HTGCMEDIUM SIGNALFINANCIAL10-K

HTGC substantially expanded its debt investment portfolio with multiple new senior secured loans while meaningfully growing net income and total assets.

The addition of seven new senior secured debt investments in application software companies, combined with the exit from several equity positions, suggests HTGC is actively rotating toward higher-yielding debt instruments in the current interest rate environment. The company's focus on senior secured positions with floor rates ranging from 8.61% to 11.55% positions it well for income generation, though concentration in software sector lending introduces sector-specific risk.

Comparing 2026-02-12 vs 2025-02-13View on EDGAR →
FINANCIAL ANALYSIS

HTGC demonstrated solid financial expansion with net income growing meaningfully to $339.7M while total assets increased 19.6% to $4.6B, reflecting active portfolio deployment. The company increased its debt financing by 29.3% to $2.3B to fund growth, with correspondingly higher interest expenses of $77.5M, though the spread between portfolio yields and funding costs appears to be driving profitable expansion. Cash position strengthened to $56.9M and stockholders' equity grew 11.4%, indicating disciplined capital management alongside portfolio growth.

FINANCIAL STATEMENT CHANGES
Share Buybacks
Cash Flow
+89.2%
$3.4M→$6.5M

Share repurchases increased 89.2% — management returning capital, signals confidence in intrinsic value.

Cash & Equivalents
Balance Sheet
+33.3%
$42.7M→$56.9M

Cash position surged 33.3% — strong cash generation or capital raise providing significant financial cushion.

Total Debt
Balance Sheet
+29.3%
$1.8B→$2.3B

Debt rose 29.3% — additional borrowing for investment or operations; monitor coverage ratios.

Net Income
P&L
+29.2%
$263.0M→$339.7M

Net income grew 29.2% — bottom-line growth signals improving overall business health.

Total Liabilities
Balance Sheet
+28.6%
$1.8B→$2.4B

Liabilities increased 28.6% — monitor debt-to-equity ratio and interest coverage.

Interest Expense
P&L
+24.2%
$62.3M→$77.5M

Interest costs rose 24.2% — monitor debt levels and coverage ratio in rising rate environment.

Total Assets
Balance Sheet
+19.6%
$3.8B→$4.6B

Asset base grew 19.6% — expansion through organic growth, acquisitions, or capital deployment.

Stockholders Equity
Balance Sheet
+11.4%
$2.0B→$2.2B

Equity base grew 11.4% — retained earnings accumulation or equity issuance strengthening the balance sheet.

LANGUAGE CHANGES
NEW — 2026-02-12
PRIOR — 2025-02-13
ADDED
and Senior Secured and Maturity Date February 2029 and Prime + 3.50%, Floor rate 10.00%, 3.50% Exit Fee 2025-12-31 0001280784 Debt Investments Application Software and Ceros, Inc.
and Senior Secured and Maturity Date June 2027 and 3-month SOFR + 8.99%, Floor rate 9.89% 2025-12-31 0001280784 Debt Investments Application Software and Chainalysis, Inc.
and Senior Secured and Maturity Date June 2029 and Prime + 2.95%, Floor rate 10.45% 2025-12-31 0001280784 Debt Investments Application Software and Dashlane, Inc.
and Senior Secured and Maturity Date December 2027 and Prime + 3.05%, Floor rate 11.55%, PIK Interest 1.10%, 6.28% Exit Fee 2025-12-31 0001280784 Debt Investments Application Software and Dispatch Technologies, Inc.
and Senior Secured and Maturity Date April 2028 and 3-month SOFR + 7.86%, Floor rate 8.61% 2025-12-31 0001280784 Debt Investments Application Software and Distributed Creation Inc.
and Senior Secured and Maturity Date April 2029 and Prime + 3.00%, Floor rate 10.25%, 4.50% Exit Fee 2025-12-31 0001280784 Debt Investments Application Software and DocPlanner and Senior Secured and Maturity Date January 2030 and Prime + 2.75%, Floor rate 9.75%, 4.25% Exit Fee 2025-12-31 0001280784 Debt Investments Application Software and Earnix, Inc.
and Senior Secured and Maturity Date June 2029 and Prime - 1.15%, Floor rate 5.35%, PIK Interest 4.45% 2025-12-31 0001280784 Debt Investments Application Software and Elation Health, Inc.
and Senior Secured and April 2029 and Prime + 1.75%, Floor rate 9.25%, PIK Interest 1.30%, 3.95% Exit Fee 2025-12-31 0001280784 Debt Investments Application Software and Funnel Holding AB (publ) and Senior Secured and Maturity Date October 2029 and Prime + 0.60%, Floor rate 7.10%, Cap rate 8.60%, PIK Interest 3.00%, 2.25% Exit Fee 2025-12-31 0001280784 Debt Investments Application Software and Imagen Technologies, Inc.
and Senior Secured and Maturity Date November 2028 and Prime + 1.55%, Floor rate 9.05%, PIK Interest 1.00%, 3.95% Exit Fee 2025-12-31 0001280784 Debt Investments Application Software and iSpot.tv, Inc.
and Senior Secured and Maturity Date January 2029 and Prime + 2.25%, Floor rate 8.75%, PIK Interest 1.00%, 5.70% Exit Fee 2025-12-31 0001280784 Debt Investments Application Software and iSpot.tv, Inc.
REMOVED
2024-12-31 0001280784 Equity Investments Software and SirionLabs Pte.
Warrant, Acquisition Date 8/24/2023, Series Common Stock 2024-01-01 2024-12-31 0001280784 Warrant Investments and Software and Suzy, Inc.
Gibraltar Business Capital, LLC), Equity, Acquisition Date 3/1/2018, Series Member Units 2023-01-01 2023-12-31 0001280784 Equity Investments Diversified Financial Services and Gibraltar Acquisition, LLC (p.k.a.
AcelRx Pharmaceuticals, Inc.), Equity, Acquisition Date 12/10/2018, Series Common Stock 2023-01-01 2023-12-31 0001280784 Equity Investments Drug Delivery and Talphera, Inc.
Applied Molecular Transport)., Equity, Acquisition Date 4/06/2021, Series Common Stock 2023-01-01 2023-12-31 0001280784 Equity Investments Drug Discovery Development and Cyclo Therapeutics, Inc.
affiliates, Equity, Acquisition Date 3/24/2021, Series Preferred Note 2023-01-01 2023-12-31 0001280784 Equity Investments Software and Black Crow AI, Inc.
Brickell Biotech, Inc.), Warrant, Acquisition Date 2/18/2016, Series Common Stock 2023-01-01 2023-12-31 0001280784 Warrant Investments and Drug Discovery Development and Fresh Tracks Therapeutics, Inc.
O n February 6, 2025, there were 173,154,658 shares outstanding of the registrant s common stock, $0.001 par value.
Form 10-K Summary 158 Signatures 159 Hercules Capital, Inc., our logo and other trademarks of Hercules Capital, Inc.
You can identify these statements using forward-looking terminology such as may, will, should, expect, anticipate, project, target, estimate, intend, continue or believe or the negatives of, or other variations on, these terms or comparable terminology.
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