Earnings Call
Jul 30, 2026
Q2 FY2026
EPS Estimate
-2.19
EPS Actual
-24.45
Post-Earnings Close
$93.28
Earnings Reaction
-4.6%
Hercules Capital posted a record-setting second quarter in 2026, with total investment income reaching $149.1 million, up 5.4% sequentially and 8.5% year-over-year, and net investment income of $92.9 million, or $0.50 per share, covering the base distribution by 125% for the 24th consecutive quarter with a supplemental distribution. These results were driven by a combination of first-half net portfolio growth of $127.8 million and an elevated $572.1 million in early loan repayments, which exceeded the upper end of management's prior guidance and contributed to an effective yield of 13.4% versus a core yield of 12%. NAV per share rose $0.25 to $12.15, recovering much of the mark-to-market pressure seen in Q1 as broader market conditions stabilized.
Report generated on Aug 1, 2026
AI-generated earnings analysis. Not investment advice.
Chief Executive Officer
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
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