Horizon Technology Finance Earnings Call Transcripts
Fiscal Year 2026
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Merger with Monroe Capital boosted capital and growth prospects, with Q2 portfolio growth and strong yields offset by significant write-downs in a single investment. Distributions remain covered by NII, and a robust pipeline supports continued expansion.
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Completed a transformative merger, boosting capital and portfolio growth, with strong yields and disciplined credit quality. Declared regular and special distributions for Q3 2026, and plan to utilize a $10 million stock repurchase program.
Fiscal Year 2025
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Q4 saw portfolio growth, strong yields, and a NAV decline due to distributions exceeding NII. The pending MRCC merger is set to boost capital and scale, while disciplined underwriting and high demand for venture debt support a positive outlook for 2026.
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Merger with MRCC is set to boost scale and Monroe Capital's support will enhance growth. Q3 saw strong NII, high portfolio yields, and increased NAV, with robust liquidity and a growing pipeline. Portfolio growth and distributions are expected to continue.
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A strategic merger will combine two BDCs, creating a $446 million NAV entity with a $165 million equity infusion, 33% premium for MRCC shareholders, and $2.5 million in annual G&A savings. The deal is expected to be accretive to net investment income and close by December 2025.
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Net investment income was $0.27 per share for Q1 2025, with portfolio yields among the industry's highest at 15%. NAV declined due to fair value adjustments and macro headwinds, but liquidity and pipeline remain strong, supporting continued distributions.
Fiscal Year 2024
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Portfolio grew to $698M in 2024, with NII of $1.32/share covering distributions, but NAV declined to $8.43/share due to fair value markdowns. Strong pipeline and liquidity support continued growth and distributions in 2025, despite ongoing VC market stress.
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Portfolio grew 6% in Q3 2024, with strong loan originations and a high portfolio yield of 15.9%. Net investment income was $0.32 per share, slightly below distributions, but robust liquidity and a strong pipeline support future growth. Strategic partnerships and market improvements bolster optimism.
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Portfolio size declined in Q2 due to prepayments, but strong yields and a robust pipeline support optimism for growth in H2 2024. Liquidity and capital resources remain solid, with management expecting improved market conditions and continued NII coverage of distributions.