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Horizon Technology Finance Announces Third Quarter 2026 Financial Results
- Third Quarter 2026 Net Investment Income per Share of
- Debt Portfolio Yield of 14.7% -
- Grows Committed, Approved and Awarded Backlog by 14% Sequentially to
Third Quarter 2026 and Recent Highlights
-
Net investment income (“NII”) of
$12.3 million , or$0.19 per basic share, compared to$14.0 million , or$0.32 per basic share for the prior-year period -
Total investment portfolio of
$650.3 million as ofSeptember 30, 2026 -
Net asset value of
$362.1 million , or$5.56 per share, as ofSeptember 30, 2026 - Annualized portfolio yield on debt investments of 14.7% for the quarter
-
Funded nine loans totaling
$98.4 million - Experienced liquidity events from six portfolio companies
-
Cash of
$107.8 million and committed credit facility capacity of$279.0 million as ofSeptember 30, 2026 -
Held portfolio of warrant and equity positions in 87 companies as of
September 30, 2026 -
Undistributed spillover income of
$0.24 per share as ofSeptember 30, 2026 -
Repurchased 2,033,991 shares of common stock at a weighted-average price of
$4.90 per share -
Subsequent to quarter end, declared distributions of
$0.06 per share payable in each of January, February andMarch 2027
“We were pleased to grow our debt investment portfolio for the fourth consecutive quarter, funding nine loans totaling
Third Quarter 2026 Operating Results
Total investment income for the quarter ended
The Company’s dollar-weighted annualized yield on average debt investments for the quarter ended
Total net expenses for the quarter ended
Horizon’s Advisor waived
Net investment income for the quarter ended
For the quarter ended
For the quarter ended
Portfolio Summary and Investment Activity
As of
|
($ in thousands) |
For the Three Months Ended
|
For the Nine Months Ended
|
||||||||||
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
Beginning portfolio |
$ |
676,711 |
|
$ |
622,653 |
|
$ |
647,244 |
|
$ |
697,891 |
|
|
|
|
|
|
|
||||||||
|
New debt and equity investments |
|
89,632 |
|
|
37,747 |
|
|
282,398 |
|
|
200,055 |
|
|
|
|
|
|
|
||||||||
|
Less refinanced debt balances |
|
— |
|
|
— |
|
|
(30,000 |
) |
|
(46,250 |
) |
|
|
|
|
|
|
||||||||
|
Net new debt and equity investments |
|
89,632 |
|
|
37,747 |
|
|
252,398 |
|
|
153,805 |
|
|
|
|
|
|
|
||||||||
|
Principal payments received on investments |
|
(3,070 |
) |
|
(14,462 |
) |
|
(13,457 |
) |
|
(41,292 |
) |
|
|
|
|
|
|
||||||||
|
Early pay-offs and principal paydowns |
|
(80,861 |
) |
|
(60,904 |
) |
|
(155,645 |
) |
|
(163,312 |
) |
|
|
|
|
|
|
||||||||
|
Payment-in-kind interest on investments |
|
829 |
|
|
664 |
|
|
3,674 |
|
|
1,192 |
|
|
|
|
|
|
|
||||||||
|
Accretion of debt investment fees |
|
1,429 |
|
|
1,189 |
|
|
5,870 |
|
|
4,487 |
|
|
|
|
|
|
|
||||||||
|
New debt investment fees |
|
(1,838 |
) |
|
(100 |
) |
|
(6,143 |
) |
|
(1,604 |
) |
|
|
|
|
|
|
||||||||
|
Equity and warrants received in settlement of fee income |
|
500 |
|
|
3,270 |
|
|
500 |
|
|
3,280 |
|
|
|
|
|
|
|
||||||||
|
Proceeds from sale of investments |
|
(545 |
) |
|
(4,533 |
) |
|
(2,553 |
) |
|
(5,317 |
) |
|
|
|
|
|
|
||||||||
|
Investment in RoHo Joint Venture |
|
8,295 |
|
|
— |
|
|
8,510 |
|
|
— |
|
|
|
|
|
|
|
||||||||
|
Net investment loss from RoHo Joint Venture |
|
(246 |
) |
|
— |
|
|
(246 |
) |
|
— |
|
|
|
|
|
|
|
||||||||
|
Net realized loss on investments |
|
(11,322 |
) |
|
(22,527 |
) |
|
(17,605 |
) |
|
(31,820 |
) |
|
|
|
|
|
|
||||||||
|
Net unrealized (depreciation) appreciation on investments |
|
(29,191 |
) |
|
40,517 |
|
|
(72,324 |
) |
|
(13,796 |
) |
|
|
|
|
|
|
||||||||
|
Other |
|
— |
|
|
— |
|
|
100 |
|
|
— |
|
|
|
|
|
|
|
||||||||
|
Ending portfolio |
$ |
650,323 |
|
$ |
603,514 |
|
$ |
650,323 |
|
$ |
603,514 |
|
Portfolio Asset Quality
Effective
Horizon’s Advisor (i) rated all of Horizon’s debt investments as of
The following table shows the classification of Horizon’s loan portfolio at fair value by internal credit rating, in each case presented under the updated 1-to-5 scale, as of
|
($ in thousands) |
|
|
|
|
|
|||||||||
|
|
Number of
|
Debt Investments
|
Percentage
|
|
Number of
|
Debt Investments
|
Percentage of
|
|
Number of
|
Debt Investments
|
Percentage
|
|||
|
Credit Rating |
|
|
|
|
|
|
|
|
|
|
|
|||
|
1 |
— |
$ |
— |
—% |
|
— |
$ |
— |
—% |
|
— |
$ |
— |
—% |
|
2 |
30 |
|
532,675 |
85.8% |
|
32 |
|
547,063 |
84.4% |
|
28 |
|
471,116 |
79.0% |
|
3 |
1 |
|
14,866 |
2.4% |
|
2 |
|
21,606 |
3.3% |
|
2 |
|
46,887 |
7.9% |
|
4 |
4 |
|
54,915 |
8.8% |
|
4 |
|
47,991 |
7.4% |
|
4 |
|
53,503 |
9.0% |
|
5 |
7 |
|
18,766 |
3.0% |
|
5 |
|
31,339 |
4.9% |
|
4 |
|
24,519 |
4.1% |
|
Total |
42 |
$ |
621,222 |
100.0% |
|
43 |
$ |
647,999 |
100.0% |
|
38 |
$ |
596,025 |
100.0% |
