Overview

• Horizon Q2 net investment income falls to $0.28 per share from $0.36 last year

• Net asset value per share declines to $6.75 from $9.12 year-over-year

• Company announces merger with Monroe Capital Corp to expand venture lending

Outlook

• Company expects merger with Monroe Capital to enhance venture lending capabilities

• Company sees growth in 2026 post-merger despite current venture capital challenges

• Horizon declares monthly distributions of $0.11 per share through December 2025

Result Drivers

• VENTURE CAPITAL CHALLENGES - CEO Mike Balkin attributes the decline in net asset value to ongoing challenges in the venture capital environment

• DEBT PORTFOLIO YIELD - The company reported an annualized portfolio yield on debt investments of 15.8% for the quarter

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the closed end funds peer group is "buy."

• Wall Street's median 12-month price target for Horizon Technology Finance Corp is $7.00, about 10.6% below its August 6 closing price of $7.74

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nBwbHkL1Ja

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)