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

You're looking at SuRo Capital Corp. (SSSS) because you want a clean, public-market entry point into high-growth, venture-backed companies, but you need to know if the recent momentum is defintely sustainable given the volatility in private valuations. The Q3 2025 results, reported on November 4, 2025, give us a clear signal: the firm is riding the AI wave hard, reporting a Net Asset Value (NAV) of $9.23 per share as of September 30, 2025, which drove a net increase in net assets from operations of $7.4 million, or $0.30 per share for the quarter. That's a strong operational beat, and the announced $0.25 cash dividend for December 2025 is a tangible return for shareholders. Still, what this momentum hides is a significant concentration risk (having too many eggs in a few baskets), as their top five portfolio investments-which include major players like CoreWeave and OpenAI-account for approximately 52% of the total portfolio value of around $252.2 million. We need to look past the headline NAV and dissect the valuation models of those core holdings to see if the current stock price of $9.29 is truly justified.

Revenue Analysis

You need to look past the top-line number for a Business Development Company (BDC) like SuRo Capital Corp. (SSSS) because their true economic performance is driven by investment gains, not just traditional interest and dividend income. While the reported Total Investment Income (the core revenue line) for the nine months ended September 30, 2025, was only $1.13 million, down substantially from $3.44 million a year ago, the real story is in the portfolio's performance.

This drop in traditional revenue represents a year-over-year decrease of roughly 67.2% for the nine-month period, which is a headwind. But honestly, the BDC model means you should be focused on the realized and unrealized gains from their venture capital (VC) portfolio, which is where the value is unlocked.

The primary revenue sources for SuRo Capital Corp. are categorized as follows:

• Investment Income: Interest and dividends from portfolio companies. This is the reported revenue.
• Net Realized Gains: Profits from selling an investment (an 'exit'). This is a huge value driver.
• Net Change in Unrealized Appreciation: The paper gain or loss on the fair value of held investments.

The shift in the investment landscape is defintely clear when you map the Q3 2025 results against the prior year. Here's the quick math on the major components:

The most significant change in the revenue stream is the flip from a net realized loss to a substantial gain. Specifically, the $5.2 million in net realized gains for Q3 2025 was largely supported by the monetization of a position in CW Opportunity 2 (which holds CoreWeave), generating $4.7 million in realized gains. This single, concentrated investment in AI infrastructure is currently the largest position by fair value and is driving the portfolio's positive momentum.

What this estimate hides is the concentration risk; the top five investments accounted for approximately 52% of the total portfolio's fair value as of September 30, 2025. So, while the AI-driven sector is an opportunity, its outsized contribution means the overall financial health is tightly linked to the performance of a few key players like CoreWeave and OpenAI. To understand the long-term strategy behind these investments, you should review their Mission Statement, Vision, & Core Values of SuRo Capital Corp. (SSSS).

Profitability Metrics

You're looking at SuRo Capital Corp. (SSSS) and trying to figure out if the business is actually making money, which for a Business Development Company (BDC) means looking past the usual profit margins. The traditional metrics like Gross Profit are less relevant here because SSSS's primary business is investing, not selling a product. The real measure of profitability is the Net Increase in Net Assets Resulting from Operations, which captures both recurring investment income and the critical realized and unrealized gains from their portfolio.

The direct takeaway for Q3 2025 is that while SSSS posted a Net Investment Loss, the overall portfolio appreciation drove a strong total return. The company reported a Net Investment Loss (NIL) of $3.5 million, or $0.14 per share, for the quarter ended September 30, 2025. Still, the total Net Increase in Net Assets from Operations-your true bottom line-was a positive $7.4 million, or $0.30 per share, a significant turnaround from the prior year's decrease.

Here's a quick look at the key components that drove this profitability:

• Net Investment Loss: $3.5 million (The loss from recurring income minus expenses).
• Net Realized Gain: $5.2 million (From selling investments like CoreWeave).
• Net Unrealized Appreciation: $5.7 million (The paper gain on holdings like OpenAI).

Operational Efficiency and Margin Trends

Operational efficiency for SSSS is defintely mapped to cost management relative to total assets, but its profitability trend is overwhelmingly tied to its investment selection. The shift in Q3 2025 shows the model working: the company is realizing gains and seeing portfolio appreciation that easily covers the Net Investment Loss. This is a crucial distinction. The Net Asset Value (NAV) per share-the book value for a BDC-climbed to $9.23 as of September 30, 2025, up from the dividend-adjusted $8.93 per share at the end of June. That 3.36% quarterly NAV increase is the signal of a healthy total return.

The company's focus on AI infrastructure, including major positions in OpenAI and CoreWeave, is the key driver here. The distributions from CW Opportunity 2 LP in Q3 2025, for instance, included approximately $4.7 million in recognized gains. This means SSSS's profitability is less about managing a tight expense ratio and more about getting the big, private-market bets right. That's a higher-risk, higher-reward profile.

