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Core Viewpoint - Hercules Capital Inc. (HTGC) reported a first-quarter 2025 net investment income of 45 cents per share, missing the Zacks Consensus Estimate by one cent and reflecting a 10% decline year-over-year due to weak performance in interest, dividend, and fee income [1] Group 1: Financial Performance - Total investment income for the first quarter was $119.5 million, down 1.7% from the previous year, primarily due to a lower-weight average yield on the debt investment portfolio, and also lagged behind the Zacks Consensus Estimate of $121.8 million [2] - Net investment income was $77.5 million, a decrease of 2.2% year-over-year [1] - Total gross operating expenses increased slightly to $45.3 million, attributed to rising interest costs [2] Group 2: Portfolio and Commitments - The fair value of Hercules Capital's total investment portfolio stood at $3.92 billion as of March 31, 2025, with early loan repayments realized at $131.8 million [3] - The company delivered $1.02 billion in gross new debt and equity commitments and $539.1 million in gross new funding during the first quarter [3] Group 3: Balance Sheet and Liquidity - As of March 31, 2025, Hercules Capital's net asset value was $11.55 per share, down from $11.66 as of December 31, 2024 [4] - The company had $615.6 million in liquidity, which included $51.2 million in unrestricted cash and cash equivalents, and $564.5 million in credit facilities and SBA debentures [4] Group 4: Cost of Debt - The weighted average cost of debt, including interest and fees, remained stable at 4.9% compared to the prior-year quarter [5] Group 5: Strategic Outlook - The company's lack of global diversification may limit growth prospects, while efforts to enhance originations could keep expenses elevated; however, rising demand for customized financing and stable debt expenses are expected to support total investment income [6]

Financial Performance - Hercules Capital reported revenue of $119.51 million for the quarter ended March 2025, reflecting a year-over-year decline of 1.7% [1] - The earnings per share (EPS) for the same period was $0.45, down from $0.50 a year ago [1] - The reported revenue was a surprise of -1.91% compared to the Zacks Consensus Estimate of $121.83 million [1] - The EPS surprise was -2.17% against the consensus estimate of $0.46 [1] Key Metrics - Total Fee Income was $3.94 million, significantly lower than the estimated $6.02 million by four analysts [4] - Total interest and dividend income amounted to $102.10 million, compared to the average estimate of $115.81 million [4] - Fee Income from Non-control/Non-affiliate investments was $3.90 million, below the two-analyst average estimate of $6.46 million [4] - Interest and dividend income from Control investments was $3.10 million, slightly below the estimated $3.39 million [4] - Interest and dividend income from Non-control/Non-affiliate investments was $99 million, compared to the average estimate of $112.37 million [4] Stock Performance - Shares of Hercules Capital have returned -6.1% over the past month, while the Zacks S&P 500 composite changed by -0.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

分组1 - Hercules Capital reported quarterly earnings of $0.45 per share, missing the Zacks Consensus Estimate of $0.46 per share, and down from $0.50 per share a year ago, representing an earnings surprise of -2.17% [1] - The company posted revenues of $119.51 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.91%, and down from $121.55 million year-over-year [2] - Hercules Capital shares have declined approximately 10.9% since the beginning of the year, compared to a decline of 5.3% for the S&P 500 [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.48 on revenues of $127.87 million, and for the current fiscal year, it is $1.95 on revenues of $518.51 million [7] - The Zacks Industry Rank for Financial - SBIC & Commercial Industry is currently in the bottom 43% of over 250 Zacks industries, indicating potential underperformance compared to the top 50% of ranked industries [8]

