兰德资本 2025年度报告

Rand Capital Corporation(Nasdaq: RAND) is an externally-managed business development company (BDC). Our investmentobjectiveis to generate current income and when possible,complement this current income with capital appreciation. As aresult,our investments are primarily in higher yielding debtinstruments in privately-held, lower middle market companies withcommitted and experienced management in a broad variety ofindustries.We primarily invest in businesses that havesustainable, differentiated and market-proven products, revenueofmorethan$10 million and EBITDA in excess of$1.5million.Our investment activities are managed by ourexternal investment adviser, Rand Capital Management, LLC. •Consistent quarterlydividends, even throughperiods of lowerinvestment activity •Supported by strongliquidity and income-generating portfolio •Dividend strategyremains a priority amiddynamic conditions PORTFOLIO (FYE 2025) represented 79% of the portfolio by fair value, andequity accounted for 21%, in each case as ofDecember 31, 2025. Dear Shareholders, 2025 was a disciplined year for Rand Capital, inwhich we navigated a slower deal environment,absorbed a significant portfolio event, andstrengthened our balance sheet so we cancontinue to build a strong portfolio in 2026 andbeyond. We ended the year with no debt, morethan $23 million of total liquidity, and anincome-oriented portfolio that we expect tocontinue to support our dividend. Tilson, Valuations, and RiskA one-time portfolio event impacted the size of the portfolio The most notable portfolio event in 2025 wasTilson’s Chapter 11 filing following a contractdispute with a major customer. We responded bymarking the investment down promptly asdevelopments unfolded, ultimately realizing theloss of our investment through a bankruptcyprocess and asset sale. While disappointing, weview Tilson as a company-specific outcome, not asignal of broad weakness in our original 2015equity underwriting. 2025 in Review Discipline in a muted market The backdrop in 2025 was characterized byuneven M&A activity, tighter senior lending, andcautious sponsors and borrowers. In that setting,we chose discipline over “growth for growth’ssake,” recycling capital from repayments andrealizations, managing through a difficult outcomefor our investment in Tilson Technology, andrefining the portfolio toward income-generatingsecurities with selective equity upside. Outside of Tilson, valuation changes wereconsistent with a tighter credit environment. Wecontinue to employ a consistent, bottom-upvaluation process and maintain active oversight ofportfolio companies, with particular attention to PIKusage, non-accrual risk, and sector trends. At December 31, 2025, net asset value (NAV) wasapproximately $52 million, or $17.57 per share.The decline in NAV per share versus year-end2024 reflects dividends paid as well as realizedand unrealized losses, particularly related toTilson. While the decline in NAV was not ourdesired outcome, we believe our portfoliocompanies and our valuation approach leaves uswell positioned to capture upside as conditionsimprove. Financial Performance and DividendsLower investment income, stronger net investment income and cash returns Total investment income in 2025 was $6.5 million,down from $8.6 million in 2024, driven by debtrepayments, fewer originations, and lower feeincome. Offsetting this, total expenses declinedsharply, reflecting lower capital gains incentivefees, reduced interest expense after repaying ourrevolving loan, and lower base management fees.Net investment income rose to $5.3 million, or$1.80 per share, demonstrating the benefit ofdisciplined expense management. Portfolio and Capital RecyclingIncome engine, fewer but better deployments At year-end, our investment portfolio had a fairvalue of $48.5 million across 20 portfoliocompanies. The decrease from year-end 2024was driven primarily by meaningful loanrepayments and realizations, together withvaluation adjustments, rather than a strategiccontraction in the business. We paid total cash dividends of $1.72 per share in2025. This included our regular quarterly dividendof $0.29 per share throughout the year, plus a$0.56 per share special dividend in the fourthquarter. The regular dividend remains grounded insustainable net investment income, based on ourestimated portfolio income throughout the year andis then adjusted at year end, through the specialdividend. We began 2026 with the regular firstquarter dividend of $0.29 per share. In 2025, we received approximately $17.8 millionfrom repayments and monetizations and deployed$6.6 million into new and follow-on investments,primarily interest-earning debt with equityparticipation when appropriate. Debt investments Balance Sheet StrengthDebt-free and liquid by design Our priorities are clear: 1.Redeploy capital from 2025 repayments intonew income-generating assets, supportingconsistent net investment income and theregular dividend.2.Use leverage prude