Cash flow generation is highly erratic, as demonstrated by the $26.1M outflow in 2024Q4 versus a $50.6M inflow in 2025Q3, often failing to consistently cover the quarterly dividend distributions that reached $14.7M in 2026Q1.
| 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 |
|---|
| Cash from Operations | 119.09M | 56.63M | 39.64M | 50.07M | -246.28M | -75.99M | -25.28M | 17.56M | -12.06M | -14.84M | 52.31M | -31.33M | 36.68M | 6.5M | -36.09M | -4.02M | -10.63M | 7.98M |
| Operating CF Margin % | - | 141.49% | 116.78% | 262.17% | -537.21% | -167.75% | -126.38% | 59.26% | -56.71% | -119.65% | -2973.85% | -209.36% | 175.95% | 89.9% | -492.95% | -27.22% | -69.33% | 48.79% |
| Operating CF Growth % | 822.87% | 42.86% | -20.84% | 120.33% | -224.08% | -200.58% | -243.99% | 245.61% | 18.75% | -128.37% | 266.96% | -185.42% | 464.33% | 118.01% | -797.07% | 62.14% | -233.16% | - |
| Net Income | 21.55M | -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 |
| Depreciation & Amortization | 1.35M | 0 | 0 | 0 | 1.6M | 1.09M | 1.02M | 0 | 554K | 795K | 562K | 911K | 2.68M | 1.48M | 471K | 277K | 1.12M | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 89.64M | 58.98M | 51.58M | 71.88M | -261.11M | -103.04M | -30.72M | 177K | -25.23M | -27.22M | 58.85M | -44.83M | 17.13M | 8.89M | -49.21M | -41.03M | -11.75M | 367.84K |
| Working Capital Changes | 4.28M | 314K | -6.31M | -4.62M | -7.92M | -1.82M | -1.94M | -2.12M | -391K | 1.99M | -2.19M | 735K | 1.43M | -7.38M | 8.66M | 25.74M | 0 | -1.7M |
| Change in Receivables | 641K | 687K | -922K | 1.77M | -3.42M | -173K | 887K | -679K | 99K | -87K | 211K | -199K | 89K | 237K | -98K | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 1.89M | 0 | -7K | -1.41M | -264K | 1.18M | -594K | 719K | 493K | 583K | -1.08M | 258K | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -91.41M | 0 | -35.7M | -55.33M | -372.01M | -291.49M | -190.23M | -68.96M | -96.8M | -133.72M | -58.87M | -121.61M | -87.66M | -88.16M | -138.6M | -90.69M | -49.79M | -18.61M |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | 0% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 695.7M | 647.24M | 725.16M | 735.53M | 727.09M | 465.94M | 379.74M | 329.34M | 248.44M | 222.1M | 194M | 250.84M | 208.06M | 229.61M | 233.73M | 205.05M | 0 | 0 |
| Other Investing | 71.44M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -18.61M |
| Cash from Financing | -31.89M | -14.8M | 21.21M | 50.51M | 229.46M | 75.52M | 55.66M | 56.2M | 18.05M | -15.7M | -35.94M | 43.68M | -53.6M | 17.79M | 35.84M | -32.37M | 493K | 493.4K |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | 10.49M | 14.08M | 66.35M | 65.09M | 84.6M | 30.09M | 44.61M | 47.1M | 0 | -59K | -516K | -1.31M | 0 | 0 | 29.52M | 0 | 70.82M | 0 |
| Dividends Paid | -55.04M | -53.09M | -46.37M | -40.52M | -29.85M | -24.55M | -21.32M | -15.59M | -13.67M | -13.65M | -15.66M | -14.89M | -13.01M | -12.63M | -15.13M | -8.31M | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -59K | -516K | -1.31M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -7.2M | -7.21M | 0 | -735K | -4.36M | -2.65M | -890K | 0 | -777K | -1.37M | -221K | 26.09M | 0 | -2.9M | -3.01M | -1.21M | -93.59M | 0 |
| Net Change in Cash | -4.37M | 41.83M | 24.45M | 45.26M | -16.82M | -477K | 30.37M | -6.13M | 6M | -30.54M | 16.37M | 12.35M | -16.92M | 24.29M | -250K | -36.39M | -10.13M | -10.13M |
| Free Cash Flow | 119.09M | 56.63M | 39.64M | 50.07M | -246.28M | -75.99M | -25.28M | 17.56M | -12.06M | -14.84M | 52.31M | -31.33M | 36.68M | 6.5M | -36.09M | -4.02M | -10.63M | 7.98M |
| FCF Margin % | 159.3% | 141.49% | 116.78% | 262.17% | -537.21% | -167.75% | -126.38% | 59.26% | -56.71% | -119.65% | -2973.85% | -209.36% | 175.95% | 89.9% | -492.95% | -27.22% | -69.33% | 48.79% |
