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Dec 31, 2024
Horizon Technology Q4 2024 Earnings Report
Horizon Technology Finance reported a decline in investment income and net asset value in Q4 2024.
Key Takeaways
Horizon Technology Finance's total investment income for Q4 2024 decreased to $23.5 million from $28.2 million in Q4 2023, primarily due to lower interest income. Net investment income fell to $10.4 million, while net asset value per share dropped to $8.43. The company experienced net unrealized depreciation of $19.6 million. However, the firm maintained strong liquidity with $100.9 million in cash and a credit facility capacity of $244.0 million.
Total investment income declined 16.7% year-over-year to $23.5 million.
Net investment income dropped to $10.4 million, down from $15.0 million in Q4 2023.
Net asset value per share declined to $8.43, compared to $9.71 in Q4 2023.
The company ended Q4 2024 with $100.9 million in cash and $244.0 million in credit facility capacity.
Horizon Technology
Horizon Technology
Forward Guidance
Horizon expects to continue expanding its portfolio through new venture debt investments while focusing on credit quality improvements. The company projects stable portfolio yields but acknowledges potential challenges from economic conditions and portfolio credit stress.
Positive Outlook
- Plans to grow its investment portfolio with high-quality venture debt investments.
- Maintains strong liquidity with over $100.9 million in cash and additional credit facility capacity.
- Committed backlog of $207 million provides a strong pipeline for future investments.
- Portfolio yield remains attractive at 14.9%, supporting future income generation.
- The board declared monthly distributions of $0.11 per share for April, May, and June 2025.
Challenges Ahead
- Net investment income has declined, impacting coverage for future distributions.
- Portfolio stress has led to a decline in net asset value per share.
- Unrealized depreciation of $19.6 million indicates portfolio valuation challenges.
- Interest income from secured loans has dropped year-over-year due to lower debt investments.
- Economic uncertainties and credit risks could impact investment performance.