Hercules Capital

Hercules Capital (HTGC) Q2 2025 Earnings

Reported Jul 31, 2025 at 4:30 PM ET · SEC Source

Q2 25 EPS

$0.50

BEAT +5.98%

Est. $0.47

Q2 25 Revenue

$137.5M

BEAT +6.17%

Est. $129.5M

vs S&P Since Q2 25

-28.6%

TRAILING MARKET

HTGC -7.3% vs S&P +21.3%

Market Reaction

Did HTGC Beat Earnings? Q2 2025 Results

Hercules Capital posted a standout second quarter, with net investment income reaching a record $0.50 per share and beating the $0.47 consensus estimate by 5.98%, while total investment income of $137.46 million cleared the $129.46 million consensus … Read more Hercules Capital posted a standout second quarter, with net investment income reaching a record $0.50 per share and beating the $0.47 consensus estimate by 5.98%, while total investment income of $137.46 million cleared the $129.46 million consensus by 6.17% and surged 62.7% year-over-year. The primary engine behind the outperformance was an exceptionally active origination quarter, with the business development company closing $1.00 billion in gross new debt and equity commitments, up 45.7% year-over-year, and delivering record gross fundings of $709.10 million. Credit quality also improved, with non-accrual loans falling to just 0.2% of the portfolio, while net asset value per share climbed 2.5% quarter-over-quarter to $11.84. The company reinforced its financial footing with $785.60 million in available liquidity and a freshly upsized $350.00 million unsecured notes offering. Looking ahead, Hercules noted $480.00 million in signed non-binding term sheets outstanding as of late July, with core yield expected to hold in the 12.0% to 12.5% range.

Key Takeaways

  • Record total investment income of $137.5 million, up 10.0% year-over-year driven by higher weighted average debt investment portfolio
  • Record gross fundings of $709.1 million, up 53.7% year-over-year
  • Total gross debt and equity commitments of $1.0 billion, up 45.7% year-over-year
  • Core investment income exceeded $100 million for nine consecutive quarters
  • GAAP effective yield of 13.9% boosted by $267.4 million in early loan repayments
  • Accretive ATM equity issuance of 8.4 million shares for $149.5 million net proceeds
  • 97.8% floating rate portfolio with floors provides interest rate sensitivity
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HTGC YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

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HTGC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 25 Q1 26

“Our vibrant ecosystem and industry-leading investment team has provided a robust pipeline of high-quality investment opportunities that delivered over $1.0 billion of new debt and equity commitments for the second consecutive quarter and record fundings of over $709.0 million in Q2. In the first half of 2025, we achieved records for both gross originations and fundings of $2.02 billion and $1.25 billion, respectively. Our net investment income of $0.50 per share provided 125% coverage of our base distribution. Moreover, we have delivered core income in excess of $100.0 million for nine consecutive quarters, demonstrating the resilient and consistent earnings power of our platform.”

— Scott Bluestein, Q2 2025 Earnings Press Release