UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 814-00702 HERCULES CAPITAL, INC. (Exact Name of Registrant as Specified in its Charter) Maryland 74-3113410 (State or Jurisdiction of Incorporation or Organization) 400 ...

Financial Data and Key Metrics Changes - Hercules Capital reported record total investment income of $105.1 million and record net investment income of $65.5 million, or $0.48 per share, providing 123% coverage of the base distribution of $0.39 per share [13][43] - The company's net realized gains were $8 million, with a strong liquidity position of over $553 million, totaling approximately $1 billion when including private funds [17][46] - The NAV per share increased by 2.8% quarter-over-quarter to $10.82 per share [44] Business Line Data and Key Metrics Changes - In Q1, Hercules achieved gross fundings of over $476 million, leading to a net debt investment portfolio growth of over $153 million, marking the fifth consecutive quarter of exceeding $100 million in growth [8][12] - The company funded debt capital to 31 different companies, with nine being new borrower relationships, indicating a balanced approach between new and existing borrowers [30][113] Market Data and Key Metrics Changes - The venture capital ecosystem experienced a significant funding gap, with late-stage capital demand to supply ratio reaching a decade high of 3.2x in Q1 2023 [86] - Despite the overall decline in venture funding activity, the company noted that the capital available for late-stage companies remains substantial, with $37 billion in venture funding in Q1 [88] Company Strategy and Development Direction - Hercules Capital aims to leverage the opportunities created by the exit of SVB from the market, positioning itself to fill the void left by competitors [51][79] - The company has established a new private credit fund vehicle to enhance liquidity and capitalize on market dislocation [29][89] - The strategic focus remains on maintaining a strong balance sheet, selective underwriting, and investing in team and systems [40][93] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current market volatility and capitalize on emerging opportunities [28][117] - The company anticipates continued strong M&A activity across its portfolio, validating its selective underwriting approach [33][67] - Management expects prepayment activity to increase in Q2, driven by M&A, with guidance set between $225 million and $320 million [12][75] Other Important Information - The weighted average internal credit rating of the debt investment portfolio was 2.26, indicating stable credit quality [14] - Approximately 82% of the debt investment portfolio is in senior secured first lien positions, reflecting a conservative risk profile [37] Q&A Session Summary Question: Impact of SVB's situation on the ecosystem - Management clarified that the SVB situation does not reflect the health of the venture ecosystem and presents a significant opportunity for Hercules [50][51] Question: Current market conditions and deal quality - Management noted that while many deals are being evaluated, the focus remains on maintaining high credit quality and avoiding marginal deals [56][83] Question: Recovery expectations for portfolio companies - Management expressed confidence in the recovery of portfolio companies, emphasizing strong cash positions and ongoing support [58][102] Question: Trends in capital availability for late-stage companies - Management indicated that significant capital remains available for late-stage companies, with expectations of a gradual return to normalcy in valuations [60][87] Question: Opportunities from the recent market turmoil - Management highlighted the potential for increased market share and stronger incumbency positions due to the exit of SVB and other competitors [91][112]

Q1 2023 INVESTOR PRESENTATION Important Notice: This presentation may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You should understand that under Section 27A(b)(2)(B) of the Securities Act of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made i ...