Under the updated 1-to-5 scale, Horizon’s debt investments had a weighted average credit rating of 2.3 as of both
As of
Liquidity and Capital Resources
As of
As of
During the third quarter, the Company amended its
During the third quarter, the Company amended its senior secured credit facility with a large
On
On
As of
Liquidity Events
During the quarter ended
In August, a portfolio company paid its outstanding principal balance of
In August, a portfolio company paid its outstanding principal balance of
In August, a portfolio company was acquired and paid its outstanding principal balance of
In September, a portfolio company paid its outstanding principal balance of
In July, a portfolio company paid its outstanding principal balance of
In August, HRZN received a partial paydown of
Net Asset Value
At
For the quarter ended
Stock Repurchase Program
On
During the quarter ended
Recent Developments
On
On
On
On
Monthly Distributions Declared in Fourth Quarter 2026
On
Monthly Distributions Payable in First Quarter 2027
|
Ex-Dividend Date |
Record Date |
Payment Date |
Amount per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total: |
|
After paying distributions of
When declaring distributions, Horizon’s board of directors reviews estimates of taxable income available for distribution, which may differ from consolidated net income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of spillover income carried over from a given year for distribution in the following year. The final determination of taxable income for each tax year, as well as the tax attributes for distributions in such tax year, will be made after the close of the tax year.
Conference Call
The Company will host a conference call today at
A webcast replay will be available on the Company’s website for 30 days following the call.
About Horizon Technology Finance
Horizon Technology Finance Corporation (NASDAQ: HRZN), externally managed by Horizon Technology Finance Management LLC, an affiliate of Monroe Capital, is a leading specialty finance company that provides capital in the form of secured loans to venture capital and private equity-backed companies and publicly traded companies in the technology, life science, healthcare information and services, and sustainability industries. The investment objective of Horizon is to maximize its investment portfolio’s return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon is headquartered in Farmington, Connecticut, with a regional office in Pleasanton, California, and investment professionals located throughout the U.S. Monroe Capital is a premier asset management firm specializing in private credit markets across various strategies, including direct lending, technology finance, venture debt, opportunistic, structured credit, real estate and equity. To learn more, please visit horizontechfinance.com.
Forward-Looking Statements
Statements included herein or on the webcast/conference call may constitute “forward-looking statements,” which relate to future events or the Company’s future performance or financial condition. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made, which reflect management’s current estimates, projections, expectations or beliefs, and which are subject to risks and uncertainties that may cause actual results to differ materially. Forward-looking statements include, but are not limited to, the Company’s projected net investment income and earnings, the Company’s distribution levels and frequency of distributions, the Company’s share repurchase activity and investment activity, and the ability of Horizon Technology Finance Management LLC to manage the Company and identify investment opportunities, all of which are subject to change at any time based upon economic, market or other conditions, and may not be relied upon as investment advice or an indication of the Company’s trading intent. More information on the risks and other potential factors that could affect the Company’s financial results and future events, including important factors that could cause actual results or events to differ materially from plans, estimates or expectations included herein or discussed on the webcast/conference call, is included in the Company’s filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed annual report on Form 10-K, as well as in subsequent filings, including the Company’s quarterly reports on Form 10-Q. In addition, there is no assurance that the Company or any of its affiliates will purchase additional shares of the Company’s common stock at any specific discount levels or in any specific amounts. There is no assurance that the market price of the Company’s shares, either absolutely or relative to NAV, will increase as a result of any share repurchases, or that any repurchase plan will enhance stockholder value over the long term.
