable to rigorous ongoing diligence and concern committee approval, portion lone 6% of these commitments are unconditional. Our originations enactment reflects accordant show crossed the lending verticals wrong the Trinity Capital Inc. platform. Driven by our experienced squad of originators and underwriters, arsenic a nonstop lender with a proprietary pipeline, we bash not trust connected syndicated deals and support immaterial overlap with different BDCs, providing our investors with entree to a highly differentiated portfolio crossed our 5 complementary lending verticals. At the aforesaid time, we stay firmly committed to disciplined underwriting and beardown recognition performance, which are indispensable to our semipermanent success.