Horizon Technology Finance Q3 investment income falls to $24.1M

Q: What was HRZN's third-quarter 2026 net investment income?

HRZN reported net investment income of $12.3 million, or $0.19 per basic share, for the quarter ended September 30, 2026, compared with $14.0 million, or $0.32 per basic share, in the prior-year quarter.

Q: How many shares did HRZN repurchase in the third quarter, and at what price?

HRZN repurchased 2,033,991 common shares at a weighted-average price of $4.90 per share, at a total cost of $10.0 million.

Q: When are HRZN's first-quarter 2027 monthly distributions payable?

HRZN declared $0.06 per share payable January 15, February 17 and March 16, 2027, totaling $0.18 per share.

Q: What are the limits on HRZN's stock repurchase program?

The program permits up to $20 million of repurchases through June 30, 2027. Purchases are allowed only when shares trade below 90% of the most recently disclosed net asset value per share, and aggregate purchases cannot exceed 2% of shares outstanding at the time of purchase.

HRZN's repurchase program permits up to $20 million through June 30, 2027, subject to price and share-count limits.

Accepted by SEC EDGAR 11/05/2026 - 12:00 AM EST

Filing Impact

(High)

Filing Sentiment

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Form Type

8-K

Rhea-AI Filing Summary

Horizon Technology Finance Corporation (HRZN) reported third-quarter 2026 net investment income of $12.3 million, or $0.19 per basic share, versus $14.0 million and $0.32 per basic share a year earlier. Total investment income was $24.1 million versus $26.3 million. Operations produced a $28.2 million net decrease in assets, compared with a $30.7 million increase. Net asset value was $5.56 per share as of September 30, 2026, versus $7.12 a year earlier.

As of September 30, 2026, portfolio fair value was $650.3 million, including 42 secured loans valued at $621.2 million. Available liquidity was $210.9 million, including $103.1 million under existing credit commitments subject to borrowing-base limitations. HRZN repurchased 2,033,991 shares during the quarter at a weighted-average price of $4.90, for $10.0 million. After quarter end, it declared monthly distributions of $0.06 per share for January, February and March 2027.

As of September 30, 2026, seven debt investments had an internal credit rating of 5, with $18.8 million aggregate fair value; ratings of 4 or 5 represent deteriorating credit quality and increased risk of principal loss. Horizon’s Advisor waived $1.0 million of base management fees for the quarter under a fee waiver in effect through the end of the second quarter of 2027. Horizon’s Advisor also appointed Manuel Henriquez to its newly created Chief Growth and Strategy Officer role.

0 points · 0 major

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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.

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1 major · 2 points

How the balance works

Positive

None.

Negative

Major pointOperations produced a $28.2 million net decrease in assets, versus a $30.7 million increase.
Moderate pointNet investment income fell to $12.3 million from $14.0 million a year earlier.

Filing Explained

Number of rating-5 loans rose from five to seven between June and September 2026, while their fair value declined from $31.3 million to $18.8 million.

The company reports third-quarter results and completed amendments to two senior secured facilities: one facility’s final maturity was extended to June 2034; the other’s was extended to December 2035, its commitment was reduced by $50.0 million, and the advance-request period runs through July 21, 2027.

At September 30, 2026, borrowings were $402,719 thousand; net debt-to-equity leverage was 82% against a stated 120% target, and asset coverage was 189%.

Horizon changed its internal credit-rating scale effective June 30, 2026 and recast presented prior periods; on the 1-to-5 scale, ratings 4 or 5 mean deteriorating credit quality and increased risk of principal loss.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Net investment income: $12.3 million Net investment income per basic share: $0.19 per basic share Total investment income: $24.1 million +5 more

8 metrics

Net investment income $12.3 million Third quarter 2026; $14.0 million in the prior-year quarter

Net investment income per basic share $0.19 per basic share Third quarter 2026; $0.32 per basic share in the prior-year quarter

Total investment income $24.1 million Third quarter 2026; $26.3 million in the prior-year quarter

Net assets resulting from operations $28.2 million decrease Third quarter 2026; compared with a $30.7 million increase in the prior-year quarter

Net asset value per share $5.56 per share As of September 30, 2026; $7.12 per share as of September 30, 2025

Total investment portfolio fair value $650.3 million As of September 30, 2026

Common shares repurchased 2,033,991 shares Third quarter 2026; weighted-average price $4.90 per share; total cost $10.0 million

