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Sep 30, 2022
Horizon Technology Q3 2022 Earnings Report
Horizon Technology reported strong Q3 2022 results with increased net investment income, a growing investment portfolio, and a high debt portfolio yield. The company also increased its regular monthly distributions and declared a special distribution.
Key Takeaways
Horizon Technology Finance Corporation announced strong financial results for the third quarter ended September 30, 2022. Key highlights include net investment income of $0.43 per share, a total investment portfolio of $634.6 million, and an annualized portfolio yield on debt investments of 15.9%.
Net investment income was $11.1 million, or $0.43 per share.
Total investment portfolio reached $634.6 million.
Net asset value was $307.7 million, or $11.66 per share.
Annualized portfolio yield on debt investments was 15.9%.
Horizon Technology
Horizon Technology
Forward Guidance
Horizon anticipates continued growth and attractive risk-adjusted returns, driven by a strong balance sheet, robust pipeline, and disciplined underwriting, despite the challenging economic environment.
Positive Outlook
- Strong balance sheet
- Robust pipeline of venture debt opportunities
- Disciplined underwriting
- Increase monthly distributions by 10% to $0.11 per share beginning in January 2023
- Declared an additional special distribution of $0.05 per share payable in December 2022
Challenges Ahead
- Challenging macro environment
- Potential for future loss of principal in 2-rated loans
- Economic Downturn
- Uncertainty in global markets
- Risk of loss of principal in 1-rated loans