What is Horizon Technology's latest dividend and current dividend yield?

What were the key takeaways from Horizon Technology's earnings call?

What is the market's earnings forecast for Horizon Technology next quarter?

What does Horizon Technology do and what are its main business segments?

What factors drove the changes in Horizon Technology's revenue and profit?

What guidance did Horizon Technology's management provide for the next earnings period?

What is the revenue and EPS growth rate for Horizon Technology year over year?

Did Horizon Technology beat or miss consensus estimates last quarter?

- **Merger Progress**: Monroe Capital merger expected to close in early 2026, enabling $154M committed backlog and co-investments with Monroe.
- **Financial Strength**: 1.5:1 debt-to-equity ratio, $189M liquidity, and 71% of floating-rate debt at interest rate floors.
- **Earnings Growth**: 2025 NII of $1.05 per share, Q4 NII of $0.18 per share driven by $103M new originations.
- **Strategic Focus**: AI, defense tech, and life sciences venture debt with 14% portfolio yield, highest in BDC industry.
- **Distribution Support**: $0.06/month dividend sustainable with pipeline growth and advisor fee waivers.

**【Management Opening Remarks】**
- Horizon Technology Finance's Q4 2025 earnings call featured CEO Michael Balkin, CFO Daniel Trolio, and CIO Paul Seitz. 
- The merger with Monroe Capital Corp (MRCC) was delayed due to government shutdown but expected to close in early 2026, significantly increasing capital for larger venture loans.
- The company reaffirmed its commitment to monthly $0.06 per share distributions for April, May, and June 2026, supported by undistributed spillover income and merger synergies.

**【CEO Commentary】**
- 2025 was a transformative year with a 14% portfolio yield on debt investments and $154 million committed backlog.
- The merger with MRCC will enable co-investments with Monroe Capital, targeting larger venture loans to AI, defense tech, and life sciences companies.
- Q4 net investment income (NII) was $0.18 per share, below prior quarters due to lower prepayment income, but portfolio growth resumed with $103 million in new originations.
- The company maintained its position as a leader in venture debt with 87% of debt portfolio rated 3 or 4, and 13% in higher-risk categories.

**【CFO Financial Commentary】**
- As of Q4 2025, Horizon had $189 million in liquidity (143M cash + 46M undrawn credit), with debt-to-equity ratio of 1.5:1.
- NII for 2025 was $1.05 per share, with Q4 NII of $0.18 per share due to lower prepayment income and one-time warrant proceeds.
- The company redeemed $26M notes in January 2026 and raised $57.5M through 7% unsecured notes due 2028, reducing interest expense by 0.2M YoY.
- 71% of floating-rate debt investments are at contractual floors, mitigating interest rate risk.

**【Q&A Highlights】**
- **Dividend Sustainability**: Management emphasized the $0.06/month distribution is sustainable based on pipeline growth and merger synergies, with advisor fee waivers supporting coverage.
- **Prepayment Income**: Q4 prepayment income was lower than historical levels due to one refinancing and limited warrant proceeds, but 2026 pipeline includes $82.5M new originations.
- **Public Company Financing**: Horizon targets venture debt for small-cap public companies seeking less dilutive capital, with recent co-investments with Monroe Capital.
- **Non-Accruals**: 3 portfolio companies remain on non-accrual status, with one resolved in Q4 through asset recovery.
- **Realized Losses**: Q4 realized losses were minimal, primarily from Telix Therapeutics, with no material impact on NAV.

Horizon Technology Finance Corporation(HRZN)-20260304-2025 Q4 Earnings call transcript

- **Strategic Merger**: 2026 merger with MRCC to expand assets and leverage Monroe Capital's private credit expertise, targeting larger venture loans.
- **Financial Strength**: NAV up 5% to $7.12, NII of $0.32 per share, and $151 million liquidity support growth. Floating-rate portfolio mitigates interest rate risk.
- **Portfolio Growth**: Q3 originations of $15 million and $23 million in portfolio acquisitions set stage for Q4 expansion. Monroe Capital pipeline access drives deal flow.
- **Yield Sustainability**: Industry-leading 18.6% portfolio yield with onboarding at 12.2%. Post-merger focus on $50M+ loans without yield erosion.
- **Distribution Stability**: Extended monthly distributions through March 2026, supported by $0.93 spillover and disciplined origination strategy.