|
|
|||||||
|
|
|
|
|
||||
|
|
|
2026 |
|
|
|
2025 |
|
|
|
(unaudited) |
|
|||||
|
Assets |
|
|
|||||
|
Non-affiliate investments at fair value (cost of |
$ |
630,466 |
|
$ |
584,100 |
|
|
|
Non-controlled affiliate investments at fair value (cost of |
|
12,092 |
|
|
63,144 |
|
|
|
Controlled affiliate investments at fair value (cost of |
|
7,765 |
|
|
— |
|
|
|
Total investments at fair value (cost of |
|
650,323 |
|
|
647,244 |
|
|
|
Cash |
|
20,019 |
|
|
105,519 |
|
|
|
Investments in money market funds |
|
85,146 |
|
|
34,711 |
|
|
|
Restricted investments in money market funds |
|
2,636 |
|
|
2,463 |
|
|
|
Interest receivable |
|
12,298 |
|
|
12,086 |
|
|
|
Other assets |
|
8,311 |
|
|
9,081 |
|
|
|
Total assets |
$ |
778,733 |
|
$ |
811,104 |
|
|
|
|
|
|
|||||
|
Liabilities |
|
|
|||||
|
Borrowings |
$ |
402,719 |
|
$ |
473,027 |
|
|
|
Distributions payable |
|
5,869 |
|
|
15,053 |
|
|
|
Base management fee payable |
|
965 |
|
|
975 |
|
|
|
Other accrued expenses |
|
7,037 |
|
|
3,547 |
|
|
|
Total liabilities |
|
416,590 |
|
|
492,602 |
|
|
|
|
|
|
|||||
|
Commitments and contingencies |
|
|
|||||
|
|
|
|
|||||
|
Net assets |
|
|
|||||
|
Preferred stock, par value |
|
— |
|
|
— |
|
|
|
Common stock, par value |
|
73 |
|
|
51 |
|
|
|
Paid-in capital in excess of par |
|
701,033 |
|
|
559,355 |
|
|
|
Distributable loss |
|
(338,963 |
) |
|
(240,904 |
) |
|
|
Total net assets |
|
362,143 |
|
|
318,502 |
|
|
|
Total liabilities and net assets |
$ |
778,733 |
|
$ |
811,104 |
|
|
|
Net asset value per common share |
$ |
5.56 |
|
$ |
6.98 |
|
|
|
|
|||||||||||||||
|
|
For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||
|
|
|
|
|||||||||||||
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|||
|
Investment income |
|
|
|
|
|||||||||||
|
From non-affiliate investments: |
|
|
|
|
|||||||||||
|
Interest income |
$ |
21,066 |
|
$ |
23,506 |
|
$ |
64,606 |
|
$ |
69,289 |
|
|||
|
Payment-in-kind (“PIK”) interest income |
|
829 |
|
|
297 |
|
|
2,393 |
|
|
617 |
|
|||
|
Prepayment fee income |
|
1,635 |
|
|
971 |
|
|
3,553 |
|
|
3,470 |
|
|||
|
Fee income |
|
702 |
|
|
1,057 |
|
|
921 |
|
|
1,532 |
|
|||
|
From non-controlled affiliate investments: |
|
|
|
|
|||||||||||
|
PIK interest income |
|
— |
|
|
367 |
|
|
1,281 |
|
|
367 |
|
|||
|
Interest income |
|
74 |
|
|
95 |
|
|
676 |
|
|
95 |
|
|||
|
From controlled affiliate investments: |
|
|
|
|
|||||||||||
|
PIK interest income |
|
— |
|
|
— |
|
|
— |
|
|
208 |
|
|||
|
Interest income (reversal) |
|
— |
|
|
25 |
|
|
— |
|
|
(224 |
) |
|||
|
Net investment loss from RoHo Joint Venture |
|
(246 |
) |
|
— |
|
|
(246 |
) |
|
— |
|
|||
|
Total investment income |
|
24,060 |
|
|
26,318 |
|
|
73,184 |
|
|
75,354 |
|
|||
|
Expenses |
|
|
|
|
|||||||||||
|
Interest expense |
|
7,810 |
|
|
7,897 |
|
|
23,785 |
|
|
24,780 |
|
|||
|
Base management fee |
|
3,014 |
|
|
2,748 |
|
|
9,281 |
|
|
8,887 |
|
|||
|
Performance based incentive fee |
|
— |
|
|
— |
|
|
1,765 |
|
|
— |
|
|||
|
Administrative fee |
|
406 |
|
|
377 |
|
|
1,471 |
|
|
1,203 |
|
|||
|
Professional fees |
