Horizon Technology (HRZN) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 19.94%
• Average Volume (3M): 580.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: -11.22%
• EPS Growth: -433.61%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.31
• Shares Outstanding: 44,383,293
• 10 Day Avg. Volume: 578,432
• 30 Day Avg. Volume: 580,160
• PEG Ratio: 0.81
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 3.25
• P/FCF Ratio: 82.44
• Enterprise Value/Market Cap: 10.00T>
• Enterprise Value/Revenue: 31.03
• Enterprise Value/Gross Profit: -39.41
• Enterprise Value/Ebitda: -25.53
• 1Y Price Target: $6.67
• Price Target Upside: 0.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.14
• Revenue Forecast (FY): $86.36M

• Rating: 57 Neutral
• Price Target: $7.00 ▲(5.74% Upside)

Horizon Technology's overall stock score reflects a complex financial profile with significant historical volatility but recent improvements in revenue and debt reduction. The technical analysis indicates moderate bullish momentum, while the high dividend yield offers potential income benefits. Positive earnings call guidance and strategic plans for growth through the MRCC merger are encouraging, though risks remain due to portfolio size reduction and prepayment activity.

Positive Factors

Debt Reduction

Eliminating debt enhances financial flexibility and reduces risk, allowing Horizon to invest in growth opportunities and withstand economic downturns.

Strategic Merger

The merger with MRCC will expand Horizon's scale and resources, potentially leading to enhanced market position and operational efficiencies.

Strong Portfolio Yield

A high portfolio yield indicates effective investment strategies and strong revenue generation potential, supporting long-term profitability.

Negative Factors

Revenue Fluctuations

Inconsistent revenue growth can hinder long-term planning and investment, making it difficult to sustain competitive advantages and market position.

High Prepayment Activity

High prepayment activity can reduce interest income and impact yield sustainability, potentially affecting long-term financial performance.

Portfolio Size Decrease

A shrinking portfolio size may limit revenue growth and reduce economies of scale, impacting Horizon's ability to compete effectively.

Horizon Technology Business Overview & Revenue Model

Company Description

Horizon Technology (HRZN) is a publicly traded company that specializes in providing technology solutions and services primarily in the fields of software development, IT consulting, and digital transformation. The company operates across various sectors, including health care, finance, and education, offering a range of core products such as cloud computing services, data analytics tools, and custom software applications.

How the Company Makes Money

Horizon Technology generates revenue through multiple streams. The primary source of income comes from service contracts in IT consulting and software development, where clients pay for bespoke solutions tailored to their specific needs. Additionally, the company earns recurring revenue from subscription-based services related to cloud computing and data analytics. Strategic partnerships with major tech firms enhance their offerings and expand their market reach, contributing to increased sales. Furthermore, Horizon Technology benefits from government contracts and grants aimed at technological advancements, which supplement its earnings.

Horizon Technology Financial Statement Overview

Summary

Horizon Technology's financial performance is marked by volatility in revenue and profitability. Despite a strong recovery in 2024 and improved equity with no debt, historical fluctuations and operational inefficiencies remain concerns. The company needs to maintain its current trajectory to enhance financial standing.

Income Statement

Horizon Technology's revenue growth has been inconsistent, with significant fluctuations over the years. The company experienced a significant revenue decline in 2023, followed by a strong recovery in 2024. Gross profit margin was stable for 2024, but net profit margin was highly volatile, reflecting operational challenges. EBIT margin was relatively high, indicating efficient management of operating expenses.

Balance Sheet

The balance sheet shows improving equity with a strong equity ratio and no debt as of 2024, signaling financial stability. However, the company's high leverage in previous years may pose a risk if similar conditions arise in the future. The return on equity has been fluctuating, reflecting the variability in net income.

Cash Flow

The cash flow statements show volatile free cash flow, with significant growth in 2024. The operating cash flow to net income ratio was low, indicating potential inefficiencies in converting net income into cash. However, the company managed to improve its free cash flow position significantly in the latest period.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.46M	33.94M	19.10M	45.84M	45.30M	20.00M
Gross Profit	-14.53M	1.69M	-9.87M	26.64M	33.27M	10.33M
EBITDA	-22.43M	-4.16M	-15.70M	21.87M	28.18M	6.59M
Net Income	-23.92M	-5.63M	-17.18M	21.15M	27.78M	6.36M
Balance Sheet
Total Assets	759.21M	821.83M	802.36M	766.83M	513.96M	407.16M
Cash, Cash Equivalents and Short-Term Investments	130.91M	70.26M	46.63M	20.61M	38.05M	19.50M
Total Debt	424.03M	467.90M	462.24M	434.08M	257.61M	185.82M
Total Liabilities	443.51M	485.65M	478.38M	448.38M	268.63M	194.56M
Stockholders Equity	315.70M	336.18M	323.98M	318.45M	245.34M	212.60M
Cash Flow
Free Cash Flow	41.71M	39.64M	50.07M	-246.28M	-75.99M	-25.28M
Operating Cash Flow	41.71M	39.64M	50.07M	-246.28M	-75.99M	-25.28M
Investing Cash Flow	19.21M	-35.70M	-55.33M	-372.01M	-291.49M	-190.23M
Financing Cash Flow	-16.66M	21.21M	50.51M	229.46M	75.52M	55.66M

Horizon Technology Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRZN, the sentiment is Neutral. The current price of 6.62 is above the 20-day moving average (MA) of 6.61, above the 50-day MA of 6.38, and below the 200-day MA of 7.01, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 52.37 is Neutral, neither overbought nor oversold. The STOCH value of 29.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HRZN.

Horizon Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HTGC	79 Outperform	$3.43B	10.99	15.21%	9.77%	-15.32%	-12.29%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SCM	64 Neutral	$365.02M	11.58	8.20%	12.38%	90.34%	-44.25%
TPVG	59 Neutral	$267.45M	7.86	9.43%	17.04%	206.13%	298.86%
TCPC	58 Neutral	$513.29M	―	-1.15%	21.58%	-91.81%	78.46%
HRZN	57 Neutral	―	―	-7.27%	19.94%	-11.22%	-433.61%
PNNT	55 Neutral	$386.55M	11.81	6.83%	16.38%	-3.09%	200.66%

Horizon Technology Corporate Events

Horizon Technology Announces $57.5M Notes Issuance

On December 11, 2025, Horizon Technology Finance Corporation announced an underwriting agreement for a $57.5 million issuance of 7.00% Notes due 2028, with the offering expected to close on December 15, 2025. The proceeds will be used to repay existing indebtedness, including the company’s 4.875% Notes due 2026, and for general corporate purposes. This move is part of Horizon’s strategy to manage its debt and optimize its financial operations, potentially impacting its market position and stakeholder interests.

Horizon Technology Declares Upcoming Cash Distributions

On October 28, 2025, Horizon Technology Finance Corporation announced that its Board of Directors declared monthly cash distributions of $0.11 per share for January, February, and March 2026, totaling $0.33 per share. These distributions reflect the company’s financial performance and spillover income, with the Board planning to reassess distribution levels in February 2026, considering the company’s fourth-quarter results and the anticipated merger with Monroe Capital Corporation. This announcement highlights Horizon’s commitment to providing returns to shareholders and its strategic financial planning amid potential changes in its operational landscape.