Hercules Capital, Inc. reported a net increase in net assets resulting from operations of $130.2 million for the three months ended June 30, 2026, compared to $78.9 million for the same period in 2025. For the six months ended June 30, 2026, the company recorded a net increase of $172.7 million, up from $129.2 million in the prior year. Total investment income for the second quarter was $149.1 million, a 8.5% increase from $137.5 million in the same quarter last year. The company’s net investment income for the quarter was $92.9 million, slightly higher than $88.7 million in the previous year, while net realized gains amounted to $7.7 million, a significant recovery from a loss of $57.6 million in the same quarter of 2025.
The company’s total assets increased to $4.7 billion as of June 30, 2026, compared to $4.6 billion at the end of 2025. Investments at fair value rose to $4.6 billion, driven by a combination of new fundings and a favorable market environment. Hercules Capital's debt investments represented 93.8% of the total portfolio, with a weighted average investment grading of 2.17, indicating a stable credit quality. The company also reported a total of 136 portfolio companies with debt outstanding, reflecting a diversified investment strategy across various sectors, including application software and healthcare services.
In terms of operational developments, Hercules Capital has continued to expand its investment activities, originating $2.7 billion in investment commitments during the first half of 2026, compared to $2.0 billion in the same period of 2025. The company’s focus remains on providing senior secured loans to high-growth, innovative companies, with a significant portion of its portfolio linked to floating interest rates, which accounted for 97.8% of its debt investments. This positioning is expected to provide resilience against potential interest rate fluctuations.
Looking ahead, Hercules Capital anticipates continued growth in its investment portfolio, supported by a strong pipeline of opportunities and a favorable macroeconomic environment. The company has approximately $652.9 million in available liquidity, including cash and borrowing capacity, which positions it well to capitalize on new investment opportunities. Additionally, the company declared a cash distribution of $0.40 per share, along with a supplemental distribution of $0.07 per share, reflecting its commitment to returning value to shareholders while maintaining a focus on growth and investment in its portfolio companies.
About Hercules Capital, Inc.
Hercules Capital, Inc. is a specialty finance company providing senior secured loans, structured debt, and equity investments to high-growth, venture-backed, and institutional-backed technology and life sciences companies. It offers customized financing solutions across various development stages, focusing on underserved sectors. The company leverages extensive industry expertise, relationships, and flexible structures to generate income and capital appreciation in a competitive market.
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