The firm's profitability remains highly sensitive to non-recurring income, with operating margins fluctuating from a peak of 76.7% in 2023Q4 to 53.0% 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 |
|---|
| Sales/Revenue | 578.18M | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 510.74M | 477.25M | 353.75M | 426.5M | 184.64M | 255.13M | 297.77M | 243.6M | 136.09M | 135.58M | 111.39M | 95.71M | 115.06M | 135.76M | 76.34M | 73.95M | 26.51M | 35.36M | 43.93M | 59.54M | 24.64M | 9.7M | 0 |
| Gross Margin % | 88.34% | 87.23% | 82.1% | 86.31% | 77.13% | 82.41% | 83.32% | 81.69% | 77.53% | 78.17% | 77.68% | 75.63% | 80.41% | 81.74% | 79.38% | 84.8% | 75.57% | 79.02% | 77% | 93.11% | 81.03% | 84.34% | - |
| Gross Profit Growth % | - | 34.91% | -17.06% | 130.99% | -27.63% | -14.32% | 22.24% | 79.01% | 0.37% | 21.71% | 16.38% | -16.82% | -15.25% | 77.84% | 3.23% | 178.96% | -25.02% | -19.51% | -26.21% | 141.62% | 154.01% | - | - |
| Operating Expenses | 130.49M | 112.09M | 90.78M | 89.01M | 82.56M | 80.98M | 70.51M | 70.01M | 59.59M | 56.58M | 42.69M | 52.8M | 43.87M | 36.31M | 29.58M | 27.02M | 21.53M | 21.79M | 22.94M | 17.13M | 13.26M | 7.6M | 2.04M |
| OpEx % of Revenue | - | 20.49% | 21.07% | 18.01% | 34.49% | 26.16% | 19.73% | 23.48% | 33.95% | 32.62% | 29.77% | 41.72% | 30.66% | 21.86% | 30.76% | 30.98% | 61.36% | 48.69% | 40.2% | 26.79% | 43.59% | 66.04% | - |
| Selling, General & Admin | 19.02M | 19.03M | 19.67M | 18.7M | 16.95M | 16.11M | 18.91M | 19.18M | 14.52M | 15.67M | 16.11M | 16.66M | 10.21M | 9.35M | 8.11M | 7.99M | 7.09M | 7.28M | 6.9M | 5.44M | 5.41M | 2.29M | 411.42K |
| SG&A % of Revenue | - | 3.48% | 4.57% | 3.78% | 7.08% | 5.2% | 5.29% | 6.43% | 8.27% | 9.03% | 11.23% | 13.16% | 7.13% | 5.63% | 8.43% | 9.16% | 20.2% | 16.27% | 12.09% | 8.5% | 17.79% | 19.87% | - |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 380.26M | 365.16M | 262.97M | 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 |
| Operating Margin % | 65.77% | 66.75% | 61.03% | 68.3% | 42.64% | 56.25% | 63.59% | 58.22% | 43.58% | 45.55% | 47.91% | 33.91% | 49.75% | 59.87% | 48.62% | 53.82% | 14.2% | 30.33% | 36.8% | 66.32% | 37.43% | 18.3% | - |
| Operating Income Growth % | - | 38.86% | -22.08% | 230.6% | -41.38% | -23.37% | 30.91% | 126.94% | -3.17% | 14.98% | 60.09% | -39.71% | -28.42% | 112.68% | -0.38% | 842.11% | -63.29% | -35.36% | -50.49% | 272.53% | 440.81% | 203.09% | - |
| EBITDA | 380.5M | 365.5M | 263.43M | 337.67M | 102.28M | 174.47M | 227.68M | 173.86M | 76.69M | 79.2M | 68.91M | 43.11M | 71.45M | 99.7M | 47.05M | 47.28M | 5.38M | 13.94M | 21.3M | 42.61M | 11.45M | 2.13M | -2.03M |
| EBITDA Margin % | 65.81% | 66.81% | 61.14% | 68.34% | 42.73% | 56.36% | 63.71% | 58.3% | 43.7% | 45.67% | 48.05% | 34.07% | 49.93% | 60.02% | 48.92% | 54.22% | 15.34% | 31.15% | 37.34% | 66.64% | 37.65% | 18.51% | - |
| EBITDA Growth % | 70.85% | 38.74% | -21.99% | 230.13% | -41.37% | -23.37% | 30.95% | 126.69% | -3.16% | 14.94% | 59.84% | -39.67% | -28.33% | 111.91% | -0.5% | 778.56% | -61.39% | -34.56% | -50.01% | 272.2% | 437.76% | 204.66% | - |
| D&A (Non-Cash Add-back) | 248K | 337K | 466K | 190K | 204K | 317K | 415K | 262K | 199K | 201K | 202K | 193K | 266K | 252K | 289K | 348K | 400K | 367K | 306K | 204K | 65K | 24K | 7.53K |
| EBIT | 314.76M | 365.1M | 262.97M | 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 |