Financial Performance - Net investment income (NII) for Q1 2025 was $77.5 million, or $0.45 per share, providing 113% coverage of the base cash distribution[1] - Total investment income decreased to $119.5 million in Q1 2025, down from $121.6 million in Q1 2024[15] - Net investment income for the three months ended March 31, 2025, was $77,458,000, a decrease from $79,162,000 for the same period in 2024[62] - Total investment income for the three months ended March 31, 2025, was $119,511,000, down from $121,553,000 in 2024[62] - The core yield for the three months ended March 31, 2025, was 12.6%, down from 12.9% as of December 31, 2024[64] Assets and Liabilities - As of March 31, 2025, Hercules had over $5.0 billion in assets under management, an increase of 11.0% year-over-year[1] - Total assets as of March 31, 2025, were $4,031,211,000, an increase from $3,831,591,000 as of December 31, 2024[59] - Total liabilities as of March 31, 2025, were $2,030,581,000, compared to $1,842,010,000 as of December 31, 2024[59] Investment Portfolio - The company achieved a net debt portfolio growth of nearly $270.0 million, marking the second highest level historically[5] - The GAAP effective yield on the debt investment portfolio was 13.0% in Q1 2025, compared to 13.7% in Q4 2024[13] - The weighted average grade of the debt investment portfolio was 2.31 as of March 31, 2025, compared to 2.26 as of December 31, 2024[22] - As of March 31, 2025, 98.0% of the debt investment portfolio was priced at floating interest rates, indicating a high sensitivity to interest rate changes[40] - The company had two debt investments on non-accrual with an investment cost of approximately $72.2 million and a fair value of $19.6 million, representing 1.8% and 0.5% of the total investment portfolio at cost and value, respectively[25] Liquidity and Commitments - The company ended Q1 2025 with $615.6 million in available liquidity, including $51.2 million in unrestricted cash and cash equivalents[28] - Hercules had $455.7 million of available unfunded commitments, representing 11.3% of total assets, which remained stable from the previous quarter[34] - Hercules closed $1.02 billion in new debt and equity commitments in Q1 2025, with pending commitments of $682.5 million in signed non-binding term sheets as of April 28, 2025[35] Shareholder Value - The net asset value (NAV) was $11.55, a decrease of 0.9% from Q4 2024[8] - The net asset value (NAV) as of March 31, 2025, was $2.00 billion, with NAV per share decreasing by 0.9% to $11.55[39] - The net asset value per share as of March 31, 2025, was $11.55, slightly down from $11.66 as of December 31, 2024[59] - The company sold 2.0 million shares of common stock under the equity ATM program for total net proceeds of $39.4 million during Q1 2025[29] Ratings and Acquisitions - Hercules reported an investment grade rating upgrade to BBB (high) from Morningstar DBRS, reflecting its scale and diversified investment platform[5] - Hercules' portfolio company Voyager Technologies, Inc. confidentially filed for an IPO under the JOBS Act in January 2025, with an initial venture debt commitment of $58.0 million starting June 2024[49] - bluebird bio, Inc. was acquired for approximately $96.0 million by funds managed by Carlyle and SK Capital Partners LP, with Hercules having committed $125.0 million in venture debt financing[49] - Next Insurance, Inc. signed a definitive agreement to be acquired by Munich RE for $2.6 billion in cash, with Hercules committing $12.5 million in venture debt financing[49] - 3Gtms, LLC was acquired by Descartes Systems Group for approximately $115.0 million, with Hercules having committed $41.3 million in venture debt financing[49]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _________________________________________________ FORM 10-Q _________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended March 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 814-00702 _________________________________________________ HERCULE ...

Core Viewpoint - Analysts forecast Hercules Capital (HTGC) will report quarterly earnings of $0.46 per share, indicating a year-over-year decline of 8%, while revenues are expected to reach $121.83 million, reflecting a slight increase of 0.2% compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating that analysts have collectively reevaluated their initial estimates during this period [2]. - Revisions to earnings estimates are crucial for predicting potential investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Key Metrics Forecast - Analysts estimate 'Total Fee Income' to be $6.02 million, up from $5.77 million in the same quarter last year [5]. - The average prediction for 'Total interest and dividend income' is $115.81 million, slightly higher than the year-ago figure of $115.78 million [5]. - 'Fee Income- Non-control/Non-affiliate investments' is forecasted to reach $6.46 million, compared to $5.74 million from the previous year [5]. - 'Interest and dividend income- Non-control/Non-affiliate investments' is expected to be $112.37 million, down from $112.82 million reported in the same quarter last year [6]. Market Performance - Over the past month, Hercules Capital shares have recorded a return of -7%, while the Zacks S&P 500 composite has changed by -4.3%. Based on its Zacks Rank 3 (Hold), HTGC is likely to perform in line with the overall market in the upcoming period [6].

