Hercules Capital's Q3 earnings top estimates as higher total investment income offsets rising expenses, lifting the stock in after-hours trading.
Hercules Capital, Inc. ( HTGC ) Q3 2025 Earnings Call October 30, 2025 5:00 PM EDT Company Participants Michael Hara - Managing Director of Investor Relations & Corporate Communications Scott Bluestein - CEO, Chief Investment Officer, President & Director Seth Meyer - CFO & Chief Accounting Officer Conference Call Participants Brian Mckenna - Citizens JMP Securities, LLC, Research Division Finian O'Shea - Wells Fargo Securities, LLC, Research Division Crispin Love - Piper Sandler & Co., Research Division Douglas Harter - UBS Investment Bank, Research Division John Hecht - Jefferies LLC, Research Division Christopher Nolan - Ladenburg Thalmann & Co. Inc., Research Division Paul Johnson - Keefe, Bruyette, & Woods, Inc., Research Division Presentation Operator Good morning. My name is David, and I will be your conference operator today.
Hercules Capital (HTGC) came out with quarterly earnings of $0.47 per share, missing the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.51 per share a year ago.
Hercules Capital (HTGC) has been struggling to deliver solid results for quite some time. Currently, HTGC remains the second most expensive BDC. Yet, the story does not end here.
Sound Income Strategies, LLC disclosed the sale of 177,473 shares of Hercules Capital (HTGC -2.02%) for an estimated $3.40 million in an SEC filing dated October 10, 2025.
Hercules Capital stands out as a high-yielding BDC with a near-10% dividend yield and strong venture capital relationships. HTGC's focus on first-lien secured loans, robust credit quality, and efficient internal management drives stable returns and portfolio growth. Despite trading at a premium to NAV, HTGC offers a reasonable forward P/E and higher yield than many externally managed peers.
In the latest trading session, Hercules Capital (HTGC) closed at $19.13, marking a -1.59% move from the previous day.
In the latest trading session, Hercules Capital (HTGC) closed at $19.45, marking a +1.14% move from the previous day.
Hercules Capital's dividend coverage is robust, with NII covering 125% of the base dividend and 106% of the aggregate payout. The BDC is growing its investment portfolio rapidly, with record origination volumes and a conservative debt-to-equity ratio of 0.97x. Fed rate cuts are likely to pressure net income, making dividend safety and portfolio growth key differentiators among BDCs.
HTGC's BBB+ credit rating with stable outlook gets affirmed by KBRA, backed by a strong portfolio, risk management and capital access.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Hercules Capital posts a Q2 earnings beat as higher investment income offsets rising expenses, lifting shares 1.3% after hours.