Hercules Capital Q4 2024 Earnings Report

Hercules Capital reported strong growth in Q4 2024, with record net investment income and solid financial performance.

Key Takeaways

Hercules Capital achieved a 7.2% YoY increase in net investment income for Q4 2024, reaching $81.1M. The company maintained disciplined balance sheet management, with total gross fundings of $468.5M and total gross debt and equity commitments of $619.5M.

Net investment income (NII) reached $81.1M, a 7.2% YoY increase.

Total investment income for Q4 is estimated at $121.78M (+7.1% YoY).

Total gross fundings reached $468.5M, showing strong portfolio activity.

The company maintained over $1.1B in available liquidity.

Total Revenue

$122M

Previous year: $125M

-2.9%

EPS

$0.49

Previous year: $0.56

-12.5%

Total Gross Fundings

$469M

Total Gross Debt & Equity Commitments

$620M

Available Liquidity

$1.1B

Cash and Equivalents

$1.1B

Previous year: $116M

+848.2%

Total Assets

$4.8B

Previous year: $3.42B

+40.5%

Hercules Capital Revenue

Hercules Capital EPS

Forward Guidance

Hercules Capital expects continued portfolio growth, strong liquidity, and increased distributions for 2025.

Positive Outlook

Announced new supplemental cash distribution of $0.28 per share for 2025.
Strong available liquidity of over $1.1B supports further investments.
Robust pipeline for venture debt financing and commitments.
Net investment income expected to support dividend coverage.
Continued expansion of assets under management.

Challenges Ahead

Potential macroeconomic uncertainties could impact deal flow.
Rising interest rates may affect borrowing costs.
Competitive pressures in the venture lending space.
Regulatory risks related to investment company compliance.
Market volatility may impact investment valuations.