PART I. FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents unaudited consolidated financial statements and notes, detailing assets, operations, cash flows, and investments for Q1 2023 and FY2022 [Consolidated Statements of Assets and Liabilities](index=3&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities%20as%20of%20March%2031,%202023%20(unaudited)%20and%20December%2031,%202022) This section presents the unaudited consolidated statements of assets and liabilities as of March 31, 2023, and December 31, 2022 | Metric | March 31, 2023 (in thousands) | December 31, 2022 (in thousands) | | :----------------------------------- | :----------------------------- | :----------------------------- | | Total assets | $3,251,819 | $3,028,855 | | Total investments, at fair value | $3,130,178 | $2,963,955 | | Cash and cash equivalents | $71,129 | $15,797 | | Total liabilities | $1,752,813 | $1,627,396 | | Total net assets | $1,499,006 | $1,401,459 | | Net asset value per share | $10.82 | $10.53 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20for%20the%20three%20months%20ended%20March%2031,%202023%20and%202022%20(unaudited)) This section presents the unaudited consolidated statements of operations for the three months ended March 31, 2023, and 2022 | Metric | Three Months Ended March 31, 2023 (in thousands) | Three Months Ended March 31, 2022 (in thousands) | | :--------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Total investment income | $105,090 | $65,157 | | Total net operating expenses | $39,591 | $29,370 | | Net investment income | $65,499 | $35,787 | | Net realized gain (loss) | $7,960 | $(2,381) | | Net change in unrealized appreciation (depreciation) | $21,105 | $(36,742) | | Net increase (decrease) in net assets from operations | $94,564 | $(3,336) | | Net investment income before gains and losses per common share (Basic) | $0.48 | $0.30 | | Change in net assets from operations per common share (Basic) | $0.69 | $(0.03) | [Consolidated Statements of Changes in Net Assets](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets%20for%20the%20three%20months%20ended%20March%2031,%202023%20and%202022%20(unaudited)) This section presents the unaudited consolidated statements of changes in net assets for the three months ended March 31, 2023, and 2022 | Metric | March 31, 2023 (in thousands) | December 31, 2022 (in thousands) | | :------------------------------------------------- | :----------------------------- | :----------------------------- | | Balance as of period start | $1,401,459 | $1,308,547 | | Net increase (decrease) in net assets from operations | $94,564 | $(3,336) | | Public offering, net of offering expenses | $65,342 | $85,249 | | Distributions | $(64,774) | $(57,882) | | Balance as of period end | $1,499,006 | $1,333,448 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20three%20months%20ended%20March%2031,%202023%20and%202022%20(unaudited)) This section presents the unaudited consolidated statements of cash flows for the three months ended March 31, 2023, and 2022 | Metric | Three Months Ended March 31, 2023 (in thousands) | Three Months Ended March 31, 2022 (in thousands) | | :--------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net cash provided by (used in) operating activities | $(80,874) | $(188,622) | | Net cash provided by (used in) investing activities | $(94) | $(50) | | Net cash provided by (used in) financing activities | $134,040 | $114,864 | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $53,072 | $(73,808) | | Cash, cash equivalents, and restricted cash at end of period | $78,948 | $62,457 | - Operating activities used less cash in Q1 2023 compared to Q1 2022, primarily due to a **$111.2 million increase** in principal and fee repayments received on debt investments and a **$6.2 million increase** in proceeds from equity sales[330](index=330&type=chunk) [Consolidated Schedule of Investments as of March 31, 2023](index=7&type=section&id=Consolidated%20Schedule%20of%20Investments%20as%20of%20March%2031,%202023%20(unaudited)) This section presents the unaudited consolidated schedule of investments as of March 31, 2023 | Investment Type | Fair Value (in thousands) | Percentage of Total Portfolio | | :-------------------------- | :------------------------ | :---------------------------- | | Senior Secured Debt | $2,910,526 | 93.0% | | Unsecured Debt | $58,125 | 1.9% | | Preferred Stock | $40,345 | 1.3% | | Common Stock | $84,072 | 2.7% | | Warrants | $33,210 | 1.0% | | Investment Funds & Vehicles | $3,900 | 0.1% | | **Total** | **$3,130,178** | **100.0%** | Top 3 Industry Sectors by Fair Value (March 31, 2023) | Industry Sector | Fair Value (in thousands) | Percentage of Total Portfolio | | :-------------------------- | :------------------------ | :---------------------------- | | Drug Discovery & Development | $1,220,057 | 39.0% | | Software | $828,712 | 26.5% | | Consumer & Business Services | $474,883 | 15.2% | - The PRIME interest rate was **8.00%** as of March 31, 2023, with gross unrealized appreciation for federal income tax purposes totaling **$87.9 million** and gross unrealized depreciation at **$106.6 million**[46](index=46&type=chunk) [Consolidated Schedule of Investments as of December 31, 2022](index=18&type=section&id=Consolidated%20Schedule%20of%20Investments%20as%20of%20December%2031,%202022) This section presents the consolidated schedule of investments as of December 31, 2022 | Investment Type | Fair Value (in thousands) | Percentage of Total Portfolio | | :-------------------------- | :------------------------ | :---------------------------- | | Senior Secured Debt | $2,741,388 | 92.5% | | Unsecured Debt | $54,056 | 1.8% | | Preferred Stock | $41,488 | 1.4% | | Common Stock | $92,484 | 3.1% | | Warrants | $30,646 | 1.1% | | Investment Funds & Vehicles | $3,893 | 0.1% | | **Total** | **$2,963,955** | **100.0%** | Top 3 Industry Sectors by Fair Value (December 31, 2022) | Industry Sector | Fair Value (in thousands) | Percentage of Total Portfolio | | :-------------------------- | :------------------------ | :---------------------------- | | Drug Discovery & Development | $1,150,707 | 38.8% | | Software | $798,264 | 26.9% | | Consumer & Business Services | $439,384 | 14.8% | - The PRIME interest rate was **7.50%** as of December 31, 2022, with gross unrealized appreciation for federal income tax purposes totaling **$72.2 million** and gross unrealized depreciation at **$112.0 million**[71](index=71&type=chunk) [Notes to Consolidated Financial Statements](index=29&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(unaudited)) This section provides comprehensive notes to the unaudited consolidated financial statements [Note 1. Description of Business](index=30&type=section&id=1.%20Description%20of%20Business) Hercules Capital, Inc. is a specialty finance BDC providing senior secured loans to high-growth, venture-backed

