Horizon Technology Finance (NASDAQ:HRZN) Issues Earnings Results, Meets Expectations

by · The Cerbat Gem

Horizon Technology Finance (NASDAQ:HRZN – Get Free Report) posted its quarterly earnings results on Thursday. The investment management company reported $0.18 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.18, Zacks reports. Horizon Technology Finance had a return on equity of 11.15% and a net margin of 5.27%. The firm had revenue of $24.06 million during the quarter, compared to the consensus estimate of $25.12 million.

Here are the key takeaways from Horizon Technology Finance’s conference call:

  • Pipeline and portfolio expanded: Horizon funded nine investments totaling $98 million and ended its fourth consecutive quarter of debt portfolio growth at $650 million. Its committed, approved, and awarded backlog rose to $351 million, though many commitments depend on companies meeting milestones.
  • Income covered the declared distribution: Third-quarter net investment income was $0.19 per share, above the $0.18 in quarterly distributions declared for January through March 2027. However, NII was below $0.32 per share a year earlier.
  • Credit stress drove a sharp NAV decline: NAV fell to $5.56 per share from $6.23 in the prior quarter, mainly due to write-downs on stressed investments; management said most, if not all, of the credits in active workout processes are on non-accrual.
  • Strong liquidity and share repurchases: The company reported $211 million of available liquidity and net leverage of 0.82x, and repurchased just over 2 million shares at an average $4.90 during the quarter.
  • Venture market remains uneven: Management cited strong overall venture investment, largely concentrated in AI, while exits for non-AI companies remain muted. It expects lower loan prepayment activity in Q4 than in Q3 and described the origination pipeline as strong but fluid.

Horizon Technology Finance Stock Performance

NASDAQ HRZN opened at $3.96 on Friday. Horizon Technology Finance has a 52 week low of $3.70 and a 52 week high of $6.85. The company has a 50-day moving average price of $4.46 and a two-hundred day moving average price of $4.74. The stock has a market cap of $265.44 million, a price-to-earnings ratio of -5.28 and a beta of 1.00.

Horizon Technology Finance Dividend Announcement

The business also recently disclosed a monthly dividend, which will be paid on Tuesday, March 16th. Shareholders of record on Thursday, February 18th will be paid a dividend of $0.06 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 18.2%. The ex-dividend date is Thursday, February 18th. Horizon Technology Finance’s payout ratio is currently 200.00%.

Analysts Set New Price Targets

A number of equities research analysts recently commented on HRZN shares. Oppenheimer lowered their price target on shares of Horizon Technology Finance from $6.00 to $5.00 and set a “market perform” rating for the company in a report on Friday, August 7th. Compass Point assumed coverage on shares of Horizon Technology Finance in a research note on Thursday, August 27th. They set a “buy” rating and a $5.50 target price for the company. Weiss Ratings downgraded Horizon Technology Finance from a “sell (d+)” rating to a “sell (d)” rating in a report on Wednesday, August 19th. UBS Group boosted their price objective on Horizon Technology Finance from $4.25 to $4.50 and gave the stock a “neutral” rating in a report on Tuesday, September 1st. Finally, Keefe, Bruyette & Woods cut their price target on Horizon Technology Finance from $5.00 to $4.50 and set a “market perform” rating for the company in a report on Friday, August 21st. One investment analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Horizon Technology Finance currently has an average rating of “Hold” and a consensus target price of $5.00.

Read Our Latest Stock Analysis on HRZN

Horizon Technology Finance News Roundup

Here are the key news stories impacting Horizon Technology Finance this week:

  • Positive Sentiment: The board declared monthly distributions of $0.06 per share for January, February and March 2027, or $0.18 total. The annualized payout is $0.72 per share, equivalent to an indicated yield of about 18% at the referenced share price, which may appeal to income-focused investors. Distribution announcement
  • Neutral Sentiment: Third-quarter 2026 earnings of $0.18 per share matched analysts’ expectations. Q3 earnings report
  • Negative Sentiment: Quarterly revenue was $24.06 million, below the $25.12 million analyst estimate. Earnings per share also fell from $0.31 a year earlier to $0.18, a decline that may weigh on sentiment despite meeting expectations. Q3 financial results

About Horizon Technology Finance

(Get Free Report)

Horizon Technology Finance Corporation (NASDAQ: HRZN) is a specialty finance company that has elected to be regulated as a business development company. It provides secured venture loans to development-stage companies backed by venture capital or private equity investors.

The company primarily finances businesses in the technology, life sciences, healthcare information and sustainability sectors. Its lending solutions are designed to support needs such as product development, commercialization, acquisitions, working capital and other corporate purposes.

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