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Horizon Technology
(NASDAQ:HRZN)
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Rating:64Neutral
Price Target:
$4.00
▼(-16.14% Downside)
Action:Reiterated
Date:09/10/26
HRZN scores in the mid-range primarily due to uneven financial performance and elevated leverage despite a strong TTM rebound. Technicals are supportive (price above key moving averages with positive MACD), and valuation is helped by a reasonable P/E and very high dividend yield. The latest earnings call and events were mixed: strong pipeline, liquidity and buybacks offset by a notable write-down, NAV decline, and near-term NII pressure from merger-related costs.
Positive Factors
Expanded Capital and Origination Capacity
The completed Monroe Capital merger broadens HRZN’s capital base and ability to support larger financings. This can improve origination scale, strengthen relationships with venture-backed borrowers, and support portfolio growth as management deploys merger-related capacity.
Negative Factors
Elevated Leverage
High leverage leaves less financial flexibility when portfolio performance weakens and increases the sensitivity of results to credit losses or funding costs. It may also constrain HRZN’s ability to pursue new investments without balancing growth against balance-sheet resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Expanded Capital and Origination Capacity
The completed Monroe Capital merger broadens HRZN’s capital base and ability to support larger financings. This can improve origination scale, strengthen relationships with venture-backed borrowers, and support portfolio growth as management deploys merger-related capacity.
Read all positive factors
Horizon Technology (HRZN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$262.10M
Dividend Yield27.37%
Average Volume (3M)433.18K
Price to Earnings (P/E)9.8
Beta (1Y)0.60
Revenue Growth-13.29%
EPS GrowthN/A
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.40
Shares Outstanding67,033,910
10 Day Avg. Volume603,366
30 Day Avg. Volume433,177
Financial Highlights & Ratios
PEG Ratio1.69
Price to Book (P/B)0.86
Price to Sales (P/S)6.82
P/FCF Ratio4.82
Enterprise Value/Market Cap2.19
Enterprise Value/Revenue5.24
Enterprise Value/Gross Profit6.75
Enterprise Value/Ebitda25.78
Forecast
1Y Price Target
$5.10Price Target Upside6.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.68
Revenue Forecast (FY)$100.39M
Horizon Technology Business Overview & Revenue Model
Company Description
Horizon Technology Finance Corporation operates as a business development company (BDC) with a core focus on providing financing and making equity investments in businesses in their early growth phases. The firm primarily offers secured debt and v...
How the Company Makes Money
HRZN makes money primarily from interest and fee income generated by its investment portfolio of loans and other debt investments. Its core revenue stream is recurring interest income on secured venture loans (including any payment-in-kind interes...
Horizon Technology Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call balanced significant positive developments — completion of the Monroe Capital merger, increased liquidity and investment capacity, consecutive quarterly portfolio growth, strong debt yields (~14.9%) and a growing backlog — against notable challenges including a material company-specific write-down (~$39 million total), a $0.75 quarterly NAV decline, higher one-time merger expenses that compressed reported NII to $0.11 per share, and meaningful prepayments that moderated portfolio growth. Management emphasized strategic investments in underwriting and originations, confidence in the pipeline, and steps to prudently deploy capital, but losses tied to a single portfolio company and transient expense headwinds produced a mixed near-term financial picture.Positive Updates
Merger with Monroe Capital Completed
Completed merger with Monroe Capital in April 2026, significantly enhancing available capital and enabling partnership/co-investment opportunities to support larger ticket sizes and accelerated origination.
Negative Updates
Significant Write-Downs on Soli Investment
Wrote down entire $20 million equity holding and $19 million of debt in one portfolio company (Soli) due to unexpected cash burn and fundraising shortfalls, resulting in material losses tied to a single company.
Read all updates
Q2-2026 Updates
Positive
Negative
Merger with Monroe Capital Completed
Completed merger with Monroe Capital in April 2026, significantly enhancing available capital and enabling partnership/co-investment opportunities to support larger ticket sizes and accelerated origination.
