Hercules Capital

Hercules Capital (HTGC) Q1 2025 Earnings

Reported May 1, 2025 at 4:30 PM ET · SEC Source

Q1 25 EPS

$0.45

MISS 3.74%

Est. $0.47

Q1 25 Revenue

$119.5M

MISS 4.72%

Est. $125.4M

vs S&P Since Q1 25

-32.5%

TRAILING MARKET

HTGC +0.7% vs S&P +33.2%

Market Reaction

Did HTGC Beat Earnings? Q1 2025 Results

Hercules Capital fell short of Wall Street expectations in Q1 2025, posting earnings per share of $0.45 against a consensus estimate of $0.47, a miss of 3.74%, while revenue of $119.51 million trailed the $125.43 million consensus by 4.72% and declin… Read more Hercules Capital fell short of Wall Street expectations in Q1 2025, posting earnings per share of $0.45 against a consensus estimate of $0.47, a miss of 3.74%, while revenue of $119.51 million trailed the $125.43 million consensus by 4.72% and declined 10.4% year over year. The primary culprit was a sharp pullback in early loan repayments, which fell 41.5% to $131.80 million from $225.20 million in Q4 2024, dragging down fee income and compressing net investment income from $0.50 per share a year ago. Still, the quarter carried notable bright spots; gross debt and equity commitments exceeded $1.02 billion, only the second time in company history the firm has cleared that threshold in a single quarter, and assets under management crossed $5.00 billion for the first time. Looking ahead, Hercules enters Q2 with $682.50 million in signed non-binding term sheets and $141.00 million in new commitments closed since quarter-end, while management expects core yield to hold within its 12.25% to 12.75% target range despite heightened economic uncertainty.

Key Takeaways

  • Record gross debt and equity commitments of $1.02 billion in Q1 2025, only the second time exceeding $1 billion
  • Gross fundings of $539.1 million drove net debt portfolio growth of $269.8 million
  • Eighth consecutive quarter of core income exceeding $100 million
  • Early loan repayments decreased 41.5% to $131.8 million from $225.2 million in Q4 2024
  • Assets under management surpassed $5.0 billion, up 11.0% year-over-year
  • 98.0% floating rate debt portfolio with floors providing interest rate sensitivity
  • 90.9% first lien senior secured debt portfolio composition
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HTGC YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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HTGC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 25 Q1 26

“We drove a robust start to 2025, achieving over $1.0 billion in gross debt and equity commitments for the second time in our history. Our gross fundings of over $539.0 million led to net debt portfolio growth of nearly $270.0 million, the second highest levels for each metric historically. Our assets under management, which include investments managed by Hercules and the Adviser Subsidiary, surpassed the $5.0 billion mark which further highlighted our strong origination performance. With our eighth consecutive quarter of delivering core income of more than $100.0 million, our net investment income of $0.45 per share provided 113% coverage of our base distribution.”

— Scott Bluestein, Q1 2025 Earnings Press Release