**【CEO Summary Section】**
- Announced merger with MRCC (Monroe Capital) to be completed in early 2026, subject to shareholder approval. The merger will significantly increase assets under management and leverage Monroe Capital's expertise in private credit lending.
- Generated net investment income (NII) of $0.32 per share for the quarter, matching the declared distribution rate. Board extended monthly distributions of $0.11 per share through March 2026.
- Raised $40 million through issuance of 5.5% convertible notes due 2030 and $10 million via at-the-market (ATM) equity program, strengthening liquidity to $151 million.
- Portfolio yield on debt investments remained industry-leading at 18.6%, with onboarding yields of 12.2%.
- Emphasized strategic focus on originating larger venture loans to high-growth tech and life sciences companies, supported by Monroe Capital's pipeline access.

**【CFO Financial Commentary】**
- Net asset value (NAV) per share increased 5% to $7.12, driven by NII and favorable portfolio adjustments. Undistributed spillover income stood at $0.93 per share.
- Total expenses for the quarter were $12 million, stable year-over-year, with interest expense of $7.9 million and base management fee of $2.7 million.
- Portfolio net leverage ratio of 0.94:1 (below target range of 1.2-1.3x) provides capacity to grow investments by $460 million.
- Floating-rate debt investments (99% of portfolio) mitigate interest rate risk, with 60% already at rate floors.

**【Q&A Key Highlights】**
- **Prepayment Trends**: Q3 saw $61 million in prepayments, but CFO expects normalization in Q4. Exit market activity remains strong, particularly in AI and tech IPOs.
- **Portfolio Yield Sustainability**: CFO noted historical portfolio yield of 14.5-15%, with onboarding yields around 12%. High-yield strategy will continue, but one-time gains from stressed assets (e.g., Soli, Hound Labs) may not recur.
- **Merger Impact**: Post-merger, Horizon will target larger loans (e.g., $50 million+), maintaining similar yield profiles. Monroe Capital's pipeline access will enhance deal flow without diluting returns.
- **Leverage Outlook**: CFO expects net leverage to return to 1.2-1.3x within 1-2 quarters as originations exceed prepayments.
- **Distribution Policy**: Board evaluates distributions quarterly, considering spillover income and portfolio growth. Current spillover of $0.93 per share supports distribution continuity.


Horizon Technology Finance (HRZN) Q3 2025 Earnings Call Transcript

- **$165M Capital Infusion**: HRZN gains scale to pursue larger deals, supported by Monroe's $22B AUM platform.
- **30% G&A Savings**: $2.5M annual cost reductions enhance operational efficiency.
- **Shareholder Alignment**: 37% MRCC ownership in HRZN post-merger, with no lockup restrictions.
- **Fee Waivers**: Up to $4M in advisory fee relief over first year to ensure accretion.
- **Rapid Deployment**: 50%+ of new capital deployed within 6 months, targeting neutral-to-positive EPS in Year 1.

**【Management Opening Remarks】**
- Announced the merger of Horizon Technology Finance (HRZN) and Monroe Capital Corporation (MRCC), alongside Q2 2025 earnings release.
- Highlighted the joint investor presentation and key transaction details, emphasizing shareholder value creation through enhanced scale and operational efficiency.
- Noted the transaction's conditional approval by regulatory bodies and shareholder votes, with an expected close in December 2025.

**【CEO Commentary】**
- **Strategic Merger Benefits**: HRZN will receive $165 million in incremental capital, boosting its NAV to $446 million and enabling access to lower-cost financing.
- **Cost Efficiency**: Anticipated $2.5 million in G&A savings annually, translating to a 30% reduction in operating expenses.
- **Growth Strategy**: Deployment of new capital into larger venture debt and public small-cap loans, supported by Monroe's $22B AUM platform.
- **Management Alignment**: Fee waivers of up to $4 million over the first year to ensure net investment income accretion.
- **Shareholder Alignment**: Post-merger Board structure includes 2 independent HRZN directors, 1 MRCC director, and CEO Mike Balkin.

**【CFO Financial Commentary】**
- **NAV Exchange**: HRZN shareholders will receive 1.1313-1.1373 shares of HRZN for each MRCC share, based on June 30, 2025 NAV estimates.
- **Transaction Structure**: MRCC shareholders will realize a 33% premium on their shares, with the merger structured as a tax-free reorganization.
- **Capital Deployment**: Immediate focus on deploying $165 million in new capital into high-yield venture debt and growth equity opportunities.

