Why did HRZN's Q3 earnings fall short of forecasts?

Horizon Technology Finance Corp (HRZN) experienced a shortfall in its Q3 earnings, missing estimates in both net investment income per share and total investment income. The primary factors contributing to this shortfall are as follows:

1. **Lower Interest Income**: The company's total investment income decreased to $24.6 million in Q3 2024, down from $29.1 million in the same period the previous year. This decline was primarily attributed to lower interest income from its debt investment portfolio.
2. **Higher Interest Expenses**: The company incurred higher interest expenses, which increased the total expense to $12.4 million. This was a rise from $11.6 million in the prior year, thereby reducing the net investment income.

In summary, HRZN's Q3 earnings fell short of forecasts due to lower interest income and higher interest expenses, resulting in a decrease in net investment income and total investment income.