Monthly distribution $0.06 per share Payable in January, February and March 2027

Key Terms

dollar-weighted annualized yield on average debt investments, payment-in-kind interest income, non-accrual status, undistributed spillover income, +1 more

5 terms

dollar-weighted annualized yield on average debt investments financial

"dollar-weighted annualized yield on average debt investments for the quarter"

payment-in-kind interest income financial

"Payment-in-kind (“PIK”) interest income"

Payment-in-kind (PIK) interest income is interest a lender or investor earns when the borrower pays by increasing the loan balance or issuing more debt instead of sending cash. It matters because it boosts reported income without improving immediate cash flow, can hide rising borrower stress or leverage, and affects valuation and risk assessment much like interest that gets added to a credit-card balance instead of being paid down.

non-accrual status financial

"two debt investments previously on non-accrual status"

A loan or credit account is placed in non-accrual status when the lender stops recording expected interest income because the borrower is not making scheduled payments or repayment is doubtful. Think of it like a landlord who stops counting unpaid rent as future income once a tenant stops paying; it signals rising credit problems and potential losses. For investors, non-accrual levels indicate loan quality and can foreshadow write-downs, lower earnings, and increased risk to a lender’s balance sheet.

undistributed spillover income financial

"Undistributed spillover income of $0.24 per share"

asset coverage ratio financial

"asset coverage ratio for borrowed amounts was 189%"

Asset coverage ratio measures how much of a company’s debt or preferred claims could be paid off using its tangible assets if the business had to be sold. It’s a safety check for investors and creditors, showing the size of the asset “cushion” available to meet obligations; a higher ratio means more protection, like having enough savings and sellable belongings to cover outstanding bills, while a low ratio signals greater risk of loss.

Earnings Snapshot

Net investment income: $12.3 million, or $0.19 per basic share

Third quarter ended September 30, 2026

Net investment income $12.3 million, or $0.19 per basic share Compared with $14.0 million, or $0.32 per basic share, in the prior-year quarter

Total investment income $24.1 million Compared with $26.3 million in the prior-year quarter

Net assets resulting from operations $28.2 million decrease Compared with a $30.7 million increase in the prior-year quarter

Net asset value per share $5.56 per share $7.12 per share as of September 30, 2025

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What was HRZN's third-quarter 2026 net investment income?

HRZN reported net investment income of $12.3 million, or $0.19 per basic share, for the quarter ended September 30, 2026, compared with $14.0 million, or $0.32 per basic share, in the prior-year quarter.

How many shares did HRZN repurchase in the third quarter, and at what price?

HRZN repurchased 2,033,991 common shares at a weighted-average price of $4.90 per share, at a total cost of $10.0 million.

When are HRZN's first-quarter 2027 monthly distributions payable?

HRZN declared $0.06 per share payable January 15, February 17 and March 16, 2027, totaling $0.18 per share.

What are the limits on HRZN's stock repurchase program?

The program permits up to $20 million of repurchases through June 30, 2027. Purchases are allowed only when shares trade below 90% of the most recently disclosed net asset value per share, and aggregate purchases cannot exceed 2% of shares outstanding at the time of purchase.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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): November 5, 2026

HORIZON TECHNOLOGY FINANCE CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	814-00802	27-2114934
(State or other jurisdiction	(Commission File Number)	(IRS Employer Identification No.)
of incorporation)

312 Farmington Avenue

Farmington, CT 06032

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (860) 676-8654

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:

☐	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	Ticker Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	HRZN	The Nasdaq Stock Market LLC
6.25% Notes due 2027	HTFC	The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

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. ☐

Section 2	Financial Information
Item 2.02	Results of Operations and Financial Condition

On November 5, 2026, Horizon Technology Finance Corporation (the “Company”) issued a press release announcing its financial results for the three and nine months ended September 30, 2026. A copy of this press release is attached hereto as Exhibit 99.1.

The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 furnished herewith, is being furnished and shall not be deemed “filed” for any purpose of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liabilities of such Section. The information in this Current Report on Form 8-K shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Section 9	Financial Statements and Exhibits
Item 9.01	Financial Statements and Exhibits

(d) Exhibits.

