HCXY Overview

Management Performance: Hercules Capital reported record fundings of $2.87 billion for the first three quarters of 2025, with a total investment income of $138.1 million and net investment income of $88.6 million in Q3, reflecting strong demand and operational performance.

Outlook and Guidance: Management anticipates continued strong origination activity through year-end, with expectations for lower prepayments in Q4 and a core yield range of 12% to 12.5%, while maintaining robust liquidity and disciplined underwriting.

Credit Quality and Risks: The company remains confident in its credit portfolio, noting no significant deterioration despite market volatility and a government shutdown, although caution was expressed regarding certain segments of the lending market.

Analyst Sentiment: Analysts showed a positive outlook on Hercules Capital's sustainability of dividends and credit quality, with ongoing interest in the company's strategic positioning and risk management as they approach the end of 2025.

Conference Call Announcement: Hercules Capital, Inc. has scheduled its third quarter 2025 financial results conference call for October 30, 2025, at 2:00 p.m. PT, with results to be released after market close that day.

Company Overview: Hercules Capital is a leading specialty finance provider focused on senior secured venture growth loans for innovative, venture capital-backed companies, having committed over $23 billion to more than 690 companies since its inception in 2003.

Management Performance: Hercules Capital reported record fundings and investment income in Q2 2025, with over $1 billion in new originations and a net debt portfolio growth of $192.1 million, reflecting strong operational performance and a robust liquidity position.

Outlook and Market Sentiment: Despite anticipated seasonal slowdowns in Q3, management remains optimistic about achieving record commitments and fundings by year-end, while navigating competitive pressures from nonbank lenders and maintaining a selective approach to new investments.