SURO Capital (NASDAQ:SSSS) executives used the company’s fourth-quarter and fiscal year 2025 earnings call to emphasize improving portfolio momentum, exposure to artificial intelligence-related investments, and capital return initiatives, while also pointing to potentially significant valuation uplifts tied to financings that began unfolding after year-end.
Management highlights AI infrastructure tailwinds and post-year-end financings
Chairman and CEO Mark Klein said the company is “entering 2026 with meaningful momentum across our portfolio,” and framed the current environment around what he described as an accelerating global build-out of AI infrastructure. Klein said the trend is not “a passing theme” but a structural shift that is becoming “core infrastructure” for large technology platforms, with benefits flowing to private companies building enabling tools, platforms, and systems.
Because several transactions had not been publicly disclosed, management said it was limited in what it could share, but Klein pointed to OpenAI as a widely reported financing that occurred in the first quarter of 2026. He said the round was notable for the scale of capital now being committed to AI development and supporting infrastructure, and reiterated SuRo’s strategy of seeking value creation while companies are still private.
Fiscal 2025 performance: stock price, NAV growth, and dividends
Klein said SuRo’s stock price increased from $5.88 per share at year-end 2024 to $9.44 at the end of 2025, an increase of more than 60%. Including a $0.50 per share dividend declared and paid during the year, he said total shareholder return “approximated 70%.”
He also reported NAV growth, with NAV rising from $6.68 at the end of 2024 to $8.09 at the end of 2025, a year-over-year increase of about 21%. On a dividend-adjusted basis, Klein said the December 31, 2025 NAV would have been $8.59 per share, representing year-over-year growth of approximately 29%.
Fourth-quarter activity included CoreWeave-related distributions and select realizations
CFO Allison Green reviewed investment activity and realizations in the fourth quarter and subsequent to year-end. During the quarter, SuRo received three distributions from CW Opportunity 2 LP after the lifting of sales restrictions on publicly traded CoreWeave stock held by the fund in August 2025. Green described CW Opportunity 2 LP as a special purpose vehicle (SPV) whose Class A membership interest is solely invested in Class A common shares of CoreWeave, Inc.
Green said SuRo received fourth-quarter distributions totaling about $9 million, categorized in aggregate as approximately $2.3 million return of capital and $6.7 million gain. She said the fourth-quarter distribution represented about 15.3% of SuRo’s $15 million investment in CW Opportunity 2 LP, and that SuRo continued to have exposure through the remaining 68.1% of its initial investment in the vehicle as of year-end.
Other fourth-quarter items Green cited included:
- A sale on November 6 of SuRo’s remaining 70,500 public common shares of Forge Global Holdings, Inc. for net proceeds of about $3.1 million, resulting in a realized gain of about $1.1 million. Green said total realized gain on the investment was approximately $5 million.
- A loss tied to Rebric, Inc. (Compliable), after the company approved a plan to dissolve on October 16, resulting in a realized loss of about $1 million for SuRo.
- A distribution from True Global Ventures 4 Plus Fund of about $137,000.
TensorWave commitment and other post-year-end updates
Green said that on December 31, SuRo committed up to $20 million to Magnetar Opportunity 2025-4 LP, an SPV invested in TensorWave Inc. She added that SuRo funded $5 million of that commitment on January 2, and as of March 10 had funded $5 million total. The remaining commitment of up to $15 million is subject to the satisfaction of certain conditions.
Klein described TensorWave as operating in a market positioned to benefit from demand for AI compute, noting the company’s deployment of what it described as the world’s largest liquid-cooled AMD GPU cluster and additional 10-megawatt deployments in Arizona and Pennsylvania. In Q&A, Klein said the investment was attractive in part because it provided exposure “on the AMD side of the chips as opposed to the NVIDIA side,” and was structured to limit initial exposure while allowing for a larger investment if certain conditions are met. He said the $20 million commitment does not necessarily indicate all future investments will be that size, but reflected SuRo’s desire to “lean into” the opportunity.