Benchmarking Against the BDC Sector

When you compare SSSS to the broader BDC industry, the picture is mixed but strategic. The typical BDC focuses on senior secured debt to middle-market companies, generating a steady Net Investment Income (NII). The industry median NII has actually declined by about -13% over the past year as of mid-2025, primarily due to changes in short-term interest rates. SSSS, however, is an outlier, focusing on high-growth, venture-backed equity, which makes its Net Investment Income volatile or negative.

Here's the quick math on the industry: while the overall assets under management (AUM) for BDCs have exploded from $127 billion in 2020 to approximately $451 billion in 2025, SSSS is playing a different game within that growing sector. Its profitability is not judged on a stable NII margin, but on the magnitude of its capital gains and unrealized appreciation. The volatility is higher, but so is the potential for outsized NAV growth, as seen in the Q3 2025 results.

For a full picture of the risks and opportunities, you should read the rest of the analysis here: Breaking Down SuRo Capital Corp. (SSSS) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

You're looking at SuRo Capital Corp. (SSSS) and asking the right question: how is this growth financed? The balance sheet tells a clear story of a company that prioritizes flexibility, leaning more on equity than its peers, which is a smart move given the volatility in the venture-backed market.

As of the third quarter of 2025, SuRo Capital Corp. (SSSS) maintains a conservative debt profile. The company reports approximately $125 million in total debt. This breaks down into a manageable $5 million in short-term debt and a larger $120 million in long-term debt. This structure shows they are not reliant on rolling over short-term liabilities, a defintely less risky position.

• Total Debt: $125 million.
• Long-Term Debt: $120 million, providing stability.
• Short-Term Debt: $5 million, minimal immediate burden.

The key metric here is the Debt-to-Equity (D/E) ratio. With total equity (Net Asset Value) sitting near $250 million as of Q3 2025, SuRo Capital Corp. (SSSS)'s D/E ratio is a low 0.50. Here's the quick math: $125 million in total debt divided by $250 million in total equity equals 0.50.

This is significantly below the industry standard for Business Development Companies (BDCs), which often operate with a D/E ratio in the 0.80 to 1.20 range, sometimes higher, especially following the 2018 regulatory changes that allowed BDCs to increase leverage. SuRo Capital Corp. (SSSS) is clearly reserving its borrowing capacity.

In terms of recent activity, the company did tap the debt markets earlier this year, issuing $50 million in unsecured notes in the first quarter of 2025. This move was strategic, locking in longer-term, non-recourse financing to fund new portfolio investments without the restrictions of secured debt. They are using debt financing judiciously to complement their primary funding source-equity.

The company balances its capital structure by using equity funding as the primary engine for growth, which is typical for a BDC focused on pre-IPO companies where cash flow predictability is lower. They use debt mostly to opportunistically scale up investments when they see a clear value proposition, rather than as a core, high-leverage strategy. This approach keeps their credit rating stable and their cost of capital reasonable.

You can dig deeper into who is buying the stock and why their investment profile matters for this capital structure by Exploring SuRo Capital Corp. (SSSS) Investor Profile: Who's Buying and Why?

What this estimate hides is the potential for a quick shift in the D/E ratio if the valuation of their private holdings (the equity side) drops sharply, but for now, the low leverage gives them a substantial cushion.

Liquidity and Solvency

You need to know if SuRo Capital Corp. (SSSS) can cover its short-term obligations, and the answer is a resounding yes. The company's liquidity position as of the third quarter of 2025 is defintely robust, driven by a business model that holds a significant portion of its assets in highly liquid forms, even as it invests in private companies.

The core measure of immediate financial health-the current ratio (current assets divided by current liabilities)-stands at an exceptional 18.31 for the period ending September 30, 2025. To be fair, for a Business Development Company (BDC), this number is often high because their primary assets are investments, which are generally considered current assets. A ratio this high means SuRo Capital Corp. (SSSS) holds over 18 times more current assets than current liabilities. That's a massive buffer.

Here's the quick math on their short-term position:

• Current Ratio: 18.31
• Quick Ratio (Acid-Test Ratio): 18.00

The quick ratio, which removes inventory from the calculation, is nearly identical to the current ratio. This tells you that inventory is negligible, which is standard for an investment fund, and all their current assets are highly liquid, like cash and short-term investments. Their liquid assets-cash and directly-held, unrestricted publicly traded securities-were approximately $58.3 million as of September 30, 2025. That's a clear strength.

The trend in working capital is strong, but you have to watch the composition. While the ratios are superb, the working capital is primarily composed of investment assets. The risk isn't a lack of assets, but the potential volatility in the fair value of those private investments. Still, the current ratio trend shows a significant improvement from prior years, indicating a more conservative or liquid balance sheet structure heading into 2026.

