Cash flow generation is highly erratic, with free cash flow swinging from a positive $130.4M in 2023Q4 to a negative $230.6M in 2026Q1, highlighting a reliance on external capital to sustain dividend distributions.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Cash from Operations | -351.65M | -425.8M | -118.09M | 68.28M | -424.8M | 128.62M | 207.8M | -240.66M | -248.97M | -18.4M | -138.38M | -114.36M | -26.53M | 103.59M | -193.94M | -139.53M | -93.25M | 225.93M | -27.53M | -201.11M | -91.25M | -156.15M | -17.72M |
| Operating CF Margin % | - | -77.83% | -27.41% | 13.82% | -177.45% | 41.55% | 58.15% | -80.71% | -141.85% | -10.61% | -96.5% | -90.37% | -18.54% | 62.37% | -201.65% | -160% | -265.81% | 504.92% | -48.25% | -314.51% | -300.05% | -1357.59% | - |
| Operating CF Growth % | -451.58% | -260.58% | -272.95% | 116.07% | -430.27% | -38.1% | 186.35% | 3.34% | -1253.1% | 86.7% | -21.01% | -331.05% | -125.61% | 153.42% | -39% | -49.62% | -141.27% | 920.75% | 86.31% | -120.39% | 41.56% | -781.26% | - |
| Net Income | 331.9M | -137.34M | 31.49M | 337.48M | 102.08M | 174.16M | 227.26M | 173.6M | 76.5M | 79M | 68.7M | 42.92M | 71.19M | 99.45M | 46.76M | 46.94M | 4.98M | 13.57M | 21M | 42.41M | 11.38M | 2.1M | -2.04M |
| Depreciation & Amortization | -2.62M | -38.81M | 466K | 190K | 5.88M | 7.36M | 415K | 262K | 199K | 201K | 202K | 193K | 266K | 252K | 289K | 348K | 400K | 367K | 306K | 204K | 65.19K | 24K | 7.53K |
| Stock-Based Compensation | 7.88M | 14.79M | 0 | 0 | 13.38M | 11.93M | 11.05M | 8.64M | 11.27M | 7.25M | 7.13M | 9.46M | 9.64M | 6.05M | 4.3M | 3.19M | 2.79M | 1.98M | 988K | 0 | 617.6B | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | -8.47M | 0 | -326.49M | -89.7M | -192.7M | -164.09M | -95.87M | 2.37M | -238.21M | -190.55M | -97M | 217.45M | -44.03M | 0 | 1.45M | -1.45M | 0 |
| Other Non-Cash Items | -624.75M | -270.34M | -165.46M | -252.23M | -529.91M | -78.22M | -25.62M | -426.58M | -5.1M | -18.13M | -26.52M | -12.33M | -17.47M | -9.5M | -3.48M | -351K | -268K | -15.86M | -13.15M | -248.53M | -617.71B | -159.45M | -16.02M |
| Working Capital Changes | -9K | 5.9M | 15.42M | -17.17M | -16.23M | 13.39M | 5.74M | 3.42M | -5.34M | 2.98M | 4.81M | 9.49M | 5.72M | 4.97M | -3.6M | 898K | -4.16M | 8.41M | 7.37M | 4.8M | 5.87M | 2.63M | 335.43K |
| Change in Receivables | -7.22M | -5.34M | 62K | -1.05M | -14.21M | 1.71M | 1.13M | -3.25M | -4.7M | -648K | -2.38M | 213K | -490K | 672K | -3.81M | 0 | 0 | 0 | 0 | -2.51M | 0 | -1.05M | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | -1.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 | 0 | 0 | 0 | -16K | -205K | 11K | -10K | 56K | -639K | 271K | 54K | 279K | -563K | 350K | -70K | 302K | 0 | 390.3B | 0 | 0 |
| Cash from Investing | -82.68M | -89K | -705K | -887K | -114K | -106K | -137K | -595K | -475K | 4.36M | 617K | 3.28M | -6.55M | -6.58M | -87K | -214K | 106K | -494K | -612K | 34K | -1.48M | -84K | -42.76K |
| Capital Expenditures | -81K | -89K | -705K | -887K | -114K | -106K | -137K | -595K | -475K | -274K | -252K | -187K | -190K | -311K | -87K | -189K | -244K | -134K | -606K | -181K | -817.01K | -66K | -40.26K |