| Net Interest Income | 319.84M | 415.71M | 390.04M | 366.81M | 252.51M | 198.91M | 203.77M | 192.92M | 151.2M | 134.34M | 126.71M | 109.43M | 98.58M | 93.34M | 67.77M | 57.09M | 46.13M | 52.81M | 54.16M | 44.35M | 20.51M | 7.99M | 214.1K |
| Interest Income | 392.31M | 507.89M | 467.19M | 434.43M | 307.26M | 253.36M | 263.38M | 247.51M | 190.64M | 172.2M | 158.73M | 140.27M | 126.62M | 123.67M | 87.6M | 70.35M | 54.42M | 62.2M | 67.28M | 48.76M | 26.28M | 9.79M | 214.1K |
| Interest Expense | 72.48M | 92.18M | 77.15M | 67.62M | 54.75M | 54.45M | 59.6M | 54.6M | 39.44M | 37.86M | 32.02M | 30.83M | 28.04M | 30.33M | 19.84M | 13.25M | 8.57M | 9.39M | 13.12M | 4.4M | 5.77M | 1.8M | 0 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 289.4M | 339.74M | 262.97M | 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 |
| Pretax Margin % | 50.05% | 62.1% | 61.03% | 68.3% | 42.64% | 56.25% | 63.59% | 58.22% | 43.58% | 45.55% | 47.91% | 33.91% | 49.75% | 59.87% | 48.62% | 53.82% | 14.2% | 30.33% | 36.8% | 66.32% | 37.43% | 18.3% | - |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 37.86K | 49.05M | 0 | 0 | 42.95M | 72.76M | 28.4M | 0 | -11.17M | 21.46M | -5.87M | 2K | 643.09K | 255K | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0.05% | 62.1% | 0% | 0% | 60.33% | 73.16% | 60.75% | 0% | -224.21% | 158.15% | -27.94% | 0% | 5.65% | 12.11% | 0% |
| Net Income | 289.4M | 339.74M | 262.97M | 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 |
| Net Margin % | 50.05% | 62.1% | 61.03% | 68.3% | 42.64% | 56.25% | 63.59% | 58.22% | 43.58% | 45.55% | 47.91% | 33.91% | 49.75% | 59.87% | 48.62% | 53.82% | 14.2% | 30.33% | 36.8% | 66.32% | 37.43% | 18.3% | - |
| Net Income Growth % | 30.16% | 29.19% | -22.08% | 230.6% | -41.38% | -23.37% | 30.91% | 126.94% | -3.17% | 14.98% | 60.09% | -39.71% | -28.42% | 112.68% | -0.38% | 842.11% | -63.29% | -35.36% | -50.49% | 272.53% | 440.81% | 203.09% | - |
| Net Income (Continuing) | 289.4M | 339.74M | 262.97M | 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 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 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 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.47 | 1.85 | 1.61 | 2.31 | 0.79 | 1.49 | 2.01 | 1.71 | 0.83 | 0.95 | 0.91 | 0.59 | 1.10 | 1.63 | 0.93 | 1.07 | 0.12 | 0.37 | 0.64 | 1.49 | 0.84 | 0.30 | -1.72 |
| EPS Growth % | 33.08% | 14.91% | -30.3% | 192.41% | -46.98% | -25.87% | 17.54% | 106.02% | -12.63% | 4.4% | 54.24% | -46.36% | -32.52% | 75.27% | -13.08% | 791.67% | -67.57% | -42.19% | -57.05% | 77.38% | 180% | 117.44% | - |
| EPS (Basic) | - | 1.90 | 1.61 | 2.32 | 0.80 | 1.50 | 2.02 | 1.71 | 0.83 | 0.95 | 0.91 | 0.60 | 1.12 | 1.67 | 0.93 | 1.08 | 0.12 | 0.38 | 0.64 | 1.50 | 0.85 | 0.30 | -1.72 |
| Diluted Shares Outstanding | 196.82M | 194.79M | 161.6M | 144.83M | 126.66M | 115.95M | 112.27M | 101.57M | 91.06M | 82.64M | 73.78M | 69.66M | 63.23M | 60.29M | 49.16M | 43.3M | 36.69M | 34.89M | 32.62M | 28.39M | 13.53M | 7.02M | 1.29M |
| Basic Shares Outstanding | 182.76M | 180.77M | 161.08M | 144.09M | 125.19M | 114.74M | 111.98M | 101.13M | 90.93M | 82.52M | 73.75M | 69.48M | 61.86M | 58.84M | 49.07M | 42.99M | 36.16M | 34.49M | 32.62M | 28.3M | 13.35M | 6.94M | 1.19M |