99.1	Press Release of the Company dated November 5, 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.

Date: November 5, 2026	HORIZON TECHNOLOGY FINANCE CORPORATION

	By:	/s/ Michael P. Balkin
		Michael P. Balkin
		Chief Executive Officer

Exhibit 99.1

Horizon Technology Finance Announces Third Quarter 2026 Financial Results

- Third Quarter 2026 Net Investment Income per Share of $0.19; NAV per Share of $5.56 -

- Debt Portfolio Yield of 14.7% -

- Grows Committed, Approved and Awarded Backlog by 14% Sequentially to $351 Million at Quarter End -

Farmington, Connecticut – November 5, 2026 – Horizon Technology Finance Corporation (NASDAQ: HRZN) (“Horizon”, “HRZN” or the “Company”), an affiliate of Monroe Capital, today announced its financial results for the third quarter ended September 30, 2026.

Third Quarter 2026 and Recent Highlights

	●	Net investment income (“NII”) of $12.3 million, or $0.19 per basic share, compared to $14.0 million, or $0.32 per basic share for the prior-year period
	●	Total investment portfolio of $650.3 million as of September 30, 2026
	●	Net asset value of $362.1 million, or $5.56 per share, as of September 30, 2026
	●	Annualized portfolio yield on debt investments of 14.7% for the quarter
	●	Funded nine loans totaling $98.4 million
	●	Experienced liquidity events from six portfolio companies
	●	Cash of $107.8 million and committed credit facility capacity of $279.0 million as of September 30, 2026
	●	Held portfolio of warrant and equity positions in 87 companies as of September 30, 2026
	●	Undistributed spillover income of $0.24 per share as of September 30, 2026
	●	Repurchased 2,033,991 shares of common stock at a weighted-average price of $4.90 per share
	●	Subsequent to quarter end, declared distributions of $0.06 per share payable in each of January, February and March 2027

“We were pleased to grow our debt investment portfolio for the fourth consecutive quarter, funding nine loans totaling $98.4 million, and delivering NII which once again covered our regular distributions,” said Mike Balkin, Chief Executive Officer of Horizon. “Additionally, we believe that the meaningful increase in our pipeline from the prior quarter-end reflects our strength in sourcing high-quality debt investment opportunities, as well as the benefits of our relationship with Monroe Capital. While we work on growing our portfolio, we remain focused on rigorously managing our stressed debt investments, which continued to impact our NAV per share in the quarter. As we close out 2026, with our strong balance sheet and increasingly robust pipeline, we believe we are in an excellent position to further grow our portfolio and drive long-term value creation for shareholders. To support that effort, we are pleased to create the new role of Chief Growth and Strategy Officer at Horizon’s Advisor and to appoint Manuel Henriquez to this position. We look forward to his contributions as we build on our momentum.”

Third Quarter 2026 Operating Results

Total investment income for the quarter ended September 30, 2026 was $24.1 million, compared to $26.3 million for the quarter ended September 30, 2025, primarily due to lower interest income on debt investments.

The Company’s dollar-weighted annualized yield on average debt investments for the quarter ended September 30, 2026 and 2025 was 14.7% and 18.6%, respectively. The Company calculates the dollar-weighted annualized yield on average debt investments for any period measured as (1) total investment income (excluding dividend income) during the period divided by (2) the average of the fair value of debt investments outstanding on (a) the last day of the calendar month immediately preceding the first day of the period and (b) the last day of each calendar month during the period. The dollar-weighted annualized yield on average debt investments is higher than what investors will realize because it does not reflect expenses or any sales load paid by investors. The dollar-weighted annualized yield on average debt investments for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025 decreased primarily due to the recognition and capitalization of accrued, but previously unrecorded interest income in connection with the settlement of two debt investments previously on non-accrual status during the three months ended September 30, 2025.

Total net expenses for the quarter ended September 30, 2026 were $11.5 million, compared to $12.0 million for the quarter ended September 30, 2025. The decrease was primarily due to a $0.7 million decrease in the base management fee and a $0.1 million decrease in interest expense, partially offset by a $0.3 million increase in professional fees.

Horizon’s Advisor waived $1.0 million of base management fees earned for the quarter in connection with the previously completed merger with Monroe Capital Corporation, in which Horizon’s Advisor agreed to waive $4.0 million of base management fees and/or incentive fees (the “Fee Waiver”) due and payable to the Advisor pursuant to the terms of the Investment Management Agreement at the rate of $1.0 million per quarter commencing with the Company’s third quarter of 2026. The Fee Waiver is in effect until the end of the Company’s second quarter of 2027 and, for each applicable quarter, will not exceed the total amount of base management fees and incentive fees earned by the Advisor during such quarter.

