Executive Summary

Q1 2025 NAV per share was $6.66 (net assets $156.8M), essentially flat vs Q4 2024 ($6.68) and down vs Q1 2024 ($7.17). Net investment loss was $(3.7)M or $(0.16)/sh; net change in unrealized appreciation was +$2.9M, yielding a small net decrease in net assets from operations of $(0.8)M. Note: the detailed statement shows $(0.03)/sh, while the summary table shows $(0.04)/sh (rounding) .
Liquidity ended at ~$18.1M (cash ~$16.2M; ~$1.9M unrestricted public securities) with an additional ~$20.4M of public securities subject to lockups (ServiceTitan and CoreWeave) .
Estimates context: Q1 Primary EPS (NII per share) missed by ~$0.02 (actual $(0.16) vs $(0.14)), and “Revenue” (total investment income) missed by ~$0.73M (actual $0.50M vs $1.23M) on one estimate each; the shortfall reflects much lower investment income vs prior year ($0.50M vs $1.53M) as U.S. T-bill income rolled off and portfolio income was modest . Values retrieved from S&P Global.
Portfolio catalysts: CoreWeave completed the largest tech IPO since 2021; OpenAI closed a $40B raise at a $300B valuation. ServiceTitan shares are expected to be tradable by June 2025 and CoreWeave by September 2025; management reiterated it typically exits public holdings post-lockup and then evaluates distributions of realized gains .

What Went Well and What Went Wrong

What Went Well
- Unrealized gains: Net change in unrealized appreciation of +$2.9M ($0.12/sh) offset a large portion of the net investment loss, helping keep NAV/share stable Q/Q .
- Portfolio momentum: Management highlighted CoreWeave’s IPO and OpenAI’s $40B financing ($300B post) as key value drivers; “We believe our portfolio is well positioned for when the IPO window reopens” .
- Clear monetization roadmap: “We don’t view ourselves as holders of public securities… when the lockup expires… we would exit the position” (re: ServiceTitan). Expected tradability: ServiceTitan by June 2025; CoreWeave by Sept 2025 .
What Went Wrong
- Investment income down sharply vs prior year ($0.50M vs $1.53M) as T-bill interest and controlled investment interest declined; operating expenses remained elevated, resulting in $(3.66)M NII .
- Consensus misses: NII/share came in below the single estimate and total investment income also missed a single estimate (limited coverage) as portfolio income was light in the quarter (see Estimates Context) (Values retrieved from S&P Global).
- Ongoing expense ratios: Annualized ratio of operating expenses/avg net assets rose Y/Y (10.79% in Q1 2025 vs 9.44% in Q1 2024) and the ratio of net investment loss/avg net assets remained negative (−9.49%) .

Financial Results

Quarterly trend – P&L, NAV, and ratios

Metric	Q3 2024	Q4 2024	Q1 2025
Net Investment Loss ($USD Millions)	$(3.21)	$(3.9)	$(3.66)
Net Change in Unrealized Appreciation/Depreciation ($USD Millions)	$11.61	$(5.20)	$2.89
Net Change in Net Assets from Operations per Share (Basic)	$(0.23)	<$0.01	$(0.03)
NAV per Share (Period-End)	$6.73	$6.68	$6.66
Ratio: Net Operating Expenses / Avg Net Assets (annualized)	10.10%	10.68%	10.79%
Ratio: Net Investment Loss / Avg Net Assets (annualized)	−7.91%	−8.00%	−9.49%

Q1 2025 vs Q1 2024 – income statement bridge

Metric	Q1 2024	Q1 2025
Total Investment Income ($USD)	$1,528,091	$499,094
Net Investment Loss ($USD)	$(3,222,902)	$(3,661,769)
Net Realized Gain/(Loss) on Investments ($USD)	$(424,074)	$(17,951)
Net Change in Unrealized Appreciation/Depreciation ($USD)	$(18,418,370)	$2,888,878
Net Decrease in Net Assets from Operations ($USD)	$(22,065,346)	$(806,715)
Net Change in Net Assets from Operations per Share (Basic)	$(0.87)	$(0.03)
Net Investment Loss per Share (Basic)	$(0.13)	$(0.16)

