NASDAQ$HRZN

Horizon Technology Finance Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Announced second quarter 2023 financial results.

Horizon Technology Finance reported a strong second quarter, with net investment income exceeding distributions, driven by a debt portfolio yield of over 16%. The company strengthened its balance sheet through common stock offerings and increased credit facility capacity.

  • Net investment income was $16.1 million, or $0.54 per share.
  • Total investment portfolio was $715.4 million as of June 30, 2023.
  • Net asset value was $355.4 million, or $11.07 per share, as of June 30, 2023.
  • Annualized portfolio yield on debt investments was 16.3% for the quarter.

Headline financials

Total Revenue

-$277K

Previous: $18.6M-101.5%
EPS (adj)

$0.54

Previous: $0.35+54.3%
NAV per Share

$11.07

Previous: $11.69-5.3%
Debt Portfolio Fair Value

$715M

Previous: $577M+23.9%
Committed Backlog

$183M

Previous: $267M-31.5%
Free Cash Flow

$152K

No prior period
Net Income

$152K

Previous: $8.6M-98.2%
Operating Income

-$4.4M

Previous: $8.7M-150.6%
Gross Profit

-$277K

No prior period
Cash & Equivalents

$50.3M

Previous: $76.3M-34.1%
Total Assets

$787M

Previous: $291M+171.0%

Revenue & EPS history

Horizon Technology · Revenue · Quarterly

-$277K

Q2 2023-101.5%vs Q2 2022
Beat estimate in 2 of 13 quarters(15%)
ActualEstimate

Forward guidance

With a stronger balance sheet and disciplined underwriting, Horizon believes it can further prudently grow HRZN’s portfolio of debt investments and deliver additional value to HRZN’s shareholders.

Tailwinds

  • Stronger balance sheet
  • Disciplined underwriting
  • Potential to grow HRZN’s portfolio of debt investments
  • Potential to deliver additional value to HRZN’s shareholders
  • Increased commitment of senior secured debt facility by $50 million

Headwinds

  • Statements included may constitute forward-looking statements which involve risks and uncertainties.
  • Actual results may differ materially from those in the forward-looking statements
  • The company does not undertake any duty to update any forward-looking statement made
  • Much of our committed backlog is subject to our portfolio companies achieving milestones.
  • Net realized loss on investments was $16.5 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-1.9%

Avg return

Earnings day

-3.3%

Avg return

5 days after

-4.3%

Avg return

30 days after

42%

8 / 19 earnings

Positive

+8.2%

Q3 2022

Best reaction

-16.8%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.2%+8.6%+11.0%
Q4 2025-0.8%-31.6%-30.0%
Q3 2025-1.0%+6.8%+9.7%
Q1 2025-16.8%-17.1%-15.3%
Q4 2024-9.9%-2.2%-11.5%
Q3 2024-4.3%-6.8%-8.3%
Q2 2024-4.4%-7.8%-9.5%
Q1 2024-1.5%+1.6%-0.3%
Q4 2023-6.2%-8.5%-12.6%
Q3 2023+6.4%+8.8%+13.1%
Q2 2023+1.1%-5.4%-9.5%
Q1 2023+0.3%-1.1%+1.1%
Q4 2022-5.5%-9.1%-10.9%
Q3 2022+8.2%+13.5%+13.5%
Q2 2022+3.1%+1.2%-5.9%
Q1 2022+0.1%-0.3%-2.7%
Q4 2021-0.3%-2.6%-10.7%
Q3 2021+2.3%+1.6%-0.8%
Q4 2020-9.0%-11.5%-1.9%

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