Horizon Technology Finance Corporation reported a significant decline in its financial performance for the second quarter of 2025, as detailed in its latest 10-Q filing. The company recorded total investment income of $24.5 million for the three months ended June 30, 2025, a decrease of 4.5% from $25.7 million in the same period last year. This decline was primarily driven by an 8.4% drop in interest income from debt investments, which fell to $22.6 million, attributed to a decrease in the Prime Rate, the base rate for most of its variable-rate debt investments. Net investment income also decreased to $11.4 million, down from $12.9 million year-over-year.
The company's total assets decreased to $726.8 million as of June 30, 2025, compared to $821.8 million at the end of 2024. This decline was largely due to a reduction in the fair value of non-affiliate investments, which fell to $605.5 million from $657.8 million. The net asset value per common share also dropped to $6.75 from $8.43, reflecting a broader trend of unrealized depreciation on investments, which totaled $54.3 million for the first half of 2025.
Operationally, Horizon Technology Finance has seen changes in its investment strategy, with a focus on secured debt investments in technology and life sciences. The company reported a total of 46 debt investments valued at $579.2 million, representing 93% of its total portfolio. The company also experienced a notable increase in fee income, which rose by 89.3% to $1.9 million, driven by a higher volume of principal prepayments. However, the overall portfolio quality has been affected, with five debt investments rated at the lowest internal credit rating of 1, indicating a high risk of loss.
Looking ahead, Horizon Technology Finance has indicated a cautious outlook, emphasizing the need to navigate a challenging economic environment characterized by rising interest rates and market volatility. The company has also announced plans to increase its stock repurchase program from $5 million to $10 million, aiming to enhance shareholder value. Additionally, the company is pursuing a merger with Monroe Capital Corporation, which is subject to shareholder approval and other closing conditions. This strategic move is expected to bolster its market position and operational capabilities in the future.
About Horizon Technology Finance Corp
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.