Looking at the cash flow statements gives us a clearer picture of where the money is moving. For the trailing twelve months (TTM) ending September 30, 2025, the company generated $17.47 million in Net Cash from Operating Activities. This positive operating cash flow is a healthy sign, as it means the core business activities are generating cash, not consuming it.

The Investing and Financing cash flows reflect the company's nature as an investment fund:

The key takeaway is that SuRo Capital Corp. (SSSS) has no near-term liquidity concerns. The 18.31 current ratio is your safety net. The main potential risk isn't a lack of cash to pay bills, but rather the concentration risk in the investment portfolio, with the top five investments representing approximately 52% of the total portfolio value. This concentration means any major valuation change in a top holding, like OpenAI or CoreWeave, could quickly impact the Net Asset Value (NAV) and, by extension, the perceived liquidity of the overall balance sheet. For a deeper dive into their long-term strategy, check out the Mission Statement, Vision, & Core Values of SuRo Capital Corp. (SSSS).

Valuation Analysis

SuRo Capital Corp. (SSSS) appears to be undervalued based on its Price-to-Book (P/B) ratio and its forward earnings forecast for 2025, but its negative trailing earnings and high dividend payout ratio signal a high-risk profile you must account for.

When you look at the core valuation metrics, the picture is complex. As a business development company (BDC) that invests heavily in late-stage private companies like Plaid and has seen portfolio successes like CoreWeave's IPO in 2025, its true value is often tied to the Net Asset Value (NAV) of its private holdings, not just public market sentiment. This means the Price-to-Book ratio is your most reliable anchor here.

The stock is trading at a Price-to-Book (P/B) ratio of roughly 0.89, using the current price of approximately $9.80 and a recent Book Value per Share (BVPS) of $9.19 as of June 2025. A P/B below 1.0 suggests the stock is trading for less than the value of its net assets, which is a classic signal of being undervalued.

Here's the quick math on earnings: The Trailing Twelve Months (TTM) Price-to-Earnings (P/E) ratio is negative because the company reported negative earnings per share (EPS). But, analysts forecast a full-year 2025 EPS of $2.12. [cite: 6 from first search] This gives us a forward P/E ratio of about 4.62 ($9.80 / $2.12), which is defintely low and points to a significant opportunity if that earnings forecast holds.

The Enterprise Value-to-EBITDA (EV/EBITDA) ratio is also negative, sitting at approximately -18.03, because the TTM EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is negative. This metric is less useful for a company with negative cash-flow-based earnings, but it confirms the TTM financial stress.

The stock price has been on a strong run over the last 12 months, climbing from a 52-week low of $4.21 to a high of $10.34. [cite: 10 from first search, 14 from first search] The current price of around $9.80 is near the top of that range, which suggests the market is already pricing in some of the recent portfolio successes, like the CoreWeave and OpenAI developments. You need to be aware of this momentum.

The analyst consensus is a 'Moderate Buy' or 'Buy' rating from the four to five firms covering the stock as of November 2025. [cite: 1 from first search, 2 from first search] The average 12-month price target is between $10.12 and $10.83, indicating a modest upside from the current price. [cite: 1 from first search, 2 from first search] This consensus suggests they see the undervaluation closing the gap to the NAV per share.

The dividend situation is a major talking point. SuRo Capital Corp. (SSSS) has an annualized dividend of $1.00 per share, translating to a substantial yield of around 10.0% to 11.60%. [cite: 14 from first search, 15 from first search] But here is the risk: the dividend payout ratio is negative at -131.6%. [cite: 14 from first search] This means the company is currently paying the dividend out of its balance sheet and realized gains, not its net investment income, which is unsustainable long-term without significant new portfolio exits.

• Monitor the dividend payout ratio; a negative -131.6% is a red flag.
• Use the P/B of 0.89 as your primary valuation guide.
• Factor in the average price target of $10.58 for your near-term exit strategy.

To understand the long-term strategy behind these numbers, you should review the Mission Statement, Vision, & Core Values of SuRo Capital Corp. (SSSS).

Risk Factors

You need to look past the impressive Net Asset Value (NAV) growth-up to $9.23 per share as of September 30, 2025-and really understand what's driving it, because that's where the risk lives. SuRo Capital Corp. (SSSS) is a Business Development Company (BDC) focused on high-growth, venture-backed companies, so its risk profile is naturally higher than a diversified fund. The biggest near-term risks are simple: concentration and market volatility.

The external risks are the ones we all face. Right now, market volatility is a huge factor, especially in the tech sector where SuRo Capital Corp. invests. An economic downturn could disproportionately impact these emerging companies, potentially leading to a loss of some or all of the investment. Plus, as a BDC, SuRo Capital Corp. is subject to the Investment Company Act of 1940 (the 1940 Act), which limits its operational flexibility, like how much leverage (debt) it can use. That's a regulatory risk you defintely need to track.

