Horizon Technology Finance Q2 NII per share falls on merger costs

Horizon Technology Finance

04/08/2026 21:30

Overview
US specialty finance firm's Q2 net investment income per share fell yr/yr due to merger expenses
Net asset value per share declined, mainly from unrealized losses at a single portfolio company
Company completed merger with Monroe Capital Corporation and expanded stock repurchase program to $20 mln

Outlook
Company declares regular monthly distributions of $0.06 per share for Q4 2026
Company to pay special monthly distributions of $0.03 per share in Q4 2026
Company says increased committed backlog and robust pipeline position it for further portfolio growth

Result Drivers
MERGER EXPENSES - Net investment income declined due to $4.4 mln in non-recurring merger expenses
UNREALIZED LOSSES - Unrealized losses on debt and equity investments in a single portfolio company reduced net asset value per share
PORTFOLIO GROWTH - Higher interest income from a larger debt investment portfolio supported total investment income

Company press release: ID:nBw4fkrSNa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Asset Value
 
$417.50 mln
 
Q2 Net Asset Value Per Share
 
$6.23
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the closed end funds peer group is "hold"
Wall Street's median 12-month price target for Horizon Technology Finance Corporation is $5.00, about 10.9% above its August 3 closing price of $4.51
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads
Aug 3 - New Mountain Finance Q2 net investment income falls year over year
Aug 3 - Capital Southwest Q1 NAV per share falls on realized and unrealized losses on investment
Aug 3 - Golub Capital BDC Q3 adjusted net income misses, hurt by portfolio underperformance

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)