Horizon Technology Finance (NASDAQ:HRZN) Releases Earnings Results, Hits Estimates

Horizon Technology Finance (NASDAQ:HRZN) released its quarterly earnings results on Thursday. The investment management company reported $0.18 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.18, Zacks reports. The firm had revenue of $24.06 million for the quarter, compared to the consensus estimate of $25.12 million. Horizon Technology Finance had a return on equity of 11.15% and a net margin of 5.27%.

Here are the key takeaways from Horizon Technology Finance’s conference call:

• Pipeline and portfolio expanded: Horizon funded nine investments totaling $98 million and ended its fourth consecutive quarter of debt portfolio growth at $650 million. Its committed, approved, and awarded backlog rose to $351 million, though many commitments depend on companies meeting milestones.
• Income covered the declared distribution: Third-quarter net investment income was $0.19 per share, above the $0.18 in quarterly distributions declared for January through March 2027. However, NII was below $0.32 per share a year earlier.
• Credit stress drove a sharp NAV decline: NAV fell to $5.56 per share from $6.23 in the prior quarter, mainly due to write-downs on stressed investments; management said most, if not all, of the credits in active workout processes are on non-accrual.
• Strong liquidity and share repurchases: The company reported $211 million of available liquidity and net leverage of 0.82x, and repurchased just over 2 million shares at an average $4.90 during the quarter.
• Venture market remains uneven: Management cited strong overall venture investment, largely concentrated in AI, while exits for non-AI companies remain muted. It expects lower loan prepayment activity in Q4 than in Q3 and described the origination pipeline as strong but fluid.

Horizon Technology Finance Price Performance

Shares of NASDAQ:HRZN opened at $3.96 on Friday. The company has a market capitalization of $265.45 million, a P/E ratio of 11.00 and a beta of 1.00. Horizon Technology Finance has a 1-year low of $3.77 and a 1-year high of $6.85. The firm’s 50 day simple moving average is $4.47 and its two-hundred day simple moving average is $4.75.

Horizon Technology Finance Dividend Announcement

The company also recently declared a monthly dividend, which will be paid on Wednesday, February 17th. Shareholders of record on Tuesday, January 19th will be issued a dividend of $0.06 per share. The ex-dividend date of this dividend is Tuesday, January 19th. This represents a $0.72 annualized dividend and a yield of 18.2%. Horizon Technology Finance’s payout ratio is currently 200.00%.

Wall Street Analyst Weigh In

A number of research firms have weighed in on HRZN. Compass Point initiated coverage on Horizon Technology Finance in a report on Thursday, August 27th. They issued a “buy” rating and a $5.50 target price on the stock. Oppenheimer dropped their target price on Horizon Technology Finance from $6.00 to $5.00 and set a “market perform” rating on the stock in a research report on Friday, August 7th. Weiss Ratings downgraded Horizon Technology Finance from a “sell (d+)” rating to a “sell (d)” rating in a research note on Wednesday, August 19th. UBS Group upped their price target on shares of Horizon Technology Finance from $4.25 to $4.50 and gave the company a “neutral” rating in a research report on Tuesday, September 1st. Finally, Keefe, Bruyette & Woods reduced their price target on shares of Horizon Technology Finance from $5.00 to $4.50 and set a “market perform” rating for the company in a research report on Friday, August 21st. One research analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Horizon Technology Finance currently has an average rating of “Hold” and a consensus target price of $5.00.

Key Horizon Technology Finance News

Here are the key news stories impacting Horizon Technology Finance this week:

• Positive Sentiment: Horizon declared monthly distributions of $0.06 per share for January, February and March 2027, or $0.18 total. The recurring payout and reported 18.2% yield may appeal to income-focused investors. Distribution announcement
• Neutral Sentiment: Q3 earnings of $0.18 per share matched analyst estimates, limiting the impact of the results against expectations. Q3 earnings report
• Negative Sentiment: Revenue of $24.06 million came in below the $25.12 million consensus estimate, and earnings fell from $0.31 per share a year earlier to $0.18. The revenue miss and year-over-year earnings decline could pressure the stock. Third-quarter financial results

Horizon Technology Finance Company Profile

Horizon Technology Finance Corporation (NASDAQ: HRZN) is a specialty finance company that has elected to be regulated as a business development company. It provides secured venture loans to development-stage companies backed by venture capital or private equity investors.

The company primarily finances businesses in the technology, life sciences, healthcare information and sustainability sectors. Its lending solutions are designed to support needs such as product development, commercialization, acquisitions, working capital and other corporate purposes.