Net investment income for the quarter ended September 30, 2026 was $12.3 million, or $0.19 per basic share, compared to $14.0 million, or $0.32 per basic share, for the quarter ended September 30, 2025.

For the quarter ended September 30, 2026, net realized loss on investments was $11.3 million, or $0.17 per basic share, compared to a net realized loss on investments of $22.5 million, or $0.52 per basic share, for the quarter ended September 30, 2025. For the quarter ended September 30, 2025, net realized loss on extinguishment of debt was $1.3 million, or $0.03 per basic share.

For the quarter ended September 30, 2026, net unrealized depreciation on investments was $29.1 million, or $0.44 per basic share, compared to net unrealized appreciation on investments of $40.5 million, or $0.94 per basic share, for the prior-year period.

Portfolio Summary and Investment Activity

As of September 30, 2026, the Company’s debt portfolio consisted of 42 secured loans with an aggregate fair value of $621.2 million. In addition, the Company’s total warrant, equity and other investments in 95 portfolio companies, and the Company’s investment in its joint venture, had an aggregate fair value of $29.1 million. Total portfolio investment activity for the three and nine months ended September 30, 2026 and 2025 was as follows:

($ in thousands)	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2026			2025			2026			2025
Beginning portfolio	$	676,711		$	622,653		$	647,244		$	697,891

New debt and equity investments		89,632			37,747			282,398			200,055

Less refinanced debt balances		—			—			(30,000	)		(46,250	)

Net new debt and equity investments		89,632			37,747			252,398			153,805

Principal payments received on investments		(3,070	)		(14,462	)		(13,457	)		(41,292	)

Early pay-offs and principal paydowns		(80,861	)		(60,904	)		(155,645	)		(163,312	)

Payment-in-kind interest on investments		829			664			3,674			1,192

Accretion of debt investment fees		1,429			1,189			5,870			4,487

New debt investment fees		(1,838	)		(100	)		(6,143	)		(1,604	)

Equity and warrants received in settlement of fee income		500			3,270			500			3,280

Proceeds from sale of investments		(545	)		(4,533	)		(2,553	)		(5,317	)

Investment in RoHo Joint Venture		8,295			—			8,510			—

Net investment loss from RoHo Joint Venture		(246	)		—			(246	)		—

Net realized loss on investments		(11,322	)		(22,527	)		(17,605	)		(31,820	)

Net unrealized (depreciation) appreciation on investments		(29,191	)		40,517			(72,324	)		(13,796	)

Other		—			—			100			—

Ending portfolio	$	650,323		$	603,514		$	650,323		$	603,514

Portfolio Asset Quality

Effective June 30, 2026, Horizon’s Advisor changed its internal credit rating scale to adopt the scale used by the wider Monroe Capital platform. Horizon’s Advisor made this change in order to improve consistency and efficiency in its portfolio risk assessment by aligning the scale used by Horizon to the scale used by its affiliated entities, with whom Horizon has made, and it anticipates it will continue to make, co-investments. Accordingly, Horizon’s internal credit rating methodology was changed from a 4-to-1 scale (on which a 4 represented the highest credit quality) to a 1-to-5 scale (on which a 1 represents the highest credit quality).

Horizon’s Advisor (i) rated all of Horizon’s debt investments as of September 30, 2026 under the new 1-to-5 scale and (ii) recast the credit ratings of the debt investments for all of the prior periods presented in this release to the new 1-to-5 scale. The ratings and recast ratings in this release are made based on the same proprietary credit assessment process Horizon’s Advisor regularly utilizes on a quarterly basis, as applied to the facts and circumstances existing at the applicable reporting date.

