Horizon Technology Finance Corporation Accelerates Growth with Strong Q3 Performance

Horizon Technology Finance Corporation has made significant progress in the third quarter of 2026, showcasing its scalable platform and ability to co-invest with Monroe Capital. The company's backlog has built up to $351 million at quarter end, a testament to the relentless work of its originations and credit teams.

During the conference call, Horizon's CEO, Mike Balkin, highlighted the company's achievements in increasing its pipeline of opportunities and growing its debt investment portfolio for the fourth consecutive quarter. The company funded nine investments totaling $98 million, while its total portfolio size ended at $650 million. This growth positions Horizon to materially grow its portfolio in the fourth quarter and beyond.

Horizon's net investment income (NII) for the quarter was $0.19 per share, which covered its regular distributions in the quarter. Despite a decline in NAV per share due to write-downs of certain investments, the company remains confident in its near and long-term outlook. As it continues to deploy capital and move towards its target leverage, Horizon aims to deliver NII at or above its declared distributions over time.

The company achieved a portfolio yield on debt investments of just under 15% for the third quarter, placing it at or near the top of the BDC industry. In addition, Horizon repurchased just over 2 million shares of its common stock in the quarter, reflecting its continued confidence in its outlook. The company's strong balance sheet and increasingly robust pipeline have positioned it well to further grow its portfolio and drive long-term value creation for shareholders.

To support this effort, Horizon has created the new role of Chief Growth and Strategy Officer at its advisor and appointed Manuel Henriquez to the position. This move is expected to accelerate his positive impact on the company and help build on its momentum. With the backing of Monroe Capital, one of the premier asset management firms in the country, Horizon believes it has the right team firmly in place and is executing on its strategic vision.

This vision aims to create a sustainable growth engine that will increase Horizon's NII and NAV over time. The company remains optimistic about its prospects, citing the strength of its business and its pipeline as key drivers of its growth. As it moves into 2027, Horizon is poised to build on its momentum and deliver value to its shareholders.

Horizon's quarterly results demonstrate its ability to adapt to changing market conditions and capitalize on emerging opportunities. The company's commitment to delivering long-term value creation for its shareholders remains unwavering, and its strategic vision will likely continue to drive growth in the quarters to come.

The company's forward-looking statements are subject to inherent uncertainties in predicting future results and conditions. However, based on its current momentum and strong balance sheet, Horizon is well-positioned to navigate any challenges that may arise and capitalize on new opportunities as they emerge.

As Horizon continues to execute its strategic vision and build on its momentum, investors will be watching closely for signs of growth and value creation in the coming quarters. With its robust pipeline and strong balance sheet, the company is poised to deliver a strong performance in 2027 and beyond.