Mar 31, 2024

Hercules Capital Q1 2024 Earnings Report

Hercules Capital reported record Q1 2024 total gross debt and equity commitments and total gross fundings, increased total investment income and net investment income, maintained conservative balance sheet management, and had a significant undistributed earnings spillover.

Key Takeaways

Hercules Capital reported a strong start to 2024 with record Q1 commitments of $956.0 million and fundings of $605.2 million. Net investment income was $79.2 million, or $0.50 per share, providing 125% coverage of the base distribution. The company's net debt portfolio grew by $325.3 million, and undistributed earnings spillover increased to $142.7 million.

Total gross debt and equity commitments reached a record $956.0 million, an 81.7% increase year-over-year.

Total gross fundings also hit a record of $605.2 million, a 27.1% increase year-over-year.

Net investment income (NII) increased to $79.2 million, or $0.50 per share, a 20.9% increase year-over-year, providing 125% coverage of the base cash distribution.

The company maintained a conservative balance sheet with net GAAP leverage of 91.0% and net regulatory leverage of 81.7%.

Total Revenue
$130M
Previous year: $105M
+23.4%
EPS
$0.5
Previous year: $0.48
+4.2%
Gross Fundings
$605M
Previous year: $476M
+27.1%
Available Liquidity
$498M
Previous year: $553M
-9.9%
GAAP Leverage
91%
Previous year: 110.9%
-17.9%
Cash and Equivalents
$50.2M
Previous year: $71.1M
-29.5%
Free Cash Flow
$64.6M
Total Assets
$3.7B
Previous year: $3.25B
+13.7%

Hercules Capital

Hercules Capital

Forward Guidance

After closing $956.0 million in new debt and equity commitments in Q1 2024, Hercules has pending commitments of $308.5 million in signed non-binding term sheets outstanding as of April 30, 2024. Since the close of Q1 2024 and as of April 30, 2024 Hercules has closed new gross debt and equity commitments (before assignments to or direct originations by the Adviser Funds) of $117.3 million and funded $52.3 million.