Horizon Technology Finance

Horizon Technology Finance (HRZN) Q2 2025 Earnings

Reported Aug 7, 2025 at 5:00 PM ET · SEC Source

Q2 25 EPS

$0.28

BEAT +0.83%

Est. $0.28

Q2 25 Revenue

$24.5M

BEAT +0.23%

Est. $24.5M

vs S&P Since Q2 25

-46.2%

TRAILING MARKET

HRZN -27.7% vs S&P +18.5%

Market Reaction

Did HRZN Beat Earnings? Q2 2025 Results

Horizon Technology Finance posted a difficult second quarter, reporting earnings per share of $0.28 on total investment income of $24.52 million, as a challenging venture capital environment weighed on results alongside a steep decline in net asset v… Read more Horizon Technology Finance posted a difficult second quarter, reporting earnings per share of $0.28 on total investment income of $24.52 million, as a challenging venture capital environment weighed on results alongside a steep decline in net asset value per share to $6.75 from $9.12 a year ago. Net investment income slipped to $11.40 million from $12.90 million in Q2 2024, pressured by lower interest income on debt investments even as the debt portfolio yield held relatively steady at 15.8%. The quarter's defining moment, however, was the announced merger with Monroe Capital Corporation, which CEO Mike Balkin called transformative for the company's scale and capacity to pursue larger venture lending transactions. Looking ahead, management expects the combination to drive meaningful growth in 2026 while generating sustainable risk-adjusted returns; a committed backlog of $149.00 million and the $22.50 million Powerscourt Investments asset purchase, expected to be NAV-accretive in Q3, offer additional momentum as the company works to expand its venture lending platform.

Key Takeaways

  • Debt portfolio yield of 15.8% for the quarter
  • Lower interest income on investments from the debt investment portfolio drove total investment income decline
  • Net realized loss on investments of $9.3 million primarily impacted results
  • Net unrealized depreciation on investments of $22.2 million impacted NAV
  • Challenging venture capital environment impacted net asset value
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HRZN YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

“We are excited at the announcement of our forthcoming merger with MRCC. Upon closing, HRZN will significantly increase its size, scale and capital base, while continuing to receive the active backing of a premier asset manager in Monroe Capital. Once completed, the merger will significantly expand our ability to provide venture lending solutions, including to small-cap public market companies, which is an attractive and renewed focus for investment. We expect the merger will better position us to win larger venture lending transactions and to support innovative businesses shaping the future.”

— Mike Balkin, Q2 2025 Earnings Press Release