10-Q · May 5, 2026
Hercules Capital (HTGC) reported Q1 2026 results with total revenues of $141.5 million, reflecting a 17.9% increase from $119.5 million in Q1 2025, though net investment income per share of $0.48 fell short of the…
Earnings analysis · 10-Q
HTGC earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Hercules Capital reported third-quarter revenue of $140.1 million and EPS of $0.47, modestly below associated consensus estimates of $143.7 million and $0.48. The portfolio remains highly exposed to floating rates, with…
Read full summary
Hercules Capital reported third-quarter revenue of $140.1 million and EPS of $0.47, modestly below associated consensus estimates of $143.7 million and $0.48. The portfolio remains highly exposed to floating rates, with 97.9% of loans carrying floating rates with a floor, supporting earnings when rates rise but creating downside if rates decline. Portfolio concentration and the $3.036 million Annex Cloud investment in an ongoing workout remain key credit risks, while no quantitative guidance was provided.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.47
What stood out
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Revenue and EPS modestly missed estimates
Third-quarter revenue was $140.1 million and EPS was $0.47, below consensus estimates of $143.7 million and $0.48, respectively, based on the associated earnings data.
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High floating-rate portfolio exposure
Floating-rate exposure remains substantial: approximately 97.9% of portfolio loans had floating rates with a floor, and 84.6% of the loan portfolio was linked to Prime as of September 30, 2026.
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Higher rates remain earnings tailwind
A 75-basis-point increase in base rates was estimated to increase annualized net income by $21.481 million, or $0.12 per share, assuming no changes in investments or debt.
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Control and affiliate value increased
Control and affiliate investments had fair value of $125.066 million as of September 30, 2026, representing 5.38% of net assets.
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No material control deficiencies reported
Disclosure controls and procedures were concluded to be effective as of September 30, 2026, with no changes in internal control over financial reporting that materially affected, or were reasonably likely to materially affect, controls.
What to watch
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Concentrated portfolio exposures
Seven portfolio companies individually represented more than 5% of net assets; the largest was Marathon Health at $186.736 million, or 8.0% of net assets. A failure by a significant portfolio company to perform could materially affect results.
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Downside from falling interest rates
A 200-basis-point decline in base rates was estimated to reduce annualized net income by $17.737 million, or $0.10 per share, assuming no changes in investments or debt. The filing also states that declining rates could reduce interest income and net investment income.
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Matured investment remains in workout
Annex Cloud's $3.036 million senior secured debt investment remained outstanding beyond its stated maturity date and was subject to an ongoing workout process as of September 30, 2026.
Management's outlook
No quantitative revenue or EPS outlook is provided in the supplied 10-Q text; outlook deferred/not provided in the filing excerpt.
Earlier filings 4
10-K · February 12, 2026
Hercules Capital positions itself as a specialty finance BDC focused on Structured Debt and senior secured loans to venture- and institutional-backed technology and life sciences companies, targeting total annualized…
10-Q · July 31, 2025
Hercules Capital reported Q2 2025 total investment income of $137.459M and net investment income of $88.734M, beating revenue and EPS consensus. Portfolio fair value increased to $4,176.486M and NAV per share rose to…
10-Q · May 1, 2025
Hercules Capital reported Q1 results with total investment income of $119,511,000 and net investment income of $77,458,000, producing net investment income per share of $0.45 (basic) vs $0.50 in Q1 2024. Investments at…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.