The following table shows the classification of Horizon’s loan portfolio at fair value by internal credit rating, in each case presented under the updated 1-to-5 scale, as of September 30, 2026, June 30, 2026 and December 31, 2025 (recast):

($ in thousands)	September 30, 2026							June 30, 2026							December 31, 2025
	Number of Investments		Debt Investments at Fair Value		Percentage of Debt Investments			Number of Investments		Debt Investments at Fair Value		Percentage of Debt Investments			Number of Investments		Debt Investments at Fair Value		Percentage of Debt Investments
Credit Rating
1		—	$	—		—	%		—	$	—		—	%		—	$	—		—	%
2		30		532,675		85.8	%		32		547,063		84.4	%		28		471,116		79.0	%
3		1		14,866		2.4	%		2		21,606		3.3	%		2		46,887		7.9	%
4		4		54,915		8.8	%		4		47,991		7.4	%		4		53,503		9.0	%
5		7		18,766		3.0	%		5		31,339		4.9	%		4		24,519		4.1	%
Total		42	$	621,222		100.0	%		43	$	647,999		100.0	%		38	$	596,025		100.0	%

Under the updated 1-to-5 scale, Horizon’s debt investments had a weighted average credit rating of 2.3 as of both September 30, 2026 and June 30, 2026, respectively. On a recast basis, Horizon’s debt investments had a weighted average credit rating of 2.4 as of December 31, 2025. Weighted average credit ratings previously reported on the 4-to-1 scale (2.9 as of December 31, 2025) are not directly comparable to ratings under the updated scale due to the change in credit rating methodology. A rating of 1 represents a debt investment that is exhibiting the lowest level of risk and the debtor is generally significantly exceeding expectations (typically reserved for debt investments where a full repayment is expected in the near term as a result of strong performance). Newly funded debt investments are typically assigned a rating of 2, which represents a debt investment performing as expected with risk factors that are neutral or positive since origination. A rating of 3 represents investments performing below expectations and indicates that the risk has increased somewhat since origination. A rating of 4 or 5 represents a deteriorating credit quality and an increased risk of loss of principal.

As of September 30, 2026, there were seven debt investments with an internal credit rating of 5, with an aggregate cost of $65.9 million and an aggregate fair value of $18.8 million, and there were four debt investments with an internal credit rating of 4, with an aggregate cost of $77.3 million and an aggregate fair value of $54.9 million. As of June 30, 2026, there were five debt investments with an internal credit rating of 5, with an aggregate cost of $58.0 million and an aggregate fair value of $31.3 million, and there were four debt investments with an internal credit rating of 4, with an aggregate cost of $57.1 million and an aggregate fair value of $48.0 million. On a recast basis as of December 31, 2025, there were four debt investments with an internal credit rating of 5 (previously reported as a rating of 1 on the prior 4-to-1 scale), with an aggregate cost of $33.8 million and an aggregate fair value of $24.5 million and there were four debt investments with an internal credit rating of 4 (previously reported as a rating of 2 on the prior 4-to-1 scale), with an aggregate cost of $56.8 million and an aggregate fair value of $53.5 million.

Liquidity and Capital Resources

As of September 30, 2026, the Company had $210.9 million in available liquidity, consisting of $107.8 million in cash and money market funds, and $103.1 million in funds available under existing credit facility commitments (subject to borrowing base limitations).

As of September 30, 2026, there was no outstanding principal balance under the $150.0 million revolving credit facility (“Key Facility”). The Key Facility allows for an increase in the total loan commitment up to an aggregate commitment of $300.0 million. There can be no assurance that any additional lenders will make any commitments under the Key Facility.

During the third quarter, the Company amended its $250.0 million senior secured credit facility with a large U.S.-based insurance company to (i) add a second class of notes; and (ii) extend the legal final maturity date to June 2034. As of September 30, 2026, there was $166.5 million in outstanding Class A Notes principal balance at an interest rate of 6.72% and $14.5 million in outstanding Class B notes principal balance at an interest rate of 7.86%.

During the third quarter, the Company amended its senior secured credit facility with a large U.S.-based insurance company to decrease the commitment by $50.0 million in connection with secured notes previously issued, as well as (i) extended the date through which the Company may request advances to July 21, 2027; (ii) add a second class of notes; and (iii) extend the legal final maturity date to December 2035. As of September 30, 2026, there was $90.0 million in outstanding principal balance under the $150.0 million senior secured credit facility at an interest rate of 7.21%.

On October 17, 2024, the Company entered into a note purchase agreement, by and among the Company, and each purchaser named therein, in connection with the issuance and sale of $20.0 million aggregate principal of the Company’s 7.125% convertible notes due 2031 (the “2031 Convertible Notes”). As of September 30, 2026, the aggregate outstanding principal balance of the 2031 Convertible Notes was $2.8 million.

