Trinity Capital Inc. (TRIN)

Price$18.01Cached quoteAs of 2026-09-18 00:07 UTC

AI: Fair-priced

Price checkThe income yield is attractive, but buyers already pay well above underlying assets.

The shares trade at about 1.32 times June net asset value, meaning assets minus liabilities, of $13.47 per share. They also trade near 8.7 times annualized second-quarter net investment income, the lender’s recurring income after operating and borrowing costs. The $0.51 quarterly distribution implies roughly an 11.4% annual cash yield and exactly matched second-quarter income per share. That yield is appealing, but the 32% asset premium leaves little valuation cushion if credit losses rise. The balanced evidence supports Fair-priced, not a clear bargain.

Big pictureProfit growth is strong, though each share has benefited much less.

The supplied history shows net income rising from $76.9 million in 2023 to $135.6 million in 2025, yet basic earnings per share fell from $2.19 in 2024 to $1.96 in 2025 as the share count expanded. Second-quarter investment income also slipped to $0.51 per share from $0.53 a year earlier despite 32% total growth. Negative operating cash flow reached $535.5 million in 2025, but for this lender it largely reflects making loans, not ordinary cash burn; financing supplied $545.8 million. Falling rates could reduce income because 81.5% of debt investments have floating rates.

Business strengthLow troubled loans and ample funding support the payout, but leverage is meaningful.

June’s $2.7 billion portfolio covered 190 companies, and 89.3% of loans were first-lien, giving Trinity the first claim on pledged assets. Loans not currently paying interest were only $18.7 million, or 0.8% of debt investments. Available liquidity was $430.1 million. However, net leverage—debt after cash relative to shareholder equity—was 118%, up from 115% in March, while supplied data show debt rising from $893.7 million at 2024 year-end to $1.52 billion. The six-year regular-dividend record is reassuring, but a stressed growth-company cycle could erode collateral and coverage.

What could change the storyStable credit would justify the premium; weaker loans or rates would quickly challenge it.

Shares outstanding jumped 52%, from 61.7 million at 2024 year-end to 94.0 million in June. This is not automatically harmful: Trinity sold 6.1 million second-quarter shares at roughly 24% above the prior net asset value, lifting book value per existing share. The bull case requires quarterly investment income to stay near or above the $0.51 payout while non-paying loans remain around 1% and net asset value grows. The bear case begins if dilution keeps reducing per-share income, floating-rate yields fall, or credit losses erase the market premium.

AI: News

Record income, thinner per-share gainQuarterly income reached a record, but rapid share issuance held back gains for each share.

On August 5, Trinity reported $87.2 million of second-quarter investment income, up 25.5%, and record net investment income of $46.0 million, up 32.1%. Yet income per share declined to $0.51 from $0.53 because the weighted share count rose 37%. The shares fell 5.1% that day on unusually heavy volume, then recovered over subsequent sessions. The timing suggests the report influenced trading, but it does not prove that dilution or any single figure caused the decline.

Record lending paceA surge in new lending expands future income while raising funding and credit demands.

On July 9, Trinity disclosed $709 million of second-quarter commitments and $619 million of funded investments, taking first-half commitments to $1.1 billion. Quarterly exits and repayments were $378 million, so new funding substantially exceeded repayments and helped expand the portfolio. More interest-earning assets can raise future income, but they also require additional debt or share issuance and careful underwriting. That trade-off matters because net leverage subsequently reached 118% and the borrowers include growth companies whose finances can weaken quickly.

Dividend held steadyThe regular payout stayed unchanged, confirming income stability without adding a larger safety cushion.

On June 17, the board maintained monthly distributions of $0.17 per share for July through September, or $0.51 for the quarter. Trinity said shareholders had received a consistent or increased regular dividend for more than six years. Second-quarter net investment income also equaled $0.51 per share, providing full but narrow current coverage. Undistributed prior earnings offer some support, although a sustained decline in floating-rate loan income or an increase in non-paying borrowers could still pressure future coverage.

Longer-term debt raisedNew long-term debt improved funding certainty but locked in a substantial annual interest bill.

On May 19, Trinity priced $300 million of unsecured notes carrying 7% interest and maturing in May 2031. Management intended to use the proceeds to repay part of its KeyBank credit facility. The transaction lengthened funding and reduced dependence on revolving bank borrowing, but it creates about $21 million of annual interest expense before issuance costs. That fixed obligation matters if floating-rate asset yields decline, although it also protects Trinity from having to refinance the same amount during a difficult credit market.

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Revenue

2022

2023

2024

2025

Net income

2020

2021

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020
Revenue	$204.6M	$175.5M	$124.6M	$9.4M	—	—
Operating expenses	$147.0M	$119.2M	$89.4M	$71.5M	$42.9M	$31.6M
Net income	$135.6M	$115.6M	$76.9M	−$30.4M	$132.3M	−$6.1M
Net profit margin	66.27%	65.87%	61.74%	−323.45%	—	—
Basic EPSper basic share	$1.96	$2.19	$1.98	-$0.96	$5.09	-$0.34
Diluted EPSper diluted share	$1.96	$2.10	$1.89	-$0.96	$4.64	-$0.34

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Owners

Reported shareholders

Ownership data is not available for this listing yet.

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys51$1.63M disclosed value

Sells (SEC code S)2$49.7K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Mar 16, 2026Form 4	Estes Ronald E.Director	BuyCommon Stock	800	$14.16	$11.3K	40.4K
Mar 16, 2026Form 4	Brown Kyle StevenCEO, President and CIO	BuyCommon Stock	3.5K	$14.16	$50.0K	620.7K
Mar 12, 2026Form 4	Brown Steve LouisExecutive Chairman	BuyCommon Stock · indirect	27.1K	$14.75	$399.9K	940.7K
Mar 11, 2026Form 4	Estes Ronald E.Director	BuyCommon Stock	500	$14.75	$7.4K	39.6K
Mar 9, 2026Form 4	Brown Steve LouisExecutive Chairman	BuyCommon Stock · indirect	518	$14.82	$7.7K	913.6K