HRZN · Horizon Technology Finance Corp

Horizon Technology Finance reported first quarter 2026 results reflecting portfolio growth amid a merger with Monroe Capital Corporation completed post-quarter on April 14, 2026, which infused $141.1 million in cash and expanded the share count by 20,370,645 shares, with former MRCC stockholders holding 29.86% of the combined entity. NII of $9.0 million or $0.19 per basic share declined from $10.7 million or $0.27 year-over-year, driven by lower interest income on a smaller average debt portfolio, offset partially by stable yields at 15.2% dollar-weighted annualized. Total expenses rose to $14.8 million, primarily from $1.8 million higher incentive fees despite reductions in interest and management fees. The portfolio expanded to $695.7 million, with $120 million funded in five new loans and liquidity events from two companies repaying $62.5 million principal. Credit quality held steady at weighted average 3.0, though four rating 1 investments carried $24.3 million fair value. NAV remained at $6.98 per share, supported by $2.8 million net increase from operations. Management highlighted strengthened capital position enabling larger originations and new RoHo JV with Roth for growth financing. Liquidity stood at $105.3 million, with net debt to equity at 113% below 120% target. Post-quarter, board extended stock repurchase program through June 2027 up to $10 million and declared $0.27 per share distributions for Q3, aligning with spillover income of $0.52 per share.