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© 2025 Rand Capital Corporation Nasdaq: RAND FIRST QUARTER 2025 FINANCIAL RESULTS May 5, 2025 Daniel P. Penberthy President & CEO Margaret W. Brechtel EVP & CFO
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Nasdaq: RAND© 2025 Rand Capital Corporation FORWARD LOOKING STATEMENTS 2 This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than historical facts, including but not limited to statements regarding the strategy of the Company and its outlook; statements regarding the implementation of the Company’s strategy and the growth of its dividend; and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target” or other similar words or expressions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) evolving legal, regulatory and tax regimes; (2) changes in general economic and/or industry specific conditions; and (3) other risk factors as detailed from time to time in Rand’s reports filed with the Securities and Exchange Commission (“SEC”), including Rand’s annual report on Form 10-K for the year ended December 31, 2024, quarterly reports on Form 10-Q, and other documents filed with the SEC. Consequently, such forward-looking statements should be regarded as Rand’s current plans, estimates and beliefs. Except as required by applicable law, Rand assumes no obligation to update the forward-looking information contained in this presentation. The Company’s investment activities are managed by its external investment adviser, Rand Capital Management, LLC. Additional information can be found at the Company’s website where it regularly posts information: https://www.randcapital.com/. All information contained herein is for informational purposes and should not be construed as investment advice. It does not constitute an offer, solicitation or recommendation to purchase any security. Past performance does not guarantee future results. Diversification does not guarantee a profit or protect against a loss.
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Nasdaq: RAND© 2025 Rand Capital Corporation Financial Performance • Net investment income grew 45% YoY to $1.2 million, or $0.42 per share, despite a modest decline in total investment income due to the repayment of three debt instruments during the quarter • Total expenses declined 36% YoY, driven by reduced interest expense and lower management fees • Net Asset Value (NAV) per share was $21.99 at quarter-end1 reflecting the issuance of additional shares tied to the Q4 2024 dividend Strengthened Balance Sheet & Shareholder Returns • Repaid revolver debt during the quarter • Ended Q1 2025 with $22+ million in available credit capacity and $4.9 million in cash • Realized gain of $925,000 during the quarter from portfolio exits • Declared $0.29 per share dividend for Q2 2025 Positioned for Future Growth • Maintained strong liquidity and disciplined capital deployment strategy • Experiencing a slowdown in new investment opportunities, influenced by broader economic and political uncertainties • Well-positioned to capitalize on favorable market conditions as they emerge 3 Q1 RESULTS: RESILIENT PERFORMANCE, STRONGER BALANCE SHEET, AND STRATEGIC POSITIONING FOR FUTURE GROWTH The Rand Building, Buffalo, NY 1 Net asset value per share amounts based on shares outstanding of 2,969,814, which includes the additional shares of common st ock issued by the Company in January 2025 pursuant to the Company’s Q4 2024 cash and stock dividend. (Results compared with the prior-year period unless otherwise noted)
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Nasdaq: RAND© 2025 Rand Capital Corporation March 3, 2025: declared quarterly cash dividend of $0.29 per share • Paid during the first quarter to shareholders of record as of March 14, 2025 • Total dollar amount of the distribution increased due to the ~389,000 shares distributed in January 2025 as part of the Q4 2024 dividend April 30, 2025: Declared quarterly cash dividend of $0.29 per share • Dividend payable on or about June 13, 2025, to shareholders of record as of May 30, 2025 4 DELIVERING CASH DIVIDENDS (Results compared with the prior-year period unless otherwise noted) 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% Dividend Yield LTM $0.38 $0.20 $0.25 $0.25 $0.63 $0.25 $0.29 $0.29 $0.29 $0.29 Quarterly Declared Dividends $4.20
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Nasdaq: RAND© 2025 Rand Capital Corporation Portfolio fair value decrease primarily reflects repayment of three debt instruments Mix at quarter-end, based on fair value: 72% Fixed-rate debt investments 28% Equity investments in private companies Annualized weighted average yield of debt investments, which includes PIK interest, was 12.2% at March 31, 2025 PORTFOLIO COMPOSITION AND YIELD FOCUS 5 17 14 5 5 YE 2024 Q1 2025 Portfolio Mix (# of Companies) Debt Equity 22 $53.1 $44.9 $17.7 $17.3 YE 2024 Q1 2025 Fair Value Portfolio Mix ($ in millions) $70.8 $62.2 19
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Nasdaq: RAND© 2025 Rand Capital Corporation Q1 2025 PORTFOLIO ACTIVITY 6 Investments Exits / Repayments Exited investment, receiving full repayment of a $5.6 million debt instrument Exited investment in HDI Acquisition LLC, receiving full repayment of a $1.1 million debt instrument Funded follow-on debt investment of $375,000 Total debt and equity investments at a fair value of $2.0 million Blind and shade manufacturing Exited investment, receiving full repayment of a $1.7 million debt instrument. As part of the exit, Rand sold its warrants, generating a realized gain of $870,000.
