Rand Capital Corporation (RAND) AI Stock Analysis

Rand Capital Corporation operates as a business development company and regulated investment company specializing in private equity investments. Based in Buffalo, New York, the firm focuses on lower middle market and small to medium-sized privately held companies, primarily avoiding real estate. It targets businesses innovating in healthcare, consumer products, manufacturing, software, and professional services across Western and Upstate New York, as well as nearby Canadian regions. Rand Capital typically invests $0.5 million to $1.5 million per round, with total investments of $1 million to $5 million per company. It focuses on enterprises with annual revenues up to $10 million and EBITDA up to $5 million, seeking minority stakes and board representation.

Rand Capital has experienced wide annual top-line fluctuations, delivering a 5-year revenue CAGR of 5.3% from FY2020 to FY2025. Revenue rose to $17.2M in FY2021 before falling 96.0% to $682,436 in FY2022. It rebounded to $9.1M in FY2023 and $11.2M in FY2024, but dropped 60.1% to $4.5M in FY2025, when operating margin reached -176.2% and net income fell to -$8.0M. For the trailing twelve months, revenue was $5.5M with an operating margin of 58.8% and net margin of -2.7%. In the latest quarter ended June 30, 2026, quarterly revenue fell 13.0% year-over-year while quarterly earnings declined 45.9%.

As of June 30, 2026, Rand Capital held $429,639 in cash and short-term investments against total debt of $5.1M, yielding net debt of $4.7M. Total assets stood at $57.7M compared to shareholders' equity of $51.5M, reflecting a debt-to-equity ratio of 0.10 and a current ratio of 0.17. In FY2025, operating cash flow and free cash flow both reached $11.3M, while dividends paid totaled $7.3M. In addition, the company's share count increased 15.0% over the trailing five-year period.

At $9.55 per share, Rand Capital carries a market capitalization of $28.4M and an enterprise value of $33.0M. The stock trades at a forward P/E of 53.2x, elevated compared to 10.8x for the median of its US-listed Financial Services peers. Its price-to-sales multiple of 5.2x also sits above the peer group median of 3.2x, while its price-to-book ratio is 0.6x and EV-to-revenue is 22.0x. Over the past year, Rand Capital shares fell 22.4%, lagging the S&P 500 return of 16.8%.

Rand Capital pays a quarterly dividend totaling an annualized $1.16 per share, which represents a 12.15% dividend yield at the recent close. The payout ratio stands at 51.2%, and the firm has paid dividends for 7 consecutive years. However, its dividend has registered an annualized 5-year decline of 16.5%. The last ex-dividend date was August 26, 2026.

Rand Capital currently has no Wall Street analyst rating counts, consensus recommendations, or published price targets. For the trailing twelve months, diluted earnings per share were -$0.03, down from an EPS of $3.42 recorded in FY2024 and -$2.70 in FY2025. The company's next scheduled earnings report date is November 6, 2026.

This page is an AI-written research summary of Rand Capital Corporation (RAND). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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