| CapEx % of Revenue | 0.01% | 0.02% | 0.16% | 0.18% | 0.05% | 0.03% | 0.04% | 0.2% | 0.27% | 0.16% | 0.18% | 0.15% | 0.13% | 0.19% | 0.09% | 0.22% | 0.7% | 0.3% | 1.06% | 0.28% | 2.69% | 0.57% | - |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 4.72B | 4.47B | 3.66B | 3.25B | 2.96B | 2.43B | 2.35B | 2.31B | 1.88B | 1.54B | 1.42B | 1.2B | 1.02B | 910.29M | 906.3M | 1.31B | 472.16M | 374.67M | 581.3M | 529.97M | 283.23M | 176.67M | 0 |
| Other Investing | 1.17B | 1.58B | 537.33M | 0 | 0 | 0 | 728.48M | 0 | 940.96M | 4.64M | 869K | 3.47M | -6.36M | -6.27M | 481.15M | -25K | 350K | -360K | -6K | 215K | -660K | -549.46K | -2.5K |
| Cash from Financing | 424.94M | 368.92M | 119.2M | 22.75M | 314.52M | -229.87M | -85.04M | 310.4M | 200.31M | 92.3M | 55.62M | -20.84M | -8.17M | -11.64M | 312.54M | 97.2M | 75.33M | -117.85M | 37.52M | 192.53M | 93.77M | 162.92M | 26.44M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | 211.8M | -6.49M | 217.44M | -12.7M | -4.53M | -2.82M | -1.84M | 128.87M | -4.96M | -2.69M | -7.32M | 90.89M | -3.9M | 92.38M | 79.65M | 30K | 65.03M | 0 | 934K | 131.41M | 143.01M | 87.16M | 26.44M |
| Dividends Paid | -331.53M | -325.99M | -303.48M | -273.68M | -245.12M | -175.5M | -152.42M | -132.05M | -112.72M | -100.89M | -90.53M | -84.99M | -77.08M | -64.25M | -45.68M | -36.84M | -26.89M | -31.52M | -41.87M | -30.01M | -14.24M | -245K | 0 |
| Share Repurchases | -6.39M | -6.49M | -3.43M | -12.7M | -4.53M | -2.82M | -1.84M | -5.12M | -4.96M | -2.69M | -7.32M | -9.21M | -3.9M | -2.74M | 0 | 0 | -3.7M | -22K | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -14.13M | 189.88M | -8.4M | 333.13M | 221.14M | -1.49M | 72.15M | -8.88M | 140.38M | 60.67M | 86.28M | -620K | 1.95M | -19K | -10.86M | -6.17M | -2.21M | -147K | -4.07M | -2.13M | 648 | 0 | 0 |
| Net Change in Cash | -9.39M | -56.97M | 408K | 90.14M | -110.39M | -101.36M | 122.63M | 69.14M | -49.14M | 78.27M | -82.15M | -131.92M | -41.25M | 85.37M | 118.52M | -42.54M | -17.81M | 107.59M | 9.39M | -8.55M | 1.04M | 6.68M | 26.44M |
| Free Cash Flow | -351.74M | -425.89M | -118.79M | 67.39M | -424.91M | 128.51M | 207.66M | -241.26M | -249.44M | -18.67M | -138.64M | -114.55M | -26.72M | 103.28M | -194.02M | -139.71M | -93.49M | 225.79M | -28.13M | -201.29M | -92.07M | -156.22M | -17.76M |
| FCF Margin % | -63.88% | -77.85% | -27.57% | 13.64% | -177.5% | 41.51% | 58.11% | -80.91% | -142.12% | -10.77% | -96.67% | -90.52% | -18.67% | 62.18% | -201.74% | -160.22% | -266.5% | 504.62% | -49.31% | -314.8% | -302.74% | -1358.16% | - |
| FCF Growth % | -252.39% | -258.51% | -276.27% | 115.86% | -430.63% | -38.11% | 186.08% | 3.28% | -1235.79% | 86.53% | -21.03% | -328.68% | -125.87% | 153.23% | -38.87% | -49.44% | -141.41% | 902.59% | 86.02% | -118.63% | 41.06% | -779.64% | - |
| FCF per Share | -1.79 | -2.19 | -0.74 | 0.47 | -3.35 | 1.11 | 1.85 | -2.38 | -2.74 | -0.23 | -1.88 | -1.64 | -0.42 | 1.71 | -3.95 | -3.23 | -2.55 | 6.47 | -0.86 | -7.09 | -6.81 | -22.27 | -13.73 |
| FCF Conversion (FCF/Net Income) | -1.06x | -1.25x | -0.45x | 0.20x | -4.16x | 0.74x | 0.91x | -1.39x | -3.25x | -0.23x | -2.01x | -2.66x | -0.37x | 1.04x | -4.15x | -2.97x | -18.72x | 16.65x | -1.31x | -4.74x | -8.02x | -74.18x | 8.68x |
| Interest Paid | 0 | 0 | 0 | 0 | 52.08M | 51.47M | 0 | 51.82M | 38.96M | 33.58M | 31.01M | 30.53M | 25.74M | 25.25M | 18.93M | 11.27M | 8.27M | 0 | 10.88M | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.43M | 713K | 1.08M | 184K | 973K | 133K | 85K | 44K | 66K | 39K | 0 | 6K | 0 | 0 | 0 | 0 |
