The company's revenue trajectory remains highly unpredictable, evidenced by quarterly swings from $41.6M in 2025Q3 to negative figures in early 2025, resulting in a TTM gross margin of only 18.03%.
| 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 |
|---|
| Sales/Revenue | 74.76M | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 45.11M | 7.22M | 1.69M | -9.87M | 26.64M | 33.27M | 10.33M | 21.3M | 14.9M | 6.28M | -9.48M | 7.06M | 20.84M | 7.23M | 22.46M | 10.59M | 15.33M | 14.15M |
| Gross Margin % | 60.34% | 18.03% | 4.97% | -51.68% | 58.11% | 73.43% | 51.65% | 71.89% | 70.07% | 50.66% | 539% | 47.2% | 100% | 100% | 306.73% | 71.64% | 100% | 86.54% |
| Gross Profit Growth % | - | 327.86% | 117.09% | -137.05% | -19.91% | 221.97% | -51.5% | 42.96% | 137.11% | 166.28% | -234.23% | -66.12% | 188.35% | -67.81% | 112.05% | -30.9% | 8.28% | - |
| Operating Expenses | 13.26M | 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 |
| OpEx % of Revenue | - | 22.03% | 17.22% | 30.49% | 10.42% | 11.22% | 18.73% | 5.28% | 8.73% | 22.48% | -184.25% | 20.78% | 25.21% | 48.15% | 42.33% | 23.31% | 2.09% | 3.64% |
| Selling, General & Admin | 6.22M | 6M | 5.84M | 5.67M | 4.78M | 4.69M | 3.75M | 3.41M | 3.04M | 2.87M | 3.24M | 3.46M | 5.25M | 3.48M | 3.1M | 3.45M | 321K | 321.51K |
| SG&A % of Revenue | - | 14.98% | 17.22% | 29.7% | 10.42% | 10.35% | 18.73% | 11.52% | 14.3% | 23.11% | -184.25% | 23.09% | 25.21% | 48.15% | 42.33% | 23.31% | 2.09% | 1.97% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 31.85M | -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 % | 42.6% | -3.99% | -12.25% | -82.17% | 47.7% | 62.21% | 32.92% | 66.61% | 61.35% | 99.34% | -967.14% | 93.52% | 52.18% | 186.9% | 167.01% | 111.05% | 97.91% | 82.89% |
| 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% | - |
| EBITDA | 31.77M | -1.6M | -4.16M | -15.7M | 23.47M | 29.27M | 7.6M | 19.74M | 13.6M | 13.12M | 47.22M | 19.75M | 19.58M | 21.64M | 16.51M | 16.69M | 16.13M | 13.56M |
| EBITDA Margin % | 42.49% | -3.99% | -12.25% | -82.17% | 51.2% | 64.62% | 38.01% | 66.61% | 63.95% | 105.75% | -2684.48% | 131.99% | 93.95% | 299.28% | 225.52% | 112.93% | 105.23% | 82.89% |
| EBITDA Growth % | 196.02% | 61.56% | 73.51% | -166.87% | -19.83% | 284.98% | -61.47% | 45.15% | 3.67% | -72.22% | 139.05% | 0.86% | -9.48% | 31.04% | -1.1% | 3.5% | 18.96% | - |
| D&A (Non-Cash Add-back) | 1.35M | 0 | 0 | 0 | 1.6M | 1.09M | 1.02M | 0 | 554K | 795K | 30.21M | 5.76M | 8.71M | 8.12M | 4.28M | 277K | 1.12M | 0 |
| EBIT | 30.42M | -1.6M | -4.16M | -15.7M | 21.87M | 28.18M | 6.59M | 19.74M | 19.41M | 14.78M | 878K | 19.75M | 15.59M | 11.87M | 8.51M | 17.04M | 14.73M | 13.56M |
| Net Interest Income | 57.79M | 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 |
| Interest Income | 90.09M | 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 | 32.3M | 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 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 22.24M | -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 % | 29.75% | -3.99% | -12.25% | -82.17% | 47.7% | 62.21% | 32.92% | 66.61% | 61.35% | 77.52% | 284.25% | 79.22% | 74.79% | 51.85% | 57.67% | 76.69% | - | 56.94% |
| Income Tax | 686K | 1.06M | 1.48M | 1.49M | 715K | 401K | 222K | 239K | 34K | 25K | -87K | 0 | 160K | 240K | 231K | 340K | 0 | 0 |
| Effective Tax Rate % | 3.08% | -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 | 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 |
| Net Margin % | 28.83% | -6.65% | -16.6% | -89.97% | 46.14% | 61.33% | 31.81% | 65.8% | 61.19% | 77.32% | 279.31% | 79.22% | 74.02% | 48.53% | 54.51% | 74.39% | - | 56.94% |
| Net Income Growth % | 160.33% | 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) | 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 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.46 | -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 % | 422.08% | 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 | 47.32M | 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 |
| Basic Shares Outstanding | 47.32M | 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 |
| Dividend Payout Ratio | - | - | - | - | 141.11% | 88.37% | 334.95% | - | 105.06% | 142.28% | - | 125.57% | 84.32% | 360.09% | 379.05% | 75.55% | - | - |
Portfolio Credit Quality Volatility
As reported in financial statements, HTFC's revenue trajectory exhibits extreme volatility, with quarterly figures swinging from $41.6M in 2025Q3 to negative values in early 2025, suggesting that the firm's reliance on non-recurring fee income and warrant valuations creates an unpredictable top-line growth profile for investors.
The significant fluctuations in revenue appear to be driven by the timing of liquidity events and potential asset markdowns rather than consistent interest income growth. This instability complicates the assessment of long-term revenue durability and suggests that the company's core lending business may be struggling to maintain a stable baseline in the current venture capital environment.
Based on reported figures, HTFC's gross margin has experienced severe contraction, falling to a TTM level of 18.03%, which significantly trails industry peers like CSWC and TPVG, indicating that the company's cost of funding is currently eroding the profitability of its venture-debt lending activities.
The compression of margins suggests that the company may be facing increased competition or a deteriorating credit environment that necessitates higher provisions for losses. Investors should monitor whether this margin weakness is a temporary cyclical phenomenon or a structural shift resulting from the company's specific risk-adjusted pricing strategy.
According to recent SEC filings, the company's net income has been highly inconsistent, with a reported negative net margin of 6.65% over the trailing twelve months, which highlights the difficulty in relying on GAAP earnings as a proxy for the firm's actual cash-generating capacity.
The presence of negative net margins despite periods of revenue growth suggests that non-operating items, such as unrealized losses on the investment portfolio, are significantly impacting the bottom line. This warrants further investigation into the valuation models used for Level 3 assets, as these subjective inputs may be masking underlying credit deterioration.
As noted in the provided data, the company's negative operating margin of 3.99% raises questions regarding the sustainability of its current payout structure, as the firm appears to be struggling to cover its operating expenses through interest income alone during periods of portfolio stress.
Short-sellers would likely focus on the disconnect between the company's dividend policy and its recent inability to generate positive net income. If the current trend of negative margins persists, the company may be forced to rely on capital recycling or external financing to maintain its dividend, which could lead to long-term shareholder dilution.
Quick answers to the most common questions about buying HTFC stock.
Horizon Technology Finance Corp (HTFC) reported a net loss of $2.7M for the fiscal year ending 2025.
Horizon Technology Finance Corp (HTFC) 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 Corp (HTFC) 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.