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]

Core Insights - Mr. Mavroudis is a professional portfolio manager with a focus on risk management and in-depth financial market analysis [1] - He has successfully navigated major crises, including the COVID-19 pandemic and the PSI [1] - Mr. Mavroudis is the CEO of FAST FINANCE Investment Services, a registered Greek company [1] Professional Background - Mr. Mavroudis holds multiple degrees, including an MSc in Financial and Banking Management, an LLM in Law, and a BSc in Economics, graduating as valedictorian [1] - He is a certified portfolio manager and holds various certifications related to financial instruments, derivatives, and securities [1] - He is also a licensed Class A accountant-tax consultant and a member of the Economic Chamber of Greece [1] Contributions and Engagement - Mr. Mavroudis writes daily articles for reputable financial media and appears as a guest commentator on television and online programs [1] - He has published three books on investments and teaches in educational seminars [1] - By writing on Seeking Alpha, he aims to engage with a community of investors and market enthusiasts, fostering mutual growth and knowledge sharing [1]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Hercules Capital (HTGC), and suggests that while the average brokerage recommendation (ABR) indicates a favorable outlook, investors should be cautious and validate these recommendations with other tools like Zacks Rank [1][3][5]. Group 1: Brokerage Recommendations - Hercules Capital has an average brokerage recommendation (ABR) of 1.78, indicating a position between Strong Buy and Buy, based on recommendations from nine brokerage firms [2]. - Of the nine recommendations, five are Strong Buy and one is Buy, which account for 55.6% and 11.1% of all recommendations respectively [2]. - Despite the positive ABR, studies indicate that brokerage recommendations often do not effectively guide investors towards stocks with the highest potential for price appreciation [3][4]. Group 2: Limitations of Brokerage Recommendations - Brokerage firms often exhibit a positive bias in their ratings due to vested interests, leading to a disproportionate number of Strong Buy recommendations compared to Strong Sell [4][8]. - The interests of brokerage firms may not align with those of retail investors, providing limited insight into future stock price movements [5]. - Analysts' recommendations tend to be overly optimistic, which can mislead investors more often than they provide accurate guidance [8]. Group 3: Zacks Rank as an Alternative - Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, which are more effective indicators of near-term stock price performance compared to ABR [6][9]. - The Zacks Rank is updated more frequently, reflecting changes in earnings estimates promptly, while ABR may not always be current [10]. - For Hercules Capital, the Zacks Consensus Estimate for the current year remains unchanged at $1.96, suggesting that the stock may perform in line with the broader market [11]. Group 4: Current Status of Hercules Capital - The recent change in consensus estimate and other factors have resulted in a Zacks Rank 3 (Hold) for Hercules Capital, indicating a cautious approach despite the Buy-equivalent ABR [12].

Group 1 - The article emphasizes the current favorable conditions for income investors, particularly in the context of high-yielding Business Development Companies (BDCs) experiencing price declines due to volatility in tech stocks, resulting in double-digit yields [2] - iREIT+HOYA Capital is highlighted as a premier service focused on income-producing asset classes, aiming for sustainable portfolio income, diversification, and inflation hedging [1] - The author has over 14 years of investment experience and focuses on defensive stocks with a medium- to long-term investment horizon [2] Group 2 - The article does not provide specific financial advice or recommendations, encouraging readers to conduct their own due diligence before making investment decisions [4][5] - There is a disclosure regarding the author's beneficial long position in HTGC shares, indicating a personal investment interest [3]