Portfolio Liquidity and Valuation
As reported in recent financial statements, HCXY exhibits a significant divergence between net income and operating cash flow, with OCF/NI ratios frequently dipping into negative territory, such as the -5.43x recorded in 2026Q1, highlighting the non-cash nature of much of the firm's reported earnings.
The persistent gap between net income and operating cash flow suggests that a substantial portion of the firm's profitability is derived from unrealized gains or non-cash interest accruals rather than immediate cash generation. Investors should monitor this disconnect, as it implies that reported earnings may overstate the actual liquidity available to support the dividend payout.
Based on the provided quarterly data, HCXY's free cash flow trajectory is highly erratic, swinging from a positive $130.4M in 2023Q4 to a negative $230.6M in 2026Q1, which reflects the inherent lumpiness of venture debt repayments and the timing of portfolio exits.
The extreme volatility in FCF margins suggests that the firm's cash position is heavily dependent on the timing of loan repayments and warrant realizations. This inconsistency warrants further investigation into whether the current dividend policy is sustainable during periods of lower exit activity in the venture ecosystem.
According to historical cash flow records, HCXY consistently pays out dividends ranging from $71.9M to $84.4M per quarter, often exceeding operating cash flow during periods of negative cash generation, which suggests a reliance on capital recycling or external financing to maintain shareholder distributions.
The firm's commitment to consistent dividend payments despite significant fluctuations in operating cash flow may indicate a reliance on the revolving nature of its loan portfolio to fund distributions. Investors should consider whether this payout structure remains prudent if the current venture funding environment leads to a prolonged delay in portfolio company exits.
As indicated by the quarterly cash flow data, changes in working capital have been highly variable, with a notable $24.4M outflow in 2026Q1, suggesting that the timing of loan originations and repayments creates significant short-term liquidity pressure that is not captured by net income alone.
The variability in working capital movements appears to be a direct consequence of the firm's lending cycle and the timing of cash inflows from portfolio companies. This dynamic suggests that the firm's liquidity position is sensitive to the pace of new originations relative to the repayment of existing debt facilities.
Quick answers to the most common questions about buying HCXY stock.
Hercules Capital Inc (HCXY) generated $-425.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Hercules Capital Inc (HCXY) reported negative free cash flow of $425.9M in 2025, indicating capital requirements exceeded cash from operations.
Hercules Capital Inc (HCXY) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Hercules Capital Inc (HCXY) returned $326.0M to shareholders via cash dividends and spent $6.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.