On September 4, 2025, the Company entered into a note purchase agreement, by and among the Company, and each purchaser named therein, in connection with the issuance and sale of $40.0 million aggregate principal of the Company’s 5.50% convertible notes due 2030 (the “2030 Convertible Notes”). As of September 30, 2026, the aggregate outstanding principal balance of the 2030 Convertible Notes was $16.5 million.

As of September 30, 2026, the Company’s net debt to equity leverage ratio was 82%, below the Company’s 120% targeted leverage. The asset coverage ratio for borrowed amounts was 189%.

Liquidity Events

During the quarter ended September 30, 2026, Horizon experienced liquidity events from six portfolio companies. Liquidity events for Horizon may consist of the sale of warrants or equity in portfolio companies, loan prepayments, sale of owned assets or receipt of success fees.

In August, a portfolio company paid its outstanding principal balance of $10.0 million on its venture loan, plus interest, end-of-term payment and prepayment penalty. HRZN continues to hold warrants in the company.

In August, a portfolio company paid its outstanding principal balance of $14.0 million on its venture loan, plus interest, end-of-term payment and prepayment penalty. HRZN continues to hold warrants in the company.

In August, a portfolio company was acquired and paid its outstanding principal balance of $15.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. HRZN also received equity valued at $1.5 million from the redemption of warrants it held in the portfolio company.

In September, a portfolio company paid its outstanding principal balance of $10.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. HRZN also received proceeds totaling $0.5 million from the redemption of warrants it held in the portfolio company.

In July, a portfolio company paid its outstanding principal balance of $11.8 million on its venture loan, plus interest and end-of-term payment. HRZN continues to hold warrants in the company.

In August, HRZN received a partial paydown of $15.5 million on its venture loan to a portfolio company, plus prepayment fee. HRZN also received equity valued at $0.5 million. HRZN continues to hold warrants and equity in the portfolio company.

Net Asset Value

At September 30, 2026, the Company’s net assets were $362.1 million, or $5.56 per share, compared to $315.7 million, or $7.12 per share, as of September 30, 2025, and $318.5 million, or $6.98 per share, as of December 31, 2025.

For the quarter ended September 30, 2026, net decrease in net assets resulting from operations was $28.2 million, or $0.43 per basic share, compared to a net increase in net assets resulting from operations of $30.7 million, or $0.71 per basic share, for the quarter ended September 30, 2025.

Stock Repurchase Program

On May 1, 2026, the Company’s board of directors extended through June 30, 2027, the Company’s stock repurchase program which currently allows the Company to repurchase up to $10.0 million of its common stock at prices below the Company’s net asset value per share as reported in its most recent consolidated financial statements, provided such purchases, in the aggregate, do not exceed two percent (2%) of the shares outstanding at the time of purchase and such shares are purchased only when such shares are trading below 90% of the Company's most recently disclosed net asset value per share. On August 3, 2026, the Company’s board of directors approved an increase in the amount of common stock that may be repurchased under the stock repurchase program to allow the Company to repurchase up to a total of $20 million of common stock.

During the quarter ended September 30, 2026, the Company repurchased 2,033,991 shares of its common stock at a weighted-average price of $4.90 on the open market at a total cost of $10.0 million. From the inception of the stock repurchase program through September 30, 2026, the Company has repurchased 3,566,678 shares of its common stock at a weighted average price of $5.06 on the open market at a total cost of $18.1 million.

Recent Developments

On October 13, 2026, Glass Routes, LLC prepaid its outstanding principal balance of $7.5 million on its venture loan, plus interest and prepayment penalty.

On October 20, 2026, Hometeam Technologies, Inc. repaid $3.5 million of the outstanding principal balance on its venture loan.

On October 30, 2026, the Company funded a $10.0 million debt investment to an existing portfolio company, Pelthos Therapeutics, Inc.

On October 30, 2026, the Company funded a $0.1 million debt investment to an existing portfolio company Volt Bidco, Inc.

