HgCapital Trust (HGT) Q4 2025 earnings summary

Executive summary

• FY 2025 saw robust trading with portfolio LTM revenue and EBITDA growth of 17% and 19% respectively, and an EBITDA margin of 33%.

• Share price declined 24% YTD, widening the discount to NAV to 28%, attributed to a broader software sector sell-off rather than portfolio fundamentals.

• Portfolio companies focus on mission-critical B2B software and services with highly recurring revenues and low customer churn.

• AI adoption is accelerating, with over 1,600 GenAI projects live and strong uplifts on AI-enabled exits.

Financial highlights

• NAV per share at 561.5p and share price at 507.0p as of 31 December 2025.

• Net assets of £2.6bn and market capitalisation of £2.3bn.

• 10-year share price CAGR of +18.9% and outperformance vs. public markets of +10.5% p.a.

• £215m of realisations in 2025, with an average uplift of 30% on all full and partial realisations over the last 10 years.

• £357m invested during 2025, including £34m of fee-free co-investment.

Outlook and guidance

• Fundamentals for enterprise software remain positive despite public market volatility; recent share price moves seen as sentiment-driven.

• AI is expected to expand the addressable market for SaaS incumbents, with ongoing investment in AI product development.

• Continued focus on automating workflows to improve productivity and manage rising labour costs.