The company exhibits extreme revenue instability, with quarterly performance swinging from a $41.6M peak in 2025Q3 to a $10.8M contraction in 2025Q1, driving significant net margin compression.
Horizon Technology Finance Corporation (HRZN) annual income statement — 17-year revenue, gross profit & net income history
| 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 |
|---|
| Net Interest Income | 60.43M | 57.66M | 64.71M | 81.16M | 58.16M | 42.38M | 32.52M | 28.76M | 22.42M | -5.17M | -5.88M | -5.76M | -8.71M | -8.12M | -4.28M | -2.68M | 10.74M | -4.24M |
| NII Growth % | 7.15% | -10.9% | -20.27% | 39.53% | 37.25% | 30.31% | 13.09% | 28.24% | 533.97% | 12.1% | -2.1% | 33.88% | -7.18% | -89.68% | -59.75% | -124.96% | 353.04% | - |
| Net Interest Margin % | 7.26% | 7.11% | 7.87% | 10.12% | 7.59% | 8.25% | 7.99% | 8.36% | 8.41% | -2.21% | -2.46% | -2.05% | -3.87% | -3.08% | -1.79% | -1.36% | 4.97% | -3.4% |
| Interest Income | 92.33M | 90.46M | 96.97M | 110.13M | 77.37M | 54.41M | 42.19M | 37.09M | 28.79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 14.99M | 0 |
| Interest Expense | 31.9M | 32.8M | 32.26M | 28.97M | 19.2M | 12.03M | 9.67M | 8.33M | 6.36M | 5.17M | 5.88M | 5.76M | 8.71M | 8.12M | 4.28M | 2.68M | 4.25M | 4.24M |
| Loan Loss Provision | -6.88M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 953K | 1.84M | 2.15M | -8.71M | -8.12M | -19.42M | 1.51M | -4.25M | -2.04M |
| Non-Interest Income | 11.24M | -50.44M | -63.02M | -91.03M | -31.52M | -9.11M | -22.19M | -7.46M | -7.52M | 12.4M | -1.76M | 14.96M | 20.84M | 7.23M | 7.32M | 14.78M | 339K | 16.36M |
| Non-Interest Income % | 15.68% | -698.82% | -3735.86% | 922.2% | -118.32% | -27.39% | -214.74% | -35% | -50.49% | 171.4% | 23.03% | 162.52% | 171.73% | -807.71% | 240.98% | 122.16% | 3.06% | 135.05% |
| Total Net Revenue | 71.68M | 7.22M | 1.69M | -9.87M | 26.64M | 33.27M | 10.33M | 21.3M | 14.9M | 7.24M | -7.64M | 9.21M | 12.14M | -895K | 3.04M | 12.1M | 11.08M | 12.11M |
| Revenue Growth % | 283.19% | 327.86% | 117.09% | -137.05% | -19.91% | 221.97% | -51.5% | 42.96% | 105.89% | 194.76% | -182.94% | -24.14% | 1456.2% | -129.46% | -74.89% | 9.21% | -8.52% | - |
| Non-Interest Expense | 51.32M | 8.82M | 5.84M | 5.82M | 4.78M | 5.08M | 3.75M | 1.56M | 1.86M | 2.79M | 3.24M | 3.11M | 5.25M | 3.48M | 3.1M | 3.45M | 321K | 595.89K |
| Efficiency Ratio | 71.61% | 122.14% | 346.41% | -59% | 17.93% | 15.28% | 36.26% | 7.34% | 12.46% | 38.52% | -42.44% | 33.76% | 43.29% | -388.94% | 102.01% | 28.48% | 2.9% | 4.92% |
| Operating Income | 27.23M | -1.6M | -4.16M | -15.7M | 21.87M | 28.18M | 6.59M | 19.74M | 13.04M | 12.32M | 17.01M | 14M | 10.88M | 13.51M | 12.23M | 16.42M | 15.01M | 13.56M |
| Operating Margin % | 37.99% | -22.14% | -246.41% | 159% | 82.07% | 84.72% | 63.74% | 92.66% | 87.54% | 170.26% | -222.76% | 152% | 89.61% | -1509.61% | 402.47% | 135.66% | 135.42% | 111.94% |
| Operating Income Growth % | - | 61.56% | 73.51% | -171.78% | -22.41% | 327.92% | -66.63% | 51.31% | 5.86% | -27.57% | 21.55% | 28.68% | -19.5% | 10.5% | -25.52% | 9.4% | 10.67% | - |
| Pretax Income | 5.38M | -1.6M | -4.16M | -15.7M | 21.87M | 28.18M | 6.59M | 19.74M | 13.04M | 9.62M | -5M | 11.86M | 15.59M | 3.75M | 4.22M | 11.34M | 0 | 9.31M |
| Pretax Margin % | 7.51% | -22.14% | -246.41% | 159% | 82.07% | 84.72% | 63.74% | 92.66% | 87.54% | 132.87% | 65.47% | 128.76% | 128.44% | -418.77% | 138.97% | 93.68% | 0% | 76.9% |
| Income Tax | 313K | 1.06M | 1.48M | 1.49M | 715K | 401K | 222K | 239K | 34K | 25K | -87K | 0 | 160K | 240K | 231K | 340K | 0 | 0 |
| Effective Tax Rate % | 5.82% | -66.52% | -35.51% | -9.49% | 3.27% | 1.42% | 3.37% | 1.21% | 0.26% | 0.26% | 1.74% | 0% | 1.03% | 6.4% | 5.47% | 3% | - | 0% |
| Net Income | 5.07M | -2.66M | -5.63M | -17.18M | 21.15M | 27.78M | 6.36M | 19.5M | 13.01M | 9.59M | -4.91M | 11.86M | 15.43M | 3.51M | 3.99M | 11M | 0 | 9.31M |
| Net Margin % | 7.07% | -36.87% | -333.91% | 174.1% | 79.39% | 83.51% | 61.6% | 91.54% | 87.32% | 132.53% | 64.33% | 128.76% | 127.12% | -391.96% | 131.37% | 90.87% | 0% | 76.9% |
| Net Income Growth % | 110.7% | 52.76% | 67.22% | -181.25% | -23.87% | 336.55% | -67.36% | 49.87% | 35.65% | 295.22% | -141.44% | -23.16% | 339.85% | -12.1% | -63.7% | - | -100% | - |
| Net Income (Continuing) | 5.07M | -2.66M | -5.63M | -17.18M | 21.15M | 27.78M | 6.36M | 19.5M | 13.01M | 9.59M | -4.91M | 11.86M | 15.43M | 3.51M | 3.99M | 11M | 0 | 9.31M |
| EPS (Diluted) | 0.08 | -0.06 | -0.16 | -0.56 | 0.86 | 1.39 | 0.36 | 1.45 | 1.13 | 0.83 | -0.43 | 1.06 | 1.60 | 0.37 | 0.47 | 1.44 | 0.00 | 1.23 |
| EPS Growth % | 194.24% | 60.75% | 71.43% | -165.12% | -38.13% | 286.11% | -75.17% | 28.32% | 36.14% | 293.02% | -140.57% | -33.75% | 332.43% | -21.28% | -67.36% | - | -100% | - |
