Hercules Capital sets $0.47 Q3 2026 distribution
The third-quarter $0.47-per-share cash distribution consists of a $0.40 base payment and a $0.07 supplemental payment.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Hercules Capital, Inc. reported third-quarter 2026 total investment income of $140.1 million and net investment income of $87.3 million, or $0.47 per share. For the nine months ended September 30, 2026, total investment income was $430.8 million, up 9.0% year over year, and net investment income was $268.4 million, up 5.4%. The third-quarter cash distribution is $0.47 per share, comprising a $0.40 base distribution and a $0.07 supplemental distribution; November 10, 2026 is the record date and payment is scheduled for November 17, 2026.
During Q3, Hercules sold 2.3 million common shares through its equity ATM program for $39.2 million in net proceeds. Available liquidity was $506.6 million as of September 30, 2026, subject to existing terms and covenants. On October 8, 2026, Hercules issued $400.0 million of 6.700% unsecured notes due October 8, 2029. As of October 26, 2026, $571.7 million in pending commitments consisted of signed non-binding term sheets, subject to due diligence, final investment committee approval and definitive documentation. The debt investment portfolio increased $252.9 million at cost during Q3.
2 points · 0 major0 major · 0 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNine-month investment income increased 9.0% to $430.8 million.
- Moderate pointNine-month net investment income increased 5.4% to $268.4 million.
Negative
- None.
Filing Explained
As of September thirtieth, 397.6 million dollars of commitments were available on request; 13 million ATM shares remained available for sale.
In its third-quarter results disclosure, Hercules reports that, as of
Hercules also reports
As of
8-K Event Classification
3 items: 2.02, 8.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Q3 total investment income: $140.1 million
Q3 net investment income: $87.3 million
Nine-month total investment income: $430.8 million
+5 more
8 metrics
Q3 total investment income
$140.1 million
Third quarter 2026
Q3 net investment income
$87.3 million
Third quarter 2026
Nine-month total investment income
$430.8 million
Nine months ended September 30, 2026; up 9.0% year over year
Nine-month net investment income
$268.4 million
Nine months ended September 30, 2026; up 5.4% year over year
Cash distribution
$0.47 per share
Third quarter 2026; $0.40 base and $0.07 supplemental
Common shares sold through equity ATM program
2.3 million shares
During Q3 2026
Net ATM proceeds
$39.2 million
During Q3 2026; net of $0.3 million of offering expenses
Available liquidity
$506.6 million
As of September 30, 2026; subject to existing terms and covenants
Key Terms
Net investment income, Core Yield, non-accrual, available unfunded commitments
4 terms
Net investment income financial
"NII for Q3 2026 was $87.3 million"
Net investment income is the money an investor or fund actually keeps from its investments after subtracting the costs of running those investments (like management fees, interest, and losses). Think of it as your paycheck from owning assets: gross returns minus the bills needed to earn them. Investors watch it because it shows how profitable the investment activities are, influences dividend payouts and cash available for growth, and helps compare true performance across funds or companies.
Core Yield financial
"Core Yield, a non-GAAP measure, was 11.9%"
non-accrual financial
"two debt investments on non-accrual"
A non-accrual loan or asset is one for which a lender has stopped counting expected interest as income because the borrower is very late on payments or in serious financial trouble. For investors, non-accruals signal that future cash from interest is uncertain and that the lender may need to write down the loan’s value or set aside extra reserves, similar to a landlord who stops recording rent when a tenant stops paying.
available unfunded commitments financial
"available unfunded commitments at the request of the portfolio company"
Earnings Snapshot
Total investment income: $140.1 million
Q3 2026 and nine months ended September 30, 2026
Total investment income
$140.1 million
up 1.5% year over year
Net investment income
$87.3 million
down from $88.6 million in Q3 2025
Nine-month total investment income
$430.8 million
up 9.0% year over year
Nine-month net investment income
$268.4 million
up 5.4% year over year
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did Hercules Capital report in its HCXY Q3 2026 results?
Q3 2026 total investment income was $140.1 million, and net investment income was $87.3 million, or $0.47 per share. For the nine months ended September 30, 2026, those figures were $430.8 million and $268.4 million, respectively.
What distribution did Hercules Capital declare for HCXY in Q3 2026?
The third-quarter 2026 cash distribution is $0.47 per share, comprising a $0.40 base distribution and a $0.07 supplemental distribution. The record date is November 10, 2026, and payment is scheduled for November 17, 2026.
When could Hercules Capital's HCXY pending term-sheet commitments become contractual?
The $571.7 million in pending commitments as of October 26, 2026 consists of signed non-binding term sheets. These generally convert to contractual commitments approximately 90 days from signing, subject to satisfactory due diligence, final investment committee approval and definitive documentation. Some may be assigned to or originated by Adviser Funds.
What was Hercules Capital's year-to-date qualified interest income percentage for HCXY?
Qualified interest income was 81.14% of distributions declared year to date through September 30, 2026, on Hercules Capital's common stock.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 27, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File No.) | (I.R.S. Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code: (650 ) 289-3060
Not Applicable
(Former name or address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operation and Financial Condition | ||||
On October 29, 2026, Hercules Capital, Inc. (the “Company”) issued a press release announcing its earnings for the quarter ended September 30, 2026. The text of the press release is included as an exhibit to this Form 8-K.
The information disclosed under this Item 2.02 including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.
| Item 8.01 | Other Events | ||||
On October 27, 2026, the Company announced that its Board of Directors has declared a third quarter 2026 total cash distribution of $0.47 per share, which will be paid to stockholders on the date set forth below. The text of the press release is included as an exhibit to this Form 8-K.
