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Horizon Technology Finance Announces First Quarter 2026 Financial Results

HRZN
  • Horizon Technology Finance Corporation successfully completed its merger with Monroe Capital Corporation in April 2026, receiving approximately $141.1 million in cash & issuing 20,370,645 common shares to MRCC stockholders.
  • First quarter 2026 net investment income totaled $9.0 million, or $0.19 per basic share, down from $10.7 million ($0.27 per share) in the prior-year period.
  • The company's net asset value per share stood at $6.98 as of March 31, 2026, with total net assets of $333.9 million.
  • The annualized yield on debt investments was 15.2% for the quarter, while the total investment portfolio reached $695.7 million.
  • Horizon funded five new loans totaling $120.0 million & ended the quarter with a committed backlog of $180 million.
  • A new joint venture, RoHo Capital Opportunity Fund LLC, was established with CR Financial Holdings, Inc. (Roth Capital Partners).
  • Liquidity events occurred from two portfolio companies in March, involving principal payoffs of $30.0 million & $32.5 million respectively.
  • Subsequent to the quarter end, the company declared regular monthly distributions of $0.06 per share & special monthly distributions of $0.03 per share for July, August, & September 2026.
  • Undistributed spillover income as of March 31, 2026, was $0.52 per share.
  • Net realized loss on investments was $0.2 million, while net unrealized depreciation on investments was $4.6 million for the quarter.
  • Total debt portfolio consisted of 41 secured loans with a fair value of $645.6 million, & the company held warrant & equity positions in 91 companies.
  • As of March 31, 2026, the company had $73.3 million in cash & $284.0 million in available credit facility capacity.
  • Post-quarter developments include funding investments in Stellar Cyber, Inc. ($15.0 million), Bastille Buyer, Inc. ($3.0 million), & Volt Bidco, Inc. ($4.0 million) in April 2026.
  • The merger proceeds were used to repay the $45.0 million outstanding balance on the Key Facility in mid-April 2026.
  • The company's net debt to equity leverage ratio was 113% as of March 31, 2026, remaining below its 120% target.
  • No shares were repurchased under the stock repurchase program during the quarter, though the program was extended through June 30, 2027.
  • A conference call to discuss these results is scheduled for May 6, 2026, at 9:00 a.m. ET.