Read all positive updates
Company Guidance
Management guided that they expect continued portfolio growth and to generate net investment income (NII) that covers distributions over time as they deploy merger capital and move toward target leverage; for Q3 they expect another quarter of debt investment portfolio growth and have already been awarded 4 venture loan transactions totaling $87M in commitments, adding to a committed/approved backlog of $228M (up ~$48–50M QoQ) after funding $73M (9 investments) in Q2. Key metrics and actions highlighted include a Q2 debt portfolio yield of 14.9% and onboarding yield of ~12%, NAV of $6.23/share (down $0.75 QoQ), NII of $0.11/share ($0.18 excl. $4.4M of one‑time merger expenses, which reduced NII by ~$0.07/share), undistributed spillover income of $0.33/share, declared monthly regular distributions of $0.06/share and special distributions of $0.03/share for Oct–Dec 2026, available liquidity of $229M (cash $135M + $94M undrawn credit), debt‑to‑equity of 0.97:1 (net leverage 0.65:1), potential new investment capacity of $459M, $28M in warrant/equity fair value across 96 companies, ~61% of floating‑rate loans at floors (99% benefit from rising rates), repurchases of ~1.4M shares at an average $4.54 and an increased buyback capacity of $20M, and an adviser fee waiver program of up to $4M ($1M/quarter) beginning Q3 2026.Horizon Technology Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
44
Neutral
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 109.69M | 40.02M | 33.94M | 19.10M | 45.84M | 45.30M |
| Gross Profit | 85.10M | 7.22M | 1.69M | -9.87M | 26.64M | 33.27M |
| EBITDA | 22.29M | 1.05M | -4.16M | -15.70M | 23.47M | 29.27M |
| Net Income | 5.07M | -2.66M | -5.63M | -17.18M | 21.15M | 27.78M |
Balance Sheet | ||||||
| Total Assets | 832.05M | 811.10M | 821.83M | 802.36M | 766.83M | 513.96M |
| Cash, Cash Equivalents and Short-Term Investments | 135.01M | 105.52M | 70.26M | 46.63M | 20.61M | 38.05M |
| Total Debt | 402.44M | 473.03M | 467.90M | 462.24M | 434.08M | 257.61M |
| Total Liabilities | 414.55M | 492.60M | 485.65M | 478.38M | 448.38M | 268.63M |
| Stockholders Equity | 417.50M | 318.50M | 336.18M | 323.98M | 318.45M | 245.34M |
Cash Flow | ||||||
| Free Cash Flow | 150.90M | 56.63M | 39.64M | 50.07M | -246.28M | -75.99M |
| Operating Cash Flow | 150.90M | 56.63M | 39.64M | 50.07M | -246.28M | -75.99M |
| Investing Cash Flow | -91.41M | 0.00 | -35.70M | -55.33M | -372.01M | -291.49M |
| Financing Cash Flow | -75.06M | -14.80M | 21.21M | 50.51M | 229.46M | 75.52M |
Horizon Technology Technical Analysis
Negative
4.77
Price Trends
4.48
Negative
4.36
Negative
4.40
Negative
Market Momentum
-0.15
Positive
24.59
Positive
6.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRZN, the sentiment is Negative. The current price of 4.77 is above the 20-day moving average (MA) of 4.31, above the 50-day MA of 4.48, and above the 200-day MA of 4.40, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 24.59 is Positive, neither overbought nor oversold. The STOCH value of 6.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HRZN.
Horizon Technology Risk Analysis
Horizon Technology disclosed 114 risk factors in its most recent earnings report. Horizon Technology reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Horizon Technology Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $3.10B | 7.93 | 17.21% | 11.76% | 44.00% | 36.72% | |
64 Neutral | $262.10M | 9.81 | 1.46% | 27.37% | -13.29% | ― | |
60 Neutral | $190.01M | 18.43 | <0.01% | 32.99% | 138.32% | -27.91% | |
60 Neutral | $191.39M | 6.54 | 8.05% | 19.79% | 0.37% | -28.29% | |
60 Neutral | $346.52M | -3.25 | -17.68% | 18.40% | -141.00% | -809.18% | |
59 Neutral | $177.49M | 4.40 | 10.97% | 22.94% | 12.61% | -3.62% |
* Financial Sector Average
HRZN
Horizon Technology
3.91
-1.44
-26.89%
HTGC
Hercules Capital, Inc.
16.58
0.77
4.90%
PNNT
Pennantpark Investment
2.91
-2.30
-44.20%
SCM
Stellus Capital
6.72
-3.86
-36.47%
TCPC
BlackRock TCP Capital
4.13
-0.67
-14.03%
TPVG
TriplePoint Venture Growth
4.36
-0.25
-5.40%
Horizon Technology Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Horizon Technology Extends Securitized Notes Maturity Profile
Positive
Sep 9, 2026
On September 2, 2026, Horizon Funding II, LLC, a wholly owned subsidiary of Horizon Technology Finance Corporation, executed a Second Supplemental Indenture with U.S. Bank Trust Company that extended the legal final payment date of its securitized...
Business Operations and StrategyDividends
Horizon Technology Announces Fourth-Quarter Dividend Distributions
Positive
Aug 4, 2026
On August 4, 2026, Horizon Technology Finance announced that its board approved regular monthly cash distributions of $0.06 per share for each of October, November and December 2026, totaling $0.18 per share for the fourth quarter. In addition, th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.