Horizon Technology Finance Corporation
- Open
- 4.63
- Day high
- 4.72
- Day low
- 4.62
- Prev close
- 4.63
- Volume
- 377K
- Mkt cap
- $317M
- P/E (TTM)
- 9.9
- EPS (TTM)
- $0.47
- P/B
- 1.0
- P/S
- 4.2
- Yield
- 24.73%
- Per share
- $1.15
- ▲Insiders net buying $656K over the last 3 months (7 open-market buys, 0 sales)
- ◆Cluster buying — multiple insiders bought within days
- 🏛Institutions mixed (13F)
Horizon Technology Finance Corporation (HRZN) is a Financial Services company listed on NASDAQ. The stock is down 43% over the past year. Over the trailing 3 months, insiders filed 7 open-market buys and 0 sales (SEC Form 4).
Horizon Technology Finance Corporation (HRZN) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
HRZN earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 6, 2026 | $0.19 | $0.19 | +0.0% | $24M | +14.2% |
| Mar 4, 2026 | $0.30 | $0.18 | -40.0% | $-3M | -110.3% |
| Aug 7, 2025 | $0.28 | $0.28 | +0.0% | $25M | +0.2% |
| Mar 4, 2025 | $0.33 | $0.27 | -18.2% | $-11M | -141.3% |
| Apr 30, 2024 | $0.36 | $0.38 | +5.6% | $26M | -1.7% |
| Feb 27, 2024 | $0.48 | $0.45 | -6.2% | $27M | -6.3% |
| Aug 1, 2023 | $0.43 | $0.54 | +25.6% | $2M | -93.8% |
| May 2, 2023 | $0.39 | $0.46 | +17.9% | $7M | -73.5% |
| Feb 28, 2023 | $0.37 | $0.40 | +8.1% | $6M | -72.6% |
| Nov 1, 2022 | $0.33 | $0.43 | +30.3% | $7M | -59.4% |
| Aug 2, 2022 | $0.34 | $0.35 | +2.9% | $9M | -45.7% |
| May 3, 2022 | $0.29 | $0.26 | -10.3% | $5M | -66.6% |
HRZN insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 11, 2026 | O'Connor Kimberley Anndirector | Buy | 10,000 | $4.37 |
| Jun 11, 2026 | ALLISON THOMAS J.director | Buy | 6,000 | $4.36 |
| Jun 10, 2026 | Goodman Jonathan Josephdirector | Buy | 6,000 | $4.33 |
| Jun 10, 2026 | Balkin Michaeldirector, officer: Chief Executive Officer | Buy | 100,000 | $4.34 |
| Jun 10, 2026 | ALLISON THOMAS J.director | Buy | 6,000 | $4.36 |
| Jun 10, 2026 | Seitz Paul Gofficer: Chief Investment Officer | Buy | 11,477 | $4.35 |
| Jun 10, 2026 | Trolio Daniel R.officer: Executive VP and CFO | Buy | 11,500 | $4.34 |
| Apr 14, 2026 | ALLISON THOMAS J.director | Grant | 49,926 | $0.00 |
| Apr 14, 2026 | Balkin Michaeldirector, officer: Chief Executive Officer | Grant | 93,527 | $0.00 |
| Apr 14, 2026 | Seitz Paul Gofficer: Chief Investment Officer | Grant | 142 | $0.00 |
| Dec 17, 2024 | Balkin Michaeldirector | Buy | 20,000 | $8.53 |
| Dec 2, 2024 | Michaud Gerald A.director, officer: President | Buy | 8,000 | $9.31 |
| Nov 14, 2024 | SAVAGE JOSEPH Jdirector | Buy | 4,500 | $9.20 |
| Nov 14, 2024 | SAVAGE JOSEPH Jdirector | Buy | 5,000 | $9.35 |
| Aug 5, 2024 | Balkin Michaeldirector | Buy | 10,000 | $10.58 |
Source: HRZN SEC Form 4 filings, latest Jun 11, 2026. For informational purposes only — not investment advice.
