Horizon Technology (HRZN)
NASDAQ:HRZN
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Horizon Technology
(NASDAQ:HRZN)
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Rating:62Neutral
Price Target:
$4.50
â–²(2.74% Upside)
Action:ReiteratedDate:04/15/26
The score is driven mainly by improved 2025 financial results and the strategic benefits and scale from the Monroe merger, offset by historically volatile earnings/cash flows with meaningful leverage and weak technical trend signals. Valuation is supportive due to a low P/E and very high yield, but the earnings call and NAV/NII pressures temper confidence in near-term stability.
Positive Factors
Merger Scale & Capital
The completed Monroe merger materially increases pro forma scale and injects cash earmarked for debt repayment and new investments. That expanded capital base and combined origination capacity should enable larger deal sizes, cost synergies, and greater resilience versus a smaller standalone balance sheet.
Negative Factors
Elevated Leverage
Meaningful, persistent leverage amplifies downside risk: higher interest and principal obligations reduce flexibility during earnings weak spots and increase the sensitivity of equity returns to any credit stress. With debt-to-equity near 1.5x, the company has limited cushion against portfolio losses or funding shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Merger Scale & Capital
The completed Monroe merger materially increases pro forma scale and injects cash earmarked for debt repayment and new investments. That expanded capital base and combined origination capacity should enable larger deal sizes, cost synergies, and greater resilience versus a smaller standalone balance sheet.
Read all positive factors
Horizon Technology (HRZN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$286.34M
Dividend Yield20.92%
Average Volume (3M)846.03K
Price to Earnings (P/E)7.7
Beta (1Y)0.48
Revenue Growth-11.22%
EPS Growth-433.61%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.18
Shares Outstanding68,175,410
10 Day Avg. Volume852,172
30 Day Avg. Volume846,032
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.86
Price to Sales (P/S)6.68
P/FCF Ratio4.82
Enterprise Value/Market Cap1.98
Enterprise Value/Revenue31.06
Enterprise Value/Gross Profit20.47
Enterprise Value/Ebitda18.77
Forecast
1Y Price Target
$5.50Price Target Upside25.57% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)0.74
Revenue Forecast (FY)$93.33M
Horizon Technology Business Overview & Revenue Model
Company Description
Horizon Technology Finance Corporation is a business development company specializing in lending and and investing in development-stage investments. It focuses on making secured debt and venture lending investments to venture capital backed compan...
How the Company Makes Money
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Horizon Technology Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The call conveyed a mix of solid operational progress and strategic positioning alongside near-term earnings and NAV pressure. Highlights include industry-leading yields, portfolio growth in Q4, strong liquidity and capital capacity, an improving committed backlog, and a transformational merger expected to expand scale and origination capabilities. Lowlights included a meaningful QoQ and YoY NAV decline, lower Q4 NII per share driven by reduced prepayment income and timing of fundings, modest yield compression, and no incentive fees recognized in the quarter. Overall, the company appears well positioned for growth post-merger but is managing short-term earnings/NAV headwinds.Positive Updates
Strong Debt Portfolio Yields
Debt portfolio yield of 14.3% in Q4 2025 and nearly 16% for full-year 2025, positioning the company among the highest-yielding BDC debt portfolios and supporting future NII generation.
Negative Updates
Decline in Net Asset Value (NAV)
NAV per share decreased to $6.98 as of 12/31/2025 from $7.12 at 09/30/2025 (down ~$0.14, ~-2.0% QoQ) and from $8.43 at 12/31/2024 (down ~$1.45, ~-17.2% YoY), driven primarily by distributions exceeding NII for the quarter.
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Q4-2025 Updates
Positive
Negative
Strong Debt Portfolio Yields
Debt portfolio yield of 14.3% in Q4 2025 and nearly 16% for full-year 2025, positioning the company among the highest-yielding BDC debt portfolios and supporting future NII generation.
Read all positive updates
Company Guidance
Management guided that, with the anticipated MRCC merger and Monroe co-investment support, Horizon expects to scale into larger venture loans and grow its portfolio and net investment income (NII) over time—with a goal that NII covers or exceeds the declared monthly distribution of $0.06 per share for April–June 2026. Key metrics cited: Q4 NII $0.18/share and FY2025 NII $1.50/share; NAV $6.98 and undistributed spillover $0.65/share; year-end portfolio $647M (debt portfolio yield 14.3% Q4, ~16% FY2025; onboarding yield 12%); Q4 originations $103M and committed backlog $154M; warrants/equity fair value $51M across 97 companies; available liquidity $189M (cash $143M + $46M undrawn), debt-to-equity 1.5x, net leverage 1.05x, and potential new investment capacity ~$472M—all cited as supporting expected growth and continued high yields in the venture debt market.Horizon Technology Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
58
Neutral
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 40.91M | 33.94M | 19.10M | 45.84M | 45.30M |
| Gross Profit | 27.64M | 1.69M | -9.87M | 26.64M | 33.27M |
| EBITDA | 30.14M | -4.16M | -15.70M | 21.87M | 28.18M |
| Net Income | 45.48M | -5.63M | -17.18M | 21.15M | 27.78M |
Balance Sheet | |||||
| Total Assets | 811.10M | 821.83M | 802.36M | 766.83M | 513.96M |
| Cash, Cash Equivalents and Short-Term Investments | 105.52M | 70.26M | 46.63M | 20.61M | 38.05M |
| Total Debt | 473.03M | 467.90M | 462.24M | 434.08M | 257.61M |
| Total Liabilities | 492.60M | 485.65M | 478.38M | 448.38M | 268.63M |
| Stockholders Equity | 318.50M | 336.18M | 323.98M | 318.45M | 245.34M |
Cash Flow | |||||
| Free Cash Flow | 56.63M | 39.64M | 50.07M | -246.28M | -75.99M |
| Operating Cash Flow | 56.63M | 39.64M | 50.07M | -246.28M | -75.99M |
| Investing Cash Flow | 16.67M | -35.70M | -55.33M | -372.01M | -291.49M |
| Financing Cash Flow | -14.80M | 21.21M | 50.51M | 229.46M | 75.52M |
Horizon Technology Technical Analysis
Negative
4.38
Price Trends
4.96
Negative
5.58
Negative
5.84
Negative
Market Momentum
-0.07
Negative
44.84
Neutral
38.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HRZN, the sentiment is Negative. The current price of 4.38 is above the 20-day moving average (MA) of 4.32, below the 50-day MA of 4.96, and below the 200-day MA of 5.84, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 44.84 is Neutral, neither overbought nor oversold. The STOCH value of 38.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HRZN.
