Hercules Capital, Inc. reported its financial results for the first quarter of 2025, revealing a total investment income of $119.5 million, a slight decrease from $121.6 million in the same period last year. The company's net investment income was $77.5 million, down from $79.2 million year-over-year. The net increase in net assets resulting from operations was $50.3 million, compared to $91.0 million in the prior year. The decline in net income was attributed to a significant net change in unrealized depreciation of $25.6 million, contrasting with a net appreciation of $3.6 million in the previous year.
In terms of operational metrics, Hercules Capital's total assets increased to $4.03 billion as of March 31, 2025, up from $3.83 billion at the end of 2024. The company’s liabilities also rose, totaling $2.03 billion, compared to $1.84 billion previously. The net asset value per share decreased slightly to $11.55 from $11.66. The company had 173.3 million shares outstanding as of the end of the quarter, reflecting an increase from 170.6 million shares at the end of 2024.
Strategically, Hercules Capital has continued to expand its investment portfolio, with total investments at fair value reaching $3.92 billion, up from $3.66 billion at the end of 2024. The company reported that 98% of its debt investments are linked to floating interest rates, which positions it to benefit from rising rates. The company also noted a significant increase in its PIK (payment-in-kind) interest income, which rose to $13.5 million from $9.9 million year-over-year, indicating a growing reliance on this income stream.
Looking ahead, Hercules Capital remains focused on its strategy of providing financing solutions to high-growth, innovative companies in technology and life sciences sectors. The company has indicated that it will continue to monitor macroeconomic conditions and adjust its investment strategies accordingly. As of March 31, 2025, Hercules Capital had approximately $615.6 million in available liquidity, including cash and borrowing capacity, which it plans to utilize for future investments and operational needs. The company also declared a cash distribution of $0.40 per share, along with a supplemental distribution of $0.07 per share, to be paid in May 2025.
About Hercules Capital, Inc.
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