Distribution Payable in November 2026
| Ex-Dividend and Record Date | Payment Date | Total Distribution Per Share | ||||||||||||
| November 10, 2026 | November 17, 2026 | $0.47 | ||||||||||||
| Item 9.01. | Financial Statements and Exhibits | ||||
(d) Exhibits.
| Number | Exhibit | |||||||
| 99.1 | Press Release dated October 29, 2026 | |||||||
| 99.2 | Press Release dated October 27, 2026 | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| HERCULES CAPITAL, INC. | ||||||||||||||||||||
| October 29, 2026 | ||||||||||||||||||||
| By: | /s/ Kiersten Zaza Botelho | |||||||||||||||||||
| Kiersten Zaza Botelho | ||||||||||||||||||||
| Secretary | ||||||||||||||||||||
Exhibit 99.1
Hercules Capital Reports Third Quarter 2026 Financial Results
Record Year-to-Date Ending Q3 2026 Total New Debt and Equity Commitments of $3.44 Billion, an Increase of 20.0% Year-over-Year
Record Year-to-Date Ending Q3 2026 Total Fundings of $1.93 Billion, an Increase of 9.9% Year-over-Year
Record Year-to-Date Ending Q3 2026 Total Investment Income of $430.8 Million, an Increase of 9.0% Year-over-Year
Record Year-to-Date Ending Q3 2026 Net Investment Income "NII" of $268.4 Million, an Increase of 5.4% Year-over-Year
Q3 2026 NII of $87.3 Million, or $0.47 per Share provides 118% Coverage of the Base Cash Distribution
Conservative Balance Sheet Management with Net GAAP Leverage of 109.0% and Net Regulatory Leverage of 94.0%
Inclusive of the Adviser Funds Advised by Hercules Adviser LLC, its Wholly-Owned Subsidiary, Hercules had over $1.0 Billion of Available Liquidity as of the end of Q3 2026
Undistributed Earnings Spillover of $167.8 Million, or $0.88(1) per Ending Shares Outstanding
Approximately $6.5 Billion of Assets Under Management, an Increase of 17.7% Year-over-Year(2)
Q3 2026 Financial Achievements and Highlights
•Total Investment Income of $140.1 million, an increase of 1.5% year-over-year
•NII of $87.3 million, or $0.47 per share
•Total new debt and equity commitments of $701.0 million
•Net debt and equity commitments of $557.6 million(3)
•Total fundings of $572.9 million
•Net fundings of $438.3 million(3)
•Unscheduled early principal repayments or “early loan repayments” of $148.3 million, a decrease of 74.1% from $572.1 million in Q2 2026
•$506.6 million of available liquidity, subject to existing terms and covenants
•15.4% Return on Average Equity “ROAE” (NII/Average Equity)(4)
1
Exhibit 99.1
•7.4% Return on Average Assets “ROAA” (NII/Average Assets)
•GAAP leverage of 111.1% and regulatory leverage of 96.1%(5)
•Net GAAP leverage (includes SBA debentures and excludes cash) of 109.0% and net regulatory leverage, a non-GAAP measure (excludes SBA debentures and cash) of 94.0%
•Net Asset Value “NAV” of $12.26 per share, an increase of 0.9% from Q2 2026
•12.3% GAAP Effective Yield and 11.9% Core Yield(6), a non-GAAP measure
Nine-months ending September 30, 2026 Financial Highlights
•Record nine-months ending Q3 2026 Total Investment Income of $430.8 million, an increase of 9.0% year-over-year
•Record nine-months ending Q3 2026 NII of $268.4 million, an increase of 5.4% year-over-year
•Record nine-months ending Q3 2026 total new debt and equity commitments of $3.44 billion, an increase of 20.0% year-over-year
•Record nine-months ending Q3 2026 total fundings of $1.93 billion, an increase of 9.9% year-over-year
•Net debt investment portfolio growth of $380.7 million
•Unscheduled early loan repayments of $946.2 million
Footnotes:
(1)$0.91 per Weighted Average Shares Outstanding
(2)Assets under management includes assets managed by Hercules Capital, Inc. ("Hercules") and the Adviser Subsidiary (defined below)
(3)Net commitments and fundings are net of what was assigned to or directly committed or funded by the "Adviser Funds" which are external vehicles advised by Hercules Adviser LLC (the “Adviser Subsidiary")” during the quarter
(4)As presented above, ROAE is (i) sourced from Hercules as of September 30, 2026 and (ii) based on NII, excluding realized and unrealized gains/losses
(5)Regulatory leverage represents debt-to-equity ratio, excluding the Company’s Small Business Administration (“SBA”) debentures
(6)Core Yield excludes early loan repayments, dividends from the Adviser Subsidiary, one-time fees and bank interest income, and includes income and fees from expired commitments
SAN MATEO, Calif., October 29, 2026 – Hercules Capital, Inc. (NYSE: HTGC) (“Hercules,” "Hercules Capital," or the “Company”), the largest and leading specialty financing provider to innovative venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, today announced its financial results for the third quarter ended September 30, 2026.
“Building on record results in the first half of 2026, the Hercules platform continued to deliver in Q3, bringing year-to-date new debt and equity commitments to a record $3.44 billion and fundings to a record $1.93 billion, increases of 20.0% and 9.9% year-over-year, respectively,” stated Scott Bluestein, chief executive officer and chief investment officer of Hercules.
Bluestein added, “Our consistent new business activity, combined with continued stable credit performance, drove new year-to-date records for total investment income of $430.8 million and net investment income of $268.4 million, increases of 9.0% and 5.4% year-over-year, respectively. We continue to comfortably cover our base dividend operating at these levels with 118% coverage for Q3, despite a nearly 75% reduction in early repayment volume during the quarter."
2
Exhibit 99.1
Bluestein concluded, “We remain focused on managing our business and balance sheet conservatively, and we are confident in the strength of the Hercules platform and our ability to generate strong operating results irrespective of market dynamics. We believe that we are continuing to benefit from operating at scale and that we remain well positioned as we close out the year.”
Q3 2026 Review and Operating Results
Debt Investment Portfolio
Hercules delivered Q3 new debt and equity commitments totaling $701.0 million and Q3 new fundings totaling $572.9 million.
During the third quarter, Hercules realized early loan repayments of $148.3 million which, along with normal scheduled amortization of $3.4 million, resulted in total debt repayments of $151.7 million.
The new debt investment origination and funding activities combined with repayments and normal scheduled amortization led to a net debt investment portfolio increase of $252.9 million during the third quarter on a cost basis.