See the full HRZN insider & 13F page →Horizon Technology Finance Corporation company profile
Overview
Horizon Technology Finance Corporation (NASDAQ:HRZN) is a business development company founded in 2010 that specializes in providing venture debt financing to technology and life sciences companies. The company went public in October 2010 and operates as a regulated investment company under the Investment Company Act of 1940. Horizon focuses on making secured debt investments and venture lending to venture capital-backed companies across the technology, life science, healthcare information services, and cleantech industries. The company's investment advisor was acquired by Monroe Capital in 2023, though the management team remained intact.
Business
Horizon Technology Finance operates in the specialized venture debt financing sector, which sits at the intersection of traditional banking and venture capital. The company functions as a business development company (BDC), a type of regulated investment company that provides capital to small and medium-sized businesses. The company's core business involves providing venture debt financing to growth-stage companies that are typically backed by venture capital firms. Venture debt is a form of debt financing specifically designed for venture-backed companies that may not qualify for traditional bank loans due to their early-stage nature, lack of positive cash flow, or limited tangible assets. Unlike traditional loans that rely on cash flow or hard assets as collateral, venture debt is typically secured by the company's intellectual property and is often accompanied by warrant coverage that gives the lender the right to purchase equity in the borrower at a predetermined price. Horizon's investment portfolio consists of two main components. The debt investment portfolio, representing approximately 92% of total investments, includes secured loans typically ranging from $5 million to $25 million with terms of 24 to 48 months. These loans generally carry interest rates between 10-15% and often include additional fees and end-of-term payments. The warrant and equity investment portfolio, representing about 8% of total investments, consists of equity kickers received in conjunction with debt investments, providing potential upside participation if portfolio companies achieve successful exits through acquisitions or public offerings. The company primarily targets venture capital-backed companies in four key sectors: technology (including software, hardware, and AI-enabled technologies), life sciences (biotechnology and medical devices), healthcare information and services, and cleantech/sustainability. These sectors are characterized by high growth potential but also higher risk profiles compared to traditional lending markets.
Revenue model
Horizon generates revenue through multiple streams tied to its debt and equity investments. The primary revenue source is interest income from its debt portfolio, which yields approximately 15% annually. This includes base interest rates, typically floating rates tied to prime or SOFR, plus additional fees such as facility fees, unused line fees, and end-of-term payments that can range from 3-8% of the original loan amount. The company also generates income from prepayment penalties when borrowers repay loans early, which typically occurs when portfolio companies raise additional venture capital, get acquired, or go public. Management indicated that normalized prepayment income ranges from $2-4 million per quarter. Additionally, Horizon earns equity appreciation from its warrant and equity positions when portfolio companies achieve successful exits, though this component is more volatile and unpredictable. The company's customers are primarily venture capital-backed companies in high-growth sectors that need additional capital beyond what their equity investors provide. These companies typically use venture debt to extend their cash runway, fund working capital needs, finance equipment purchases, or bridge to their next equity financing round. The debt is often less dilutive than raising additional equity capital. Several factors influence Horizon's margins and profitability. Interest rate environments directly impact both funding costs and the rates the company can charge borrowers, with most loans being floating rate instruments. Credit quality significantly affects returns, as defaults or downgrades can lead to significant losses. The venture capital market cycle influences both deal flow and exit opportunities - during strong VC markets, there are more investment opportunities but also more competition, while weak markets reduce deal flow but may offer better pricing. Regulatory changes affecting BDCs can impact leverage ratios and operational flexibility. Finally, the company's cost of capital, determined by its ability to access debt and equity financing markets, directly affects net interest margins and return on equity.