|
753 |
|
|
493 |
|
|
2,510 |
|
|
1,722 |
|
|||
|
General and administrative |
|
489 |
|
|
437 |
|
|
1,447 |
|
|
1,477 |
|
|||
|
Merger expenses |
|
46 |
|
|
— |
|
|
4,487 |
|
|
— |
|
|||
|
Total expenses |
|
12,518 |
|
|
11,952 |
|
|
44,746 |
|
|
38,069 |
|
|||
|
Management fee waived |
|
(1,000 |
) |
|
— |
|
|
(1,000 |
) |
|
— |
|
|||
|
Net expenses |
|
11,518 |
|
|
11,952 |
|
|
43,746 |
|
|
38,069 |
|
|||
|
Net investment income before excise tax |
|
12,542 |
|
|
14,366 |
|
|
29,438 |
|
|
37,285 |
|
|||
|
Provision for excise tax |
|
265 |
|
|
373 |
|
|
797 |
|
|
1,123 |
|
|||
|
Net investment income |
|
12,277 |
|
|
13,993 |
|
|
28,641 |
|
|
36,162 |
|
|||
|
Net realized and unrealized (loss) gain |
|
|
|
|
|||||||||||
|
Net realized gain (loss) on non-affiliate investments |
|
3,179 |
|
|
2,590 |
|
|
(3,104 |
) |
|
(6,703 |
) |
|||
|
Net realized loss on non-controlled affiliate investments |
|
(14,501 |
) |
|
— |
|
|
(14,501 |
) |
|
— |
|
|||
|
Net realized loss on controlled affiliate investments |
|
— |
|
|
(25,117 |
) |
|
— |
|
|
(25,117 |
) |
|||
|
Net realized loss on investments |
|
(11,322 |
) |
|
(22,527 |
) |
|
(17,605 |
) |
|
(31,820 |
) |
|||
|
Net realized loss on extinguishment of debt |
|
— |
|
|
(1,261 |
) |
|
(1,432 |
) |
|
(2,037 |
) |
|||
|
Net realized loss |
|
(11,322 |
) |
|
(23,788 |
) |
|
(19,037 |
) |
|
(33,857 |
) |
|||
|
Net unrealized (depreciation) appreciation on non-affiliate investments |
|
(32,756 |
) |
|
25,659 |
|
|
(36,644 |
) |
|
(1,266 |
) |
|||
|
Net unrealized appreciation (depreciation) on non-controlled affiliate investments |
|
4,064 |
|
|
1,812 |
|
|
(35,181 |
) |
|
210 |
|
|||
|
Net unrealized (depreciation) appreciation on controlled affiliate investments |
|
(499 |
) |
|
13,046 |
|
|
(499 |
) |
|
(12,740 |
) |
|||
|
Net unrealized (depreciation) appreciation on investments |
|
(29,191 |
) |
|
40,517 |
|
|
(72,324 |
) |
|
(13,796 |
) |
|||
|
Net realized and unrealized (loss) gain |
|
(40,513 |
) |
|
16,729 |
|
|
(91,361 |
) |
|
(47,653 |
) |
|||
|
Net (decrease) increase in net assets resulting from operations |
$ |
(28,236 |
) |
$ |
30,722 |
|
$ |
(62,720 |
) |
$ |
(11,491 |
) |
|||
|
Net (decrease) increase in net assets resulting from operations per common share - basic |
$ |
(0.43 |
) |
$ |
0.71 |
|
$ |
(1.05 |
) |
$ |
(0.28 |
) |
|||
|
Net (decrease) increase in net assets resulting from operations per common share - diluted |
$ |
(0.43 |
) |
$ |
0.68 |
|
$ |
(1.05 |
) |
$ |
(0.28 |
) |
|||
|
Weighted average shares outstanding - basic |
|
66,313,471 |
|
|
43,101,307 |
|
|
59,604,481 |
|
|
41,525,869 |
|
|||
|
Weighted average shares outstanding - diluted |
|
66,313,471 |
|
|
45,838,142 |
|
|
59,604,481 |
|
|
41,525,869 |
|
|||
|
Distributions declared per share |
$ |
0.27 |
|
$ |
0.33 |
|
$ |
0.72 |
|
$ |
0.99 |
|
|||
View source version on businesswire.com: https://www.businesswire.com/news/home/20261105626927/en/
Investor Relations:
ICR
ir@horizontechfinance.com
(646) 200-8885
Media Relations:
ICR
HorizonPR@icrinc.com
(203) 682-8268
Source:




