Hercules Capital (NYSE:HTGC) Releases Earnings Results, Hits Estimates

Hercules Capital (NYSE:HTGC) released its quarterly earnings data on Thursday. The financial services provider reported $0.48 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.48, FiscalAI reports. The business had revenue of $133.25 million during the quarter, compared to analyst estimates of $141.57 million. Hercules Capital had a net margin of 60.05% and a return on equity of 16.13%. During the same quarter in the previous year, the business earned $0.49 EPS.

Here are the key takeaways from Hercules Capital’s conference call:

• Record 2025 operating results — Q4 originations of $1.06B and nearly $4B of originations for the year drove record gross fundings of $2.28B and record total/net investment income, with platform AUM topping $5.7B (+20% YoY).
• Strong liquidity and disciplined balance sheet — over $1B of platform liquidity (≈$525M in the BDC) and a post-quarter $300M 5.35% note issuance, while GAAP leverage remained at the low end of its historical BDC range (104.4%).
• Credit quality and conservative underwriting — internal credit rating improved (2.20), only one non‑accrual loan (~0.2% of portfolio at cost), low weighted average LTV (~14%), ~90% first‑lien exposure, and tighter credit screens amid market volatility.
• Private funds momentum and shareholder distributions — the adviser now manages nearly $2B, contributed ~$23M in 2025, and the company maintained a $0.40 base dividend plus a $0.28 annual supplemental program (Q4 base coverage ~120%; total distribution coverage ~102%).

Hercules Capital Stock Performance

NYSE:HTGC traded down $1.00 during trading hours on Friday, hitting $15.60. 2,095,654 shares of the company traded hands, compared to its average volume of 1,675,825. The company has a current ratio of 1.65, a quick ratio of 1.65 and a debt-to-equity ratio of 0.98. Hercules Capital has a twelve month low of $15.44 and a twelve month high of $22.04. The firm has a 50-day moving average of $18.40 and a 200 day moving average of $18.47. The stock has a market capitalization of $2.84 billion, a price-to-earnings ratio of 9.10 and a beta of 0.84.

Hercules Capital Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, March 4th. Investors of record on Wednesday, February 25th will be given a dividend of $0.07 per share. The ex-dividend date of this dividend is Wednesday, February 25th. This represents a $0.28 dividend on an annualized basis and a yield of 1.8%. Hercules Capital’s payout ratio is 93.02%.

Institutional Investors Weigh In On Hercules Capital

A number of institutional investors have recently bought and sold shares of the business. Integrated Wealth Concepts LLC raised its stake in shares of Hercules Capital by 5.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 17,241 shares of the financial services provider’s stock valued at $331,000 after buying an additional 959 shares in the last quarter. Empowered Funds LLC increased its stake in Hercules Capital by 85.9% in the first quarter. Empowered Funds LLC now owns 22,854 shares of the financial services provider’s stock valued at $439,000 after acquiring an additional 10,559 shares during the period. Focus Partners Wealth raised its position in Hercules Capital by 26.0% in the first quarter. Focus Partners Wealth now owns 15,747 shares of the financial services provider’s stock worth $302,000 after purchasing an additional 3,250 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in Hercules Capital by 81.8% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 4,780 shares of the financial services provider’s stock worth $87,000 after purchasing an additional 2,151 shares during the period. Finally, Invesco Ltd. grew its stake in shares of Hercules Capital by 1.6% in the 2nd quarter. Invesco Ltd. now owns 78,951 shares of the financial services provider’s stock valued at $1,443,000 after purchasing an additional 1,252 shares during the period. Institutional investors and hedge funds own 19.69% of the company’s stock.

Analysts Set New Price Targets

Several analysts have recently issued reports on the company. Wells Fargo & Company decreased their price target on Hercules Capital from $18.00 to $17.00 and set an “overweight” rating for the company in a research note on Friday. Capital One Financial set a $19.75 target price on Hercules Capital in a research report on Monday, December 15th. Weiss Ratings reissued a “buy (b-)” rating on shares of Hercules Capital in a research report on Wednesday, January 28th. Piper Sandler cut shares of Hercules Capital from an “overweight” rating to a “neutral” rating and reduced their price objective for the stock from $20.50 to $17.50 in a research note on Friday. Finally, Lucid Cap Mkts upgraded shares of Hercules Capital to a “strong-buy” rating in a research note on Monday, December 15th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $19.61.

Key Headlines Impacting Hercules Capital

Here are the key news stories impacting Hercules Capital this week:

• Positive Sentiment: Originations surged — HTGC reported originations up roughly 71% year-over-year, signaling strong deal flow and deployment momentum that can support future interest income and dividend capacity. Hercules Capital Q4 earnings beat as originations rise 71% Y/Y
• Positive Sentiment: Management described a “record” quarter on several metrics in the earnings call, which supports the narrative of improving operating performance and franchise strength in venture/growth lending. Hercules Capital Inc (HTGC) Q4 2025 Earnings Call Highlights: Record Performance and Strategic …
• Positive Sentiment: Board is weighing a supplemental dividend — management is considering a special dividend, which could boost near-term shareholder yield and support the stock’s income appeal if approved. Hercules Capital Weighs Supplemental Dividend And New Debt Against Valuation
• Neutral Sentiment: EPS in line with expectations — Q4 EPS was $0.48, matching consensus, showing steady profitability but little upside surprise. Hercules Capital (HTGC) Q4 Earnings Match Estimates
• Neutral Sentiment: Full press release and slides available — detailed results, portfolio metrics and the investor slide deck give more context for underwriting, credit metrics, and capital plans. Hercules Capital Reports Fourth Quarter and Full-Year 2025 Financial Results
• Negative Sentiment: Revenue missed estimates — Q4 revenue was $133.3M versus a consensus near $141.6M, which likely tempered upside and contributed to the down move. Hercules Capital Q4 earnings and conference call
• Negative Sentiment: Potential new debt issuance — management is balancing a supplemental dividend against issuing new debt; additional leverage or perceived dilution of capital returns could pressure valuation and investor sentiment. Hercules Capital Weighs Supplemental Dividend And New Debt Against Valuation

Hercules Capital Company Profile

Hercules Capital, Inc is a specialty finance company organized as a business development company (BDC) that provides tailored debt financing solutions to high‐growth companies. Through its external management structure, Hercules Capital extends senior secured loans, subordinated debt and growth capital designed to support research and development, expansion initiatives and working capital needs. The firm primarily partners with venture capital and private equity sponsors to finance innovative enterprises across various developmental stages.

The company’s investment portfolio is concentrated in technology, life sciences and sustainable and renewable technology sectors, reflecting its focus on industries with strong growth prospects and recurring capital requirements.