NASDAQ: HRZN Horizon Technology Finance Corp 8-K

Horizon Technology Finance NAV falls 11% to $6.23/share on $38.5M unrealized losses

Filed August 4, 2026 · Period ending August 4, 2026 · ~1 min read

Key Changes

high

NAV per share declined to $6.23 from $6.98 at year-end 2025, driven by $38.5M ($0.59/share) in net unrealized depreciation on investments, primarily from significant negative news about a single portfolio company in June.

Exhibit 99.1 view on EDGAR →
high

Portfolio credit quality deteriorated: five debt investments now rated 5 (highest risk) with $31.3M fair value vs. $58.0M cost, and four rated 4 with $48.0M fair value vs. $57.1M cost.

Exhibit 99.1 view on EDGAR →
high

Q2 2026 NII of $0.11/share included $0.07/share of non-recurring merger expenses related to the completed Monroe Capital Corporation merger, down from $0.28/share in Q2 2025.

Exhibit 99.1 view on EDGAR →
medium

Board doubled stock repurchase program cap to $20M from up to $10M; company repurchased 1.4M shares at $4.54 average price during Q2 2026, totaling $6.2M.

Exhibit 99.1 view on EDGAR →
medium

Declared Q4 2026 distributions totaling $0.27/share: regular monthly distributions of $0.06/share plus special monthly distributions of $0.03/share for October-December, drawing on $0.33/share spillover income.

Exhibit 99.1 view on EDGAR →

Summary

Horizon Technology Finance reported a sharp 11% decline in net asset value per share to $6.23 from $6.98 at year-end 2025, driven by $38.5 million in net unrealized depreciation on investments. Management attributed the NAV erosion primarily to significant negative news about a single portfolio company during June, affecting both debt and equity valuations.

Portfolio credit quality deteriorated materially: the company now holds five debt investments rated 5 (highest risk) with fair values 46% below cost, and four rated 4 with fair values 16% below cost. The quarter's net investment income of $0.11 per share included $0.07 per share of non-recurring merger expenses from the completed Monroe Capital Corporation combination.

Excluding those costs, core NII would have been $0.18 per share, still below the prior-year $0.28 per share. The combined entity grew its investment portfolio to $676.7 million with a 14.9% debt portfolio yield and a $228 million committed backlog. The board responded to the NAV decline and share price discount by doubling the stock repurchase program cap to $20 million and declaring $0.27 per share in Q4 2026 distributions (regular plus special), drawing on accumulated spillover income. Retail holders should monitor whether the troubled portfolio company stabilizes and whether credit quality deteriorates further across the broader portfolio.

Section-by-Section Diff

Event · Item 2.02 — Results of Operations and Financial Condition

~100 words

Horizon Technology Finance announced Q2 2026 financial results via press release.

1 Added

Added Q2 2026 earnings announcement medium

Added in current filing · verify on EDGAR →

On July 30, 2026, Horizon Technology Finance Corporation (the “Company”) issued a press release announcing its financial results for the three and six months ended June 30, 2026.

The company disclosed its second quarter and first half 2026 financial results through a press release dated July 30, 2026. The 8-K body does not contain the actual financial figures; those appear in the attached Exhibit 99.1 press release, which is furnished but not filed.

Event · Exhibit 99.1

~6,300 words View exhibit on EDGAR ↗

Q2 2026 results: NII $0.11/share (incl. $0.07 merger costs), NAV fell to $6.23/share on unrealized losses, debt portfolio yield 14.9%, $228M backlog.

4 Added

Added Q2 2026 earnings and NAV decline high

Added in current filing · view on EDGAR →

Net investment income (“NII”) of $7.4 million, or $0.11 per basic share (inclusive of $0.07 per basic share of non-recurring merger expenses), compared to $11.4 million, or $0.28 per basic share for the prior-year period ... Net asset value of $417.5 million, or $6.23 per share as of June 30, 2026 ... For the quarter ended June 30, 2026, net unrealized depreciation on investments was $38.5 million, or $0.59 per share

Horizon reported Q2 2026 net investment income of $0.11 per share, down from $0.28 in Q2 2025, primarily due to $0.07 per share of non-recurring merger expenses. Net asset value per share fell to $6.23 from $6.98 at year-end 2025, driven by $38.5 million in net unrealized depreciation on investments. The CEO attributed the NAV decline to significant negative news about a single portfolio company during June, affecting both debt and equity valuations.

Added Merger completion and portfolio growth high

Added in current filing · view on EDGAR → · paraphrased

Successfully completed merger with Monroe Capital Corporation ("MRCC") ... Total investment portfolio of $676.7 million as of June 30, 2026 ... Funded nine loans totaling $72.7 million ... Ends Quarter with Committed Backlog of $228 Million

Horizon completed its merger with Monroe Capital Corporation during Q2 2026. The combined entity grew its total investment portfolio to $676.7 million, funded nine new loans totaling $72.7 million during the quarter, and ended with a committed backlog of $228 million (up approximately $50 million from the prior quarter). The debt portfolio yield was 14.9% for the quarter.

Added Portfolio credit quality deterioration high

Added in current filing · view on EDGAR →

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.

Horizon's portfolio credit quality weakened during Q2 2026. The company now has five debt investments rated 5 (highest risk) with $31.3 million fair value versus $58.0 million cost, and four rated 4 with $48.0 million fair value versus $57.1 million cost. The weighted average credit rating was 2.3 as of June 30, 2026, compared to 2.4 at year-end 2025 (both on the new 1-to-5 scale). Horizon changed its internal credit rating scale during the quarter to align with affiliate Monroe Capital's methodology.

Added Stock repurchase program expansion medium

Added in current filing · view on EDGAR → · paraphrased

Increases Company Stock Repurchase Agreement to Allow Purchases of Up to $20 Million ... 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 June 30, 2026, the Company repurchased 1,365,222 shares of its common stock at an average price of $4.54 on the open market at a total cost of $6.2 million.

Horizon's board doubled the stock repurchase program cap from $10 million to $20 million on August 3, 2026. During Q2 2026, the company repurchased 1,365,222 shares at an average price of $4.54 per share, totaling $6.2 million. Since program inception through June 30, 2026, Horizon has repurchased 1,532,687 shares at an average price of $5.27, totaling $8.1 million. Shares are repurchased when trading below 90% of NAV per share.