HgCapital Trust (HGT) Q3 2025 earnings summary

Executive summary

• Focused on investing in profitable, growing B2B software and services companies with resilient, recurring revenue models and low customer churn.

• 30+ year track record as a leading private equity tech investor, with over £100bn in assets under management and a portfolio enterprise value of £187bn as of 30 September 2025.

• Net assets reached £2.5bn and market capitalisation was £2.3bn as of 30 September 2025.

• Portfolio companies delivered 18% LTM sales growth, 19% LTM EBITDA growth, and a 33% EBITDA margin.

• Provides listed access to a large, diversified private software portfolio, targeting high-growth, mission-critical sectors.

Financial highlights

• Market capitalisation of £2.3bn and net assets of £2.5bn as of 30 September 2025.

• 10-year share price CAGR of 19.3% and 20-year total share price return of 1,236%.

• Q3 2025 portfolio valuation increased to £3,223m, driven by £104m unrealised gain and strong trading.

• LTM sales growth of 18%, LTM EBITDA growth of 19%, and EBITDA margin of 33%.

• £171m in realisations year-to-date, with an average uplift of 22% over carrying value.

Outlook and guidance

• Resilient trading performance expected to continue, underpinned by mission-critical products and services.

• Management remains optimistic for the remainder of 2025, citing strong portfolio performance and a supportive deal environment.

• AI is expected to drive operational efficiencies and new product growth, with broader positive sentiment anticipated in 2026.

• 2025 revenue growth expectations have stabilised after prior downgrades, with potential for reacceleration in 2026.