Horizon Technology Finance Corporation reported its financial results for the first quarter of 2026, revealing a net investment income of $8.97 million, or $0.19 per share, compared to $10.72 million, or $0.27 per share, in the same period last year. Total investment income decreased slightly to $24.08 million from $24.52 million, primarily due to a decline in interest income from non-affiliate investments, which fell to $21.07 million from $23.44 million. The company also experienced a net increase in net assets resulting from operations of $2.78 million, a significant recovery from a loss of $21.44 million in the prior year.
The company’s total assets as of March 31, 2026, were $791.65 million, a decrease from $811.10 million at the end of 2025. This decline was attributed to a reduction in cash and cash equivalents, which fell to $34.49 million from $105.52 million. Total investments at fair value increased to $695.70 million from $647.24 million, driven by a rise in non-affiliate investments, which reached $631.50 million, up from $584.10 million. The company’s liabilities also decreased to $457.78 million from $492.60 million, largely due to a reduction in distributions payable.
Strategically, Horizon Technology Finance completed a merger with Monroe Capital Corporation on April 14, 2026, which involved the issuance of approximately 20.37 million shares of common stock and the receipt of $141.1 million in cash. This merger is expected to enhance the company’s investment strategy and expand its portfolio. Additionally, the company formed a joint venture, RoHo Capital Opportunity Fund LLC, with CR Financial Holdings, committing to invest up to $87.5 million to provide growth capital financing solutions to small and micro-cap public companies.
Operationally, the company reported a weighted average credit rating of 3.0 for its debt investments, indicating a stable risk profile. As of March 31, 2026, Horizon Technology Finance had 41 debt investments, with a fair value of $645.63 million, representing 92.8% of its total portfolio. The company’s unfunded commitments to extend credit increased to $155 million from $104 million at the end of 2025, reflecting ongoing demand for its financing solutions.
Looking ahead, Horizon Technology Finance anticipates continued growth in its investment portfolio, supported by its recent merger and strategic initiatives. The company remains focused on maximizing returns through secured debt investments in technology, life sciences, and sustainability sectors, while maintaining compliance with regulatory requirements as a business development company.
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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