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
-84.1%
TRAILING MARKET
HRZN -81.2% vs S&P +2.9%
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.
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
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
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| 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% |