Private Credit Portfolio Analysis | Hercules Capital Reports Q1 2025 Results
- Editor
- May 1
- 2 min read
Whats New:
Hercules Capital reported its Q1 2025 financial results, showing growth in total assets and long-term debt compared to the previous quarter. The fund's total assets increased to $4.03 billion as of March 31, 2025, up from $3.83 billion at the end of 2024. Net asset value per share decreased slightly to $11.55 from $11.66 at the end of the previous quarter.
Portfolio Dynamics:
Total assets grew to $4.03 billion as of March 31, 2025, compared to $3.83 billion at the end of 2024.
Investments owned at fair value increased to $3.92 billion, up from $3.66 billion at the end of 2024.
Cash and cash equivalents rose to $49.38 million from $42.68 million at the end of 2024.
Investment Activty:
The fund reported $33.10 million in interest receivable, up from $32.58 million at the end of 2024.
Operating lease right-of-use assets decreased to $16.31 million from $16.78 million at the end of 2024.
Other assets decreased to $3.04 million from $5.84 million at the end of 2024.
Capital Structure:
Long-term debt increased to $1.98 billion from $1.77 billion at the end of 2024.
Stockholders' equity grew to $2.00 billion from $1.99 billion at the end of 2024.
The fund issued additional common stock, with the value increasing to $174 million from $171 million at the end of 2024.
Performance Profile:
Net asset value per share decreased to $11.55 as of March 31, 2025, compared to $11.66 at the end of 2024.
Retained earnings decreased to $57.87 million from $88.92 million at the end of 2024.
Additional paid-in capital increased to $1.94 billion from $1.90 billion at the end of 2024.
Risk & Quality:
Accounts payable and accrued liabilities decreased to $36.75 million from $54.86 million at the end of 2024.
Operating lease liability decreased to $17.21 million from $18.19 million at the end of 2024.
Total liabilities increased to $2.03 billion from $1.84 billion at the end of 2024.
The Wrap:
Hercules Capital demonstrated growth in Q1 2025, with significant increases in total assets and investments at fair value. However, the fund's net asset value per share slightly decreased, and retained earnings declined. The increase in long-term debt suggests higher leverage, which may indicate more aggressive investment strategies or increased funding for new investments.
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