Hercules Capital(HTGC) - 2025 Q2 - Quarterly Results

Financial Performance - Q2 2025 total gross debt and equity commitments reached $1.0 billion, a 45.7% increase year-over-year[2] - Record Q2 2025 total gross fundings of $709.1 million, reflecting a 53.7% year-over-year growth[2] - Net investment income (NII) for Q2 2025 was $88.7 million, or $0.50 per share, providing 125% coverage of the base cash distribution[1][5] - Total investment income increased to $137.5 million in Q2 2025, a 10.0% rise from $125.0 million in Q2 2024[15] - The company achieved record total gross fundings of $1.25 billion in the first half of 2025, a 17.0% increase year-over-year[6] - Total investment income for Q2 2025 was $137,459,000, an increase of 9.6% from $125,006,000 in Q2 2024[60] - Core investment income from debt portfolio for Q2 2025 was $121,433,000, up from $113,267,000 in Q2 2024, reflecting a growth of 7.5%[62] - Basic earnings per share for Q2 2025 were $0.50, slightly down from $0.51 in Q2 2024[60] - Net investment income for the first half of 2025 was $166,192,000, compared to $161,520,000 in the same period of 2024, reflecting a slight increase[60] Assets and Liabilities - Assets under management grew to over $5.3 billion, marking a 16.5% increase year-over-year[1] - The total investments at cost increased to $4,192.5 million in Q2 2025 from $3,995.0 million in Q1 2025[26] - As of June 30, 2025, Hercules reported total assets of $4,284.5 million, an increase from $3,831.6 million as of December 31, 2024[57] - Hercules' total liabilities as of June 30, 2025, were $2,133.4 million, compared to $1,842.0 million as of December 31, 2024[57] - The Company ended Q2 2025 with $785.6 million in available liquidity, including $52.2 million in unrestricted cash[27] - Hercules had over $1.0 billion of available liquidity at the end of Q2 2025[1] - The Company has $471.5 million of available unfunded commitments, representing 11.0% of total assets[33] Investment and Commitments - Hercules has pending commitments of $480.0 million in signed non-binding term sheets as of July 28, 2025[34] - The Company held equity positions in 76 portfolio companies with a fair value of $155.8 million as of June 30, 2025[42] - In May 2025, Hercules' portfolio company Capella Space Corporation was acquired by IonQ, with Hercules committing $30.0 million in venture debt financing and holding warrants for 176,200 shares as of June 30, 2025[47] - Couchbase, Inc. was acquired by Haveli Investments for approximately $1.5 billion, with Hercules having committed $70.0 million in venture debt financing and holding warrants for 105,350 shares as of June 30, 2025[47] - 23andMe, Inc. completed an asset purchase by TTAM Research Institute for $305.0 million, with Hercules committing $5.1 million in venture debt financing and holding 41,287 shares as of June 30, 2025[47] - Hercules has committed over $23 billion to more than 690 companies since its inception in December 2003[51] Financial Ratios and Metrics - Net asset value (NAV) increased to $11.84, a 2.5% rise from Q1 2025[6] - As of June 30, 2025, the Company's net assets increased to $2.2 billion, with NAV per share rising 2.5% to $11.84[38] - As of June 30, 2025, Hercules' GAAP leverage ratio was 97.4%, while the regulatory leverage ratio was 81.1%[31] - The net leverage ratio as of June 30, 2025, was 95.0%, down from 97.4% on a GAAP basis, showing a reduction in leverage[64] - The regulatory leverage ratio was reported at 78.7% on a non-GAAP basis, compared to 81.1% on a GAAP basis, indicating a healthier regulatory position[65] Operational Highlights - Unscheduled early loan repayments in Q2 2025 were $267.4 million, up 102.9% from $131.8 million in Q1 2025[2][13] - Total gross operating expenses for Q2 2025 were $52,174,000, an increase from $45,500,000 in Q2 2024, representing a rise of 14.8%[60] - Total net realized loss for Q2 2025 was $(57,637,000), compared to a loss of $(5,784,000) in Q2 2024, indicating a significant decline in realized gains[60] Upcoming Events - The second quarter 2025 financial results conference call is scheduled for July 31, 2025, at 2:00 p.m. PT[50]