Horizon Technology Finance Corp
NASDAQ:HRZN
Horizon Technology Finance Corp
Horizon Technology Finance Corp is a US-based company operating in Capital Markets industry. The company is headquartered in Farmington, Connecticut and currently employs 0 full-time employees. The company went IPO on 2010-10-29. Horizon Technology Finance Corporation is a non-diversified, closed-end management investment company. The firm lends to and invests in development-stage companies in the technology, life science, healthcare information and services and sustainability industries (target industries). The firm's investment objective is to maximize its investment portfolio’s total return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. The company is focused on making secured debt investments to venture capital and private equity backed companies and publicly traded companies in its target industries. Its debt investment portfolio consists of approximately 45 debt investments. In addition to its debt investments, the Company holds warrants to purchase stock, predominantly preferred stock, in approximately 73 portfolio companies. Its investment adviser is Horizon Technology Finance Management LLC.
Horizon Technology Finance Corp is a US-based company operating in Capital Markets industry. The company is headquartered in Farmington, Connecticut and currently employs 0 full-time employees. The company went IPO on 2010-10-29. Horizon Technology Finance Corporation is a non-diversified, closed-end management investment company. The firm lends to and invests in development-stage companies in the technology, life science, healthcare information and services and sustainability industries (target industries). The firm's investment objective is to maximize its investment portfolio’s total return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. The company is focused on making secured debt investments to venture capital and private equity backed companies and publicly traded companies in its target industries. Its debt investment portfolio consists of approximately 45 debt investments. In addition to its debt investments, the Company holds warrants to purchase stock, predominantly preferred stock, in approximately 73 portfolio companies. Its investment adviser is Horizon Technology Finance Management LLC.
Merger: Closing of the merger with MRCC was delayed into 2026 by a government shutdown; shareholders will vote at a special meeting and management expects the merger to increase equity capital and deal capacity.
Earnings: Reported net investment income of $0.18 per share for Q4 2025 and full-year NII of $1.05 per share; NAV was $6.98 at year-end.
Distributions: Board declared monthly distributions of $0.06 per share for April, May and June 2026 (totaling $0.18 over the three months); management said it set the level it expects to cover over time.
Portfolio & pipeline: Returned to portfolio growth with $103 million funded in Q4, year-end portfolio of $647 million, a committed backlog of $154 million, and $82.5 million of new venture loan commitments closed in early 2026.
Yields: Debt investment yield was 14.3% in Q4 and management reported a portfolio yield over 14% for the quarter and nearly 16% for full-year 2025; onboarding yield was 12% in Q4.
Liquidity & balance sheet: $189 million available liquidity ( $143 million cash + $46 million undrawn), debt-to-equity 1.5:1, net leverage 1.05:1, and potential new investment capacity of $472 million as of December 31.
Capital markets activity: Issued $57.5 million of 7% notes due 2028 and $40 million of 5.5% convertible notes due 2030 in 2025; redeemed the full amount of 4.875% notes due 2026 in January; ATM raised over $14 million.
Drivers of weaker NII this quarter: Management cited lower-than-normal prepayment activity and timing (fewer prepayment-related gains and some refinancings with lower incremental income) as the primary driver of the quarter-to-quarter NII decline.
