HgCapital Trust (HGT) Q2 2026 TU earnings summary

Executive summary

• NAV per share remained broadly unchanged in Q2 2026, as strong trading offset a contraction in software market valuations.

• H1 2026 saw a NAV total return per share of -4.9%, with Q2 stabilizing after a volatile Q1.

• Share price total return was -24.9% for H1 2026, reflecting broader public software sector weakness.

• Portfolio companies continued to deliver robust trading, with organic revenue and EBITDA growth of 11% and 17% year-over-year.

Financial highlights

• Estimated NAV per share at 30 June 2026 was 530.7 pence (unaudited), with net assets of £2.4 billion.

• LTM portfolio EBITDA margin was 34%, with a weighted average EV/EBITDA multiple of 22.9x.

• Net debt to EBITDA ratio increased to 9.0x from 7.4x at year-end 2025.

• Investments totaled £14 million in H1 2026; realisations reached £134 million at an average 31% uplift to carrying value.

• Available liquid resources stood at £254 million, including a £375 million credit facility (£134 million drawn at period end).

Outlook and guidance

• Management remains confident in the long-term value creation potential of the portfolio, emphasizing resilience and growth in mission-critical B2B technology and services.

• Outstanding commitments to Hg funds total £2.0 billion, expected to be called over the next 4-5 years.

• Hg intends to increase its strategic ownership of the trust to over 15% via on-market purchases.

• The company is in advanced discussions to upsize and extend its credit facility, due to expire in March 2027.