Want to see HTGC full AI Analyst Report?
Top Page
Hercules Capital, Inc.
(NYSE:HTGC)
Select Model
Select Model
Rating:68Neutral
Price Target:
$19.00
â–²(8.02% Upside)
Action:Reiterated
Date:07/31/26
HTGC scores above average primarily on strong profitability and supportive valuation (low P/E and ~10% yield). The main constraint is fundamental volatility—especially historically inconsistent operating/free cash flow—along with leverage that elevates risk. Technicals are largely neutral, and the latest earnings commentary was constructive but tempered by NAV pressure, higher leverage, and rising costs.
Positive Factors
Record origination and income growth
Record lending activity and rising investment income show strong demand for Hercules' venture-debt products. Sustained origination scale can expand the income-generating portfolio and reinforce its position within the venture-backed lending ecosystem.
Negative Factors
Elevated leverage
Higher leverage increases reliance on debt markets and magnifies the effect of credit losses, valuation declines, or funding-cost increases. At the high end of Hercules' historical range, it limits balance-sheet flexibility during weaker lending conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Record origination and income growth
Record lending activity and rising investment income show strong demand for Hercules' venture-debt products. Sustained origination scale can expand the income-generating portfolio and reinforce its position within the venture-backed lending ecosystem.
Read all positive factors
Hercules Capital, Inc. (HTGC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.29B
Dividend Yield11.05%
Average Volume (3M)1.31M
Price to Earnings (P/E)8.4
Beta (1Y)0.82
Revenue Growth44.00%
EPS Growth36.72%
CountryUS
Employees100
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)2.09
Shares Outstanding187,164,000
10 Day Avg. Volume1,364,084
30 Day Avg. Volume1,308,818
Financial Highlights & Ratios
PEG Ratio0.55
Price to Book (P/B)1.54
Price to Sales (P/S)6.22
P/FCF Ratio-7.99
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$17.63Price Target Upside0.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)1.92
Revenue Forecast (FY)$582.10M
Hercules Capital, Inc. Business Overview & Revenue Model
Company Description
Hercules Capital, Inc. is a business development company. The firm specializing in providing private equity, venture debt, and growth capital to privately held venture capital-backed companies at all stages of development from mid venture to expan...
How the Company Makes Money
Hercules Capital makes money primarily by originating and holding income-producing debt investments, with earnings driven by (1) interest income on loans, (2) fees associated with originating and managing those loans, and (3) realized/unrealized g...
Hercules Capital, Inc. Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presented multiple record operational achievements (all-time originations, record investment income, strong NII, AUM growth, solid liquidity and tight credit metrics) which substantially outweigh the negatives (modest NAV decline driven by $45M of unrealized markdowns, higher leverage and rising expenses amid market volatility). Management emphasized defensive underwriting, strong cash coverage of distributions, and significant redeployment optionality from expected prepayments. While volatility and near-term valuation uncertainty are noted, the tone and metrics indicate robust performance and confidence in execution.Positive Updates
Record Originations and Fundings
All-time record originations of over $1.81 billion in Q1 2026; gross fundings of over $706 million leading to $298 million of net debt investment portfolio growth.
Negative Updates
NAV Decline and Unrealized Depreciation
Net asset value per share declined to $11.90, a 1.9% decrease from Q4 2025; $45 million of net unrealized depreciation in Q1 (approximately $31.1 million from debt investments — ~$23.2 million due to market yield adjustments — and $12.3 million from equity valuations).
Read all updates
Q1-2026 Updates
Positive
Negative
Record Originations and Fundings
All-time record originations of over $1.81 billion in Q1 2026; gross fundings of over $706 million leading to $298 million of net debt investment portfolio growth.
