Private Credit Portfolio Analysis | Horizon Technology Finance Reports Q1 2025 Results
- Editor
- Apr 29
- 2 min read
Whats New:
Horizon Technology Finance Corp reported its Q1 2025 financial results, showing a decrease in total assets and net assets compared to the previous quarter. The fund's total assets decreased to $789.6 million as of March 31, 2025, down from $821.8 million at the end of 2024. Net assets declined to $305.5 million from $336.2 million, and the net asset value per share decreased to $7.57 from $8.43 at the end of the previous quarter.
Portfolio Dynamics:
Total assets decreased to $789.6 million as of March 31, 2025, compared to $821.8 million at the end of 2024.
Investments owned at fair value declined to $689.6 million, down from $697.9 million at the end of 2024.
Cash and money market funds totaled $74.0 million, compared to $97.5 million at the end of 2024.
Investment Activity:
Interest receivable decreased slightly to $16.4 million from $16.6 million at the end of 2024.
Other assets decreased to $6.2 million from $6.5 million at the end of 2024.
Restricted investments increased to $3.5 million from $3.3 million at the end of 2024.
Capital Structure:
Long-term debt decreased slightly to $467.3 million from $467.9 million at the end of 2024.
Total liabilities decreased to $484.1 million from $485.7 million at the end of 2024.
Additional paid-in capital increased to $522.3 million from $518.2 million at the end of 2024.
Performance Profile:
Net asset value per share decreased to $7.57 as of March 31, 2025, compared to $8.43 at the end of 2024.
Retained earnings deficit increased to $216.9 million from $182.1 million at the end of 2024.
The fund reported a net loss of $21.4 million for Q1 2025, compared to a net income of $8.7 million in Q1 2024.
Risk & Quality:
Unrealized loss on investments increased to $32.2 million in Q1 2025, compared to $4.0 million in Q1 2024.
Distribution payable increased to $13.3 million from $13.2 million at the end of 2024.
Management fee payable decreased slightly to $1.0 million from $1.0 million at the end of 2024.
The Wrap:
Horizon Technology Finance Corp experienced a challenging first quarter in 2025, with decreases in total assets, net assets, and net asset value per share. The fund saw a significant increase in unrealized losses on investments and reported a net loss for the quarter. Despite these challenges, the fund maintained a stable long-term debt position and increased its additional paid-in capital, indicating ongoing investor support. The decrease in cash and investments suggests potential deployment of capital or market value fluctuations, while the increase in retained earnings deficit reflects the impact of the quarterly loss on the fund's overall financial position.
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