HTGC · Hercules Capital, Inc.

Hercules Capital delivered record Q1 2026 results driven by robust origination activity, with $1.81 billion in new debt and equity commitments, up 77.8% year-over-year, and $706.4 million in fundings, up 31.0%. This fueled total investment income to a record $141.5 million, up 18.4%, primarily from a higher weighted average debt portfolio. NII rose 13.8% to $88.1 million or $0.48 per share on 182.8 million weighted average shares, providing 120% coverage of the base cash distribution. CEO Scott Bluestein highlighted record originations following 2025 momentum, balanced deployments in life sciences and technology sectors, and disciplined underwriting amid a dynamic market. The debt portfolio grew $298.0 million on a cost basis to $4,561.9 million, with 88.6% first lien senior secured and 98.0% floating rate with floors. Early repayments of $225.8 million, up 50.8% from Q4 2025, boosted GAAP effective yield to 12.8%, while core yield was 12.2%. Balance sheet remains conservative with net GAAP leverage at 113.5% and $454.5 million liquidity. Credit quality improved with weighted average grade of 2.11 (from 2.20), one non-accrual loan at 0.1% of portfolio value. The board declared a $0.47 per share distribution ($0.40 base + $0.07 supplemental), payable May 21, underscoring strong earnings spillover of $0.80 per share.