Horizon Technology Finance Corporation

Horizon Technology Finance Corporation

HRZNยทNASDAQ

$4.43

-1.7%
Financial ServicesAsset Management

Horizon Technology Finance Corporation is a business development company specializing in lending and and investing in development-stage investments. It focuses on making secured debt and venture lending investments to venture capital backed companies in the technology, life science, healthcare information and services, and cleantech industries. It seeks to invest in companies in the United States.

At a Glance

Live Snapshot
Market Cap$195.49M
EPS1.0500
P/E Ratio4.22
Earnings Date08/06/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is compressed (P/E 4.2).

Valuation inputs: P/E 4.2, earnings yield +23.7%, momentum -1.7%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is acceptable (ROE +14.3%, ROIC +4.1%).

Profitability stack: net margin +1.1%, ROE +14.3%, ROIC +4.1%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +60.7%, momentum -1.7%, net margin +1.1%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Horizon Technology Finance Corporation Market vs Earnings Trajectory

HRZN ยท NASDAQ

Loading price and EPS data...

Horizon Technology Finance Corporation

Horizon Technology Finance Corporation Fair Value Envelope

HRZN ยท NASDAQ

Our analysis suggests that HRZN has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $4.43, this represents a potential HIDDEN relative to our calculated worth for Horizon Technology Finance Corporation.

Intrinsic Value
Current Price: $4.43
3Y+22.0%
5Y+192.0%
10Y-344.0%
3Y-11.0%
5Y+104.0%
10Y-2425.0%
3Y+115.0%
5Y+615.0%
10Y-1026.0%
3Y-123.0%
5Y-324.0%
10Y+8.0%
3Y-123.0%
5Y-324.0%
10Y+8.0%
3Y+6.0%
5Y+99.0%
10Y+239.0%
Horizon Technology Finance Corporation

Horizon Technology Finance Corporation Profit Bridge

HRZN ยท NASDAQ
Revenue40.91M
Cost of Goods Sold (13.26M)
Gross Profit27.64M
Operating Expenses (-5.32M)
Operating Income32.96M
Interest Expense (32.80M)
Other Income/Expense0.00
Pretax Income-1.60M
Income Tax (1.06M)
Net Income45.48M
Net Income
45.48M

Profitability Analysis

Gross Margin

67.6%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

80.6%

Outstanding operational efficiency. The company generates substantial profit from core operations.

Net Profit Margin

111.2%

Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.

Profitability Insight

Exceptional profitability across all levels: Strong pricing power, efficient operations, and healthy bottom line indicate a high-quality business with sustainable competitive advantages.

67.58%
Gross Profit Margin
1260%
3Y+16.0%
5Y+31.0%
10Y-87.0%
80.58%
Operating Profit Margin
-758%
3Y+69.0%
5Y+145.0%
10Y-108.0%
111.17%
Net Profit Margin
-770%
3Y+141.0%
5Y+249.0%
10Y-60.0%
14.28%
Return on Equity
-952%
3Y+115.0%
5Y+377.0%
10Y-505.0%
5.61%
Return on Assets
-918%
3Y+103.0%
5Y+259.0%
10Y-373.0%
4.06%
Return on Invested Capital
-886%
3Y+45.0%
5Y+154.0%
10Y-66.0%
HRZN

Horizon Technology Finance Corporation Cash Conversion Engine

HRZN ยท NASDAQ
Net Income45.48M
Depreciation & Amortization2.65M
Stock-Based Compensation0.00
Change in Working Capital314.00K
Others-8.47M
Capital Expenditures0.00
Free Cash Flow56.63M

Cash Flow Quality Analysis

FCF Conversion Rate

124.5%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

FCF Growth Trend

+42.9%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$314.00K

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

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Horizon Technology Finance Corporation Funding & Solvency Profile

HRZN ยท NASDAQ
Cash & Cash Equivalents34.49M
Net Receivables12.74M
Inventory0.00
Other Current Assets0.00
Total Current Assets47 M
Property, Plant & Equipment0.00
Goodwill & Intangible Assets0.00
Long-Term Investments0.00
Other Non-Current Assets0.00
Total Non-Current Assets0
Total Assets
791.65M

Financial Health Analysis

Debt-to-Equity Ratio

1.37x

Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.

Working Capital

47 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

6% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

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Horizon Technology Finance Corporation Street Expectations Map

HRZN ยท NASDAQ

Wall Street analysts project that HRZN stock may see slight declines over the coming 12 months. The consensus 1-year price target stands at 4.25, with estimates ranging from a low of 4.25 to a high of 4.25.

Lowest Target
4.25
-4.06%
Consensus Target
4.25
-4.06%
Highest Target
4.25
-4.06%

The consensus 1-year price target stands at 4.25, with estimates ranging from a low of 4.25 to a high of 4.25.

Analyst Consensus Analysis

Upside Potential

-4.1%

Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.

Analyst Agreement

0.0% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Risk-Reward Profile

1.00x

Balanced risk-reward. Upside and downside potential relatively symmetric. Suitable for moderate risk tolerance with conviction in thesis.

Analyst Conviction

Moderate

Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.

Market Sentiment Insight

Efficient pricing: Stock trading at fair value with strong consensus suggests market has priced in expectations. Look for fundamental inflection points or new catalysts to drive meaningful moves.

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Horizon Technology Finance Corporation Insider Positioning

HRZN ยท NASDAQ

During the last 12 months, there has been no insider trading activity reported for HRZN.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

No buying activity

Top Sellers

No selling activity

Insider Activity Analysis

Net Insider Sentiment

Neutral

No insider trading activity reported. This could indicate blackout periods, lack of conviction, or regulatory restrictions.

Insider Participation

No Activity

No insider trading activity reported from any insiders in the past year.

6.65%
Dividend Yield
30%
3Y+134.0%
5Y+224.0%
10Y+141.0%
ย 

hrzn Dividend History

HRZN
10Y CAGR 2%
Latest $0.09
Annual $1.22
Stable dividend payments
Last Period: +0%