Hercules Capital (NYSE:HTGC) Announces Earnings Results

Posted by George Bondi on Oct 29th, 2026

Hercules Capital (NYSE:HTGC – Get Free Report) announced its quarterly earnings results on Thursday. The financial services provider reported $0.47 EPS for the quarter, hitting the consensus estimate of $0.47, Zacks reports. The business had revenue of $135.69 million for the quarter, compared to analysts’ expectations of $144.11 million. Hercules Capital had a net margin of 67.68% and a return on equity of 16.01%. During the same quarter in the previous year, the company earned $0.49 EPS.

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

Record growth and originations: Year-to-date originations reached a record $3.44 billion, up 20% year over year, while assets under management grew 17.7% to approximately $6.5 billion. Management expects 2026 to exceed 2025 records for commitments and fundings.
Strong earnings and distribution coverage: Third-quarter net investment income was $87.3 million, or $0.47 per share, covering 118% of the base distribution and 100% of the base plus supplemental distribution. NAV per share increased nearly 1% quarter over quarter to $12.26.
Credit quality remained stable: The weighted-average internal credit rating improved to 2.12, non-accruals remained limited to two loans, and all accruing debt investments were current on scheduled principal and interest payments. PIK income also declined as a percentage of revenue.
Constructive fourth-quarter outlook: Management expects prepayments to normalize to $200 million-$300 million in Q4, supporting higher total investment income and net investment income, while ROE is expected to begin improving from what executives characterized as a likely floor.
Higher funding costs and leverage: The weighted-average cost of debt rose to 5.4% from 5.2%, while GAAP leverage increased to 111.1% from 103.9% as borrowings funded portfolio growth. Management also guided to core yield of 11.8%-12%, reflecting continued competitive pressure on pricing.

Hercules Capital Stock Up 1.9%

Shares of Hercules Capital stock traded up $0.32 during trading on Thursday, reaching $16.93. The company’s stock had a trading volume of 1,113,063 shares, compared to its average volume of 1,863,959. The company has a quick ratio of 1.37, a current ratio of 1.37 and a debt-to-equity ratio of 1.03. The company has a market cap of $3.17 billion, a price-to-earnings ratio of 8.42 and a beta of 0.82. Hercules Capital has a 1-year low of $13.70 and a 1-year high of $19.13. The company has a 50-day simple moving average of $17.02 and a two-hundred day simple moving average of $16.20.

Hercules Capital Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 17th. Stockholders of record on Tuesday, November 10th will be given a $0.07 dividend. This represents a $0.28 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend is Tuesday, November 10th. This is a negative change from Hercules Capital’s previous quarterly dividend of $0.40. Hercules Capital’s payout ratio is 79.60%.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on HTGC. UBS Group upgraded Hercules Capital from a “neutral” rating to a “buy” rating and increased their price target for the company from $15.50 to $18.50 in a report on Tuesday, September 1st. LADENBURG THALM/SH SH dropped their price objective on shares of Hercules Capital from $21.00 to $20.00 and set a “buy” rating for the company in a research note on Friday, July 31st. Finally, Weiss Ratings upgraded shares of Hercules Capital from a “hold (c)” rating to a “hold (c+)” rating in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $18.89.

Check Out Our Latest Report on Hercules Capital

Hercules Capital Company Profile

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Hercules Capital, Inc is a business development company and specialty finance firm that provides debt financing to innovative, growth-oriented companies. The company focuses primarily on venture capital-backed businesses in the technology, life sciences, and sustainable and specialty technology sectors.

Hercules Capital offers secured loans and other forms of growth capital designed to support companies through various stages of development, including expansion, acquisitions, recapitalizations, and initial public offerings.