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HRZN — Horizon Technology Finance News Story

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Horizon Technology Finance Q2 NII per share falls on merger costs

Horizon Technology Finance Q2 NII per share falls on merger costs


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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