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Horizon Technology Finance Corporation (HTFB)
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Upturn Advisory Summary
12/05/2025: HTFB (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Analysis of Past Performance
Type Stock | Historic Profit 2.36% | Avg. Invested days 78 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 12/05/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 343.84M USD | Price to earnings Ratio 20.43 | 1Y Target Price - |
Price to earnings Ratio 20.43 | 1Y Target Price - | ||
Volume (30-day avg) - | Beta 1.17 | 52 Weeks Range 22.70 - 25.16 | Updated Date 06/29/2025 |
52 Weeks Range 22.70 - 25.16 | Updated Date 06/29/2025 | ||
Dividends yield (FY) 5.18% | Basic EPS (TTM) 1.22 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -2.31% | Operating Margin (TTM) 84.56% |
Management Effectiveness
Return on Assets (TTM) 7.25% | Return on Equity (TTM) -0.77% |
Valuation
Trailing PE 20.43 | Forward PE - | Enterprise Value 1200283392 | Price to Sales(TTM) - |
Enterprise Value 1200283392 | Price to Sales(TTM) - | ||
Enterprise Value to Revenue - | Enterprise Value to EBITDA - | Shares Outstanding - | Shares Floating - |
Shares Outstanding - | Shares Floating - | ||
Percent Insiders - | Percent Institutions - |
Upturn AI SWOT
Horizon Technology Finance Corporation
Company Overview
History and Background
Horizon Technology Finance Corporation (NASDAQ: HRZN) was founded in 2004. It is a business development company (BDC) that provides venture debt and revenue financing to venture capital-backed companies in the technology and life science sectors. Over the years, HRZN has established itself as a key player in providing flexible debt financing solutions to early-stage and growth-stage companies, often filling a gap left by traditional lenders.
Core Business Areas
- Venture Debt Financing: Horizon Technology Finance Corporation primarily offers venture debt financing to emerging technology and life science companies. This includes term loans, revolving credit facilities, and equipment financing, tailored to the specific needs of growing businesses that may not yet be profitable but have significant growth potential and venture capital backing.
- Revenue Financing: The company also provides revenue financing, which is a debt facility based on a company's recurring revenue streams. This allows companies with predictable revenue models to access capital without diluting equity.
- Equity Co-Investments: In some instances, Horizon may also make equity co-investments alongside venture capital firms, providing an additional layer of financial support and alignment with its debt investments.
Leadership and Structure
Horizon Technology Finance Corporation is managed by its investment advisor, Horizon Technology Finance Management, LLC. The leadership team consists of experienced professionals in venture capital, finance, and operations. Key figures include its Chief Executive Officer, Chief Financial Officer, and a team of investment professionals responsible for sourcing, underwriting, and managing its portfolio of debt investments.
Top Products and Market Share
Key Offerings
- Venture Debt: Horizon's flagship product is venture debt, which provides capital to technology and life science companies without requiring them to give up equity. This is crucial for founders seeking to retain ownership and control. Competitors include other BDCs and specialized debt funds that focus on venture-backed companies. Specific market share data for this niche product is difficult to isolate, but HRZN is a recognized provider.
- Revenue Loans: This product specifically targets companies with strong recurring revenue. It allows for flexible repayment structures tied to revenue performance. Competitors would include other BDCs and specialized lenders offering similar recurring revenue-based financing solutions.
Market Dynamics
Industry Overview
Horizon operates within the business development company (BDC) sector, specifically focusing on venture debt and growth capital for technology and life science companies. This industry is influenced by venture capital funding trends, interest rate environments, and the overall health of the technology and biotech sectors. The demand for flexible financing solutions for growing companies remains strong.
Positioning
Horizon is positioned as a specialized lender focusing on a specific segment of the market u2013 venture-backed technology and life science companies. Its competitive advantages lie in its deep understanding of these sectors, its established relationships with venture capital firms, and its ability to structure flexible debt solutions.
Total Addressable Market (TAM)
The TAM for venture debt and growth capital for technology and life science companies is substantial and growing, driven by innovation and investment in these sectors. While precise TAM figures are elusive, the aggregate capital deployed by BDCs and private debt funds in these areas runs into billions of dollars annually. Horizon participates in a significant portion of this market through its targeted approach.
Upturn SWOT Analysis
Strengths
- Specialized focus on technology and life science sectors.
- Strong relationships with venture capital firms.
- Experienced management team with deep industry knowledge.