Q1 2025 vs Wall Street consensus (S&P Global)

Metric	Consensus	Actual	Delta
Primary EPS (NII/share)	$(0.14)*	$(0.16)	Miss $(0.02)*
Total Investment Income ($USD)	$1,229,000*	$499,094	Miss $(729,906)*

Values retrieved from S&P Global. Coverage is limited (1 estimate for each metric).
Note: Company reports “Net investment loss per share” $(0.16), and “net change in net assets from operations per share” $(0.03) (press table rounds to $(0.04)) .

Key KPIs and balance sheet items

KPI	Q3 2024	Q4 2024	Q1 2025
Investments at Fair Value ($USD Millions)	$199.3	$209.4	$213.6
Net Assets ($USD Millions)	$157.4	$157.6	$156.8
NAV/Share ($)	$6.73	$6.68	$6.66
Portfolio Companies (Count)	37	37	37
Top-5 Concentration (% of FV)	47.3%	44.3%	45.6%
Liquid Assets ($USD Millions)	$39.5	$23.6	$18.1
6.00% Notes due 2026 – Face ($USD Millions)	$49.75	$44.67	$39.67
6.50% Convertible Notes due 2029 – Face ($USD Millions)	$25.0	$30.0	$35.0

Portfolio allocation by investment theme (% of portfolio FV)

Theme	Q3 2024	Q4 2024	Q1 2025
AI Infrastructure & Applications	21%	28%	28%
Software-as-a-Service	26%	24%	22%
Consumer Goods & Services	16%	14%	17%
FinTech & Services	9%	8%	12%
Education Technology	15%	13%	12%
Logistics & Supply Chain	11%	11%	8%
SuRo Sports	2%	2%	2%

Guidance Changes

Metric/Item	Period	Previous Guidance	Current Update	Status
Q1 2025 NAV/Share (Prelim)	Q1 2025	$6.50–$7.00 prelim range	Reported $6.66	Finalized
ServiceTitan share tradability	2025	N/A	Expected registered/freely tradable by June 2025	Timing update
CoreWeave share tradability	2025	N/A	Expected registered/freely tradable by Sept 2025	Timing update
Dividend policy	Ongoing	Distribute net realized gains (BDC requirement)	Management will communicate timing; if realized gains by year-end, distribution by year-end or early Q1 next year	Maintained
Note repurchase program (6.00% due 2026)	Authorized up to $35.0M	—	Fully utilized: $35.3M aggregate principal repurchased as of 3/31/25	Completed
6.50% Convertible Notes due 2029 outstanding	As of 3/31/25	$30.0M (12/31/24)	$35.0M (issued $5.0M on Jan 16, 2025)	Increased

No formal quantitative revenue/expense/margin guidance was provided.

Earnings Call Themes & Trends

Topic	Q3 2024 (Prior-2)	Q4 2024 (Prior-1)	Q1 2025 (Current)	Trend
AI infrastructure momentum	Initiated/expanded positions in OpenAI, CoreWeave, VAST; AI ~21% of portfolio	Reinforced AI focus; $54.5M invested in 2024	CoreWeave IPO; OpenAI $40B at $300B; believes AI infra demand robust	Strengthening
IPO window outlook	Anticipated reopening; listed likely IPO names	“Another compelling moment” akin to 2020–21; CoreWeave filed S-1	“Well positioned for when IPO window reopens”	Improving
Lockups/valuation discounts	N/A	ServiceTitan IPO; public positions exited post-lockup	Explicit discounting for unregistered shares; removal upon registration	Clearer process
Capital structure	Announced 6.5% converts; note repurchase program	Converts at $35M outstanding by Jan 16, 2025; note repurchases continue	$35M converts outstanding; note repurchases fully utilized ($35.3M)	Stable
Dividend/distributions	N/A	Reiterated BDC distribution of realized gains	Will distribute realized gains by year-end if applicable; communicate proactively	Maintained
Macro/tariffs/volatility	N/A	N/A	Noted Q1/Q2 market turbulence and tariff uncertainty; tech capex commitment supportive	Watch item

