Hercules Capital, Inc. (HTGC)

Key figures

The last twelve months reported, with the latest price and balance sheet.

Revenue, last twelve months

$537.2M

Revenue growth

12.1%

Net income, last twelve months

$383.2M

Earnings per share

$2.01

Net margin

71.3%

Free cash flow

$8.4M

Return on equity

16.8%

Market value

$3.1B

Price to earnings

8.3x

Cash

$48.2M

Debt

$2.3B

Debt to equity

1.03

Shares outstanding

187.2M

Financial statements

Revenue, profit and cash flow by fiscal year, each year linked to its annual report.

By quarter

What the company said with its results

From the second quarter 2026 results, filed 30 July 2026.

• First-half originations set a record. First-half new debt and equity commitments reached $2.74 billion, up 35.6% year over year. Fundings were $1.35 billion, up 8.5%. Management described both as records.
• Total investment income hit a record. Total investment income was $149.1 million in Q2, up 8.5% from $137.5 million a year earlier. The company attributed the rise to a higher weighted average debt investment portfolio.
• Net investment income rose modestly. NII was $92.9 million, or $0.50 per share, against $88.7 million, or $0.50 per share, a year earlier. Higher interest expense and variable compensation offset part of the income gain.
• Q2 commitments and fundings detailed. Q2 new debt and equity commitments were $927.3 million, with fundings of $647.5 million. After Adviser Fund assignments, net Hercules commitments were $707.1 million and net fundings $459.1 million.
• Early repayments drove the decline. Early loan repayments were $572.1 million in Q2, up from $225.8 million in Q1. Scheduled amortization was $43.7 million, bringing total debt repayments to $615.8 million.
• Net debt portfolio shrank at cost. The net debt portfolio fell $170.2 million in Q2 at cost, ending at $4,391.7 million against $4,561.9 million at March 31. First-lien senior secured was 86.8% of debt investments.
• First-half portfolio growth reported. For the first half, the net debt investment portfolio grew $127.8 million. Unscheduled early loan repayments totaled $797.9 million over the same six months.
• GAAP yield rose on repayments. The GAAP effective yield on the debt portfolio was 13.4% in Q2, up from 12.8% in Q1. Fee and income accelerations of 1.4 percentage points separated GAAP yield from Core Yield.
• One-time fee income increased. Fee and income accelerations from early payoffs and one-time events were $14.7 million in Q2, up from $12.8 million a year earlier, per the core investment income reconciliation.
• Non-accrual debt investments increased. Two debt investments were on non-accrual at June 30, against one at March 31. Their cost was $16.0 million and fair value $5.5 million, or 0.3% of total investments at cost.
• Weighted grade rose to 2.17. The weighted average grade of the debt portfolio at cost was 2.17, against 2.11 at March 31, on a scale where 1 is the highest quality. Management said grades are adjusted down as companies near funding needs.
• Realized gains and unrealized appreciation. Net realized gains were $7.7 million in Q2, mainly from equity investments. Net unrealized appreciation was $29.6 million, including gains on equity funds, debt and warrants.
• Cumulative realized losses since 2004. Cumulative net realized losses since October 2004 total $107.4 million, about 0.44% of roughly $24.3 billion in cumulative debt commitments, or an annualized rate of 0.020%.
• Interest expense rose with borrowings. Interest expense and fees were $31.1 million in Q2, up from $25.7 million, on higher weighted average borrowings. The weighted average cost of borrowings was 5.2%.

Company events

The newest 8-K filings of 344 held.

Every filing

The newest filings with the SEC of 854 held.

Insider trades

Form 4 trades by officers, directors and 10% owners, last 12 months.

Trades by members of the House

From each member's periodic transaction report.

Short interest

Shares sold short and not yet bought back, on each FINRA settlement date.

Funds that hold it

From each fund's latest Form 13F.

379 funds held it at 30 Jun 2026: 151 added and 98 trimmed in the quarter. The largest:

Peers

Companies in the same industry.