| Dividend Payout Ratio | - | 81.26% | 115.4% | 81.09% | 165.87% | 83.48% | 67.07% | 76.07% | 147.36% | 127.71% | 131.78% | 198.04% | 108.27% | 64.61% | 97.69% | 78.5% | 539.72% | 232.24% | 199.42% | 70.76% | 125.08% | 11.64% | - |
Venture capital funding volatility
As reported in quarterly financial statements, Hercules Capital maintained a robust gross margin profile, peaking at 98.1% in 2025Q4, though figures fluctuated significantly from the 77.3% observed in 2024Q2, suggesting that the firm's profitability is highly sensitive to the timing of non-recurring fee and warrant income.
The wide variance in gross margins indicates that HTGC's profitability is not purely driven by interest income but is heavily influenced by transactional events such as loan prepayments and equity exits. Investors should interpret these swings as a reflection of the underlying venture ecosystem's exit environment rather than a degradation of the core lending spread.
Based on the provided income statement data, HTGC demonstrates significant operating leverage, with operating margins reaching as high as 76.7% in 2023Q4, which appears to validate the efficiency of the company's internal management structure compared to externally advised BDC peers that incur recurring management fees.
The ability to maintain SG&A expenses within a tight range of $4.5M to $5.5M while revenue fluctuates suggests a highly scalable cost structure. This operational discipline allows the firm to capture a larger portion of net interest income as the portfolio grows, provided that credit quality remains stable.
According to recent SEC filings, HTGC's net income exhibits substantial quarterly volatility, with EPS swinging from $0.78 in 2023Q4 to $0.23 in 2026Q1, a trend that appears driven by the irregular recognition of realized gains and the subjective valuation of the firm's Level 3 warrant portfolio.
The inclusion of non-cash items and the reliance on internal valuation models for equity participation suggest that reported net income may not always reflect immediate cash-generating capacity. Analysts should monitor the consistency of core interest income versus these volatile capital gains to better assess the sustainability of the dividend payout.
While the company maintains a premium valuation, the 2026Q1 net income of $0 suggests that the firm's reliance on venture-backed borrowers may lead to significant earnings compression if the IPO window remains closed, potentially forcing a re-evaluation of the current market premium relative to NAV.
The absence of net income in the most recent quarter warrants further investigation into potential credit marks or a slowdown in exit activity. If the firm is forced to extend loans rather than realize gains, the quality of earnings may deteriorate, challenging the narrative of consistent alpha generation.
Quick answers to the most common questions about buying HTGC stock.
Hercules Capital, Inc. (HTGC) is profitable, generating $339.7M in net income for the fiscal year ending 2025 with a net profit margin of 62.1%.
Hercules Capital, Inc. (HTGC) reported an operating income of $365.2M, resulting in an operating profit margin of 66.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Hercules Capital, Inc. (HTGC) generated $477.3M in gross profit for the year, representing a gross profit margin of 87.2%. This demonstrates the company's core pricing power and production efficiency.