Hercules Capital, Inc. (HTGC)

Price$17.72Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because strong income offsets a large premium to underlying assets.

At the observed market level, Hercules trades at about 1.46 times June net asset value—the accounting value of assets minus liabilities—of $12.15. Second-quarter net investment income, meaning interest and fee income after operating and borrowing costs, was $0.50 per share, implying roughly nine times annualized recent income. The indicated annual distribution yield is about 10.6%. In an August 2024 company filing, the then-market price was about 63% above reported net asset value, so a large premium is not unprecedented. StockAnalysis.com+2SEC+2

Big pictureEarnings capacity is growing, while cash-flow swings mainly reflect lending activity rather than ordinary operating strain.

The supplied history shows revenue rising from $281.0 million in 2021 to $532.5 million in 2025, while 2025 net income reached $339.7 million. Operating cash flow—the cash statement line that includes loan originations and repayments for this lender—was negative in 2025, so it should not be read like ordinary business cash burn. Second-quarter 2026 net investment income was $0.50 per share against a $0.47 total distribution, with $0.92 per share of undistributed earnings carried forward. The strongest bull case is continued growth without higher credit losses. Pasted text SEC

Business strengthCredit quality is strong and funding access remains broad, supporting income despite substantial borrowing.

At June 30, 86.8% of the debt portfolio was first-lien senior secured, meaning Hercules generally has the first claim on pledged collateral. Loans not currently paying interest were only 0.1% of investments at fair value. Debt excluding cash and certain government-backed debentures was 86.4% of equity, and available liquidity was $652.9 million. Kroll also affirmed a BBB+ rating with a stable outlook. Interest expense rose to $31.1 million from $25.7 million a year earlier, so funding costs still matter. SEC+1

What could change the storyFalling rates, weaker borrowers, or heavy share issuance could erode returns and make today’s high price harder to justify.

The strongest bear case is that the premium survives only while venture-backed borrowers stay healthy and quarterly income remains near recent levels. A one-percentage-point base-rate decline would reduce annualized earnings by about $0.04 per share, while $572.1 million of early repayments shrank the debt portfolio by $170.2 million in the second quarter, creating reinvestment pressure. Shares outstanding are also up about 10% since 2024 year-end. Issuing above net asset value can raise value per existing share, but falling per-share income or rising troubled loans would challenge the price. Pasted text SEC+1

AI: News

Record second-quarter resultsSecond-quarter income hit records and covered the full distribution, strengthening confidence in near-term payout durability.

On July 30, Hercules reported record second-quarter investment income of $149.1 million and net investment income of $92.9 million, or $0.50 per share. First-half commitments reached $2.74 billion, while non-accrual loans remained only 0.1% of investments at fair value. The shares gained about 3.0% in the next regular session. That timing is consistent with a positive reception to the results, but it does not prove the earnings release alone caused the move. Hercules Capital, Inc.+1

BBB+ rating reaffirmedKroll reaffirmed investment-grade credit quality, supporting funding access and easing concern over Hercules’ leveraged balance sheet.

On August 19, Kroll Bond Rating Agency affirmed Hercules at BBB+ with a stable outlook, citing its senior-secured portfolio, long operating history, leverage metrics, capital-markets access, and diversified funding mix. The stock rose about 1.5% that day. The timing suggests the affirmation may have helped sentiment, but other market factors could also have contributed. Fundamentally, preserving investment-grade access matters because Hercules depends on regular debt funding to finance new loans and refinance maturities. Hercules Capital, Inc.+1

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Revenue

2020

2021

2022

2023

2024

2025

Net income

2020

2021

2022

2023

2024

2025

Free cash flow

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2019

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2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
Revenue	$532.5M	$493.6M	$460.7M	$321.7M	$281.0M	$287.3M	—	—	—	—	—
Operating expenses	$206.0M	$178.5M	$165.7M	$141.9M	$136.0M	$130.1M	—	—	—	—	—
Net income	$339.7M	$263.0M	$337.5M	$102.1M	$174.2M	$227.3M	—	—	—	—	—
Net profit margin	63.80%	53.28%	73.26%	31.73%	61.98%	79.11%	—	—	—	—	—
Basic EPSper basic share	$1.90	$1.61	$2.32	$0.80	$1.50	$2.02	—	—	—	—	—
Diluted EPSper diluted share	$1.85	$1.61	$2.31	$0.79	$1.49	$2.01	—	—	—	—	—

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

2.07%of listed shares

VAN ECK ASSOCIATES CORP3.88M shares · Jun 30, 2026

View holders

Top 20 reported holders of HTGC
Holder	% owned
VAN ECK ASSOCIATES CORP	2.07%3.88M shares
Sound Income Strategies, LLC	1.96%3.67M shares
CITADEL ADVISORS LLC	1.57%2.94M shares
UBS Group AG	1.41%2.65M shares
Pandowealth. LLC	1.34%2.51M shares
Bluestein Scott	≈1.33%2.5M shares
TWO SIGMA INVESTMENTS, LP	1.21%2.27M shares
LPL Financial LLC	0.99%1.86M shares
MORGAN STANLEY	0.97%1.81M shares
Legal & General Group Plc	0.90%1.68M shares
FRANKLIN RESOURCES INC	0.74%1.38M shares
D. E. Shaw & Co., Inc.	0.73%1.37M shares
Muzinich & Co., Inc.	0.72%1.36M shares
Sumitomo Mitsui Trust Group, Inc.	0.55%1.03M shares
TECTONIC ADVISORS LLC	0.54%1.01M shares
BlackRock, Inc.	0.49%924.11K shares
Advisors Capital Management, LLC	0.49%919.54K shares
JPMORGAN CHASE & CO	0.45%837.56K shares
ARES MANAGEMENT LLC	0.41%776.61K shares
WELLS FARGO & COMPANY/MN	0.39%735.37K shares

Percentages use 187.22M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys38$4.04M disclosed value

Sells (SEC code S)2$1.97M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Mar 26, 2026Form 4	Aguirre DeAnneDirector	BuyCommon Stock	7.3K	$14.35	$105.0K	10.7K
Mar 26, 2026Form 4	Loo WadeDirector	BuyCommon Stock	7.3K	$14.35	$105.0K	14.1K
Mar 26, 2026Form 4	Theodosopoulos NikosDirector	BuyCommon Stock	7.3K	$14.35	$105.0K	29.4K
Mar 26, 2026Form 4	Fallon Thomas JDirector	BuyCommon Stock · indirect	7.3K	$14.30	$104.4K	157.7K
Mar 26, 2026Form 4	Randhawa Paramjeet KDirector	BuyCommon Stock	2.9K	$14.35	$42.0K	22.5K