Monthly Distributions Declared in Fourth Quarter 2026

On October 29, 2026, the Company’s Board declared monthly cash distributions of $0.06 per share payable in each of January, February and March 2027. The following table shows these monthly distributions, which total $0.18 per share:

Monthly Distributions Payable in First Quarter 2027

Ex-Dividend Date	Record Date	Payment Date	Amount per Share
December 16, 2026	December 16, 2026	January 15, 2027	$	0.06
January 19, 2027	January 19, 2027	February 17, 2027	$	0.06
February 18, 2027	February 18, 2027	March 16, 2027	$	0.06
		Total:	$	0.18

After paying distributions of $0.27 per share and earning net investment income of $0.19 per share for the three months ended September 30, 2026, the Company’s undistributed spillover income as of September 30, 2026 was $0.24 per share. Spillover income includes any ordinary income and net capital gains from the preceding tax years that were not distributed during such tax years.

When declaring distributions, Horizon’s board of directors reviews estimates of taxable income available for distribution, which may differ from consolidated net income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of spillover income carried over from a given year for distribution in the following year. The final determination of taxable income for each tax year, as well as the tax attributes for distributions in such tax year, will be made after the close of the tax year.

Conference Call

The Company will host a conference call today at 5:00 p.m. ET to discuss its latest corporate developments and financial results. To participate in the call, please dial (844) 825-9789 (domestic) or (412) 317-5180 (international). The access code for all callers is 10212817. The Company recommends joining the call at least 5 minutes in advance. In addition, a live webcast will be available on the Company’s website at www.horizontechfinance.com.

A webcast replay will be available on the Company’s website for 30 days following the call.

About Horizon Technology Finance

Horizon Technology Finance Corporation (NASDAQ: HRZN), externally managed by Horizon Technology Finance Management LLC, an affiliate of Monroe Capital, is a leading specialty finance company that provides capital in the form of secured loans to venture capital and private equity-backed companies and publicly traded companies in the technology, life science, healthcare information and services, and sustainability industries. The investment objective of Horizon is to maximize its investment portfolio’s return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon is headquartered in Farmington, Connecticut, with a regional office in Pleasanton, California, and investment professionals located throughout the U.S. Monroe Capital is a premier asset management firm specializing in private credit markets across various strategies, including direct lending, technology finance, venture debt, opportunistic, structured credit, real estate and equity. To learn more, please visit horizontechfinance.com.

Forward-Looking Statements

Statements included herein or on the webcast/conference call may constitute “forward-looking statements,” which relate to future events or the Company’s future performance or financial condition. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made, which reflect management’s current estimates, projections, expectations or beliefs, and which are subject to risks and uncertainties that may cause actual results to differ materially. Forward-looking statements include, but are not limited to, the Company’s projected net investment income and earnings, the Company’s distribution levels and frequency of distributions, the Company’s share repurchase activity and investment activity, and the ability of Horizon Technology Finance Management LLC to manage the Company and identify investment opportunities, all of which are subject to change at any time based upon economic, market or other conditions, and may not be relied upon as investment advice or an indication of the Company’s trading intent. More information on the risks and other potential factors that could affect the Company’s financial results and future events, including important factors that could cause actual results or events to differ materially from plans, estimates or expectations included herein or discussed on the webcast/conference call, is included in the Company’s filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed annual report on Form 10-K, as well as in subsequent filings, including the Company’s quarterly reports on Form 10-Q. In addition, there is no assurance that the Company or any of its affiliates will purchase additional shares of the Company’s common stock at any specific discount levels or in any specific amounts. There is no assurance that the market price of the Company’s shares, either absolutely or relative to NAV, will increase as a result of any share repurchases, or that any repurchase plan will enhance stockholder value over the long term.

Contacts:

Investor Relations:

ICR

Garrett Edson

ir@horizontechfinance.com

(646) 200-8885

Media Relations:

ICR

Brian Ruby

HorizonPR@icrinc.com

(203) 682-8268

Horizon Technology Finance Corporation and Subsidiaries

Consolidated Statements of Assets and Liabilities
(Dollars in thousands, except share and per share data)

	September 30,			December 31,
	2026			2025
	(unaudited)
Assets
Non-affiliate investments at fair value (cost of $699,244 and $616,236, respectively)	$	630,466		$	584,100
Non-controlled affiliate investments at fair value (cost of $73,162 and $89,033, respectively)		12,092			63,144
Controlled affiliate investments at fair value (cost of $8,264 and $0, respectively)		7,765			—
Total investments at fair value (cost of $780,670 and $705,269, respectively)		650,323			647,244
Cash		20,019			105,519
Investments in money market funds		85,146			34,711
Restricted investments in money market funds		2,636			2,463
Interest receivable		12,298			12,086
Other assets		8,311			9,081
Total assets	$	778,733		$	811,104