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Nasdaq: RAND© 2025 Rand Capital Corporation PORTFOLIO INDUSTRY CLASSIFICATION 7 Professional Services 48% Consumer Products 18% Manufacturing 13% Distribution 10% Automotive 4% Software 4% Health and Wellness 4% Based on total investments at fair value of $70.8 million December 31, 2024 Professional Services 45% Consumer Products 21% Distribution 12% Manufacturing 8% Automotive, 5% Software 5% Health & Wellness 4% Based on total investments at fair value of $62.2 million March 31, 2025
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Nasdaq: RAND© 2025 Rand Capital Corporation TOP FIVE PORTFOLIO INVESTMENTS $62.2 million portfolio fair value with 19 portfolio companies ($ in millions) Company Investments at Fair Value Year Acquired Industry % of Total Portfolio Investment Type Tilson $11.5 2015 Professional Services – Cellular info systems, construction, mgmt. 19% Equity – paying dividend Seybert’s $8.2 2021 Consumer Product – Billiard supplies 13% Term note (12% plus 2% PIK) Warrant Food Service Supply $7.0 2022 Professional Services – Services for commercial kitchens and new builds 11% Term note (12%) Equity Inter-National Electronic Alloys LLC $4.7 2023 Distribution - controlled expansion alloys, electronic grade nickels, refractory grade metals and alloys, and soft magnetic alloys 8% Term note (12%) Equity Caitec $4.6 2020 Consumer Product – wide range of high-quality pet products 7% Term note (14% PIK) Total Top 5 $36.0 58% All values as of March 31, 2025. Totals may not foot due to rounding. 8
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© 2025 Rand Capital Corporation Nasdaq: RAND FINANCIAL REVIEW
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Nasdaq: RAND© 2025 Rand Capital Corporation Q1 2025 Q1 2024 Total investment income $ 2,008 $ 2,067 Total expenses 791 1,227 Net investment income¹ 1,218 840 Net investment income per share² $ 0.42 $ 0.33 Adjusted net investment income per share³ $ 0.40 $ 0.37 Net realized and unrealized (loss) gain on investments $ (377) $ 560 Net increase in net assets from operations 841 1,399 Net increase in net assets from operations per share² $ 0.29 $ 0.54 FIRST QUARTER FINANCIAL SUMMARY 10 Total investment income down slightly • Reflects 8% reduction in interest from portfolio companies and lower dividend income, partially offset by an increase in non-recurring fee income Total expenses down 36% due to lower interest expense, capital gains incentive fee benefit and reduced base management fee, partially offset by income-based incentive fee • Recognized income-based incentive fee expense of $120,000 in Q1 2025; no similar expense in the prior-year period Excluding the capital gains incentive fee benefit, adjusted expenses decreased 22% to $866,000 in Q1 2025³ ¹ Net of income tax expense ² Per share amounts based on weighted average shares outstanding of 2,869,339 in Q1 2025 and 2,581,021 in Q1 2024. ³ Adjusted Net Investment Income per share and Adjusted Expenses are non-GAAP financial measures. Please see supplemental slides for a description of these non-GAAP financial measures and reconciliation tables between GAAP and non-GAAP. ($ in thousands, except per share data)
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Nasdaq: RAND© 2025 Rand Capital Corporation Net assets at 12/31/2024 Net investment income Net realized gain on sales and dispositions of investments Net change in unrealized appreciation/depreciation on investments Cash dividend Net assets at 3/31/2025 NET ASSET VALUE CHANGE: Q1 2025 11 ($ in thousands) Totals may not sum due to rounding $65,333 $1,218 $925 ($1,302) ($863) $65,311 $65,311,253$65,332,520
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Nasdaq: RAND© 2025 Rand Capital Corporation BALANCE SHEET, LIQUIDITY AND CAPITAL ALLOCATION Net Asset Value Composition Per Share Assets and Liabilities $1.66 $4.9 million consolidated cash $20.93 $62.2 million in private investments $(0.60) $(1.8) million other assets & liabilities, net $21.99 Net Asset Value (NAV) per share Total assets of $67.8 million was down 6% from year-end 2024 $4.9 million in cash, up from $835,000 at year-end 2024 Repaid revolver debt during the quarter • Over $22 million in available credit capacity Announced regular quarterly dividend of $0.29 per share for second quarter 2025 Did not repurchase any outstanding common stock during Q1 2025; Board of Directors renewed $1.5 million share repurchase program 12 At March 31, 2025
