Trinity Capital Inc. (TRIN) Q1 2026 Earnings Call Transcript
Trinity Capital Inc. (TRIN) Q1 2026 Earnings Call Transcript

Trinity Capital, Inc. engages in the operation of an internally managed specialty lending company. It offers equipment lease line of credit, senior ...
Plutux is not an investment adviser. Market data and AI-generated analysis are for information and education only, not investment advice. Disclaimer
Est. EPS $0.52 · Revenue $91.06M · 1 analysts
Est. EPS $0.52 · Revenue $94.13M · 1 analysts
Est. EPS $2.08 · Revenue $359.62M · 1 analysts
Est. EPS $0.51 · Revenue $96.76M · 1 analysts
EPS $0.51 · Revenue $79.60M
EPS $0.53 · Revenue $83.32M
EPS $1.96 · Revenue $232.25M
EPS $0.52 · Revenue $56.48M
EPS $0.63 · Revenue $61.73M
| Metric | Latest | YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. | QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|---|---|---|
| RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). | $232.3M | +2.4% | -4.5% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $135.6M | +17.3% | +2.4% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +100.0% | +23.8% | +6.5% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | +93.1% | +24.8% | +6.8% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | +58.4% | +14.5% | +7.2% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $-535.5M | -671.3% | -330.1% |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | -230.6% | -657.7% | -350.2% |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | 119.9% | +11.5% | -100.0% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | 22.15x | +11.2% | — |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $2.5B | +40.0% | +9.8% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | 1.96 vs 2.08 | -5.7% | 0.51 vs 0.52 | -2.0% |
| Revenue Surprise | $232.3M vs $290.9M | -20.2% | $79.6M vs $91.1M | -12.6% |
Ben Malcolmson: Thank you, and welcome to Trinity Capital Inc.'s First Quarter 2026 Earnings Conference Call. Speaking on today's call are Kyle Brown, Chief Executive Officer; Sarah Stanton, General Counsel and Chief Compliance Officer; Michael Testa, Chief Financial Officer; and Gerald Harder, Chief Operating Officer. Also joining us for the Q&A portion of the call is Ronald Kundich, Chief Credit Officer. Earlier today, we released our financial results which are available on our website at ir.trinitycapital.com. Before we begin, please note that certain statements made during this call may be considered forward-looking under federal securities laws. Please review our most recent SEC filings for further information on the risks and uncertainties related to these statements. With that, allow me to turn the call over to Trinity Capital Inc. CEO, Kyle Brown. 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 …