Liabilities
Borrowings	$	402,719		$	473,027
Distributions payable		5,869			15,053
Base management fee payable		965			975
Other accrued expenses		7,037			3,547
Total liabilities		416,590			492,602

Commitments and contingencies

Net assets
Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero shares issued and outstanding as of September 30, 2026 and December 31, 2025		—			—
Common stock, par value $0.001 per share, 100,000,000 shares authorized, 68,669,287 and 45,781,280 shares issued and 65,102,609 and 45,613,815 shares outstanding as of September 30, 2026 and December 31, 2025, respectively		73			51
Paid-in capital in excess of par		701,033			559,355
Distributable loss		(338,963	)		(240,904	)
Total net assets		362,143			318,502
Total liabilities and net assets	$	778,733		$	811,104
Net asset value per common share	$	5.56		$	6.98

Horizon Technology Finance Corporation and Subsidiaries

Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except share and per share data)

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2026			2025			2026			2025
Investment income
From non-affiliate investments:
Interest income	$	21,066		$	23,506		$	64,606		$	69,289
Payment-in-kind (“PIK”) interest income		829			297			2,393			617
Prepayment fee income		1,635			971			3,553			3,470
Fee income		702			1,057			921			1,532
From non-controlled affiliate investments:
PIK interest income		—			367			1,281			367
Interest income		74			95			676			95
From controlled affiliate investments:
PIK interest income		—			—			—			208
Interest income (reversal)		—			25			—			(224	)
Net investment loss from RoHo Joint Venture		(246	)		—			(246	)		—
Total investment income		24,060			26,318			73,184			75,354
Expenses
Interest expense		7,810			7,897			23,785			24,780
Base management fee		3,014			2,748			9,281			8,887
Performance based incentive fee		—			—			1,765			—
Administrative fee		406			377			1,471			1,203
Professional fees		753			493			2,510			1,722
General and administrative		489			437			1,447			1,477
Merger expenses		46			—			4,487			—
Total expenses		12,518			11,952			44,746			38,069
Management fee waived		(1,000	)		—			(1,000	)		—
Net expenses		11,518			11,952			43,746			38,069
Net investment income before excise tax		12,542			14,366			29,438			37,285
Provision for excise tax		265			373			797			1,123
Net investment income		12,277			13,993			28,641			36,162
Net realized and unrealized (loss) gain
Net realized gain (loss) on non-affiliate investments		3,179			2,590			(3,104	)		(6,703	)
Net realized loss on non-controlled affiliate investments		(14,501	)		—			(14,501	)		—
Net realized loss on controlled affiliate investments		—			(25,117	)		—			(25,117	)
Net realized loss on investments		(11,322	)		(22,527	)		(17,605	)		(31,820	)
Net realized loss on extinguishment of debt		—			(1,261	)		(1,432	)		(2,037	)
Net realized loss		(11,322	)		(23,788	)		(19,037	)		(33,857	)
Net unrealized (depreciation) appreciation on non-affiliate investments		(32,756	)		25,659			(36,644	)		(1,266	)
Net unrealized appreciation (depreciation) on non-controlled affiliate investments		4,064			1,812			(35,181	)		210
Net unrealized (depreciation) appreciation on controlled affiliate investments		(499	)		13,046			(499	)		(12,740	)
Net unrealized (depreciation) appreciation on investments		(29,191	)		40,517			(72,324	)		(13,796	)
Net realized and unrealized (loss) gain		(40,513	)		16,729			(91,361	)		(47,653	)
Net (decrease) increase in net assets resulting from operations	$	(28,236	)	$	30,722		$	(62,720	)	$	(11,491	)
Net (decrease) increase in net assets resulting from operations per common share - basic	$	(0.43	)	$	0.71		$	(1.05	)	$	(0.28	)
Net (decrease) increase in net assets resulting from operations per common share - diluted	$	(0.43	)	$	0.68		$	(1.05	)	$	(0.28	)
Weighted average shares outstanding - basic		66,313,471			43,101,307			59,604,481			41,525,869
Weighted average shares outstanding - diluted		66,313,471			45,838,142			59,604,481			41,525,869
Distributions declared per share	$	0.27		$	0.33		$	0.72		$	0.99

Source: View Original Filing on SEC EDGAR

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