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Dec 30, 2024
Horizon Technology Q1 2025 Earnings Report
Horizon Technology Finance announced its financial results for the first quarter ended March 31, 2025, reporting a decrease in net investment income and net assets compared to the prior year, while growing its debt portfolio and maintaining a strong committed backlog.
Key Takeaways
Horizon Technology Finance reported a net investment income of $10.7 million, or $0.27 per share, for the first quarter of 2025, down from $12.6 million, or $0.38 per share, in the prior-year period. The company's total investment portfolio grew to $689.6 million, and its net asset value stood at $305.5 million, or $7.57 per share. The quarter saw a significant net unrealized depreciation on investments of $32.2 million.
Net investment income decreased to $10.7 million ($0.27 per share) from $12.6 million ($0.38 per share) in the prior-year period.
Total investment portfolio increased to $689.6 million as of March 31, 2025.
Net asset value per share decreased to $7.57 from $8.43 at December 31, 2024.
The company experienced a net unrealized depreciation on investments of $32.2 million for the quarter.
Horizon Technology
Horizon Technology
Forward Guidance
Horizon Technology Finance aims to continue growing its venture debt portfolio and net investment income by selectively originating new, high-quality venture debt investments, while monitoring the macro environment.
Positive Outlook
- Continued growth of the debt investment portfolio for the third consecutive quarter.
- Further expansion of the committed backlog, providing high-quality opportunities for future growth.
- Focus on selectively originating new, high-quality venture debt investments.
- Goal to increase Net Asset Value (NAV).
- Extension of the stock repurchase program until June 30, 2026, or the repurchase of $5.0 million of common stock.
Challenges Ahead
- Ongoing monitoring of the macro environment due to potential uncertainties.
- No assurance that additional lenders will make commitments under the Key Facility.
- Potential for future loss of principal for 2-rated loans, despite no current anticipated loss.
- Deteriorating credit quality and high degree of risk of loss of principal for 1-rated loans.
- Blockage Notice received from Western Alliance Bank on Soli Organic, Inc. loan, preventing payments to Horizon for up to 180 days.