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HRZN

Horizon Technology Finance Corporation

HRZN

Horizon Technology Finance Corporation • NASDAQ
$6.68 ▲ 0.30% (+0.02)
Market Cap $272.88 M
52w High $9.99
52w Low $5.71
Dividend Yield 1.32%
P/E -10.6
Volume 183.42K
Outstanding Shares 40.85M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $41.56M ▲ $2.568M ▲ $30.722M ▲ 73.922% ▼ $0.32 ▲ $31.095M ▲
Q2-2025 $-9.889M ▲ $2.314M ▲ $-20.777M ▲ 210.102% ▲ $-0.5 ▼ $-20.404M ▲
Q1-2025 $-10.819M ▼ $1.558M ▲ $-21.436M ▼ 198.133% ▼ $0.27 ▲ $-21.058M ▼
Q4-2024 $-2.396M ▼ $1.459M ▲ $-12.432M ▼ 518.865% ▲ $-0.34 ▼ $-12.065M ▼
Q3-2024 $17.015M $1.419M $7.278M 42.774% $0.2 $7.651M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $130.907M ▲ $759.212M ▲ $443.511M ▲ $315.701M ▲
Q2-2025 $24.664M ▼ $726.797M ▼ $443.002M ▼ $283.795M ▼
Q1-2025 $33.033M ▼ $789.592M ▼ $484.135M ▼ $305.457M ▼
Q4-2024 $70.264M ▲ $821.833M ▲ $485.65M ▲ $336.183M ▼
Q3-2024 $52.302M $793.074M $450.541M $342.533M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $30.722M ▲ $8.486M ▼ $42.152M ▲ $-882K ▲ $50.565M ▲ $8.486M ▼
Q2-2025 $-20.777M ▲ $49.602M ▲ $0 ▲ $-45.915M ▼ $3.687M ▲ $49.602M ▲
Q1-2025 $-21.436M ▼ $9.758M ▲ $-22.943M ▼ $-10.219M ▼ $-23.529M ▼ $9.758M ▲
Q4-2024 $-12.432M ▼ $-26.136M ▼ $0 ▲ $40.356M ▲ $14.22M ▲ $-26.136M ▼
Q3-2024 $7.278M $13.109M $-41.366M $-1.969M $-30.271M $13.109M

Five-Year Company Overview

Income Statement

Income Statement Horizon’s revenue base has been steadily inching higher over the past few years, showing it is putting more money to work in its lending strategy. Operating profits have generally been positive, which suggests the core lending and fee business is functioning reasonably well. However, bottom-line results have swung from profits to losses recently, which signals rising credit costs, valuation hits on the portfolio, or higher funding expenses. This volatility is a key risk point: the business can generate solid income in good periods, but earnings are clearly sensitive to the credit cycle and interest-rate environment.

Balance Sheet

Balance Sheet The balance sheet has expanded meaningfully, with assets growing as Horizon has increased its loan book and investment portfolio. Equity has also grown, but debt has risen faster, meaning the company is operating with higher leverage than in the past. This can enhance returns when things go well but increases vulnerability if portfolio companies struggle or markets tighten. Cash balances are modest but not unusually low for a lender that relies on credit facilities and capital markets. Overall, the balance sheet reflects a scaled-up, more leveraged version of the business compared with a few years ago, which raises both return potential and risk.

Cash Flow

Cash Flow Cash generation has been choppy, which is typical for a specialty finance company but still worth watching. Some years show healthy cash inflows from operations, while others show sizable outflows tied to new lending and portfolio activity. Capital spending needs are minimal, so the main driver is how much Horizon is deploying into new loans versus collecting from existing ones. This means cash flow can look weak in years of aggressive growth and stronger when the firm slows new originations or realizes more repayments and exits. Investors need to accept that cash flow will not be smooth and depends heavily on the timing of deals and portfolio events.

Competitive Edge

Competitive Edge Horizon operates in a focused niche: venture debt to technology, life sciences, healthcare information, and sustainability companies that are usually backed by venture capital. Its advantages come from experience in this space, a long operating history, and deep relationships with venture and private equity firms that refer deals. The ability to design flexible, secured loans with attached warrants gives it a differentiated product versus traditional banks and many generalist lenders. The affiliation with Monroe Capital and the planned merger with Monroe Capital Corporation should increase scale, broaden deal flow, and deepen funding resources, if executed well. Competition remains intense in venture and growth lending, but Horizon’s specialization and network give it a defensible, if not unassailable, position.

Innovation and R&D

Innovation and R&D Horizon is not an R&D-heavy technology company; its “innovation” is mainly in how it structures financial products. It focuses on tailored venture debt, often combined with equity-like warrants, to meet the needs of high-growth, sometimes pre-profit businesses that cannot be served easily by traditional bank loans. Its edge comes from underwriting know-how, sector-specific insight, and the ability to balance risk and reward in complex situations. Looking ahead, the key innovation driver is strategic rather than technological: integrating with Monroe’s broader platform, expanding product range and deal sizes, and using a larger information base to refine credit decisions. The risk is that integration or rapid scaling could dilute underwriting discipline.

Summary

Horizon Technology Finance has grown its business and broadened its balance sheet, but at the cost of greater leverage and more earnings volatility. The core lending engine appears sound, yet recent net losses highlight the inherent risk of lending to venture-backed, higher-risk companies in a shifting rate and funding environment. Its main strengths are deep domain expertise, strong ties to venture capital sponsors, and a differentiated role as a provider of non-dilutive growth capital. The upcoming merger and Monroe affiliation could improve scale, diversification, and efficiency, but also introduce integration and execution risks. Overall, Horizon represents a specialized, higher-risk, higher-potential model within the asset management and business development company universe, where outcomes are closely tied to credit quality, deal selection, and how well it manages growth and leverage over the next cycle.

NEWS

October 28, 2025 · 4:20 PM UTC

Horizon Technology Finance Announces Monthly Distributions for January, February and March 2026 Totaling $0.33 per Share

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October 28, 2025 · 4:15 PM UTC

Horizon Technology Finance Announces Third Quarter 2025 Financial Results

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October 14, 2025 · 4:15 PM UTC

Horizon Technology Finance to Announce Third Quarter 2025 Financial Results

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