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Horizon Technology Finance

Horizon Technology Finance (HRZN) Q1 2026 Earnings

Reported May 5, 2026 at 4:26 PM ET · SEC Source

Q1 26 EPS

$0.19

MISS 0.99%

Est. $0.19

Q1 26 Revenue

$24.1M

BEAT +1.65%

Est. $23.7M

vs S&P Since Q1 26

-83.7%

TRAILING MARKET

HRZN -81.3% vs S&P +2.4%

Market Reaction

Did HRZN Beat Earnings? Q1 2026 Results

Horizon Technology Finance delivered a mixed first quarter for 2026, narrowly missing the earnings consensus while topping revenue expectations as the company digested a transformative merger. Net investment income came in at $0.19 per share, a hair … Read more Horizon Technology Finance delivered a mixed first quarter for 2026, narrowly missing the earnings consensus while topping revenue expectations as the company digested a transformative merger. Net investment income came in at $0.19 per share, a hair below the $0.19 consensus estimate, weighed down by a $1.80 million surge in performance-based incentive fees that had been zero in the year-ago period and a smaller debt portfolio generating less interest income. Revenue, meanwhile, reached $24.08 million, edging past the $23.69 million estimate and reflecting a 322.6% year-over-year jump tied largely to the April close of its merger with Monroe Capital Corporation, which brought roughly $141.10 million in cash and added more than 20 million new shares. The deal has drawn renewed attention to the sustainability of its yield, particularly after a recent dividend cut. Looking ahead, Horizon's $180 million committed backlog and newly formed joint venture with Roth Capital Partners' parent company signal management's confidence in accelerating portfolio growth toward its 120% net debt-to-equity target.

Key Takeaways

  • • Annualized portfolio yield on debt investments of 15.2%, up from 15.0% year-over-year
  • • Portfolio grew for second consecutive quarter to $695.7 million total fair value
  • • Funded five loans totaling $120.0 million during the quarter
  • • Net new debt and equity investments of $90.0 million
  • • Stable credit quality with weighted average credit rating improving to 3.0 from 2.9
  • • Net unrealized depreciation improved significantly to $4.6 million vs $32.2 million in prior-year period
  • • NII of $0.19 per share exceeded distributions declared of $0.18 per share for the quarter

HRZN Forward Guidance & Outlook

Horizon expects the completion of its merger with MRCC and the backing of Monroe Capital's resources and expertise to drive strong portfolio and pipeline growth. The company's committed backlog stands at $180 million. Management believes the strengthened balance sheet and robust pipeline position Horizon well to execute on its growth strategy and drive long-term shareholder value. The company targets a net debt-to-equity leverage ratio of 120%, currently operating at 113%. Post-merger, the company has already begun deploying capital with three new debt investments totaling $22 million in April 2026.

24/7 Wall St

HRZN YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

“We are thrilled to have successfully completed our merger with MRCC and are excited to accelerate the next chapter of Horizon. Strengthened by the infusion of significant new capital from the merger, as well as the backing of Monroe Capital's resources, expertise and ability to participate in larger-size, high-quality originations, we expect our efforts to compete and win attractive debt investment opportunities will result in strong portfolio and pipeline growth. We also are excited to jumpstart the RoHo JV with Roth as our partner. RoHo offers the venture market another compelling option for growth financing and will help contribute to growth in our portfolio and pipeline.”

— Mike Balkin, Q1 2026 Earnings Press Release

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