Competitive moat
Horizon's competitive moat is relatively narrow and primarily based on specialized expertise and relationship-driven deal sourcing rather than structural advantages. The company has developed deep knowledge in evaluating venture-backed companies across technology and life sciences sectors, understanding the unique risk profiles and business models that traditional banks typically avoid. This expertise allows Horizon to properly price risk and structure deals that balance yield with acceptable loss rates. The company's relationships with the venture capital community provide a significant source of deal flow, as VC firms often recommend portfolio companies to trusted debt providers. These relationships, built over Horizon's 15-year operating history, create some barriers to entry for new competitors. Additionally, the company's track record and reputation in the venture debt space helps attract quality deal flow. However, Horizon's moat is not particularly strong or durable. The venture debt market is increasingly competitive, with traditional banks, other BDCs, and specialized funds all competing for similar deals. Silicon Valley Bank historically dominated this space before its collapse in 2023, and its absence has intensified competition among remaining players. The company faces competition from larger institutions with lower cost of capital, such as Square 1 Bank (now part of First Citizens), as well as other BDCs like Hercules Capital, which has significantly more assets under management. The regulatory structure of BDCs also limits competitive advantages, as leverage ratios are capped and investment flexibility is constrained. Unlike traditional banks, BDCs cannot take deposits, forcing them to rely on more expensive debt and equity financing. The company's small size (approximately $700 million in assets) compared to competitors may limit its ability to lead larger transactions or provide the full range of services that larger borrowers require. Furthermore, the venture debt business model is inherently cyclical and dependent on the health of the venture capital ecosystem. During market downturns, deal flow decreases, credit quality deteriorates, and exit opportunities become scarce, affecting both current income and the realization of equity upside.
Risks & safety
Horizon's margin of safety appears adequate but not exceptional, with the company maintaining reasonable liquidity and leverage levels despite recent performance challenges. • Liquidity and Cash Position: The company maintains strong liquidity with $126 million available as of Q1 2025, including $33 million in cash and short-term investments plus unused credit facilities. This provides sufficient runway for operations and new investments. • Leverage and Debt Structure: Net leverage ratio of 1.29:1 is conservative relative to the regulatory maximum of 2:1 for BDCs. Total debt-to-equity ratio of 1.54:1 provides reasonable cushion. The company has diversified funding sources including credit facilities with multiple lenders. • Credit Quality Concerns: 89% of debt portfolio rated 3-4 (performing), but the company has several non-accrual loans that have pressured recent performance. Net asset value declined from $8.43 to $7.57 per share in Q1 2025, indicating portfolio stress. • Valuation Metrics: Trading at 1.24x book value and 8.5x earnings, which appears reasonable for a BDC but reflects market concerns about asset quality and earnings sustainability. • Dividend Coverage: Current net investment income of $0.27 per share falls short of the $0.33 quarterly distribution ($0.11 monthly), creating a coverage gap that's being filled by spillover income from prior periods. • Other Considerations: Recent advisor acquisition by Monroe Capital may provide operational benefits and cost synergies over time, though integration risks exist.
Recent development
Over the past few years, Horizon has undergone significant strategic and operational changes while navigating a challenging venture capital environment. The most significant development was the acquisition of Horizon's investment advisor by Monroe Capital in 2023, which was completed while retaining the existing management team. This transaction was expected to provide enhanced investment capabilities, operational efficiencies, and potential access to Monroe's broader platform and deal flow. The company has been actively strengthening its balance sheet through multiple capital raising initiatives. In 2024, Horizon raised over $66 million through its at-the-market equity program, secured a new $100 million senior secured credit facility with Nuveen, and raised $20 million through convertible debt offerings. These efforts were designed to provide additional investment capacity and improve the company's cost of capital. Portfolio management and credit quality have been major focus areas as the venture capital market experienced significant headwinds. The company has been working through several non-accrual investments, with some successful resolutions like Nexii and Evelo, while others like InBrace and Standvast continue to present challenges. Management has maintained a disciplined approach to new investments, focusing on high-quality, well-sponsored companies with strong operational performance. The company has adapted its investment strategy to current market conditions by becoming more selective in deal origination and focusing on generating returns through fees, interest, and end-of-term payments rather than relying heavily on warrant appreciation. New investment yields have remained strong at around 13%, though portfolio yields have compressed slightly from historical levels. Distribution policy adjustments have been necessary as net investment income has not consistently covered the $0.33 quarterly distribution. The company has relied on spillover income from prior periods and advisor fee waivers to maintain distributions, while management works toward sustainable coverage through portfolio growth and prepayment income normalization.
HRZN company profile · for informational purposes only — not investment advice.
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