The sharp decline in early repayments compressed yields and NII, but core yield remained within the 11.8%-12.0% target range. Monitor whether early repayment activity rebounds in Q4 2026 and watch for the impact of the $400M October 2029 note issuance on interest expense and leverage.
Price Chart
Executive Summary
Hercules Capital reported Q3 2026 NII of $0.47 per share, slightly below the $0.48 consensus, with total investment income of $140.1M (up 1.5% YoY) but below the $144.1M revenue consensus. The miss was driven by a 74.1% drop in early loan repayments to $148.3M, which reduced fee acceleration income, and higher interest expense from increased borrowings. Credit quality remained stable with non-accruals at 0.4% of portfolio at cost, and NAV per share rose 0.9% to $12.26. The company also declared a $0.47 per share total cash distribution for Q3 2026.
Key Financial Metrics
Key Facts
- Q3 2026 NII of $87.3M, or $0.47 per share, vs consensus of $0.48
- Total investment income of $140.1M, up 1.5% YoY but below consensus of $144.1M
- Early loan repayments fell 74.1% to $148.3M from $572.1M in Q2 2026
- NAV per share increased 0.9% to $12.26 from $12.15 in Q2 2026
- GAAP effective yield declined to 12.3% from 13.4% in Q2 2026; core yield was 11.9%
- Non-accrual loans were 0.4% of portfolio at cost, up from 0.3% in Q2 2026
- Total new debt and equity commitments of $701.0M in Q3 2026
- Declared a total cash distribution of $0.47 per share for Q3 2026
- Issued $400.0M of 6.700% unsecured notes due 2029 on October 8, 2026
Financial Impact
NII per share of $0.47 missed consensus by $0.01 (2.1%); total investment income of $140.1M missed consensus of $144.1M by $4.0M (2.8%)
Risk Factors
- Sustained low early repayment volume could further compress yields and NII
- Higher interest expense from increased borrowings and the new $400M note issuance may pressure margins
- Non-accrual loans increased slightly to 0.4% of portfolio at cost, though still very low
Market Snapshot
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001280784-26-000055 |
| Exhibit: ex992totaldividenddistribu.htm | 0001280784-26-000055 |
| Document: htgc-20261027.htm | 0001280784-26-000055 |
| Document: 0001280784-26-000055-index-headers.html | 0001280784-26-000055 |
| Document: 0001280784-26-000055-index.html | 0001280784-26-000055 |
| Document: 0001280784-26-000055.txt | 0001280784-26-000055 |
| 8-K Data (Synthetic) | 0001280784-26-000055 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 3d ago | 8-K | $16.70 | awaiting T+60 | awaiting T+60 | $16.59 (−0.66%) |
Oct 8, 2026 24d ago | 8-K | $16.51 | awaiting T+60 | awaiting T+60 | $16.59 (+0.48%) |
Jul 21, 2026 14w ago | 8-K | $16.13 $16.40 | ▲ +1.67% | ▼ −2.30% | $16.59 (+2.85%) |
Mar 26, 2026 31w ago | Insider Cluster | $14.06 $15.28 | ▲ +8.64% | ▼ −5.31% | $16.59 (+17.99%) |
Feb 27, 2026 35w ago | Insider Cluster | $14.60 $15.53 | ▲ +6.37% | ▼ −2.97% | $16.59 (+13.63%) |
Feb 25, 2026 35w ago | Insider Cluster | $15.11 $15.64 | ▲ +3.51% | ▼ −3.44% | $16.59 (+9.79%) |
Feb 25, 2026 35w ago | Insider Cluster | $15.11 $15.64 | ▲ +3.51% | ▼ −3.44% | $16.59 (+9.79%) |
Feb 25, 2026 35w ago | Insider Cluster | $15.11 $15.64 | ▲ +3.51% | ▼ −3.44% | $16.59 (+9.79%) |
Feb 23, 2026 35w ago | Insider Cluster | $14.62 $15.40 | ▲ +5.34% | ▼ −2.91% | $16.59 (+13.48%) |
Feb 23, 2026 35w ago | Insider Cluster | $14.62 $15.40 | ▲ +5.34% | ▼ −2.91% | $16.59 (+13.48%) |
US Market Status
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