**【Q&A Highlights】**
- **Transaction Efficiency**: CFO clarified the NAV-for-NAV exchange mechanism and absence of lockup agreements for MRCC shareholders.
- **Expense Transparency**: Provided historical G&A figures ($8.4M pre-merger, $5.8M post-synergies) and reaffirmed no hard targets for net investment income yield.
- **Deal Size Expansion**: CEO confirmed ability to pursue larger deals (e.g., $10M+ loans) leveraging combined platform scale.
- **Deployment Timeline**: Management expects to deploy 50%+ of new capital within 6 months, targeting neutral-to-positive EPS impact in Year 1.


Horizon Technology Finance (HRZN) Q2 2025 Earnings Call Transcript

- **Q1 2025 Financials**: NII of $0.27 per share with $1.00 spillover to support $0.11/month distributions through September.
- **Portfolio Strength**: 15% portfolio yield, 89% of debt rated 3/4, and $236M committed backlog for selective growth.
- **Market Challenges**: NAV down 8.6% QoQ due to stressed assets, but venture debt demand remains strong amid equity exit closure.
- **Strategic Position**: High-yield lending strategy, strong liquidity ($126M), and Monroe-Wendel partnership for long-term scale.

**【CEO Opening Remarks】**
- Q1 2025 net investment income (NII) of $0.27 per share, with $1.00 per share undistributed spillover income to support monthly distributions of $0.11 through September 2025.
- Portfolio growth of $20 million in debt investments, despite macro headwinds from tariff-related uncertainty and stressed asset recoveries.
- Emphasis on high portfolio yield (15% Q1) and selective lending strategy to maintain quality amid market volatility.

**【COO/CIO Portfolio Update】**
- $100 million in new debt investments and $2 million in equity investments, with 89% of debt portfolio rated 3/4 and 11% at risk (rated 1/2).
- Key portfolio developments: Emalex Biosciences clinical trial success and Kodiak Robotics SPAC IPO at $2.5B valuation.
- Stress investments in InBrace and Standvast downgraded to 1-rated with fair value reduced to zero due to macro exit market closure.

**【President Market Commentary】**
- Q1 2025 venture capital investment of $92B (up 19% QoQ), driven by AI deals, but life sciences IPO market down 14% YTD.
- Venture debt demand strong as equity exits slow; Horizon sees opportunities in high-quality, well-sponsored tech and life science companies.
- Q1 exit value $56B (highest since Q4 2021), but 40% concentrated in one IPO, highlighting exit market concentration risks.

**【CFO Financial Highlights】**
- Debt-to-equity ratio 1.54x (net leverage 1.29x), within target range, with $126M liquidity and $307M new investment capacity.
- Onboarding yield 13%, consistent with historical levels; portfolio yield 15%, among highest in BDC industry.
- Base management fee of 1.6-1.7%, competitive with peers, with advisor incentive fee deferral in Q1 due to unrealized losses.

**【Q&A Key Takeaways】**
- Dividend coverage: Board confident in NII growth to cover $0.11/month distributions, with spillover income management reviewed quarterly.
- Market quality: Higher underwriting standards for new deals, focusing on companies with strong VC backing and realistic valuations.
- Leverage strategy: Target net leverage 1.2-1.3x, no immediate plans to raise leverage despite current low 1.29x level.
- Partnerships: Monroe-Wendel partnership provides scale and capital, but Horizon maintains operational independence while benefiting from advisor resources.

**【Risk Factors】**
- NAV decline of $0.86 QoQ to $7.57 due to stressed asset writedowns and macro volatility.
- Soli Organic loan blockage notice from senior lender, potentially leading to nonaccrual status and further mark-to-market adjustments.
- Tariff-related uncertainty continues to impact exit markets and portfolio company valuations.


Horizon Technology Finance (HRZN) Q1 2025 Earnings Call Transcript

- **NII coverage maintained**: 2024 NII of $1.32 per share fully covered distributions, despite NAV decline to $8.43.
- **Portfolio growth momentum**: Q4 ended with $698M AUM, up 2% QoQ, and $207M committed backlog.
- **High-yield portfolio**: 14.9% Q4 debt yield, trailing 12-month 15.7%, among top BDCs.
- **Recovery in sight**: Q1 2025 prepayment activity expected to boost NII to $0.33+ per share.
- **Market tailwinds**: Life sciences exits up 3x YoY, $1.4B pipeline of venture debt opportunities.
- **Adviser alignment**: Adviser to waive incentive fees if NII misses distribution coverage.


