Horizon Finance (HRZN) Q4 2024 earnings summary

Executive summary

• Portfolio grew for the second consecutive quarter, ending 2024 at $698 million, with expectations for continued growth in 2025.

• Net investment income (NII) of $47.8 million ($1.32 per share) for 2024 covered regular monthly distributions.

• NAV per share declined to $8.43 at year-end, down from $9.71 a year earlier, mainly due to fair value markdowns on stressed investments.

• Board declared regular monthly distributions of $0.11 per share through June 2025, supported by $1.06 per share in undistributed spillover income.

• Advisor agreed to waive a portion of incentive fees if NII falls below distributions in a quarter.

Financial highlights

• Portfolio yield on debt investments was 15.6% for 2024 and 14.9% for Q4.

• Q4 investment income was $24 million, down from $28 million in the prior period.

• Q4 NII was $0.27 per share, down from $0.32 in Q3 and $0.45 in Q4 2023.

• Q4 2024 total expenses were $12.8 million, mainly due to higher interest expense.

• Ending investment portfolio at $697.9 million as of December 31, 2024.

Outlook and guidance

• Expectation of continued portfolio growth and strong NII in 2025, supported by a robust pipeline and $207 million committed backlog.

• Adviser to waive income incentive fee if NII per share is less than declared distribution per share in 2025.

• Monthly distributions of $0.11 per share declared for April, May, and June 2025.