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HTGC Stock Up as Q3 Earnings Beat on Higher Total Investment Income
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Key Takeaways
Hercules Capital's Q3 net investment income rose 6.5% to $88.6 million, beating estimates.
Total investment income climbed 10.3% to $138.1 million, driven by a larger debt portfolio.
Operating expenses increased 21% year over year as most cost components moved higher.
Hercules Capital Inc.’s (HTGC - Free Report) shares gained almost 1% in the after-market hours on better-than-expected third-quarter 2025 results. The net investment income of 49 cents per share surpassed the Zacks Consensus Estimate by a penny. However, the bottom line declined 3.9% from the year-ago quarter.
Results were primarily driven by higher total investment income. Also, the portfolio activity was robust in the quarter. However, an increase in expenses was the undermining factor.
Net investment income was $88.6 million, up 6.5% year over year.
HTGC's Investment Income Increases, Expenses Rise
Total investment income was $138.1 million, up 10.3% from the year-ago quarter. The rise was driven by a higher weighted average debt investment portfolio between periods. Also, the top line beat the Zacks Consensus Estimate of $132.5 million.
Total gross operating expenses jumped 21% year over year to $53.6 million. The rise was due to an increase in almost all cost components, except for tax expenses and general and administrative expenses.
HTGC Portfolio Value & New Commitments Remain Strong
The fair value of Hercules Capital’s total investment portfolio was $4.31 billion as of Sept. 30, 2025. It realized early loan repayments of $262.3 million in the third quarter. This, along with normal scheduled amortization of $2.3 million, led to total debt repayments of $264.6 million.
In the third quarter, the company delivered $846.2 million in gross new debt and equity commitments and $504.6 million in gross new funding.
Hercules Capital’s Balance Sheet Position Decent
As of Sept. 30, 2025, Hercules Capital’s net asset value was $12.05 per share, up from $11.66 as of Dec. 31, 2024.
As of Sept. 30, 2025, the company had $655 million in liquidity, including $29.4 million of unrestricted cash and cash equivalents, and $625.6 million in credit facilities.
At the end of the third quarter, the weighted average cost of debt, comprising interest and fees, remained constant at 5.1% year over year.
Our View on HTGC
The absence of global diversification limits Hercules Capital’s growth prospects. Further, the company’s efforts to improve originations will likely keep expenses elevated. Nonetheless, rising demand for customized financing is expected support total investment income.
Hercules Capital, Inc. Price, Consensus and EPS Surprise
Ares Capital Corporation’s (ARCC - Free Report) third-quarter 2025 core earnings of 50 cents per share met the Zacks Consensus Estimate. However, the bottom line reflected a decline of 13.8% from the prior-year quarter.
The results were primarily aided by higher total investment income. Also, ARCC’s robust portfolio activities offered some support. However, higher expenses acted as a spoilsport.
Main Street Capital (MAIN - Free Report) is scheduled to announce third-quarter 2025 results on Nov. 6.
Over the past seven days, the Zacks Consensus Estimate for Main Street Capital’s quarterly earnings has been unchanged at $1.04. This implies a 4% rise from the prior-year quarter’s actual.
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HTGC Stock Up as Q3 Earnings Beat on Higher Total Investment Income
Key Takeaways
Hercules Capital Inc.’s (HTGC - Free Report) shares gained almost 1% in the after-market hours on better-than-expected third-quarter 2025 results. The net investment income of 49 cents per share surpassed the Zacks Consensus Estimate by a penny. However, the bottom line declined 3.9% from the year-ago quarter.
Results were primarily driven by higher total investment income. Also, the portfolio activity was robust in the quarter. However, an increase in expenses was the undermining factor.
Net investment income was $88.6 million, up 6.5% year over year.
HTGC's Investment Income Increases, Expenses Rise
Total investment income was $138.1 million, up 10.3% from the year-ago quarter. The rise was driven by a higher weighted average debt investment portfolio between periods. Also, the top line beat the Zacks Consensus Estimate of $132.5 million.
Total gross operating expenses jumped 21% year over year to $53.6 million. The rise was due to an increase in almost all cost components, except for tax expenses and general and administrative expenses.
HTGC Portfolio Value & New Commitments Remain Strong
The fair value of Hercules Capital’s total investment portfolio was $4.31 billion as of Sept. 30, 2025. It realized early loan repayments of $262.3 million in the third quarter. This, along with normal scheduled amortization of $2.3 million, led to total debt repayments of $264.6 million.
In the third quarter, the company delivered $846.2 million in gross new debt and equity commitments and $504.6 million in gross new funding.
Hercules Capital’s Balance Sheet Position Decent
As of Sept. 30, 2025, Hercules Capital’s net asset value was $12.05 per share, up from $11.66 as of Dec. 31, 2024.
As of Sept. 30, 2025, the company had $655 million in liquidity, including $29.4 million of unrestricted cash and cash equivalents, and $625.6 million in credit facilities.
At the end of the third quarter, the weighted average cost of debt, comprising interest and fees, remained constant at 5.1% year over year.
Our View on HTGC
The absence of global diversification limits Hercules Capital’s growth prospects. Further, the company’s efforts to improve originations will likely keep expenses elevated. Nonetheless, rising demand for customized financing is expected support total investment income.
Hercules Capital, Inc. Price, Consensus and EPS Surprise
Hercules Capital, Inc. price-consensus-eps-surprise-chart | Hercules Capital, Inc. Quote
Currently, Hercules Capital carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance & Earnings Dates of HTGC’s Peers
Ares Capital Corporation’s (ARCC - Free Report) third-quarter 2025 core earnings of 50 cents per share met the Zacks Consensus Estimate. However, the bottom line reflected a decline of 13.8% from the prior-year quarter.
The results were primarily aided by higher total investment income. Also, ARCC’s robust portfolio activities offered some support. However, higher expenses acted as a spoilsport.
Main Street Capital (MAIN - Free Report) is scheduled to announce third-quarter 2025 results on Nov. 6.
Over the past seven days, the Zacks Consensus Estimate for Main Street Capital’s quarterly earnings has been unchanged at $1.04. This implies a 4% rise from the prior-year quarter’s actual.