HTGC's Q4 Earnings Meet Estimates, Investment Income Falls

Core Viewpoint - Hercules Capital Inc. reported a decline in net investment income for the fourth quarter of 2024, matching the Zacks Consensus Estimate but down 12.5% year-over-year [1] Financial Performance - Net investment income for Q4 2024 was $81.1 million, a decrease of 5.7$121.8 million, slightly down from the year-ago quarter and below the Zacks Consensus Estimate of $124.09 million [3] - For the full year 2024, net investment income was$325.8 million, up 7.2% from 2023, but the per-share income of $2.00 lagged the consensus estimate of$2.01, reflecting a 3.8% decline year-over-year [2] Operating Expenses - Total gross operating expenses increased by 13.9% to $43.5 million, driven by rising costs across all components except loan fees [4] Portfolio and Commitments - The fair value of Hercules Capital's total investment portfolio was$3.66 billion as of December 31, 2024, with gross new debt and equity commitments of $619.5 million in Q4 [5] - The company realized early loan repayments of$225.2 million during the quarter [5] Balance Sheet Position - As of December 31, 2024, Hercules Capital's net asset value was $11.66 per share, an increase from$11.43 a year earlier [6] - The company had $658.8 million in liquidity, including$113.1 million in unrestricted cash and cash equivalents [6] - The weighted average cost of debt rose to 5% from 4.9% year-over-year [6] Market Position and Outlook - The lack of global diversification may limit Hercules Capital's growth prospects, while rising demand for customized financing could support total investment income [7]