Horizon Technology (HRZN)
NASDAQ:HRZN
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Horizon Technology
(NASDAQ:HRZN)
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Rating:67Neutral
Price Target:
$5.00
â–²(14.16% Upside)
Action:Reiterated
Date:05/09/26
HRZN scores highest on valuation (low P/E and very high yield) and is supported by improving TTM financials with strong margins and cash generation. The score is held back by historical earnings/cash-flow volatility, meaningful leverage, and mixed technical signals (still below longer-term moving averages). Earnings-call commentary is constructive on capital deployment and distribution support, but tempered by YoY NAV/NII declines and near-term expense/prepayment pressures.
Positive Factors
Strong cash generation and coverage
TTM operating and free cash flow materially exceed net income (≈2.6x coverage) and have grown recently. Persistent positive FCF supports distributions, internal reinvestment and debt servicing, giving durable liquidity and capital deployment capacity over the next 2–6 months.
Negative Factors
Meaningful leverage on balance sheet
A debt-to-equity ratio near 1.3 implies elevated financial leverage for a specialty finance vehicle. That structural leverage raises refinancing and interest-rate sensitivity, reducing buffer against downturns and constraining capital allocation flexibility in stress scenarios.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and coverage
TTM operating and free cash flow materially exceed net income (≈2.6x coverage) and have grown recently. Persistent positive FCF supports distributions, internal reinvestment and debt servicing, giving durable liquidity and capital deployment capacity over the next 2–6 months.
Read all positive factors
Horizon Technology (HRZN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$290.11M
Dividend Yield20.92%
Average Volume (3M)846.03K
Price to Earnings (P/E)17.9
Beta (1Y)0.51
Revenue Growth-36.69%
EPS GrowthN/A
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.47
Shares Outstanding68,261,110
10 Day Avg. Volume852,172
30 Day Avg. Volume846,032
Financial Highlights & Ratios
PEG Ratio1.69
Price to Book (P/B)0.86
Price to Sales (P/S)6.82
P/FCF Ratio4.82
Enterprise Value/Market Cap2.07
Enterprise Value/Revenue8.03
Enterprise Value/Gross Profit13.30
Enterprise Value/Ebitda19.73
Forecast
1Y Price Target
$5.50Price Target Upside25.57% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)0.72
Revenue Forecast (FY)$96.63M
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:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call communicated meaningful strategic and financial progress — notably the MRCC merger that added $141 million of capital, formation of a new JV, portfolio growth to ~$696 million, industry-leading debt yields (~15.2%), increased backlog and strong liquidity/capacity. Offsetting items included a YoY decline in NAV and NII per share, modestly lower total investment income, elevated prepayments of $63 million, higher operating expenses and an anticipated one-time $4.3 million merger expense. On balance, the positives around balance sheet strengthening, deal flow, high yields, and clear plans to deploy capital and return value to shareholders outweigh the near-term headwinds.Positive Updates
Completed Strategic Merger and New Joint Venture
Closed merger with Monroe Capital (MRCC) in April, adding $141 million of equity capital and materially increasing investment capacity; formed RoHo joint venture with Roth Capital in March to provide growth financing to small and microcap public companies.
Negative Updates
NAV Decline Year-over-Year
Net asset value (NAV) per share was $6.98 as of March 31, 2026, down from $7.57 a year earlier — a decline of $0.59 (≈ -7.8% YoY).
Read all updates
Q1-2026 Updates
Positive
Negative
Completed Strategic Merger and New Joint Venture
Closed merger with Monroe Capital (MRCC) in April, adding $141 million of equity capital and materially increasing investment capacity; formed RoHo joint venture with Roth Capital in March to provide growth financing to small and microcap public companies.