- Flexible financing structures tailored to growth companies.
- Diversified portfolio across various technology sub-sectors and life science areas.
Weaknesses
- Reliance on venture capital funding trends, which can be cyclical.
- Exposure to early-stage companies, which carry higher default risk.
- Interest rate sensitivity due to its debt-heavy investment strategy.
- Limited diversification outside of the technology and life science sectors.
Opportunities
- Increasing demand for venture debt as an alternative to equity dilution.
- Expansion into new technology sub-sectors or geographic markets.
- Potential for strategic partnerships with venture capital firms.
- Growth in the biotech and life sciences sectors creating new investment opportunities.
- Leveraging market inefficiencies in specialized lending.
Threats
- Economic downturns impacting the venture capital ecosystem and portfolio companies.
- Increased competition from other BDCs and private debt funds.
- Rising interest rates increasing borrowing costs for portfolio companies.
- Regulatory changes affecting the BDC industry.
- Cybersecurity risks impacting portfolio companies.
Competitors and Market Share
Key Competitors
- Hercules Technology Growth Capital (HTGC)
- Golub Capital BDC, Inc. (GBDC)
- PennantPark Investment Corporation (PNNT)
Competitive Landscape
Horizon competes with other BDCs and specialized debt funds in the venture debt and growth capital space. Its competitive advantages include its sector specialization, strong VC relationships, and tailored financing solutions. However, it faces challenges from larger, more diversified BDCs and potentially lower-cost capital providers.
Growth Trajectory and Initiatives
Historical Growth: Historically, Horizon's growth has been driven by its ability to deploy capital into new investments, grow its investment portfolio size, and manage its existing portfolio effectively to generate income and minimize losses. Growth in its NAV per share and dividend payouts are key indicators of historical success.
Future Projections: Future growth projections for Horizon depend on the continued health of the venture capital market, its ability to source attractive debt investments, and prevailing interest rate conditions. Analyst estimates, if available, would provide forward-looking insights into expected revenue and earnings growth.
Recent Initiatives: Recent initiatives may include strategic shifts in investment focus, new partnerships, efforts to optimize its capital structure, or strategic acquisitions. These initiatives are aimed at enhancing shareholder value and ensuring sustainable growth.
Summary
Horizon Technology Finance Corporation is a specialized lender in the venture debt market, demonstrating strengths in its niche focus and strong VC relationships. However, it faces risks tied to the cyclical nature of venture capital and inherent early-stage investment risks. Its growth hinges on continued market demand for its specialized financing and effective portfolio management. To thrive, it must navigate competitive pressures and economic uncertainties while leveraging its expertise.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Company SEC Filings (10-K, 10-Q)
- Financial News Outlets (e.g., Bloomberg, Reuters)
- Financial Data Providers (e.g., Yahoo Finance, Seeking Alpha)
- Industry Reports on BDCs and Venture Debt
Disclaimers:
This JSON output is generated for informational purposes only and does not constitute financial advice. The data presented is based on publicly available information and may not be exhaustive or perfectly up-to-date. Market share data and competitor analysis are estimations based on industry understanding. Investors should conduct their own due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Horizon Technology Finance Corporation
Exchange NYSE | Headquaters Farmington, CT, United States | ||
IPO Launch date 2021-04-07 | Chairman & CEO Mr. Robert D. Pomeroy Jr. | ||
Sector - | Industry - | Full time employees - | |
Full time employees - | |||
Horizon Technology Finance Corporation is a business development company specializing in lending and and investing in development-stage investments. It focuses on making secured debt and venture lending investments to venture capital backed companies in the technology, life science, healthcare information and services, cleantech and sustainability industries. It seeks to invest in companies in the United States.
Note: This website is maintained by Upturn Corporation, which is an investment adviser registered with the U.S. Securities and Exchange Commission. Such registration does not imply a certain level of skill or training. Investing in securities has risks. Past performance is no guarantee of future returns. No assurance is provided as to any particular investment return, and you may lose money using our services. You are strongly advised to consult appropriate counsel before making any investments in companies you learn about through our services. You should obtain appropriate legal, tax, investment, accounting, and other advice that takes into account your investment portfolio and overall financial situation. You are solely responsible for conducting due diligence on a potential investment. We do not affect trades for you. You will select your own broker through which to transact. Investments are not FDIC insured, they are not guaranteed, and they may lose value. Please see the Privacy Policy, Terms of Use, and Disclosure for more information.