Hercules Capital Inc · Q2 2022 earnings

Briefing

Reported financial results for the second quarter of 2022, featuring record gross debt and equity commitments of $1.04 billion and total investment income of $72.1 million.

Hercules Capital reported a strong Q2 2022, marked by record gross debt and equity commitments of $1.04 billion and total investment income increasing to $72.1 million. The company increased its quarterly base distribution to $0.35 per share and maintained a strong balance sheet through various capital market transactions.

• Achieved record Q2 total gross debt and equity commitments of $1.04 billion.
• Net Investment Income (NII) reached $40.1 million, or $0.32 per share, an 8.6% year-over-year increase.
• Total Investment Income was $72.1 million, a 3.7% year-over-year increase.
• Available liquidity stood at $779.7 million, subject to existing terms and covenants.

Headline financials

Revenue & EPS history

Hercules expects the originations environment to remain attractive and drive strong growth of its portfolio of interest generating assets, which produced record core income of more than $70 million in Q2. The growing debt investment portfolio and rising interest rate environment also enables them to increase their quarterly base distribution to $0.35 per share and supports their ability to grow their core income and NII over the remainder of the year assuming the market remains favorable.