Horizon Technology Finance Corporation reported its financial results for the first quarter of 2025, revealing a total investment income of $24.5 million, a decrease of 6.2% from $26.1 million in the same period last year. The decline was primarily attributed to a $2.4 million drop in interest income from debt investments, which fell to $23.5 million due to a decrease in the Prime Rate, despite an increase in average earning debt investments. The company’s net investment income for the quarter was $10.7 million, down from $12.6 million a year earlier, resulting in a net investment income per share of $0.27, compared to $0.38 in the prior year.
The company’s total assets decreased to $789.6 million as of March 31, 2025, down from $821.8 million at the end of 2024. This decline was driven by a reduction in cash and cash equivalents, which fell to $33.0 million from $70.3 million. Total liabilities remained relatively stable at $484.1 million, compared to $485.7 million at the end of the previous fiscal year. The net asset value per share also decreased to $7.57 from $8.43, reflecting the overall decline in the company’s asset values.
Operationally, Horizon Technology Finance made significant investments during the quarter, with new debt and equity investments totaling $102.4 million, compared to $34.6 million in the same period last year. The company’s portfolio consisted of 53 debt investments valued at $643.6 million, representing 93.3% of the total portfolio. The company also reported a net unrealized depreciation on investments of $32.2 million for the quarter, primarily due to underperformance in certain portfolio companies amid a challenging fundraising environment.
Looking ahead, Horizon Technology Finance remains focused on maximizing returns through secured debt investments in development-stage companies across technology, life sciences, and sustainability sectors. The company has indicated that it will continue to seek additional equity and debt capital to support its growth strategy, while maintaining compliance with regulatory requirements as a business development company (BDC). The company’s management expressed confidence in its ability to navigate current market conditions and capitalize on future investment opportunities.
About Horizon Technology Finance Corp
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