0001280784-26-000009
SEC filingHercules Capital, Inc. (HTGC) reported strong FY 2025 results with total investment income of $532.5M, driven by $507.9M in interest and dividend income (including $55.9M PIK) and $24.6M in fees. Net investment income reached $341.7M after $190.8M net operating expenses, primarily interest ($92.2M) and employee compensation ($78.0M). Total net realized loss was $40.8M offset by $38.8M unrealized appreciation, yielding net increase in net assets from operations of $339.7M. Per share metrics showed $2.00 net investment income and $2.00 operations change on 177.4M basic shares. Balance sheet grew to $4.58B total assets, with investments at fair value $4.47B and net assets $2.22B (NAV $12 per share on 182.7M shares). Debt stood at $2.29B. Operating cash flow was negative $425.8M due to $1.70B investments offset by $848.2M repayments, with financing providing $368.9M net cash. Distributions paid $2.00 per share. Portfolio remains diversified across technology and life sciences with senior secured debt focus.
Hercules Capital, Inc. delivered robust FY 2025 performance with total investment income of $532.5M, comprising $507.9M interest/dividend income ($452.0M cash, $55.9M PIK) and $24.6M fees. Net investment income of $341.7M followed net operating expenses of $190.8M (gross $206.0M less $15.2M allocated). Realized losses totaled $40.8M, partially offset by $38.8M unrealized gains, resulting in $339.7M net increase in net assets from operations. Per share: NII $2.00 basic, operations change $2.00 basic/diluted. Weighted average shares: 177.4M basic, 188.9M diluted. Total assets $4.58B, net assets $2.22B (NAV $12/share, 182.7M shares outstanding). No prior year figures provided for direct YoY comparison.
Investment income driven by diversified portfolio: $4.47B total investments at fair value, predominantly senior secured debt across Application Software, Drug Discovery & Development, Healthcare Services, System Software. Key components: interest/dividend $507.9M (89.5% cash-based), fees $24.6M. Portfolio includes non-control/non-affiliate $4.47B and control investments $4.47B (Coronado Aesthetics, Gibraltar Acquisition, Hercules Adviser, Tectura). Geographic concentration: primarily US with exposure to UK, Netherlands, Israel. No segment revenue breakdowns or YoY growth rates disclosed.
Net investment income margin implicit at 64.1% of total investment income ($341.7M/$532.5M). Operating expenses structured as interest 44.7% of gross expenses ($92.2M/$206.0M), employee compensation 37.9% ($78.0M), G&A 9.2% ($19.0M), other. Tax expenses $5.8M. Realized losses -$40.8M impacted profitability, but unrealized gains $38.8M provided offset. Per share NII $2.00 reflects strong core earnings power. No margin trends available without prior periods.
Operating cash flow -$425.8M: operations $339.7M offset by $1.70B investments, $848.2M repayments, $74.5M debt sales, $46.4M equity/warrant sales. Financing $368.9M: $2.00B debt issuance, $1.48B repayments, $206.8M stock issuance, $326.0M distributions. Net cash decrease $57.0M; ending cash/restricted $25.9M (cash $56.9M, restricted $2.5M). Balance sheet: investments $4.47B (97.5% of assets), debt $2.29B, leverage reasonable for BDC. Liquidity supported by cash $56.9M, interest receivable $37.3M.
No explicit management guidance disclosed in provided data. Portfolio positioned in high-growth tech/life sciences with senior secured focus. Distributions maintained at $2.00/share. Risks include realized losses, PIK income dependency, debt maturities (2025-2033 notes, facilities). Control investments and geographic diversification noted.