Horizon Technology Finance Corporation reported its financial results for the third quarter of 2025, revealing a total investment income of $26.3 million, a 7.1% increase from $24.6 million in the same period last year. The company’s net investment income for the quarter was $14.0 million, compared to $11.8 million in the prior year, reflecting a growth in interest income from debt investments, which rose to $24.3 million from $23.2 million. However, the company experienced a net realized loss of $23.8 million, primarily due to the settlement of several investments, leading to a net increase in net assets resulting from operations of $30.7 million, significantly higher than the $7.3 million reported in the previous year.
Comparatively, for the nine months ending September 30, 2025, total investment income decreased slightly to $75.4 million from $76.4 million in 2024. The net investment income for this period was $36.2 million, down from $37.4 million a year earlier. The company reported a net decrease in net assets resulting from operations of $11.5 million, contrasting with an increase of $6.8 million in the same period of 2024. The decline in net assets was attributed to net realized losses and unrealized depreciation on investments, which totaled $33.9 million and $13.8 million, respectively.
Horizon Technology Finance's investment portfolio as of September 30, 2025, was valued at $603.5 million, a decrease from $697.9 million at the end of 2024. The company’s debt investments accounted for 92.9% of the total portfolio, with a fair value of $560.2 million, down from $638.8 million. The company also reported a decrease in its net asset value per share, which fell to $7.12 from $8.43 at the end of the previous fiscal year. The total liabilities decreased to $443.5 million from $485.7 million, primarily due to reduced borrowings.
Strategically, Horizon Technology Finance has been active in managing its capital structure, including the issuance of new convertible notes. In September 2025, the company issued $40 million in 5.50% convertible notes due in 2030, and in October 2024, it issued $20 million in 7.125% convertible notes due in 2031. The company also repaid its 2022 Asset-Backed Notes in full during the quarter. As of September 30, 2025, the company had $424.0 million in borrowings, down from $467.9 million at the end of 2024, with a significant portion of its debt being secured by its investment portfolio.
Looking ahead, Horizon Technology Finance remains focused on its investment strategy in technology, life sciences, and sustainability sectors. The company anticipates that its current cash reserves and available credit facilities will be sufficient to meet its operational needs and support future investments. The management expressed optimism about the potential for growth, contingent on market conditions and the performance of its portfolio companies.
About Horizon Technology Finance Corp
Horizon Technology Finance is a specialty finance company providing secured venture loans and investments to development-stage companies in technology, life sciences, healthcare, and sustainability sectors. It offers debt, warrants, and equity positions, focusing on generating income and capital appreciation. Managed by an experienced advisor, it leverages direct origination, disciplined underwriting, and industry relationships to support innovative companies and maximize investor returns.
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