Operational and strategic risks are front and center in the 2025 filings. The portfolio is highly concentrated. As of June 30, 2025, the top five investments accounted for approximately 53% of the total portfolio's fair value. That's a lot of eggs in a few baskets. A significant portion, about 30.5%, is concentrated in AI infrastructure companies like CoreWeave and OpenAI. If the AI market slows or if one of those key companies stumbles, the impact on the total NAV of approximately $231.8 million is immediate and severe.

Here's the quick math: if the valuation of just the top two holdings drops by 20%, your NAV takes a serious hit. Another huge operational challenge is valuation risk. Most of SuRo Capital Corp.'s investments are in private companies, meaning their valuation is an estimate of fair value, not a public market price. This introduces uncertainty, and those valuations can swing wildly between reporting periods.

To be fair, management is taking clear actions to mitigate some of this. Their deliberate strategic focus on AI infrastructure is a bet on a generational shift, but it also creates the concentration risk mentioned above. They are also actively monetizing investments to return capital to shareholders, which helps. For example, they declared a cash dividend of $0.25 per share payable in December 2025, following a similar one in July 2025. This shows a commitment to liquidity and shareholder value, which is key for a BDC.

You can see their commitment to strategy in their Mission Statement, Vision, & Core Values of SuRo Capital Corp. (SSSS), but here are the immediate risks and mitigation strategies mapped out:

• Risk: Portfolio Concentration.
  Mitigation: Strategic focus on high-growth, high-potential AI infrastructure (CoreWeave, OpenAI).
• Risk: Private Company Valuation.
  Mitigation: Realized gains from monetizations, like the distributions from CW Opportunity 2 LP (CoreWeave), which generated approximately $14.2 million in aggregate distributions as of early Q4 2025.
• Risk: Market/Liquidity.
  Mitigation: Maintaining a strong liquid asset base of approximately $58.3 million as of September 30, 2025, for new investments and shareholder distributions.

What this estimate hides is the timing of those big IPOs, like OpenAI's potential public offering, which could be a massive, immediate NAV boost, but is entirely out of SuRo Capital Corp.'s control.

Next Step: Finance: Model a 15% to 25% haircut on the fair value of the top five private holdings to stress-test your own portfolio's exposure by the end of the month.

Growth Opportunities

You're looking at SuRo Capital Corp. (SSSS) and asking the right question: can this venture capital fund keep delivering growth from its private investments? The short answer is yes, but the growth is now heavily concentrated and tied to a single, massive trend: Artificial Intelligence (AI) infrastructure.

The company's future is defintely mapped to its early, strategic bet on AI. This focus drove a significant increase in Net Asset Value (NAV) per share to $9.23 as of September 30, 2025, up from $8.93 per share (dividend-adjusted) at the end of June. That's a clear signal that their portfolio companies, like CoreWeave and OpenAI, are creating value in the private market. The top five investments alone accounted for approximately 52% of the total portfolio fair value as of Q3 2025. That's a huge concentration, so you need to be comfortable with the performance of those few names.

Here's the quick math on what analysts are projecting for the full 2025 fiscal year, which helps set a near-term expectation for their operating income, even as the NAV grows from investment appreciation:

What this estimate hides is that the bulk of their value creation comes from unrealized appreciation-the rising value of their private holdings-not recurring revenue. For example, Q3 2025 saw a net increase in net assets from operations of $7.4 million, or $0.30 per share, which was driven by portfolio appreciation, not just fee income.

The key growth drivers are very specific:

• AI Infrastructure Dominance: Approximately 30.5% of the $252.2 million portfolio fair value as of September 30, 2025, was allocated to AI Infrastructure & Applications.
• Monetization Events: Realizing gains from investments like the $25.3 million from CoreWeave and $15.9 million from ServiceTitan in Q2 2025 provides cash for new opportunities and shareholder distributions.
• New Sector Bets: Strategic investments, such as the $5.0 million deployed into Plaid (fintech) in Q2 2025 and the $5 million into HL Digital Assets, Inc. (digital assets) in Q3 2025, show a continued hunt for category-defining companies.

SuRo Capital Corp.'s competitive advantage is simple: they act as the public's gateway to venture capital (VC). They offer you a way to invest in highly sought-after private companies like OpenAI and CoreWeave before they go public, which is an access point most individual investors can't get on their own. Plus, they are actively managing shareholder value. In Q3 2025, they declared a $0.25 per share cash dividend. They also extended their discretionary share repurchase program until October 31, 2026, with approximately $25 million remaining under the authorization. This shows a commitment to using liquidity to return capital, which is a big deal in the VC space. For a deeper dive into who is betting on this strategy, you should check out Exploring SuRo Capital Corp. (SSSS) Investor Profile: Who's Buying and Why?