Horizon Technology Finance Q4 net investment income falls, hurt by lower prepayment activity

Horizon Technology Finance

03/03/2026 21:32

Overview

Specialty finance firm's Q4 net investment income fell to $8.3 mln, down from $10.4 mln last year

Net asset value per share decreased to $6.98 as Dec. 31, 2025 from $8.43 as of Dec. 31, 2024

Company funded nine loans totaling $102.5 mln in Q4

Outlook

Company anticipates merger with MRCC to enhance capital for larger venture lending transactions

Company expects steady portfolio growth in 2026 supported by increased committed backlog

Result Drivers

PORTFOLIO GROWTH - Horizon returned to portfolio growth by funding new venture debt loans, according to CEO Mike Balkin

LOWER PREPAYMENT ACTIVITY - NII was impacted by lower prepayment activity, per CEO Mike Balkin

Company press release: ID:nBw2TR2mpa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Net Investment Income
$8.3 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the closed end funds peer group is "buy."

Wall Street's median 12-month price target for Horizon Technology Finance Corp is $7.00, about 15.5% above its March 2 closing price of $6.06

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

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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.)