Hercules Capital(HTGC) ZACKS·2025-05-02 17:05Core Viewpoint - Hercules Capital Inc. (HTGC) reported a first-quarter 2025 net investment income of 45 cents per share, missing the Zacks Consensus Estimate by one cent and reflecting a 10% decline year-over-year due to weak performance in interest, dividend, and fee income [1] Group 1: Financial Performance - Total investment income for the first quarter was $119.5 million, down 1.7% from the previous year, primarily due to a lower-weight average yield on the debt investment portfolio, and also lagged behind the Zacks Consensus Estimate of $121.8 million [2] - Net investment income was $77.5 million, a decrease of 2.2% year-over-year [1] - Total gross operating expenses increased slightly to $45.3 million, attributed to rising interest costs [2] Group 2: Portfolio and Commitments - The fair value of Hercules Capital's total investment portfolio stood at $3.92 billion as of March 31, 2025, with early loan repayments realized at $131.8 million [3] - The company delivered $1.02 billion in gross new debt and equity commitments and $539.1 million in gross new funding during the first quarter [3] Group 3: Balance Sheet and Liquidity - As of March 31, 2025, Hercules Capital's net asset value was $11.55 per share, down from $11.66 as of December 31, 2024 [4] - The company had $615.6 million in liquidity, which included $51.2 million in unrestricted cash and cash equivalents, and $564.5 million in credit facilities and SBA debentures [4] Group 4: Cost of Debt - The weighted average cost of debt, including interest and fees, remained stable at 4.9% compared to the prior-year quarter [5] Group 5: Strategic Outlook - The company's lack of global diversification may limit growth prospects, while efforts to enhance originations could keep expenses elevated; however, rising demand for customized financing and stable debt expenses are expected to support total investment income [6]