Free cash flow has become increasingly erratic, swinging from a $130.4 million surplus in 2023Q4 to a $230.6 million deficit 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 | 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 | 289.4M | -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 | -649.18M | -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 | 24.42M | 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 | -4.12M | -5.34M | 62K | 0 | -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 | -62K | -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) | 162.28M | -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 | -247.12M | -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 | -3.02M | -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 | 206.67M | 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 % | -60.83% | -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) | -1.22x | -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 |
Venture liquidity and funding
As reported in recent financial statements, Hercules Capital exhibits a significant divergence between net income and operating cash flow, with the OCF/NI ratio plummeting to -4.41 in 2025Q1, indicating that reported earnings are increasingly decoupled from the actual cash generated by the underlying loan portfolio.
The persistent gap between accounting profits and cash flow suggests that a substantial portion of income may be non-cash in nature, such as PIK interest or unrealized valuation gains. Investors should monitor this trend closely, as the inability to convert earnings into cash may eventually constrain the firm's capacity to sustain its dividend payout.
Based on the provided quarterly data, HTGC's free cash flow trajectory has become increasingly erratic, swinging from a positive $130.4 million in 2023Q4 to a deficit of $230.6 million in 2026Q1, reflecting the inherent instability of cash flows in a venture-debt-focused business model.
This volatility appears to be driven by the timing of loan originations and the unpredictable nature of exit-related cash inflows. The negative FCF margins observed in several recent quarters suggest that the firm is currently consuming cash to support its portfolio rather than generating surplus capital.
According to historical cash flow records, HTGC has consistently prioritized dividend payments, with outflows averaging approximately $80 million per quarter, even as operating cash flow turned negative in multiple periods, suggesting a reliance on balance sheet liquidity to maintain distributions to shareholders.
The decision to continue dividend payments despite significant cash flow deficits warrants further investigation into the firm's long-term capital allocation strategy. If the current trend of negative operating cash flow persists, the sustainability of these distributions may become a primary concern for income-focused investors.
As indicated by the quarterly cash flow statements, changes in working capital have been highly inconsistent, ranging from a $182,000 inflow in 2025Q3 to a $21.9 million outflow in 2023Q4, which complicates the assessment of the firm's core operational efficiency and liquidity management.
These fluctuations likely reflect the timing of interest collections and the impact of loan prepayments on the firm's cash position. The lack of a stable working capital trend suggests that the company's cash position is highly sensitive to the specific timing of borrower repayments and funding requirements.
Quick answers to the most common questions about buying HTGC stock.
Hercules Capital, Inc. (HTGC) generated $-425.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Hercules Capital, Inc. (HTGC) reported negative free cash flow of $425.9M in 2025, indicating capital requirements exceeded cash from operations.
Hercules Capital, Inc. (HTGC) 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. (HTGC) 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.