The Company’s total investment portfolio, (at cost and fair value) by category, quarter-over-quarter is highlighted below:
Total Investment Portfolio: Q2 2026 to Q3 2026
(in millions) | Debt | Equity & Other Investments | Warrants | Total Portfolio | |||||||||||||||||||
Balances at Cost at June 30, 2026 | $ | 4,391.7 | $ | 176.3 | $ | 35.3 | $ | 4,603.3 | |||||||||||||||
New fundings(a) | 564.9 | 5.9 | 2.1 | 572.9 | |||||||||||||||||||
Fundings assigned to or directly funded by Adviser Funds | (133.2) | (0.8) | (0.6) | (134.6) | |||||||||||||||||||
Principal payments received on investments | (3.4) | — | — | (3.4) | |||||||||||||||||||
Early payoffs(b) | (148.3) | — | — | (148.3) | |||||||||||||||||||
Proceeds from sale of debt investments | (24.0) | — | — | (24.0) | |||||||||||||||||||
Assets Sale - Participants | (15.4) | — | — | (15.4) | |||||||||||||||||||
Net changes attributed to conversions, liquidations, and fees | 12.3 | 6.3 | (3.4) | 15.2 | |||||||||||||||||||
Net activity during Q3 2026 | 252.9 | 11.4 | (1.9) | 262.4 | |||||||||||||||||||
Balances at Cost at September 30, 2026 | $ | 4,644.6 | $ | 187.7 | $ | 33.4 | $ | 4,865.7 | |||||||||||||||
Balances at Fair Value at June 30, 2026 | $ | 4,376.2 | $ | 156.4 | $ | 51.3 | $ | 4,583.9 | |||||||||||||||
Net activity during Q3 2026 | 252.9 | 11.4 | (1.9) | 262.4 | |||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 17.4 | (14.2) | (3.1) | 0.1 | |||||||||||||||||||
FX unrealized gain (loss) | (0.5) | — | — | (0.5) | |||||||||||||||||||
Total net activity during Q3 2026 | 269.8 | (2.8) | (5.0) | 262.0 | |||||||||||||||||||
Balances at Fair Value at September 30, 2026 | $ | 4,646.0 | $ | 153.6 | $ | 46.3 | $ | 4,845.9 | |||||||||||||||
(a) Includes $2.8 million fundings associated with revolver loans during Q3 2026.
(b) Early payoffs includes $2.1 million paydowns on revolvers during Q3 2026.
3
Exhibit 99.1
Debt Investment Portfolio Balances by Quarter
(in millions) | Q3 2026 | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | ||||||||||||||||||||||||
Ending Balance at Cost | $4,644.6 | $4,391.7 | $4,561.9 | $4,263.9 | $4,073.2 | ||||||||||||||||||||||||
Weighted Average Balance | $4,417.7 | $4,397.1 | $4,397.8 | $4,148.1 | $3,970.0 | ||||||||||||||||||||||||
Debt Investment Portfolio Composition by Quarter
(% of debt investment portfolio) | Q3 2026 | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | ||||||||||||||||||||||||
First Lien Senior Secured | 88.8% | 86.8% | 88.6% | 89.3% | 90.4% | ||||||||||||||||||||||||
Floating Rate w/Floors | 97.9% | 97.8% | 98.0% | 97.9% | 97.8% | ||||||||||||||||||||||||
GAAP Effective Portfolio Yield and Core Portfolio Yield (“Core Yield”)
The GAAP effective yield on Hercules’ debt investment portfolio was 12.3% during Q3 2026 as compared to 13.4% for Q2 2026. The Company realized $148.3 million of early loan repayments in Q3 2026 compared to $572.1 million in Q2 2026, or a decrease of 74.1%. Effective yields generally include the effects of fees and income accelerations attributed to early loan repayments and other one-time events. Effective yields are materially impacted by the elevated or reduced levels of early loan repayments and derived by dividing total investment income by the weighted average earning investment portfolio assets outstanding during the quarter, which excludes non-interest earning assets such as warrants and equity investments.
Core Yield, a non-GAAP measure, was 11.9% during Q3 2026, within the Company’s expected range of 11.8% to 12.0%, and decreased from 12.0% in Q2 2026. Hercules defines Core Yield as yield that generally excludes any benefit from income related to early repayments attributed to the acceleration of unamortized income and prepayment fees and includes income from expired commitments.
Income Statement
Total investment income increased to $140.1 million for Q3 2026, compared to $138.1 million in Q3 2025. The increase is primarily attributable to a higher weighted average debt investment portfolio between periods, partially offset by lower yields.
Non-interest and fee expenses were $24.3 million in Q3 2026, compared to $26.4 million in Q3 2025. The decrease was primarily due to a decrease in employee compensation expenses and tax expenses.
Interest expense and fees were $33.2 million in Q3 2026, compared to $27.2 million in Q3 2025. The increase was primarily due to a higher weighted average and cost of borrowings.
The Company had a weighted average cost of borrowings comprised of interest and fees, of 5.4% in Q3 2026, as compared to 5.1% for Q3 2025.
4
Exhibit 99.1
NII – Net Investment Income
NII for Q3 2026 was $87.3 million, or $0.47 per share, based on 186.0 million basic weighted average shares outstanding, compared to $88.6 million, or $0.49 per share, based on 180.4 million basic weighted average shares outstanding in Q3 2025. The decrease in NII is primarily attributable to lower early repayment volume and higher interest expense due to higher weighted average borrowings, partially offset by an increase in total investment income and lower employee compensation expenses between periods.
Continued Credit Discipline and Strong Credit Performance
Hercules’ net cumulative realized gain/(loss) position, since its first origination activities in October 2004 through September 30, 2026, (including net loan, warrant and equity activity and excluding loss on debt extinguishment, foreign exchange movements and other non-credit related losses) on investments totaled ($101.5) million, on a GAAP basis, spanning more than 21 years of investment activities.
When compared to total net new debt investment commitments during the same period of approximately $24.9 billion, the total realized gain/(loss) since inception of ($101.5) million represents approximately 41 basis points (“bps”), or 0.41%, of cumulative debt commitments, or an effective annualized loss rate of 1.9 bps, or 0.019%.
