Horizon Technology Finance Corporation, a specialty finance company providing secured loans to venture capital and private equity-backed companies, has released its financial results for the second quarter of 2025. The company, an affiliate of Monroe Capital, reported a range of financial and operational metrics that reflect its performance in a challenging venture capital environment.
Financial Highlights
For the second quarter ended June 30, 2025, Horizon Technology Finance reported net investment income (NII) of $11.4 million, or $0.28 per share, a decrease from $12.9 million, or $0.36 per share, in the same period last year. The company’s total investment portfolio stood at $622.7 million, with a net asset value (NAV) of $283.8 million, or $6.75 per share. The annualized portfolio yield on debt investments was 15.8% for the quarter.
Business and Operational Highlights
During the quarter, Horizon funded seven loans totaling $59.7 million and experienced liquidity events from seven portfolio companies. The company increased its senior secured debt facility by $100 million, enabling its financing subsidiary to issue up to $200 million of secured notes. As of June 30, 2025, Horizon held a portfolio of warrant and equity positions in 99 companies and had cash of $81.2 million with a credit facility capacity of $329.0 million.
Strategic Initiatives and Corporate Developments
Horizon announced a merger with Monroe Capital Corporation (MRCC), subject to shareholder approvals and other closing conditions. The merger is expected to significantly increase Horizon’s size, scale, and capital base, enhancing its ability to provide venture lending solutions. Additionally, the company declared regular monthly distributions totaling $0.33 per share through December 2025.
Management’s Perspective
Mike Balkin, Chief Executive Officer of Horizon, expressed excitement about the merger with MRCC, highlighting the potential for increased venture lending transactions and support for innovative businesses. He acknowledged the impact of the challenging venture capital environment on the company’s net asset value but emphasized a focus on navigating the current landscape and achieving long-term growth.
Future Outlook
Horizon has declared distributions of $0.11 per share payable in October, November, and December 2025. The company remains focused on completing the merger with MRCC and leveraging its expanded capabilities to generate attractive and sustainable risk-adjusted returns for shareholders.
SEC Filing: Horizon Technology Finance Corp [ HRZN ] – 8-K – Aug. 07, 2025
