Hercules Capital, Inc. (HTGC) AI Stock Analysis

Established in 2003 and based in Palo Alto, California, Hercules Capital, Inc. is a business development company specializing in financing venture capital-backed enterprises across sectors such as technology, energy technology, sustainable and renewable technology, and life sciences. The firm provides venture debt, senior secured loans, and growth capital to businesses at multiple development stages, from early-stage startups to established firms. Its financing solutions include working capital lines of credit, asset-based financing, capital extension, management buy-outs, corporate spin-outs, acquisitions, refinancing, and IPO bridge financing, primarily using structured debt with warrants, senior debt, and equity investments.

Hercules Capital experienced revenue fluctuations across recent years, with revenue dropping 22.7% to $239.4M in FY2022 before surging 106.4% to $494.1M in FY2023. In FY2024, revenue contracted 12.8% to $430.9M, then rebounded 27.0% to reach $547.1M in FY2025 with net income of $339.7M and an operating margin of 66.7%. Its 5-year revenue CAGR from FY2020 to FY2025 was 8.9%. In the trailing twelve months ended June 30, 2026, revenue stood at $566.2M with a profit margin of 67.7%. For the latest quarter ended June 30, 2026, quarterly revenue grew 8.5% year-over-year, while quarterly earnings grew 54.7%.

As of June 30, 2026, Hercules Capital held $48.2M in cash and short-term investments against total debt of $2.35B, resulting in net debt of $2.30B. Shareholders' equity was $2.27B, yielding a debt-to-equity ratio of 1.03 and a current ratio of 0.13. For FY2025, operating cash flow was -$425.8M and free cash flow was -$425.9M. During FY2025, capital expenditures were $89,000, share buybacks totaled $6.5M, and dividends paid reached $326.0M.

At a last close of $16.37, Hercules Capital carries a market capitalization of $3.06B and an enterprise value of $5.32B. The stock trades at a trailing P/E of 8.1x and a forward P/E of 8.6x, compared to medians of 12.1x and 10.8x for the US-listed Financial Services peer group. Its price-to-sales multiple is 5.4x, above the peer group median of 3.2x. Over the past year, the stock gained 6.7%, trailing the S&P 500 return of 16.8%, and over five years returned 66.9% versus 83.0% for the index.

Hercules Capital pays a quarterly dividend with an annualized forward dividend of $1.88, representing a dividend yield of 11.48%. The payout ratio stands at 92.8%, and the company has paid dividends for 22 consecutive years. Over the past five years, the dividend has grown at an annualized rate of 7.9%. Its last ex-dividend date was August 11, 2026.

Wall Street coverage consists of 6 Strong Buy, 2 Buy, and 1 Hold ratings, with zero Sell or Strong Sell ratings. The mean price target of $19.50 implies a 19.1% upside from the last close of $16.37. For the fiscal year ending December 31, 2026, analysts estimate revenue of $582.1M and EPS of $1.93. The company beat EPS estimates in 2 of the last 4 quarters, and its next earnings date is October 29, 2026.

This page is an AI-written research summary of Hercules Capital, Inc. (HTGC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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