Realized Gains/(Losses)
During Q3 2026, Hercules had net realized losses of ($1.9) million, consisting of $8.0 million of gains on equity and warrant investments, offset by ($7.9) million of realized foreign currency losses on the repayment of the Company’s Euro-denominated credit facility and ($2.0) million of realized losses on debt investments. Excluding any foreign exchange impact, Hercules had net realized gains of $6.0 million on the investment portfolio during Q3. The realized foreign currency loss on the Euro-denominated credit facility had minimal impact on net asset value during the quarter, as it represented previously recorded unrealized depreciation that was converted to a realized loss when the facility was repaid. The Company repaid the facility and entered into a foreign currency forward contract to hedge the currency exposure on its Euro-denominated debt investment. That investment continues to carry unrealized appreciation from foreign currency movements.
Unrealized Appreciation/(Depreciation)
During Q3 2026, Hercules recorded $8.2 million of net unrealized appreciation, net of the impact of foreign currency movements. This is primarily attributable to $9.8 million of net unrealized appreciation attributable to debt investments, $8.1 million of net unrealized appreciation attributable to foreign currency, $2.6 million of net reversals of previously recorded unrealized depreciation upon realization events, and $0.8 million of net unrealized appreciation attributable to valuation movements in publicly and privately held warrants. This was partially offset by ($13.1) million of net unrealized depreciation attributable to valuation movements in publicly and privately held equity and investment funds.
Portfolio Asset Quality
As of September 30, 2026, the weighted average grade of the debt investment portfolio, at cost, was 2.12 compared to 2.17 as of June 30, 2026, based on a scale of 1 to 5, with 1 being the highest quality. Hercules’ policy is to generally adjust the credit grading down on its portfolio companies as they approach their expected need for additional growth equity capital to fund their respective operations for the next 9-14 months. Various portfolio companies in the
5
Exhibit 99.1
Company’s portfolio will require additional rounds of funding from time to time to maintain their operations. Additionally, Hercules may selectively downgrade portfolio companies from time to time if they are not meeting the Company’s financing criteria or are underperforming relative to their respective business plans.
As of September 30, 2026, grading of the debt investment portfolio at fair value, excluding warrants and equity investments, was as follows:
Credit Grading (at Fair Value), Q3 2026 - Q3 2025 ($ in millions) | ||||||||||||||||||||||||||||||||||||||||||||
Q3 2026 | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | ||||||||||||||||||||||||||||||||||||||||
Grade 1 - High | $ | 1,073.6 | 23.1 | % | $ | 940.5 | 21.5 | % | $ | 944.5 | 20.8 | % | $ | 681.6 | 15.9 | % | $ | 513.4 | 12.5 | % | ||||||||||||||||||||||||
Grade 2 | $ | 2,110.8 | 45.5 | % | $ | 1,920.8 | 43.9 | % | $ | 2,256.5 | 49.7 | % | $ | 2,169.0 | 50.7 | % | $ | 2,128.9 | 52.0 | % | ||||||||||||||||||||||||
Grade 3 | $ | 1,394.8 | 30.0 | % | $ | 1,432.5 | 32.7 | % | $ | 1,300.0 | 28.6 | % | $ | 1,355.5 | 31.7 | % | $ | 1,340.9 | 32.7 | % | ||||||||||||||||||||||||
Grade 4 | $ | 52.5 | 1.1 | % | $ | 76.9 | 1.8 | % | $ | 35.4 | 0.8 | % | $ | 73.3 | 1.7 | % | $ | 112.4 | 2.8 | % | ||||||||||||||||||||||||
Grade 5 - Low | $ | 14.3 | 0.3 | % | $ | 5.5 | 0.1 | % | $ | 3.7 | 0.1 | % | $ | — | — | % | $ | — | — | % | ||||||||||||||||||||||||
Weighted Avg. (at Cost) | 2.12 | 2.17 | 2.11 | 2.20 | 2.27 | |||||||||||||||||||||||||||||||||||||||
Non-Accruals
The number of loans on non-accrual remained the same quarter-over-quarter. As of September 30, 2026, the Company had two debt investments on non-accrual with an investment cost and fair value of approximately $18.8 million and $13.2 million, respectively, or 0.4% and 0.3% as a percentage of the Company’s total investment portfolio at cost and value, respectively.
As of June 30, 2026, the Company had two debt investments on non-accrual with an investment cost and fair value of approximately $16.0 million and $5.5 million, respectively, or 0.3% and 0.1% as a percentage of the Company’s total investment portfolio at cost and value, respectively.
Q3 2026 | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 | |||||||||||||
Total Investments at Cost | $4,865.7 | $4,603.3 | $4,770.4 | $4,467.8 | $4,290.8 | ||||||||||||
Loans on non-accrual as a % of Total | |||||||||||||||||
Investments at Value | 0.3% | 0.1% | 0.1% | 0.1% | 1.1% | ||||||||||||
Loans on non-accrual as a % of Total | |||||||||||||||||
Investments at Cost | 0.4% | 0.3% | 0.2% | 0.2% | 1.2% | ||||||||||||
Liquidity and Capital Resources
The Company ended Q3 2026 with $506.6 million in available liquidity, including $48.3 million in unrestricted cash and cash equivalents, $383.3 million available under its credit facilities, and $75.0 million in additional SBA availability, subject to existing terms, advance rates, regulatory and covenant requirements.
In addition to the Company's available liquidity, it has 13.0 million shares remaining available for issuance and sale under the equity ATM program. During Q3 2026, the Company sold 2.3 million shares of common stock under the equity ATM program for total net proceeds of $39.2 million (net of $0.3 million of offering expenses).
6
Exhibit 99.1
Credit Facilities
As of September 30, 2026, there were $241.0 million outstanding borrowings under Hercules’ $440.0 million committed credit facility with MUFG Bank, Ltd. and $290.2 million of outstanding borrowings and $0.5 million of outstanding letter of credits under Hercules’ $475.0 million committed credit facility and letter of credit facility with SMBC.
Leverage
As of September 30, 2026, Hercules’ GAAP leverage ratio, including its SBA debentures, was 111.1%. Hercules’ regulatory leverage, or debt-to-equity ratio, excluding its SBA debentures, was 96.1% and net regulatory leverage, a non-GAAP measure (excluding cash of approximately $48.3 million), was 94.0%. Hercules’ net leverage ratio, a non-GAAP measure (including its SBA debentures), was 109.0%.
