Horizon Technology Finance Q2 FY25: $0.28 Net Investment Income, NAV $6.75, $149mln Committed Backlog.

• Horizon Tech Finance Q2 2025 net investment income per share: $0.28 • Debt portfolio yield: 15.8% • Committed backlog: $149 million • Declared monthly distributions: $0.33 per share • Announced merger with Monroe Capital Corp.

Horizon Technology Finance Corporation (NASDAQ: HRZN) reported its financial results for the second quarter of 2025, highlighting key performance indicators and strategic moves. The company reported a net investment income per share of $0.28, a slight decrease from the prior year's $0.36 per share. The debt portfolio yield remained robust at 15.8%, reflecting the company's ability to secure favorable interest rates on its investments.

The company's total investment portfolio stood at $622.7 million as of June 30, 2025, with a net asset value of $283.8 million, translating to $6.75 per share. The portfolio yielded an annualized yield of 15.8%, indicating a strong return on debt investments. Horizon Technology Finance also announced a committed backlog of $149 million, reflecting the company's active pipeline of potential investments.

Notably, Horizon Technology Finance declared regular monthly distributions totaling $0.33 per share through December 2025. This consistent dividend policy underscores the company's commitment to shareholder returns, despite the challenging venture capital environment.

A significant strategic move was the announcement of a merger with Monroe Capital Corp (NASDAQ: MRCC). This merger, subject to shareholder approval and other closing conditions, aims to significantly expand Horizon Technology Finance's size, scale, and capital base. The merger is expected to enhance the company's ability to provide venture lending solutions, particularly to small-cap public market companies.

The quarter's operating results showed total investment income of $24.5 million, primarily driven by interest income from the debt investment portfolio. The dollar-weighted annualized yield on average debt investments was 15.8% for the quarter ended June 30, 2025.

Looking forward, Horizon Technology Finance's management is focused on navigating the current venture capital environment and leveraging the merger to generate attractive and sustainable risk-adjusted returns for shareholders.

References:
[1] https://www.nasdaq.com/articles/ofs-capital-ofs-q2-income-beats-views
[2] https://www.businesswire.com/news/home/20250807743090/en/Horizon-Technology-Finance-Announces-Second-Quarter-2025-Financial-Results