Horizon Technology Risk Analysis
Horizon Technology disclosed 113 risk factors in its most recent earnings report. Horizon Technology reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Horizon Technology Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $286.34M | 7.73 | -0.87% | 20.92% | -11.22% | -433.61% | |
62 Neutral | $2.88B | 9.36 | 15.88% | 10.00% | -15.32% | -12.29% | |
58 Neutral | $299.71M | 10.64 | 5.42% | 16.61% | -3.09% | 200.66% | |
55 Neutral | $284.26M | 13.30 | 0.03% | 12.83% | 90.34% | -44.25% | |
53 Neutral | $356.29M | -5.23 | -12.44% | 21.13% | -91.81% | 78.46% | |
52 Neutral | $217.03M | 5.35 | 14.02% | 17.28% | 206.13% | 298.86% |
* Financial Sector Average
HRZN
Horizon Technology
4.15
-2.88
-40.93%
HTGC
Hercules Capital, Inc.
15.81
0.02
0.10%
PNNT
Pennantpark Investment
4.64
-0.79
-14.61%
SCM
Stellus Capital
9.81
-1.76
-15.21%
TCPC
BlackRock TCP Capital
4.25
-1.61
-27.46%
TPVG
TriplePoint Venture Growth
5.38
0.25
4.98%
Horizon Technology Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsM&A Transactions
Horizon Technology Finance Completes Merger With Monroe Capital
Positive
Apr 14, 2026
On April 14, 2026, Horizon Technology Finance Corporation closed its previously announced merger with Monroe Capital Corporation, with Horizon remaining as the surviving entity and externally managed by Horizon Technology Finance Management LLC. T...
Business Operations and StrategyPrivate Placements and Financing
Horizon Technology Forms $100 Million Growth Capital Venture
Positive
Mar 19, 2026
On March 18, 2026, Horizon Technology Finance Corporation and CR Financial Holdings entered into an LLC agreement to co-manage HRZN CRFH LLC, a new joint venture capitalized with up to $100 million, of which Horizon will provide up to $87.5 millio...
Business Operations and StrategyM&A TransactionsShareholder Meetings
Horizon Technology Shareholders Approve Monroe Capital Merger Deal
Positive
Mar 16, 2026
On March 16, 2026, Horizon Technology Finance Corporation and Monroe Capital Corporation reported that their respective shareholders overwhelmingly approved key proposals at special meetings held on March 13, 2026, clearing the way for Monroe Capi...
Executive/Board ChangesM&A TransactionsShareholder Meetings
Horizon Technology Shareholders Approve Merger-Related Share Issuance
Positive
Mar 13, 2026
On March 13, 2026, Horizon Technology Finance Corporation held a special meeting of stockholders at which investors approved the issuance of new common shares pursuant to a previously announced merger agreement, with 19,318,369 votes in favor, 3,7...
Legal ProceedingsM&A TransactionsShareholder Meetings
Horizon Technology Addresses Lawsuits Over Monroe Merger Disclosures
Negative
Mar 6, 2026
On August 7, 2025, Horizon Technology Finance agreed to a two-step merger with Monroe Capital Corporation, following Monroe’s sale of its investment assets to Monroe Capital Income Plus Corporation for cash, in a deal that would ultimately m...
Business Operations and StrategyDividendsM&A Transactions
Horizon Technology Declares Q2 2026 Monthly Cash Distributions
Positive
Mar 4, 2026
On March 3, 2026, Horizon Technology Finance said its board approved monthly cash distributions of $0.06 per share for each of April, May and June 2026, for a total of $0.18 per share, with ex‑dividend and record dates on March 16, April 16 ...
Business Operations and StrategyPrivate Placements and Financing
Horizon Technology Updates Key Financing and Servicing Agreements
Positive
Feb 11, 2026
On February 6, 2026, Horizon Credit II LLC, a wholly owned subsidiary of Horizon Technology Finance Corporation, amended its existing loan and security agreement with a syndicate of lenders arranged and led by KeyBank National Association, updatin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.