Available Unfunded Commitments – Representing 8.0% of Total Assets
The Company’s unfunded commitments and contingencies consist primarily of unused commitments to extend credit in the form of loans to select portfolio companies. A portion of these unfunded contractual commitments are dependent upon the portfolio company reaching certain milestones in order to gain access to additional funding. Furthermore, the credit agreements the Company enters into with its portfolio companies contain customary lending provisions that allow us relief from funding obligations for previously made commitments in instances where the underlying company experiences materially adverse events that affect the financial condition or business outlook for the portfolio company. In addition, since a portion of these commitments may also expire without being drawn, unfunded contractual commitments do not necessarily represent future cash requirements.
As of September 30, 2026, the Company had $397.6 million of available unfunded commitments at the request of the portfolio company and unencumbered by any milestones, including undrawn revolving facilities, representing 8.0% of Hercules’ total assets. The amount of available unfunded commitments decreased from the previous quarter of $408.2 million or 8.7% of Hercules’ total assets.
Existing Pipeline and Signed Term Sheets
After closing $701.0 million in new debt and equity commitments in Q3 2026, Hercules has pending commitments of $571.7 million in signed non-binding term sheets outstanding as of October 26, 2026. Since the close of Q3 2026 and as of October 26, 2026, Hercules has closed new debt and equity commitments (before assignments to or direct originations by the Adviser Funds) of $219.6 million and funded $89.2 million.
Signed non-binding term sheets are subject to satisfactory completion of Hercules’ due diligence and final investment committee approval process as well as negotiations of definitive documentation with the prospective portfolio companies. These non-binding term sheets generally convert to contractual commitments in approximately 90 days from signing and some portion may be assigned or allocated to or directly originated by private funds managed by the Adviser Subsidiary prior to or after closing.
7
Exhibit 99.1
The table below summarizes the Company’s year-to-date closed and pending commitments:
Closed Commitments and Pending Commitments (in millions) | |||||
January 1 - September 30, 2026 Closed Commitments (a)(c) | $ | 3,440.5 | |||
Q4 2026 Closed Commitments (as of October 26, 2026)(a)(c) | $ | 219.6 | |||
Year-to-Date 2026 Closed Commitments (as of October 26, 2026)(a)(c) | $ | 3,660.1 | |||
Q4 2026 Pending Commitments (as of October 26, 2026)(b) | $ | 571.7 | |||
Year-to-Date 2026 Closed and Pending Commitments (a)(b)(c) | $ | 4,231.8 | |||
Notes:
a.Closed commitments may include renewals of existing credit facilities and equity commitments. Not all closed commitments result in future cash requirements. Commitments generally fund over the two succeeding quarters from close.
b.Not all pending commitments (signed non-binding term sheets) are expected to close and do not necessarily represent any future cash requirements.
c.Gross commitments before assignments to or direct originations by the Adviser Funds.
Net Asset Value
As of September 30, 2026, the Company’s net assets were $2.32 billion, compared to $2.27 billion at the end of Q2 2026. NAV per share increased 0.9% to $12.26 on 189.6 million outstanding shares of common stock as of September 30, 2026, compared to $12.15 on 187.2 million outstanding shares of common stock as of June 30, 2026. The increase in NAV per share was primarily attributed to accretion from ATM equity issuances above NAV and net unrealized appreciation on our debt investments.
Interest Rate Sensitivity
Hercules has an asset sensitive debt investment portfolio with 97.9% of its debt investment portfolio being priced at floating interest rates as of September 30, 2026, with a Prime or Non-Prime based (SOFR) interest rate floor, combined with 79.4% of its outstanding debt borrowings bearing fixed interest rates, leading to higher net investment income sensitivity.
Based on Hercules’ Consolidated Statement of Assets and Liabilities as of September 30, 2026, the following table shows the approximate annualized increase/(decrease) in components of net income resulting from operations of hypothetical base rate changes in interest rates, such as Prime Rate, assuming no changes in Hercules’ debt investments and borrowings. These estimates are subject to change due to the impact from active participation in the Company’s equity ATM program and any future equity offerings.
(in thousands) Basis Point Change | Interest Income(1)(2) | Interest Expense(3) | Net Income | EPS(4) | ||||||||||||||||||||||
(200) | $ | (22,012) | $ | (4,275) | $ | (17,737) | $ | (0.10) | ||||||||||||||||||
(100) | $ | (15,444) | $ | (2,137) | $ | (13,307) | $ | (0.07) | ||||||||||||||||||
(75) | $ | (12,912) | $ | (1,603) | $ | (11,309) | $ | (0.06) | ||||||||||||||||||
(50) | $ | (10,001) | $ | (1,069) | $ | (8,932) | $ | (0.05) | ||||||||||||||||||
(25) | $ | (5,729) | $ | (534) | $ | (5,195) | $ | (0.03) | ||||||||||||||||||
25 | $ | 7,189 | $ | 534 | $ | 6,655 | $ | 0.04 | ||||||||||||||||||
50 | $ | 14,393 | $ | 1,069 | $ | 13,324 | $ | 0.07 | ||||||||||||||||||
75 | $ | 23,084 | $ | 1,603 | $ | 21,481 | $ | 0.12 | ||||||||||||||||||
1.Source: Hercules Form 10-Q for Q3 2026
2.Includes change in bank interest income, calculated using the weighted average balance of cash and cash equivalents for the three months ended September 30, 2026.
3.Calculated using the weighted average principal outstanding under the Company’s floating rate credit facilities for the three months ended September 30, 2026.
4.Earnings per share calculated on basic weighted shares outstanding of 185,989. Estimates are subject to change due to impact from active participation in the Company's equity ATM program and any future equity offerings.
8
Exhibit 99.1
Existing Equity and Warrant Portfolio
Equity Portfolio
Hercules held equity positions in 73 portfolio companies with a fair value of $146.8 million and a cost basis of $182.4 million as of September 30, 2026. On a fair value basis, 19.6% or $30.1 million is related to public equity positions.
Warrant Portfolio
Hercules held warrant positions in 114 portfolio companies with a fair value of $46.3 million and a cost basis of $33.4 million as of September 30, 2026. On a fair value basis, 20.5% or $9.5 million is related to public warrant positions.
