Hercules Capital, Inc. (HTGC)

In the past six months, Hercules Capital reported strong Q3 2025 financial results, including record total investment income and net investment income. The company declared a total cash distribution of $0.47 per share for Q3 2025. Hercules Capital received an investment grade rating upgrade to Baa2 from Moody's and had a BBB+ rating affirmed by Kroll. The company celebrated reaching $25.0 billion in total cumulative debt commitments since its inception and launched its fourth institutional private credit fund. Hercules Capital's stock price was $17.48 as of November 21, 2025, and it has underperformed the US Capital Markets industry and the US Market over the past year. Analyst sentiment is mixed, with some expressing caution due to valuation and portfolio quality concerns, while others highlight the company's strong fundamentals.

Demand seasonality for Hercules Capital is influenced by venture capital investment activity and the economic environment. The company's deal flow is tied to venture capital investment activity, and the higher interest rate environment can impact venture lending. The company's focus on technology and life sciences sectors suggests relatively consistent demand for capital.

Hercules Capital, Inc. (HTGC) is a specialty finance company structured as a BDC, providing debt and equity financing to high-growth, venture capital-backed companies, primarily through senior secured venture growth loans. The company operates in the financial services sector, targeting technology and life sciences industries, with loan sizes ranging from $5 million to over $100 million.

Hercules Capital, Inc. primarily invests in middle-market companies located in the United States, with its corporate office in San Mateo, California.

Hercules Capital maintains a strong reputation as a leading specialty finance company, driven by consistent financial performance, investment grade ratings, milestone achievements, disciplined underwriting, and market leadership.

Hercules Capital's ownership is a mix of institutional investors (25.79%), individual investors (66.92%), and company insiders (7.29%). Sound Income Strategies, LLC held the largest shareholding position as of September 30, 2025. Manuel A. Henriquez is the largest individual shareholder.