Hercules Capital (NYSE:HTGC) Announces Quarterly Earnings Results

Posted by Francis Steltz on Jul 30th, 2026

Hercules Capital (NYSE:HTGC – Get Free Report) announced its quarterly earnings results on Thursday. The financial services provider reported $0.50 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.50, Zacks reports. The company had revenue of $134.41 million during the quarter, compared to analysts’ expectations of $146.71 million. Hercules Capital had a return on equity of 16.05% and a net margin of 59.85%.The business’s quarterly revenue was up 8.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.50 earnings per share.

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

Record quarterly performance: Total investment income reached $149.1 million and net investment income was $92.9 million, or $0.50 per share. NII covered the base distribution by 125% and the full distribution, including the $0.07 supplemental, by 106%.
Hercules reported record first-half originations of $2.74 billion, up 35.6% year over year, while assets under management grew 14.4% to approximately $6.1 billion. Management expects both the public BDC and private-credit funds to contribute to future growth.
Credit performance remained relatively stable, with non-accrual investments representing just 0.1% of portfolio fair value, while leverage declined materially to 103.9% on a GAAP basis and available BDC liquidity stood at $652.9 million. The company also issued $325 million of five-year unsecured notes after quarter-end to support refinancing and future originations.
Prepayments surged to $572.1 million in Q2 but are expected to normalize to $200 million-$300 million in Q3, reducing prepayment-related revenue. Management also guided core yield lower to 11.8%-12% as higher-yielding legacy assets are replaced and the impact of prior rate cuts continues.
Management noted that banks and other lenders have become increasingly aggressive on deal structures, while a growing number of companies in the pipeline may not meet Hercules’ underwriting standards. Q3 originations are expected to be seasonally lower and back-end weighted.

Hercules Capital Stock Performance

NYSE:HTGC traded down $0.03 during trading hours on Thursday, hitting $15.95. 2,041,355 shares of the company traded hands, compared to its average volume of 1,330,578. The company has a current ratio of 1.89, a quick ratio of 1.89 and a debt-to-equity ratio of 1.14. Hercules Capital has a twelve month low of $13.70 and a twelve month high of $19.67. The firm has a 50-day moving average of $15.69 and a 200 day moving average of $15.84. The stock has a market capitalization of $2.98 billion, a price-to-earnings ratio of 9.01 and a beta of 0.79.

Hercules Capital Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, August 18th. Investors of record on Tuesday, August 11th will be given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 10.0%. This is an increase from Hercules Capital’s previous quarterly dividend of $0.07. The ex-dividend date of this dividend is Tuesday, August 11th. Hercules Capital’s payout ratio is presently 90.40%.

Analysts Set New Price Targets

A number of research analysts recently weighed in on HTGC shares. Citizens Jmp cut their price objective on Hercules Capital from $24.00 to $22.00 and set a “market outperform” rating on the stock in a research note on Wednesday, April 22nd. UBS Group upped their target price on Hercules Capital from $15.00 to $15.50 and gave the stock a “neutral” rating in a research report on Monday, May 18th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Hercules Capital in a report on Wednesday, June 17th. Keefe, Bruyette & Woods dropped their target price on shares of Hercules Capital from $19.00 to $18.00 and set an “outperform” rating on the stock in a report on Thursday, April 16th. Finally, Piper Sandler upped their price target on shares of Hercules Capital from $16.50 to $17.00 and gave the company a “neutral” rating in a report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $18.21.

View Our Latest Research Report on HTGC

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new stake in Hercules Capital during the fourth quarter worth about $27,000. Northwestern Mutual Wealth Management Co. lifted its position in shares of Hercules Capital by 113.1% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,884 shares of the financial services provider’s stock worth $35,000 after acquiring an additional 1,000 shares during the period. Summit Securities Group LLC grew its holdings in shares of Hercules Capital by 233.3% during the 4th quarter. Summit Securities Group LLC now owns 2,000 shares of the financial services provider’s stock worth $38,000 after purchasing an additional 1,400 shares in the last quarter. WFA of San Diego LLC acquired a new stake in shares of Hercules Capital during the 2nd quarter worth approximately $55,000. Finally, Garton & Associates Financial Advisors LLC bought a new stake in shares of Hercules Capital during the fourth quarter valued at approximately $80,000. Institutional investors own 19.69% of the company’s stock.

About Hercules Capital

(Get Free Report)

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.