**【CEO Summary Section】**
- Full-year 2024 NII of $1.32 per share covered regular monthly distributions, with a portfolio yield of 16% on debt investments, among the highest in the BDC industry.
- Ended 2024 with a $698 million portfolio, up 2% QoQ, and a committed backlog of $207 million.
- Board declared distributions of $0.11 per share for April-June 2025, supported by $1.06 per share undistributed spillover income.
- Adviser agreed to waive quarterly incentive fees if NII falls short of distributions.

**【COO/CIO Portfolio Update】**
- Q4 2024: $59 million in new debt investments (12.6% onboarding yield), $13 million in prepayments, and $79.4 million funded in Q1 2025.
- Portfolio yield of 14.9% for Q4, trailing 12-month yield of 15.7%.
- 91% of debt portfolio rated 3/4, with 9% in stressed 1/2 categories.
- Committed backlog increased to $207 million (from $190 million Q3), with $1.4 billion pipeline.

**【President Market Outlook】**
- VC investment rebounded to $209 billion in 2024 (vs. $195 billion in 2023), driven by AI and life sciences.
- Life sciences exit activity strong in Q1 2025 (5 IPOs, $250M Biogen royalty deal).
- Flight to quality in tech and life sciences, with $1.4B pipeline of venture debt opportunities.
- Royalty transactions re-emerging in life sciences (e.g., Castle Creek $75M Ligand deal).

**【CFO Financial Highlights】**
- Q4 2024 NII: $0.27 per share (vs. $0.32 Q3 2024, $0.45 Q4 2023), due to lower prepayment fees and interest income.
- NAV: $8.43 per share (down 6.3% QoQ, down 13.2% YoY) due to fair value markdowns.
- Balance sheet strength: $131M liquidity, 1.1x net leverage, $342M investment capacity.
- 2024 capital raises: $20M convertible notes, $66M ATM equity, $100M Nuveen credit facility.

**【Key Q&A Takeaways】**
- NII recovery path: Q1 2025 prepayment activity expected to add $2-4M in fee income, supporting NII rebound.
- Stressed investments: 9% of portfolio in 1/2 ratings, with active management and recovery strategies.
- Federal DOGE impact: Mixed signals on drug pricing, but potential tailwinds from lower R&D costs and regulatory streamlining.
- Interest rate sensitivity: 43% of floating-rate debt at or above current prime rate, limiting downside from rate cuts.


Actual											0.26	0.4	0.34	0.21	0.31	0.31	0.4	0.39	0.26	0.35	0.43	0.4	0.46	0.54	0.53	0.45	0.38	0.36	0.32	0.27	0.27	0.28	0.3111	0.2748
Forecast											0.305	0.345	0.3117	0.278	0.28	0.298	0.326	0.3575	0.294	0.3375	0.3489	0.3856	0.3993	0.4594	0.4536	0.4433	0.3815	0.3617	0.35	0.3188	0.2844	0.2773	0.2992	0.2748
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-14.75%	+15.94%	+9.08%	-24.46%	+10.71%	+4.03%	+22.70%	+9.09%	-11.56%	+3.70%	+23.24%	+3.73%	+15.20%	+17.54%	+16.84%	+1.51%	-0.39%	-0.47%	-8.57%	-15.31%	-5.06%	+0.97%	+3.98%	0.00%

HRZN

HRZN fundamentals

HRZN Q4 2025 Earnings

Earnings Call

You can ask Aime

HRZN

HRZN fundamentals

HRZN Q4 2025 Earnings

Earnings Call

HRZN Earnings Call Summary for Q4/20259:00 AM on Mar 4, 2026

HRZN Earnings Call Summary for Q3/20259:00 AM on Oct 29, 2025

HRZN Earnings Call Summary for Q2/20255:00 PM on Aug 7, 2025

HRZN Earnings Call Summary for Q1/20259:00 AM on Apr 30, 2025

HRZN Earnings Call Summary for Q4/20249:00 AM on Mar 5, 2025

You can ask Aime