Portfolio Company IPO and M&A Activity in Q3 2026
As of October 26, 2026, Hercules held debt, warrant or equity positions in two portfolio companies that have completed or announced an IPO or M&A event, including:
IPO and SPAC Activity as of Q3 2026
•N/A
M&A Activity in Q3 2026
•In July 2026, Hercules’ portfolio company Simon Data, Inc., the agentic platform built on the AI-first composable customer data platform, was acquired by Monetate, the leader in AI-powered digital and omnichannel personalization, experimentation and experience optimization. Terms of the acquisition were not disclosed. Hercules initially committed $25.0 million in venture debt financing beginning in March 2023.
•In July 2026, Hercules’ portfolio company DroneDeploy, Inc., the robotics and visual intelligence platform for the built world that is used on over 3 million jobsites across more than 180 countries, entered into a definitive agreement to be acquired by Procore Technologies, Inc. (NYSE: PCOR), the leading global provider of construction management software, for approximately $845.0 million in cash. The acquisition is subject to customary regulatory approvals and closing conditions. Hercules initially committed $65.0 million in June 2022.
There can be no assurances that companies that have yet to complete their IPOs will do so or that pending merger announcements will close.
Subsequent Events
On October 8, 2026, the Company issued $400.0 million in aggregate principal amount of 6.700% interest-bearing unsecured notes due October 8, 2029 (the “October 2029 Notes”), unless repurchased in accordance with the terms of the Twelfth Supplemental Indenture, dated October 8, 2026 (the “Twelfth Supplemental Indenture”). Interest on the October 2029 Notes is payable semiannually in arrears on April 8 and October 8 of each year, commencing April 8, 2027. The October 2029 Notes are general unsecured obligations and rank pari passu, or equally in right of payment, with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. The Company may redeem some or all of the October 2029 Notes at any time, or from time to time, at the redemption price set forth under the terms of the Twelfth Supplemental Indenture.
9
Exhibit 99.1
Non-GAAP Financial Measures
To provide additional information about the Company’s results, the Company’s management has discussed in this press release the Company’s Core Yield (calculated as yield excluding early loan repayments, dividends from the Adviser Subsidiary, one-time fees and bank interest income, and includes income and fees from expired commitments), core investment income (calculated as total investment income from debt investments excluding fees and other income accelerations attributed to early payoffs, deal restructuring, loan modifications, and other one-time income events, but includes income from expired commitments), net leverage ratio (calculated as net debt (i.e., debt less unrestricted cash) divided by total net assets), and its net regulatory leverage (calculated as net debt (i.e., debt less unrestricted cash), excluding SBA debentures, divided by total net assets), which are not prepared in accordance with GAAP. These non-GAAP measures are included to supplement the Company’s financial information presented in accordance with GAAP and because the Company uses such measures to monitor and evaluate its leverage and financial condition and believes the presentation of these measures enhances investors’ ability to analyze trends in the Company’s business and to evaluate the Company’s leverage and ability to take on additional debt. However, these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for analysis of the Company’s financial results as reported under GAAP.
These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. These measures should only be used to evaluate the Company’s results of operations in conjunction with their corresponding GAAP measures.
Conference Call
Hercules has scheduled its third quarter 2026 financial results conference call for October 29, 2026 at 2:00 p.m. PT (5:00 p.m. ET). All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Investor Relations section of our website at investor.htgc.com. Please visit the website to test your connection before the webcast. Domestic callers can access the conference call toll free by dialing +1 (800) 420-1459. International callers can access the conference call by dialing +1 (203) 518-9861. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected and to reference the conference ID HTGCQ326. For interested parties, an archived replay will be available on a webcast link located on the Investor Relations section of Hercules Capital's website.
About Hercules Capital, Inc.
Hercules Capital, Inc. (NYSE: HTGC) is the leading and largest specialty finance company focused on providing senior secured venture growth loans to high-growth, innovative venture capital-backed companies in a broad variety of technology and life sciences industries. Since inception (December 2003), Hercules has committed $29 billion to over 700 companies and is the lender of choice for entrepreneurs and venture capital firms seeking growth capital financing. Companies interested in learning more about financing opportunities should contact info@htgc.com, or call 650.289.3060.
Hercules, through its wholly owned subsidiary business, Hercules Adviser LLC (the "Adviser Subsidiary"), also maintains an asset management business through which it manages investments for external parties (“Adviser Funds”). The Adviser Subsidiary is registered as an investment adviser under the Investment Advisers Act of 1940.
10
Exhibit 99.1
Hercules’ common stock trades on the New York Stock Exchange (NYSE) under the ticker symbol “HTGC.” In addition, Hercules has one retail bond issuance of 6.25% Notes due 2033 (NYSE: HCXY).
Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We may use words such as “anticipates,” “believes,” “expects,” “intends,” “will,” “should,” “may” and similar expressions to identify forward-looking statements. Forward-looking statements are not guarantees of future performance and should not be relied upon in making any investment decision. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations. While we cannot identify all such risks and uncertainties, we urge you to read the risks discussed in our Annual Report on Form 10-K and other materials that we publicly file with the Securities and Exchange Commission. Any forward-looking statements made in this press release are made only as of the date hereof. Hercules assumes no obligation to update any such statements in the future.
Contact:
Michael Hara
Investor Relations and Corporate Communications
Hercules Capital, Inc.
650-433-5578
mhara@htgc.com
11
Exhibit 99.1
HERCULES CAPITAL, INC.
