Horizon Technology Finance(US:HRZN)2025-10-28 20:28Financial Performance - Third Quarter 2025 net investment income (NII) was $14.0 million, or $0.32 per basic share, compared to $11.8 million, or $0.32 per basic share for the prior-year period [4]. - Total investment income for the three months ended September 30, 2025, was $26,318 million, an increase from $24,563 million in the same period of 2024, representing a growth of 7.1% [45]. - Net investment income for the nine months ended September 30, 2025, was $36,162 million, compared to $37,357 million for the same period in 2024, reflecting a decrease of 3.2% [45]. - Net increase in net assets resulting from operations for the three months ended September 30, 2025, was $30,722 million, a substantial increase from $7,278 million in the same period of 2024 [45]. - Net investment income per common share (basic) for the three months ended September 30, 2025, was $0.32, unchanged from the same period in 2024 [45]. - Weighted average shares outstanding (basic) increased to 43,101,307 for the three months ended September 30, 2025, compared to 36,571,000 in the same period of 2024 [45]. - Distributions declared per share remained stable at $0.33 for the three months ended September 30, 2025, consistent with the same period in 2024 [45]. - Total expenses for the three months ended September 30, 2025, were $11,952 million, a decrease from $12,353 million in the same period of 2024, reflecting a reduction of 3.2% [45]. - Provision for excise tax for the nine months ended September 30, 2025, was $1,123 million, slightly higher than $1,109 million for the same period in 2024 [45]. Investment Portfolio - The total investment portfolio was valued at $603.5 million as of September 30, 2025 [4]. - The net asset value (NAV) per share increased to $7.12 as of September 30, 2025 [4]. - The annualized portfolio yield on debt investments was 18.6% for the quarter, up from 15.9% in the prior year [6]. - The Company funded three loans totaling $15.0 million during the quarter [4]. - The Company funded a $10.0 million debt investment to a new portfolio company on October 1, 2025 [30]. - The Company continues to hold warrants in several portfolio companies, indicating potential future income from these investments [22][23][25]. - The net unrealized appreciation on investments was $40.5 million, or $0.94 per basic share, compared to $29.3 million, or $0.80 per basic share in the prior-year period [9]. - Net unrealized appreciation on non-affiliate investments for the three months ended September 30, 2025, was $25,659 million, compared to $35,407 million in the same period of 2024, indicating a decrease of 27.7% [45]. Liquidity and Capital Structure - As of September 30, 2025, the company had $130.9 million in cash and a credit facility capacity of $329.0 million [4]. - The Company sold 1,570,248 shares of common stock under its ATM offering program, generating approximately $10.6 million in net proceeds [20]. - Horizon completed a $40 million convertible notes offering and raised approximately $10.6 million through its ATM program [3]. - The Company's net debt to equity leverage ratio was 94%, below the targeted leverage of 120%, with an asset coverage ratio for borrowed amounts at 174% [20]. - The Company has repurchased 167,465 shares of its common stock at an average price of $11.22, totaling $1.9 million since the inception of the stock repurchase program [29]. - As of September 30, 2025, total assets were $759.2 million, down from $821.8 million as of December 31, 2024 [43]. Mergers and Acquisitions - Horizon entered into an agreement to merge with Monroe Capital Corporation (MRCC), subject to shareholder approvals [4]. - The company experienced liquidity events from eight portfolio companies during the quarter [4].