Management Commentary

Strategic posture: “We believe our portfolio is well positioned for when the IPO window reopens. Our companies continue to execute at a high level” .
Monetization approach: “We don’t view ourselves as holders of public securities… when the lockup expires… we would exit the position” (re: ServiceTitan) .
Lockup/valuation methodology: “Discounts… applied to CoreWeave and ServiceTitan… related to the fact that the shares… are not registered… when they become registered… we will remove that discount” .
NAV bridge and share count: “We ended the first quarter… with an NAV/share of $6.66… decrease… primarily driven by $(0.16)/sh NII, offset by +$0.12/sh unrealized appreciation and +$0.02/sh stock-based comp” .
AI positioning: CoreWeave as “underappreciated” post-IPO; marked at $31.52/sh at Q1 close vs “over $54” post-quarter; OpenAI funding and usage ramp cited as structural tailwinds .

Q&A Highlights

Exit of ServiceTitan post-lockup and redeployment: Management reiterated it intends to sell public holdings when lockups expire and is seeing the “most opportunities now” in AI and AI-adjacent areas .
Discounting unregistered shares: CFO explained discounts are applied while unregistered and removed upon registration; this applies to both direct CoreWeave holdings and the CW Opportunity 2 LP SPV .
Dividend timing: If net realized gains occur by year-end, distributions would be made by year-end, with any residual paid early the next year; management aims to communicate early .
OpenAI valuation mark: The apparent “doubling” headline includes pre- vs post-money effects; the actual mark-up is “quite a bit less” than 100% .

Estimates Context

Q1 2025 Primary EPS (NII/share): Consensus −$0.14 vs actual −$0.16 (miss −$0.02).
Q1 2025 Total Investment Income: Consensus $1.229M vs actual $0.499M (miss −$0.730M).
Coverage was limited (1 estimate per metric). The shortfall reflects a sharp decline in investment income vs prior year and continued elevated operating expenses . Values retrieved from S&P Global.

Key Takeaways for Investors

NAV resilience: Despite low investment income, +$2.9M unrealized appreciation stabilized NAV/share at $6.66 (down $0.02 Q/Q) .
Near-term catalysts: ServiceTitan expected tradable by June 2025 and CoreWeave by September 2025; management intends to exit post-lockup, potentially creating realized gains and dividend capacity .
AI optionality: CoreWeave’s IPO and OpenAI’s $40B financing underpin portfolio exposure to AI infrastructure and applications (~28% of FV), a core narrative into 2H 2025 .
Capital structure: 6.5% converts outstanding at $35M and 6.00% notes repurchase fully utilized ($35.3M retired) reduce near-term refinancing overhang for 2026 maturities .
Watchlist items: Expense ratios remain high; investment income is lumpy. NAV sensitivity to public marks and removal of registration discounts is material in coming quarters .
Trading lens: Stock is likely to react to (i) lockup expiries/monetizations and dividend declarations, (ii) CoreWeave price action and registration timing, and (iii) any updates on additional late-stage portfolio IPOs (e.g., Canva, Lime, Liquid Death) .

Notes and sources:

Q1 2025 8-K and press release financials, portfolio, NAV, liquidity, debt, and program updates .
Q1 2025 earnings call transcript (prepared remarks and Q&A) for strategy, catalysts, lockups/discounts, dividend framework, and NAV bridge .
Prior quarters (Q4 2024, Q3 2024) for trend analysis: NAV, portfolio, expense ratios, and context .
Estimates: S&P Global consensus and actual comparison (limited coverage; 1 estimate each). Values retrieved from S&P Global.

SURO CAPITAL CORP. (SSSS)·Q1 2025 Earnings Summary