• Blue Owl Technology Finance Corp. (OTF): revenue $2.7M, market value $4.3B
• Trinity Capital Inc. (TRIN): revenue $313.1M, market value $1.6B

What the company does

Hercules Capital is a specialty finance company that makes senior secured loans to venture capital-backed and institutional-backed companies in technology and life sciences. It is an internally managed, non-diversified closed-end investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. As of 31 December 2025 it had 127 portfolio companies with debt outstanding, and its principal office is in San Mateo, California. Its common stock is listed on the NYSE under the symbol "HTGC".

What it lends

The company puts most of its capital into what it calls Structured Debt. This is a loan that comes with a warrant, option or other right to buy or convert into common or preferred equity. Structured Debt typically matures in two to five years, and the filing gives an average investment horizon of 3.5 years. It may amortise after an initial interest-only period. It also makes a smaller amount of senior debt, including working capital lines and unitranche loans, which combine senior and subordinated loans in one first lien facility.

Its investments generally range from $25.0 million to $100.0 million. Loan interest rates generally ranged from approximately 7% to 14% as of 31 December 2025. Of its loans, 97.9% carried floating rates and 2.1% carried fixed rates. Floating rates reference Prime, SOFR, SONIA or a similar benchmark, plus a spread, with a floor.

How it earns money

The filing says the company mainly earns interest on its loans and fees, chiefly commitment and facility fees. Some loans also carry exit fees, balloon payment fees, success fees, prepayment fees or payment-in-kind interest. It earns dividends on equity holdings and capital gains when it sells warrants or other equity it received from borrowers. Warrant coverage generally ranges from 3% to 20% of the principal amount invested. As of 31 December 2025 it held warrants in 108 portfolio companies and warrant and equity securities in 164. The company says it generally targets a total annualised return of 10% to 20% on its debt investments.

Through Hercules Adviser LLC, a registered investment adviser, it also manages funds owned by outside investors and may earn management or other fees. Some loans are assigned to or originated directly by these Adviser Funds.

Where the portfolio sits

At 31 December 2025, five industries made up 87.1% of the portfolio by fair value:

- Application Software, 24.3% - Drug Discovery & Development, 23.3% - Healthcare Services, Other, 18.8% - System Software, 10.6% - Consumer & Business Services, 10.1%

The ten largest portfolio companies were approximately 28.6% of the fair value of investments. The company grades each loan from 1 to 5, with 1 carrying the least risk, and the weighted average grading was 2.20.

How it picks and monitors loans

The process has four stages: origination, underwriting, documentation, and loan and compliance administration. The origination team has more than 50 investment professionals and is split into life sciences, venture-backed technology, and private equity and sponsor-backed technology groups. Underwriting is done by two or more investment professionals, with credit and legal staff involved. Each investment needs approval from at least 80% of the investment committee members who are present and eligible to vote. The company generally looks for companies that one or more established financial sponsors have backed and that have operated for at least six to twelve months. It seeks a first priority security interest in the borrower's assets where it can, or a negative pledge on intellectual property.

Who it competes with

Competitors include banks, non-bank financial institutions, venture debt funds, venture capital and private equity funds, and investment banks. The filing notes that many of them have greater financial and managerial resources and are not bound by the 1940 Act restrictions that apply to the company. The company says it believes few competitors match its expertise in structuring and pricing loans to technology-related companies.

Rules it operates under

As a business development company it generally must invest at least 70% of its total assets in qualifying assets and keep asset coverage of at least 150% after each borrowing. Some wholly owned subsidiaries are licensed as small business investment companies under the Small Business Administration, which lets them issue SBA-guaranteed debentures. The company has been taxed as a regulated investment company since 1 January 2006. To keep that status it must distribute at least 90% of its investment company taxable income. As an internally managed company it pays no management or advisory fees to an outside manager.

Its people and offices

The team numbers over 100 professionals across 7 offices: San Mateo, Boston, New York, Denver, Westport, San Diego and London. More than 50 of them are on the investment team. Support staff work in treasury, finance, operations, credit management, legal, IT and human resources. Some professionals receive equity incentive pay, and the company runs an internship programme of approximately six months.

*From Hercules Capital's annual report on Form 10-K for the year ended 31 December 2025. [The filing](https://www.sec.gov/Archives/edgar/data/1280784/000128078426000009/htgc-20251231.htm)*

From the company's 10-K.