| FCF Growth % | 1697.63% | 42.86% | -20.84% | 120.33% | -224.08% | -200.58% | -243.99% | 245.61% | 18.75% | -128.37% | 266.96% | -185.42% | 464.33% | 118.01% | -797.07% | 62.14% | -233.16% | - |
| FCF per Share | 2.52 | 1.34 | 1.10 | 1.62 | -9.96 | -3.79 | -1.44 | 1.30 | -1.05 | -1.29 | 4.53 | -2.80 | 3.81 | 0.68 | -4.25 | -0.53 | -1.40 | 1.06 |
| FCF Conversion (FCF/Net Income) | 5.53x | -21.28x | -7.04x | -2.91x | -11.64x | -2.74x | -3.97x | 0.90x | -0.93x | -1.55x | -10.65x | -2.64x | 2.38x | 1.85x | -9.04x | -0.37x | - | 0.86x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Portfolio Credit Quality Volatility
According to recent SEC filings, HTFC's operating cash flow frequently decouples from net income, as evidenced by the 2025Q2 period where the firm reported a $20.8M net loss while simultaneously generating $49.6M in operating cash, indicating significant non-cash adjustments and timing differences in revenue recognition.
The wide variance between net income and operating cash flow suggests that GAAP earnings are a poor proxy for the company's actual liquidity. Investors should monitor whether these cash inflows represent sustainable interest collection or merely the liquidation of assets that may not be replaced at similar yields.
As reported in financial statements, HTFC's free cash flow trajectory remains highly erratic, swinging from a $26.1M outflow in 2024Q4 to a $50.6M inflow in 2025Q3, reflecting the lumpy nature of venture debt repayments and the inherent cyclicality of the underlying portfolio company exit events.
This extreme volatility in free cash flow complicates the assessment of the company's ability to fund its dividend obligations consistently. The lack of a stable cash flow trend suggests that the firm is highly dependent on periodic liquidity events rather than steady-state interest income.
Based on reported figures, HTFC has consistently distributed dividends ranging from $10.4M to $14.7M per quarter, which frequently exceeds the firm's net income and occasionally strains operating cash flow, raising concerns about the long-term sustainability of the current payout policy in a volatile credit environment.
The reliance on external capital or balance sheet cash to fund dividends may indicate that the core lending business is not generating sufficient excess cash to support the current yield. This capital allocation strategy warrants further investigation into the potential for future dividend adjustments or dilutive equity raises.
Data from recent quarterly reports indicates that working capital changes have been a significant driver of cash flow volatility, with shifts ranging from a $3.9M outflow in 2024Q1 to a $3.2M inflow in 2025Q4, highlighting the sensitivity of the firm's cash position to timing of interest receipts.
These fluctuations suggest that the company's cash position is highly sensitive to the payment behavior of its venture-backed borrowers. Any sustained delay in interest collections or a rise in non-accrual loans could rapidly impair the firm's ability to maintain its current liquidity profile.
Quick answers to the most common questions about buying HTFC stock.
Horizon Technology Finance Corp (HTFC) generated $56.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Horizon Technology Finance Corp (HTFC) generated $56.6M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Horizon Technology Finance Corp (HTFC) spent $0.0M 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, Horizon Technology Finance Corp (HTFC) returned $53.1M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.