Horizon Finance (HRZN) Q3 2026 earnings summary

Executive summary

• Debt portfolio grew for a fourth consecutive quarter; nine loans totaling $98.4 million were funded, and committed, approved and awarded backlog rose 14% sequentially to $351 million.

• Q3 NII was $12.3 million, or $0.19 per share, covering regular distributions.

• Net assets from operations decreased $28.2 million, driven by $29.2 million of unrealized depreciation and $11.3 million of realized investment losses.

• NAV declined to $5.56 per share from $6.23 at June 30, primarily due to write-downs on stressed investments.

Financial highlights

• Q3 investment income was $24.1 million vs. $26.3 million YoY; NII was $12.3 million vs. $14.0 million, or $0.19 vs. $0.32 per share.

• Q3 net expenses were $11.5 million after a $1.0 million advisor fee waiver; total expenses before the waiver were $12.5 million.

• Net realized investment loss was $11.3 million; net unrealized depreciation was $29.2 million, compared with $40.5 million of appreciation in Q3 2025.

• Q3 distributions declared were $0.27 per share vs. NII of $0.19; undistributed spillover income was $0.24 per share at quarter-end.

• For 9M 2026, investment income was $73.2 million, NII was $28.6 million and net assets from operations decreased $62.7 million.

Outlook and guidance

• Management expects lower Q4 prepayment activity than Q3; one smaller prepayment had occurred by the call, with no additional prepayments in current projections.

• Q4 portfolio growth was expected to be somewhat above the roughly $30 million average of the prior three quarters, but not significantly higher.

• Management expects cash, operating cash generation and credit-facility availability to cover working capital and capital commitments for at least 12 months.

• Monthly distributions of $0.06 per share were declared for January, February and March 2027.

• Post-quarter activity included a $7.5 million Glass Routes prepayment, a $3.5 million Hometeam repayment and $10.1 million of new loans to Pelthos Therapeutics and Volt Bidco.