| EPS (Basic) | - | -0.06 | -0.16 | -0.56 | 0.86 | 1.39 | 0.36 | 1.45 | 1.13 | 0.83 | -0.43 | 1.06 | 1.60 | 0.37 | 0.47 | 1.44 | 0.00 | 1.23 |
| Diluted Shares Outstanding | 64.97M | 42.35M | 36.1M | 30.96M | 24.73M | 20.03M | 17.53M | 13.48M | 11.53M | 11.52M | 11.54M | 11.18M | 9.62M | 9.58M | 8.48M | 7.61M | 7.57M | 7.56M |
Quick answers to the most common questions about buying HRZN stock.
For fiscal year 2025, Horizon Technology Finance Corporation (HRZN) reported total revenue of $7.2M. This represents a 40.4% decline compared to $12.1M in 2009.
Horizon Technology Finance Corporation (HRZN) reported a net loss of $2.7M for the fiscal year ending 2025.
Horizon Technology Finance Corporation (HRZN) reported an operating income of $-1.6M, resulting in an operating profit margin of -4.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Horizon Technology Finance Corporation (HRZN) generated $7.2M in gross profit for the year, representing a gross profit margin of 18.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Portfolio Credit Quality Deterioration
Metrics are mathematically derived from official filings.
Revenue Volatility Masks Underlying Instability
As evidenced by the erratic quarterly revenue fluctuations, including a sharp contraction in early 2025, HRZN's top-line growth appears highly unstable. The company's reliance on venture-debt cycles makes revenue durability questionable, as evidenced by the significant variance between peak and trough periods in recent financial filings.
The extreme swings in revenue suggest that the company's income is heavily dependent on non-recurring events or volatile warrant valuations rather than consistent interest accruals. Investors should interpret this lack of predictability as a sign that the core loan book may not be generating the steady cash flow required to support long-term dividend commitments.
Structural Margin Compression Remains Evident
Based on reported financial statements, HRZN has experienced significant margin compression, with recent periods showing net margins that have swung into negative territory. This trend suggests that the cost of capital and potential credit losses are currently outpacing the interest income generated from the loan portfolio.
The inability to maintain consistent gross margins indicates that the company's pricing power is likely being eroded by competitive pressures in the venture debt space. This margin profile warrants further investigation into whether the firm is forced to accept lower-quality credit risks to maintain its asset base.
Operating Leverage Constrained by Costs
According to recent SEC filings, HRZN's operating income has failed to scale efficiently, frequently turning negative despite the company's efforts to expand its loan book. This suggests that the fixed-cost structure of the external management model is creating a drag on profitability during periods of portfolio stress.
The disconnect between revenue generation and operating income implies that the company lacks the necessary operating leverage to absorb credit-related markdowns. This structure appears to prioritize asset growth for fee generation over the preservation of net income for shareholders.
Earnings Quality Impaired by Accruals
As reported in financial statements, the quality of HRZN's net income is questionable due to the heavy reliance on non-cash accounting adjustments and potential PIK interest. The frequent divergence between reported earnings and cash-generating capacity suggests that the bottom line may not reflect true economic performance.
The presence of significant unrealized depreciation in the portfolio indicates that reported net income is likely being inflated by subjective Level 3 asset valuations. Investors should monitor the gap between GAAP earnings and actual cash distributions to determine if the dividend is being funded by capital rather than operations.
Fragility of Secured Lending Narrative
While management emphasizes the secured nature of its loan book, the recent negative net margins suggest that the underlying collateral may be insufficient to cover losses. This indicates that the market's perception of HRZN's downside protection may be overly optimistic given the current portfolio performance.
The risk of 'zombie' portfolio companies failing to refinance suggests that the company's first-lien status may provide little comfort if the underlying intellectual property lacks liquid market value. This potential for asset impairment poses a significant threat to the company's net asset value and long-term solvency.