Q2 26 EPS
$0.11
MISS 2.31%
Est. $0.11
Q2 26 Revenue
$25.0M
MISS 0.71%
Est. $25.2M
vs S&P Since Q2 26
+2.2%
BEATING MARKET
HRZN +2.7% vs S&P +0.5%
Market Reaction
Did HRZN Beat Earnings? Q2 2026 Results
Horizon Technology Finance Corp delivered a modest earnings miss for Q2 2026, as merger-related costs weighed on results that otherwise reflected a dramatically larger business following its acquisition of Monroe Capital Corporation. The company post… Read more Horizon Technology Finance Corp delivered a modest earnings miss for Q2 2026, as merger-related costs weighed on results that otherwise reflected a dramatically larger business following its acquisition of Monroe Capital Corporation. The company posted net investment income of $0.11 per share, falling just short of the $0.11 consensus estimate by 2.31%, while total investment income of $25.05 million trailed the $25.22 million expectation by 0.71%, even as that figure represented a 353.3% increase from the year-ago period. The primary culprit was $4.44 million in non-recurring merger expenses, which reduced NII by roughly $0.07 per share; excluding those one-time costs, distributions would have been covered. Compounding the headline disappointment, net unrealized depreciation of $38.53 million, driven largely by deterioration at a single portfolio company, pushed NAV per share down to $6.23. Still, management struck a forward-looking tone, pointing to a $228 million committed backlog and a net leverage ratio of just 65% against a 120% target, signaling meaningful capacity for portfolio expansion ahead.
Key Takeaways
- • Higher interest income and PIK income from larger debt investment portfolio
- • Debt portfolio yield of 14.9% annualized
- • Successful completion of merger with Monroe Capital Corporation (MRCC)
- • Nine loans funded totaling $72.7 million in Q2 2026
- • Non-recurring merger expenses of $4.4 million negatively impacted NII
- • Significant unrealized depreciation of $38.5 million driven largely by negative developments at a single portfolio company
HRZN Forward Guidance & Outlook
The company ended Q2 2026 with a committed backlog of $228 million, up approximately $50 million from the prior quarter-end. With a net debt-to-equity leverage ratio of 65% versus its 120% target, the company has significant capacity for portfolio growth. The company has been actively sourcing new high-quality debt investment opportunities since the MRCC merger completion in April 2026. Subsequent to quarter-end, the company funded multiple new debt investments and experienced additional loan prepayments, indicating continued active portfolio management.
HRZN YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
HRZN Revenue by Segment
Business unit performance breakdown
“We were pleased to grow our debt investment portfolio for the third consecutive quarter, and to deliver NII which, excluding non-recurring merger expenses, covered our regular distributions.”
— Mike Balkin, Q2 2026 Earnings Press Release
HRZN Earnings Trends
HRZN vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
HRZN EPS Trend
Earnings per share: estimate vs actual
HRZN Revenue Trend
Quarterly revenue: estimate vs actual
HRZN Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 MISS | $0.11 | $0.11 | -2.31% | $25.0M | -0.71% |
| Q1 26 MISS | $0.19 | $0.19 | -0.99% | $24.1M | +1.65% |
| Q4 25 MISS FY | $0.29 | $0.18 | -37.91% | $20.7M | -19.41% |
| FY Full Year | $1.15 | $1.05 | -8.40% | $96.0M | -5.02% |
| Q3 25 BEAT | $0.28 | $0.32 | +15.15% | $26.3M | +14.46% |
| Q2 25 BEAT | $0.28 | $0.28 | +0.83% | $24.5M | +0.23% |
| Q1 25 MISS | $0.33 | $0.27 | -17.13% | $24.5M | -8.09% |