Hercules Capital, Inc. (NYSE:HTGC) Q4 2022 Earnings Conference Call February 16, 2023 5:00 PM ET Company Participants Michael Hara - MD, IR & Corporate Communications Scott Bluestein - CEO, CIO, President & Director Seth Meyer - CFO & CAO Conference Call Participants Crispin Love - Piper Sandler & Co. Kevin Fultz - JMP Securities Christopher Nolan - Ladenburg Thalmann & Co. Casey Alexander - Compass Point John Hecht - Jefferies Ryan Lynch - KBW Operator Good day, and thank you for standing by. Welcome to ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 814-00702 HERCULES CAPITAL, INC. (Exact name of Registrant as specified in its charter) Maryland 74-3113410 (State or other jurisdiction of in ...

Hercules Capital, Inc. (NYSE:HTGC) Q3 2022 Earnings Conference Call November 2, 2022 5:00 PM ET Company Participants Michael Hara – Managing Director-Investor Relations Scott Bluestein – Chief Executive Officer​ and Chief Investment Officer Seth Meyer – Chief Financial Officer Conference Call Participants Crispin Love – Piper Sandler Kevin Fultz – JMP Securities Ken Lee – RBC Capital Markets Ryan Lynch – KBW Christopher Nolan – Ladenburg Thalmann Operator Good day, and thank you for standing by. Welcome to ...

Financing the Growth of Tomorrow's Companies Today Q3 2022 INVESTOR PRESENTATION November 2, 2022 | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 814-00702 HERCULES CAPITAL, INC. (Exact Name of Registrant as Specified in its Charter) Maryland 74-3113410 (State or Jurisdiction of Incorporation or Organization ...

Hercules Capital, Inc. (NYSE:HTGC) Q2 2022 Earnings Conference Call July 28, 2022 5:00 PM ET Company Participants Michael Hara - IR and Corporate Communications Scott Bluestein - CEO and Chief Investment Officer Seth Meyer - CFO Conference Call Participants Crispin Love - Piper Sandler Kevin Fultz - JMP Securities Christopher Nolan - Ladenburg Thalmann Ryan Lynch - KBW Kenneth Lee - RBC Capital Markets Casey Alexander - Compass Point Operator Good day, ladies and gentlemen, and thank you for standing by. We ...