Trinity Capital (TRIN) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool Thu, May 7, 2026 at 12:16 AM GMT+7 23 min read TRIN Image source: The Motley Fool. General Counsel and Chief Compliance Officer — Sarah Stanton Need a quote from a Motley Fool analyst? Email pr@fool.com Kyle Brown: Thanks, Ben, and thank you everyone who is joining us today. Trinity Capital Inc. continues to perform because of our diversified lending platform of five complementary verticals, our ever-expanding managed funds platform that delivers incremental income to Trinity Capital Inc. shareholders, and our internally managed structure that ensures total alignment between investors and employees. To start off, here are some highlights from Trinity Capital Inc. s performance during the first quarter. Our net asset value grew 7% quarter-over-quarter and 40% year-over-year to a record $1.2 billion. Platform AUM increased to more than $2.9 billion, up 36% year-over-year. Our originations engine remained robust, achieving $306 million of fundings and $396 million of commitments. We maintained strong credit with nonaccruals at 1% of the portfolio at fair value. Furthermore, I would like to spotlight some shareholder-focused results from Q1. We are paying a $0.17 monthly dividend through the end of Q2, and Trinity Capital Inc. shareholders have now been the beneficiaries of more than six consecutive years of a consistent distribution. Also, we are scheduled to announce our Q3 dividend in June, subject to board approval. Trinity Capital Inc.’s year-to-date total return leads the BDC space, and since our IPO five-plus years ago, Trinity Capital Inc. has delivered a cumulative return of 119%, far outpacing the S&P 500’s 86% over the same time period. Our return on equity remains one of the best in the BDC space, achieving 15.8% in Q1. Our managed funds platform continues to grow at a calculated pace, and income generated from that platform contributed $0.04 to our $0.53 per share net investment income in Q1. Looking forward, we have 197 warrant positions in 127 portfolio companies which have the potential to provide incremental upside to our shareholders. We continue to grow strategically and thoughtfully. In Q1, we funded $306 million, 39% more than in 2025. The investment pipeline remains robust: $1.2 billion in total unfunded commitments and $300 million of term sheets accepted as of March 31. As a point of emphasis, 94% of our unfunded commitments remain subject to rigorous ongoing diligence and investment committee approval, while only 6% of these commitments are unconditional. Our originations activity reflects consistent performance across the lending verticals within the Trinity Capital Inc. platform. Driven by our experienced team of originators and underwriters, as a direct lender with a proprietary pipeline, we do not rely on syndicated deals and maintain immaterial overlap with other BDCs, providing our investors with access to a highly differentiated portfolio across our five complementary lending verticals. At the same time, we remain firmly committed to disciplined underwriting and strong credit performance, which are essential to our long-term success. The only notable intersect with some other BDCs is through our newly announced joint venture with Capital Southwest, a vehicle that is focusing on first-out senior secured loans in the lower middle market. This partnership with a fellow internally managed BDC allows us to diversify into a new segment of the lower middle market with a proven partner, while minimizing risk and providing stable income for our investors. To briefly touch on the AI and software topic, enterprise SaaS is currently 10% of our portfolio. Many of those are PE-backed lower middle market companies that have successfully integrated AI to enhance their offerings, increasing their value, not eroding it. The strongest companies continue to adapt and execute. We are not seeing deterioration in our software exposure. Rather, companies with top-tier management teams, durable moats, and flexible strategies are increasingly distinguishing themselves. With respect to AI itself, we are not trying to pick winners at the application layer. Our exposure is focused on the infrastructure side through our equipment financing platform, which has deep experience financing data centers, GPUs, CPUs, and power assets. That is the backbone of the AI ecosystem, and it benefits regardless of which applications win. We remain focused on building a diversified portfolio that consistently delivers strong returns across all macroeconomic cycles. Our consistent performance is driven by three defining strengths: our differentiated structure, disciplined underwriting, and world-class team. Our five complementary verticals—sponsor finance, equipment finance, tech lending, asset-based lending, and life sciences—provide meaningful diversification while keeping us firmly within our core competencies. Each vertical is powered by dedicated teams of originators, und

Trinity Capital (TRIN) Q1 2026 Earnings Transcript

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Trinity Capital (TRIN) Q1 2026 Earnings Transcript

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