Hercules Capital (HTGC) investor relations material

Executive summary

• Achieved record operating performance in Q2 2026, with net investment income of $92.9 million and total investment income of $149.1 million, both up year-over-year, supported by strong originations and stable credit.

• Net investment income per share was $0.50, with net assets per share rising to $12.15 and a 65% year-over-year surge in net increase in net assets from operations.

• Maintained a high-yield, diversified portfolio focused on venture-backed growth companies, with 97.8% of debt investments floating rate and 86.8% first lien senior secured.

• Platform assets under management reached $6.1 billion, up 14.4% year-over-year.

• Conservative balance sheet and strong liquidity, with net investment income covering the base shareholder distribution by 125%.

Financial highlights

• Q2 2026 total investment income was $149.1 million, up 8.5% year-over-year; net investment income was $92.9 million, up 4.7% year-over-year.

• Net investment income per share was $0.50, providing 125% coverage of the base cash distribution.

• NAV per share increased by 2.1% from Q1 2026 to $12.15.

• ROAE was 16.8% and ROAA was 8.3% for Q2.

• Weighted average cost of debt was 5.2% for Q2 2026.

Outlook and guidance

• Management expects continued strong operating results, stable credit performance, and robust originations, with Q3 2026 core yield expected in the 11.8%-12% range.

• Prepayment activity expected to normalize to $200-$300 million in Q3, down from $572 million in Q2.

• Gross SG&A expenses for Q3 projected at $25-$26 million; RIA expense allocation at ~$4.7 million.

• Platform scale, balance sheet, and liquidity position the company well for the remainder of 2026.

• Macroeconomic uncertainty and interest rate volatility are being closely monitored.