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except per share data) | September 30, 2026 | December 31, 2025 | |||||||||
(unaudited) | |||||||||||
Assets | |||||||||||
Investments, at fair value: | |||||||||||
Non-control/Non-affiliate investments (cost of $4,740,327 and $4,362,559, respectively) | $ | 4,720,837 | $ | 4,351,596 | |||||||
Control investments (cost of $114,659 and $105,409, respectively) | 122,030 | 115,051 | |||||||||
Affiliate investments (cost of $10,684 and $0, respectively) | 3,036 | — | |||||||||
Total investments, at fair value (cost of $4,865,670 and $4,467,968, respectively; fair value amounts related to a VIE $136,812 and $158,980, respectively) | 4,845,903 | 4,466,647 | |||||||||
Cash and cash equivalents (1) | 48,331 | 56,987 | |||||||||
Restricted cash (amounts related to a VIE $2,225 and $2,467, respectively) | 2,225 | 2,467 | |||||||||
Interest receivable | 38,313 | 37,261 | |||||||||
Right of use asset | 13,320 | 14,842 | |||||||||
Other assets | 4,519 | 5,822 | |||||||||
Total assets | $ | 4,952,611 | $ | 4,584,026 | |||||||
Liabilities | |||||||||||
Debt (net of unamortized debt issuance costs of $32,909 and $26,626, respectively; amounts related to a VIE $49,660 and $64,530, respectively) | $ | 2,550,470 | $ | 2,286,444 | |||||||
Accounts payable and accrued liabilities | 62,925 | 65,262 | |||||||||
Operating lease liability | 14,503 | 16,267 | |||||||||
Total liabilities | $ | 2,627,898 | $ | 2,367,973 | |||||||
Net assets consist of: | |||||||||||
Common stock, par value | $ | 190 | $ | 183 | |||||||
Capital in excess of par value | 2,219,773 | 2,114,719 | |||||||||
Total distributable earnings | 104,750 | 101,151 | |||||||||
Total net assets | $ | 2,324,713 | $ | 2,216,053 | |||||||
Total liabilities and net assets | $ | 4,952,611 | $ | 4,584,026 | |||||||
Shares of common stock outstanding ($0.001 par value and 300,000 authorized) | 189,597 | 182,695 | |||||||||
Net asset value per share | $ | 12.26 | $ | 12.13 | |||||||
(1)The former foreign cash category has been consolidated into “Cash and cash equivalents”. Prior year amounts have been reclassified to conform to the current presentation.
12
Exhibit 99.1
HERCULES CAPITAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share data) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||||||
Investment income: | ||||||||||||||||||||
Interest and dividend income: | ||||||||||||||||||||
Excluding payment-in-kind (PIK) interest income | ||||||||||||||||||||
Non-control/Non-affiliate investments | $ | 120,098 | $ | 113,854 | $ | 362,424 | $ | 325,970 | ||||||||||||
Control investments | 3,565 | 2,828 | 10,428 | 8,747 | ||||||||||||||||
Total interest and dividend income, excluding PIK interest income | 123,663 | 116,682 | 372,852 | 334,717 | ||||||||||||||||
PIK interest income | ||||||||||||||||||||
Non-control/Non-affiliate investments | 10,563 | 13,906 | 35,819 | 39,928 | ||||||||||||||||
Control investments | — | 569 | — | 1,655 | ||||||||||||||||
Total PIK interest income | 10,563 | 14,475 | 35,819 | 41,583 | ||||||||||||||||
Total interest and dividend income | 134,226 | 131,157 | 408,671 | 376,300 | ||||||||||||||||
Fee income: | ||||||||||||||||||||
Non-control/Non-affiliate investments | 5,857 | 6,892 | 21,996 | 18,639 | ||||||||||||||||
Control investments | 32 | 44 | 98 | 124 | ||||||||||||||||
Total fee income | 5,889 | 6,936 | 22,094 | 18,763 | ||||||||||||||||
Total investment income | 140,115 | 138,093 | 430,765 | 395,063 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Interest | 29,884 | 24,189 | 86,160 | 66,817 | ||||||||||||||||
Loan fees | 3,315 | 3,004 | 8,998 | 8,149 | ||||||||||||||||
General and administrative | 5,032 | 4,477 | 14,705 | 14,392 | ||||||||||||||||
Tax expenses | 1,253 | 1,703 | 5,033 | 3,683 | ||||||||||||||||
Employee compensation: | ||||||||||||||||||||
Compensation and benefits | 13,969 | 16,540 | 49,626 | 47,118 | ||||||||||||||||
Stock-based compensation | 4,035 | 3,691 | 12,121 | 10,955 | ||||||||||||||||
Total employee compensation | 18,004 | 20,231 | 61,747 | 58,073 | ||||||||||||||||
Total gross operating expenses | 57,488 | 53,604 | 176,643 | 151,114 | ||||||||||||||||
Expenses allocated to the Adviser Subsidiary | (4,722) | (4,063) | (14,252) | (10,795) | ||||||||||||||||
Total net operating expenses | 52,766 | 49,541 | 162,391 | 140,319 | ||||||||||||||||
Net investment income | 87,349 | 88,552 | 268,374 | 254,744 | ||||||||||||||||
Net realized gain (loss) and net change in unrealized appreciation (depreciation): | ||||||||||||||||||||
Non-control/Non-affiliate investments | (1,941) | (1,772) | 5,158 | (60,929) | ||||||||||||||||
Affiliate investments | 5 | — | 5 | — | ||||||||||||||||
Loss on extinguishment of debt | — | (84) | (2) | (120) | ||||||||||||||||
Total net realized gain (loss) | (1,936) | (1,856) | 5,161 | (61,049) | ||||||||||||||||
Net change in unrealized appreciation (depreciation): | ||||||||||||||||||||
Non-control/Non-affiliate investments | 8,730 | 35,530 | (4,723) | 56,614 | ||||||||||||||||
Control investments | (286) | (2,541) | (2,272) | (1,400) | ||||||||||||||||
Affiliate investments | (289) | — | (289) | — | ||||||||||||||||
Total net change in unrealized appreciation (depreciation) | 8,155 | 32,989 | (7,284) | 55,214 | ||||||||||||||||
Total net realized gain (loss) and net change in unrealized appreciation (depreciation) | 6,219 | 31,133 | (2,123) | (5,835) | ||||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 93,568 | $ | 119,685 | $ | 266,251 | $ | 248,909 | ||||||||||||
Net investment income before gains and losses per common share: | ||||||||||||||||||||
Basic | $ | 0.47 | $ | 0.49 | $ | 1.44 | $ | 1.44 | ||||||||||||
Change in net assets resulting from operations per common share: | ||||||||||||||||||||
Basic | $ | 0.50 | $ | 0.66 | $ | 1.43 | $ | 1.41 | ||||||||||||
Diluted | $ | 0.48 | $ | 0.63 | $ | 1.39 | $ | 1.37 | ||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 185,989 | 180,360 | 184,767 | 175,633 | ||||||||||||||||
Diluted | 200,078 | 194,358 | 198,837 | 186,251 | ||||||||||||||||
Distributions paid per common share: | ||||||||||||||||||||
Basic | $ | 0.47 | $ | 0.47 | $ | 1.41 | $ | 1.41 | ||||||||||||
13
Exhibit 99.1
Unaudited reconciliation of core investment income from GAAP basis total investment income are as follows:
(in thousands) | For the Three Months Ended September 30, | ||||||||||
2026 | 2025 | ||||||||||
GAAP Basis: | |||||||||||
Total investment income | 140,115 | 138,093 | |||||||||
Less: fee and income accelerations attributed to early payoffs, restructuring, loan modifications, and other one-time events except income from expired commitments | (4,425) | (10,208) | |||||||||
Non-GAAP Basis: | |||||||||||
Core investment income | 135,690 | 127,885 | |||||||||
Less: bank interest income, dividend income, and other investment income from other assets | (3,162) | (3,139) | |||||||||
Core investment income from debt portfolio | 132,528 | 124,746 | |||||||||
Unaudited reconciliation of core yield from GAAP effective yield:
For the Three Months Ended | |||||||||||
September 30, 2026 | June 30, 2026 | ||||||||||
GAAP Basis: Effective yield(1) | 12.3 | % | 13.4 | % | |||||||
Less: fee and income accelerations attributed to early payoffs, restructuring, loan modifications, and other one-time events except income from expired commitments | (0.4) | % | (1.4) | % | |||||||
Non-GAAP Basis: Core yield | 11.9 | % | 12.0 | % | |||||||
(1)Yield calculated using “Total investment income” excluding bank interest, dividend income, and investment income from other assets for the three months ended September 30, 2026 and June 30, 2026.