Company Performance - Hercules Capital (HTGC) closed at $16.83, unchanged from the previous session, lagging behind the S&P 500's gain of 1.81% [1] - The company has experienced a 6.55% decline in share price over the past month, while the Finance sector and S&P 500 lost 4.82% and 6.14%, respectively [1] Earnings Expectations - The upcoming earnings report is expected to show an EPS of $0.46, reflecting an 8% decrease from the same quarter last year [2] - Revenue is anticipated to be $121.83 million, indicating a slight increase of 0.23% compared to the prior year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $1.95 per share, down 2.5% from the previous year, while revenue is expected to reach $518.17 million, up 4.98% [3] - Recent changes in analyst estimates suggest a shifting business landscape, with positive revisions indicating a favorable outlook for the company [3] Valuation Metrics - Hercules Capital has a Forward P/E ratio of 8.63, which is higher than the industry average of 7.97 [6] - The Financial - SBIC & Commercial Industry, part of the Finance sector, holds a Zacks Industry Rank of 183, placing it in the bottom 27% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently rates Hercules Capital at 3 (Hold) [5] - The consensus EPS projection has decreased by 0.2% in the last 30 days, indicating a cautious sentiment [5]

Core Viewpoint - MoonLake Immunotherapeutics has secured a partnership with Hercules Capital for up to $500 million in non-dilutive capital to advance its investigational therapy sonelokimab for inflammatory diseases [1][3][7] Financial Strength - The agreement provides $75 million at closing, with additional funds available upon achieving specific milestones, enhancing MoonLake's financial position without diluting shareholder equity [1][3][7] - The new facility adds to the existing cash position of $448 million, supporting the company's growth and the expected launch of sonelokimab in 2027 [7] Clinical Development - MoonLake is advancing eight Phase 2 and Phase 3 clinical trials, with pivotal Phase 3 data for hidradenitis suppurativa (HS) expected by mid-2025 [5][6] - The company plans to present important clinical updates, including patient baseline characteristics and primary endpoint readout timing for the VELA program, during a Capital Markets Update on April 29, 2025 [4][7] Product Overview - Sonelokimab is a ~40 kDa humanized Nanobody® targeting IL-17 dimers, designed to treat inflammatory diseases such as HS and palmoplantar pustulosis (PPP) [2][10][13] - The VELA program aims to enroll 800 patients to evaluate the efficacy and safety of sonelokimab in adult patients with active moderate-to-severe HS [22] Market Opportunity - Hidradenitis suppurativa affects approximately 2% of the population, with a projected market opportunity reaching $15 billion by 2035 due to significant unmet medical needs [24][25]

Group 1: Stock Performance - Hercules Capital (HTGC) closed at $19.32, with a +0.42% movement compared to the previous day, underperforming the S&P 500 which gained 1.77% [1] - The stock has decreased by 10.39% over the past month, compared to a loss of 1.46% in the Finance sector and a 5.73% loss in the S&P 500 [1] Group 2: Earnings Projections - The upcoming EPS for Hercules Capital is projected at $0.46, indicating an 8% decline from the same quarter last year [2] - Quarterly revenue is estimated at $121.83 million, reflecting a slight increase of 0.23% from the previous year [2] Group 3: Fiscal Year Estimates - For the entire fiscal year, earnings are expected to be $1.96 per share, representing a -2% change from the previous year [3] - Revenue for the fiscal year is projected at $520.16 million, indicating a +5.38% change from the prior year [3] Group 4: Analyst Estimates and Ratings - Recent adjustments to analyst estimates for Hercules Capital are being monitored, as upward revisions indicate positive sentiment regarding the company's operations [4] - The Zacks Rank system, which evaluates estimated changes, currently ranks Hercules Capital at 3 (Hold) [6] Group 5: Valuation Metrics - Hercules Capital has a Forward P/E ratio of 9.84, which is higher than the industry average Forward P/E of 8.85 [7] - The Financial - SBIC & Commercial Industry, part of the Finance sector, holds a Zacks Industry Rank of 131, placing it in the bottom 48% of over 250 industries [7]