Read all positive updates
Company Guidance
For Q2 management reiterated that core yield should remain relatively flat, guiding to a 12.0%–12.5% range (Q1 core yield 12.2%, GAAP effective yield 12.8%), and that prepayments should increase materially to $350–$500 million (driven largely by M&A) providing redeployment optionality; they also expect interest expense to rise (Q1 interest expense $30.8M; weighted average cost of debt 5.1%), SG&A of $27.5–$28.5M with an RIA expense allocation of ~$4.5M, an RIA dividend to HTGC of ~$2.0–$2.5M, and emphasized strong liquidity ($454.5M in the BDC, >$1.0B across the platform) and balance-sheet dynamics (Q1 GAAP leverage 115.4% / regulatory 99.7%, net GAAP 113.5%), noting that >75% of prime‑based loans are at contractual floors and ~98% of the debt portfolio is floating with floors.Hercules Capital, Inc. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 579.80M | 547.10M | 430.90M | 494.12M | 239.39M | 309.58M |
| Gross Profit | 521.27M | 477.25M | 353.75M | 426.50M | 184.64M | 255.13M |
| EBITDA | 437.02M | 365.43M | 263.43M | 337.67M | 102.28M | 174.47M |
| Net Income | 383.20M | 339.74M | 262.97M | 337.48M | 102.08M | 174.16M |
Balance Sheet | ||||||
| Total Assets | 4.69B | 4.58B | 3.83B | 3.42B | 3.03B | 2.60B |
| Cash, Cash Equivalents and Short-Term Investments | 48.18M | 56.87M | 113.12M | 98.90M | 15.80M | 133.12M |
| Total Debt | 2.35B | 2.30B | 1.79B | 1.56B | 1.58B | 1.24B |
| Total Liabilities | 2.41B | 2.37B | 1.84B | 1.61B | 1.63B | 1.29B |
| Stockholders Equity | 2.27B | 2.22B | 1.99B | 1.80B | 1.40B | 1.31B |
Cash Flow | ||||||
| Free Cash Flow | 8.43M | -425.89M | -118.79M | 67.39M | -424.91M | 128.51M |
| Operating Cash Flow | 8.51M | -425.80M | -118.09M | 68.28M | -424.80M | 128.62M |
| Investing Cash Flow | -81.00K | -89.00K | -705.00K | -887.00K | -114.00K | -106.00K |
| Financing Cash Flow | -11.29M | 368.92M | 119.20M | 22.75M | 314.52M | -229.87M |
Hercules Capital, Inc. Technical Analysis
Positive
17.59
Price Trends
15.91
Positive
15.42
Positive
15.54
Positive
Market Momentum
0.46
Negative
73.81
Negative
95.31
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HTGC, the sentiment is Positive. The current price of 17.59 is above the 20-day moving average (MA) of 16.72, above the 50-day MA of 15.91, and above the 200-day MA of 15.54, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 73.81 is Negative, neither overbought nor oversold. The STOCH value of 95.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HTGC.
Hercules Capital, Inc. Risk Analysis
Hercules Capital, Inc. disclosed 34 risk factors in its most recent earnings report. Hercules Capital, Inc. 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
Hercules Capital, Inc. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.81B | 19.81 | 0.02% | 11.30% | -17.25% | -53.04% | |
72 Outperform | $736.20M | 14.44 | 4.82% | 17.37% | 12.58% | -40.06% | |
68 Neutral | $3.29B | 8.44 | 17.21% | 10.17% | 44.00% | 36.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $3.40B | 23.84 | 3.82% | 11.27% | -8.83% | -54.08% | |
60 Neutral | $248.78M | 23.81 | <0.01% | 29.18% | 138.32% | -27.91% | |
60 Neutral | $3.33B | -9.01 | -6.65% | 21.64% | -35.39% | -272.02% |
* Financial Sector Average
HTGC
Hercules Capital, Inc.
17.64
0.34
1.95%
GBDC
Golub Capital Bdc
13.11
-0.17
-1.25%
PFLT
Pennantpark
7.37
-1.51
-17.02%
PNNT
Pennantpark Investment
3.76
-2.14
-36.30%
TSLX
Sixth Street Specialty Lending
18.82
-3.27
-14.82%
FSK
FS KKR Capital
12.16
-2.94
-19.46%
Hercules Capital, Inc. Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Hercules Capital Announces Strong Q2 Distribution Backed by Earnings
Positive
Jul 30, 2026
On July 28, 2026, Hercules Capital announced its board had declared a second-quarter 2026 total cash distribution of $0.47 per share, payable to stockholders in August 2026, supported by net investment income of $0.50 per share that provided 125% ...
Business Operations and StrategyPrivate Placements and Financing
Hercules Capital Completes $325 Million Senior Notes Offering
Positive
Jul 24, 2026
On July 24, 2026, Hercules Capital, Inc. completed a public offering of $325 million aggregate principal amount of 6.300% unsecured notes due July 24, 2031, issued under a new supplemental indenture with U.S. Bank Trust Company as trustee. The not...
Financial DisclosuresRegulatory Filings and Compliance
Hercules Capital updates Form 8-K regulatory disclosure
Neutral
Jul 21, 2026
In a brief regulatory filing, Hercules Capital, Inc. indicated that the information reported under Item 2.02 of its Current Report on Form 8-K is incorporated by reference into Item 8.01. This technical disclosure step links its financial or earni...
Executive/Board ChangesShareholder Meetings
Hercules Capital Stockholders Approve Governance and Compensation Measures
Positive
Jun 18, 2026
On June 18, 2026, Hercules Capital, Inc. held its 2026 Annual Meeting of Stockholders, where investors voted on board composition, executive compensation practices, equity incentive structures, and auditor ratification. Shareholders elected Robert...
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.