Unaudited reconciliation of net leverage ratio from GAAP leverage ratio:
September 30, 2026 | |||||
GAAP Basis: Leverage ratio | 111.1 | % | |||
Less: cash, cash equivalents | (2.1) | % | |||
Non-GAAP Basis: Net leverage ratio | 109.0 | % | |||
Unaudited reconciliation of net regulatory leverage ratio from GAAP regulatory leverage ratio:
September 30, 2026 | |||||
GAAP Basis: Regulatory leverage ratio | 96.1 | % | |||
Less: cash, cash equivalents | (2.1) | % | |||
Non-GAAP Basis: Net regulatory leverage ratio | 94.0 | % | |||
14
Exhibit 99.2
Hercules Capital Declares a Total Cash Distribution of $0.47 per Share for the Third Quarter 2026
The Total Cash Distribution of $0.47 per Share for the Third Quarter 2026 is Comprised of a $0.40 per Share Base Distribution and $0.07 per Share Supplemental Distribution
SAN MATEO, Calif., October 27, 2026 – Hercules Capital, Inc. (NYSE: HTGC) (“Hercules,” “Hercules Capital,” or the “Company”), the largest and leading specialty financing provider to innovative venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, is pleased to announce that its Board of Directors has declared a third quarter 2026 total cash distribution of $0.47 per share. The following shows the key dates of the third quarter 2026 distribution payment:
Record Date November 10, 2026
Payment Date November 17, 2026
Hercules' Board of Directors maintains a variable distribution policy with the objective of distributing four quarterly distributions in an amount that approximates 90% to 100% of the Company’s taxable quarterly income or potential annual income for a particular year. In addition, during the year, the Company’s Board of Directors may choose to pay additional supplemental distributions, so that the Company may distribute approximately all its annual taxable income in the year it was earned, or it can elect to maintain the option to spill over the excess taxable income into the coming year for future distribution payments.
The determination of the tax attributes of the Company's distributions is made annually as of the end of the Company's fiscal year based upon its taxable income for the full year and distributions paid for the full year. Therefore, a determination made on a quarterly basis may not be representative of the actual tax attributes of its distributions for a full year. Of the distributions declared during the quarter ended September 30, 2026, 100% were distributions derived from the Company’s current and accumulated earnings and profits. There can be no certainty to stockholders that this determination is representative of the tax attributes of the Company’s 2026 full year distributions to stockholders.
Pursuant to Internal Revenue Code Section 871(k), certain funds generate “Qualified Interest Income” (QII) that may be exempt for U.S. withholding tax on foreign accounts. A regulated investment company (“RIC”) is permitted to designate distributions of QII as exempt from U.S. withholding tax when paid to non-U.S. shareholders with proper documentation.
The percentage of QII for distributions declared year-to-date ending September 30, 2026 on Hercules’ common stock is 81.14%.
Exhibit 99.2
About Hercules Capital, Inc.
Hercules Capital, Inc. (NYSE: HTGC) is the leading and largest specialty finance company focused on providing senior secured venture growth loans to high-growth, innovative venture capital-backed companies in a broad variety of technology and life sciences industries. Since inception (December 2003), Hercules has committed more than $28 billion to over 700 companies and is the lender of choice for entrepreneurs and venture capital firms seeking growth capital financing. Companies interested in learning more about financing opportunities should contact info@htgc.com, or call (650) 289-3060.
Hercules, through its wholly owned subsidiary business, Hercules Adviser LLC (the "Adviser Subsidiary"), also maintains an asset management business through which it manages investments for external parties (“Adviser Funds”). The Adviser Subsidiary is registered as an investment adviser under the Investment Advisers Act of 1940.
Hercules’ common stock trades on the New York Stock Exchange (NYSE) under the ticker symbol “HTGC.” In addition, Hercules has one retail bond issuance of 6.25% Notes due 2033 (NYSE: HCXY).
Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We may use words such as “anticipates,” “believes,” “expects,” “intends,” “will,” “should,” “may” and similar expressions to identify forward-looking statements. Forward-looking statements are not guarantees of future performance and should not be relied upon in making any investment decision. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations. While we cannot identify all such risks and uncertainties, we urge you to read the risks discussed in our Annual Report on Form 10-K and other materials that we publicly file with the Securities and Exchange Commission. Any forward-looking statements made in this press release are made only as of the date hereof. Hercules assumes no obligation to update any such statements in the future.
Contact:
Michael Hara
Investor Relations and Corporate Communications
Hercules Capital, Inc.
(650) 433-5578
mhara@htgc.com