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Nasdaq: RAND© 2025 Rand Capital Corporation EXECUTING WITH DISCIPLINE: BUILDING LONG-TERM SHAREHOLDER VALUE Strategic Growth Amid a Cautious Environment • Well-positioned to execute on long-term strategy, supported by a resilient investment model • Slowdown in new investment opportunities, driven by macroeconomic and political uncertainty • Maintaining a long-term view, with the expectation that conditions may improve in the coming quarters • Continuing to scale income-generating assets through selective higher yielding debt investments Disciplined Capital Deployment & Risk Management • Capitalize on revolving credit availability to support future growth • Maintaining proactive portfolio oversight amid evolving macroeconomic challenges Commitment to Shareholders • Pursuing a sustainable dividend growth strategy, supported by an income producing portfolio • Practicing prudent financial management to drive NAV growth and returns 13 Objectives for 2025 and Beyond
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© 2025 Rand Capital Corporation Nasdaq: RAND SUPPLEMENTAL INFORMATION
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Nasdaq: RAND© 2025 Rand Capital Corporation ADJUSTED EXPENSES (NON-GAAP*) 15 *In addition to reporting total expenses, which is a U.S. generally accepted accounting principle (“GAAP”) financial measure, Rand presents adjusted expenses, which is a non-GAAP financial measure. Adjusted expenses is defined as GAAP total expenses removing the effect of any (benefits)/expenses for capital gains incentive fees accrual. GAAP total expenses is the most directly comparable GAAP finan cial measure. Rand believes that adjusted expenses provides useful information to investors regarding financial performance because it is a meth od the Company uses to measure its financial and business trends related to its results of operations. The presentation of this additional informati on is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Three months ended March 31, 2025 Three months ended March 31, 2024 Total expenses $ 791,065 $ 1,226,856 Exclude (benefits)/expenses for capital gains incentive fees (75,000) 112,300 Adjusted total expenses $ 866,065 $ 1,114,556
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Nasdaq: RAND© 2025 Rand Capital Corporation ADJUSTED NET INVESTMENT INCOME PER SHARE (NON-GAAP*) 16 *In addition to reporting Net Investment Income per Share, which is a GAAP financial measure, the Company presents Adjusted N et Investment Income per Share, which is a non-GAAP financial measure. Adjusted Net Investment Income per Share is defined as GAAP Net Investment In come per Share removing the effect of any (benefits)/expenses for capital gains incentive fees. GAAP Net Investment Income per Share is the most directly comparable GAAP financial measure. Rand believes that Adjusted Net Investment Income per Share provides useful information to investors regarding financial performance because it is a method the Company uses to measure its financial and business trends related to its results of op erations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared i n accordance with GAAP. Totals may not sum due to rounding The first quarter 2025 per share amounts were computed using 2,869,339 weighted average shares outstanding, reflecting a high er number of shares outstanding following the fourth quarter 2024 dividend that was paid in part using shares of common stock, a s compared with 2,581,021 weighted average shares outstanding for the first quarter of 2024. Three months ended March 31, 2025 Three months ended March 31, 2024 Net investment income per share $ 0.42 $ 0.33 Exclude (benefits)/expenses for capital gains incentive fees per share (0.02) 0.04 Adjusted net investment income per share $ 0.40 $ 0.37
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© 2025 Rand Capital Corporation Nasdaq: RAND FIRST QUARTER 2025 FINANCIAL RESULTS May 5, 2025 Daniel P. Penberthy President & CEO Margaret W. Brechtel EVP & CFO