Post year-end, Green said SuRo sold 106,580 shares of GrabAGun Digital Holdings, Inc. after lock-up restrictions were removed on January 15, generating net proceeds of about $327,000 and a realized gain of about $214,000. As of March 10, SuRo continued to hold 933,420 public common shares, or about 90% of its original position. She also noted a subsequent distribution from True Global Ventures 4 Plus Fund of about $246,000.
Portfolio composition, NAV bridge, and capital management actions
Green said SuRo’s top five positions at December 31 were OpenAI, Whoop, Blink Health, Canva, and Learneo, accounting for about 54% of the investment portfolio at fair value. The top 10 positions accounted for about 80% at fair value.
By investment theme, Green said the largest allocation at year-end was to artificial intelligence infrastructure and applications at about 31% of the portfolio at fair value. Consumer goods and services and software-as-a-service were about 21% and 20%, respectively. Education technology was about 11%, financial technology and services about 8%, logistics and supply chain about 8%, and SuRo Sports about 2%.
SuRo ended the fourth quarter with NAV of about $205.3 million, or $8.09 per share. Green said the decrease from $9.23 at the end of the third quarter was primarily driven by:
- A $0.84 per share decrease from net change in unrealized appreciation of investments
- A $0.25 per share decrease from dividends declared and paid during the quarter
- A $0.22 per share decrease due to net investment loss
- A $0.10 per share decrease related to stock-based compensation
These items were partially offset by a $0.27 per share increase from net realized gain on investments during the quarter, Green said.
On capital actions, Green said SuRo sold 6,595 shares under its at-the-market (ATM) program during the quarter at a weighted average price of $9.80 per share, and said that as of year-end, about $87.9 million remained available under the ATM program.
The company also continued repurchasing its 6% notes due 2026. Green said the board approved an extension of the discretionary note repurchase program that allows repurchases of up to an additional $40 million (or the remaining principal amount). During the quarter, SuRo repurchased an additional 153,513 notes. As of December 31, the company had repurchased 1,566,807 notes, or about $39.2 million in principal amount, for about $38.9 million including broker commissions—approximately 52% of the original issuance. She said about $35.8 million in principal amount remained available to be repurchased under the program.
Green also said the board extended the share repurchase program through the earlier of October 31, 2026, authorizing up to $64.3 million in aggregate repurchases, with $25 million remaining available.
Additionally, the board declared a $0.25 per share cash dividend on November 3, paid December 5, which Green said was generally attributable to successful monetizations of public securities and other portfolio developments. She added that SuRo determined the federal income tax classification of its 2025 distributions to be capital gains. The dividend also triggered an adjustment to the conversion rate applicable to SuRo’s 6.5% convertible notes due 2029, with the conversion price adjusted to $7.32 per share from $7.52.
As of December 31, Green said SuRo had 25,377,756 common shares outstanding and ended the year with about $50.1 million of liquid assets, including about $49 million in cash and about $1.1 million in unrestricted public securities. She noted that approximately $17.8 million of public securities were subject to lockup or other sales restrictions at year-end, including the remaining CoreWeave exposure through CW Opportunity 2 LP and GrabAGun shares that became unrestricted after year-end.
In the Q&A, management reiterated that it expects the financings underlying the $5 to $6.50 per share NAV estimate to be completed by the end of the quarter, though not necessarily announced by the companies. Klein also said SuRo does not “generate income outside of realized capital gains,” and Green noted operating expenses have been “pretty static” over the last two years, with no expectation of significant change.
Klein closed by saying 2026 had started “even more exciting” than 2025, and that the team was focused on executing amid what it views as an accelerating AI-driven technology cycle.
About SURO Capital (NASDAQ:SSSS)
SURO Capital Corp (NASDAQ: SSSS) is a closed-end management investment company that operates as a business development company (BDC). Founded in 2013 and headquartered in Lewisville, Texas, SURO Capital provides capital solutions to lower middle-market companies across a range of industries. As a BDC, the company is governed by the Investment Company Act of 1940 and focuses on offering debt and equity financing to privately held businesses that may have limited access to traditional bank lending.
The firm’s primary business activities include originating and managing a diversified portfolio of senior secured floating rate loans, unsecured loans, unitranche debt, and equity co-investments.