Read all positive updates
Company Guidance
Management guided that they will prudently deploy the merger-added $141 million of capital to grow the portfolio (Q1 portfolio $696M; Q1 originations 5 loans totaling $120M) and move toward target leverage (debt-to-equity 1.35:1; net leverage 1.13:1) with potential new investment capacity of $357M and available liquidity of $105M ($73M cash, $32M undrawn); they expect further portfolio growth in Q2 supported by a $180M committed backlog (up from $154M) and $90M of post-quarter commitments (5 transactions, including Stellar Cyber), aim to generate NII at or above declared distributions over time (Q1 NII $0.19/share; undistributed spillover $0.52/share) while paying monthly regular distributions of $0.06/share and special monthly distributions of $0.03/share for July–September 2026, and to continue delivering strong yields (debt portfolio yield ~15.2%; onboarding yield ~12%), modest prepayment activity (Q1 prepayments $63M), use the $10M share repurchase program near term, and expect a one-time Q2 transaction expense of about $4.3M (with adviser fee waivers up to $4M, $1M/quarter, starting Q3).Horizon Technology Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
54
Neutral
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 74.76M | 40.02M | 33.94M | 19.10M | 45.84M | 45.30M |
| Gross Profit | 45.11M | 7.22M | 1.69M | -9.87M | 26.64M | 33.27M |
| EBITDA | 30.42M | -1.60M | -4.16M | -15.70M | 21.87M | 28.18M |
| Net Income | 21.55M | -2.66M | -5.63M | -17.18M | 21.15M | 27.78M |
Balance Sheet | ||||||
| Total Assets | 791.65M | 811.10M | 821.83M | 802.36M | 766.83M | 513.96M |
| Cash, Cash Equivalents and Short-Term Investments | 34.49M | 105.52M | 70.26M | 46.63M | 20.61M | 38.05M |
| Total Debt | 447.17M | 473.03M | 467.90M | 462.24M | 434.08M | 257.61M |
| Total Liabilities | 457.78M | 492.60M | 485.65M | 478.38M | 448.38M | 268.63M |
| Stockholders Equity | 333.86M | 318.50M | 336.18M | 323.98M | 318.45M | 245.34M |
Cash Flow | ||||||
| Free Cash Flow | 119.09M | 56.63M | 39.64M | 50.07M | -246.28M | -75.99M |
| Operating Cash Flow | 119.09M | 56.63M | 39.64M | 50.07M | -246.28M | -75.99M |
| Investing Cash Flow | -91.41M | 0.00 | -35.70M | -55.33M | -372.01M | -291.49M |
| Financing Cash Flow | -31.89M | -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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $2.91B | 15.88 | 15.11% | 10.00% | 14.32% | 36.84% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $290.11M | 17.93 | 6.89% | 20.92% | -36.69% | ― | |
54 Neutral | $348.20M | -4.67 | -19.08% | 21.13% | -153.69% | -168.78% | |
53 Neutral | $262.55M | 40.25 | 7.23% | 12.83% | 6.21% | -42.00% | |
50 Neutral | $267.06M | -30.83 | 0.01% | 16.61% | 122.81% | 43.00% | |
49 Neutral | $237.50M | 8.18 | -3.39% | 17.28% | 18.91% | 14.29% |
* Financial Sector Average
HRZN
Horizon Technology
4.25
-2.03
-32.34%
HTGC
Hercules Capital, Inc.
15.53
-0.44
-2.72%
PNNT
Pennantpark Investment
4.09
-1.75
-29.99%
SCM
Stellus Capital
9.07
-2.94
-24.46%
TCPC
BlackRock TCP Capital
4.15
-2.39
-36.55%
TPVG
TriplePoint Venture Growth
5.85
-0.08
-1.38%
Horizon Technology Corporate Events
Dividends
Horizon Technology Announces Q3 2026 Dividend Distributions
Positive
May 5, 2026
On May 5, 2026, Horizon Technology Finance Corporation announced that its board had declared regular monthly cash distributions of $0.06 per share for each of July, August and September 2026, totaling $0.18 per share for the third quarter. The boa...
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.