"On February 27, 2026, Horizon's board slashed the monthly distribution from $0.11 to $0.06 per share, a reduction of roughly 45%. Anyone watching the coverage data saw it coming."
"Horizon’s portfolio carries floating-rate venture loans. At the end of Q1 2025, seven loans rated '1' had a cost basis of $66.7 million but a fair value of only $15.5 million."
"NAV per share fell from $8.43 at year-end 2024 to $6.98 at year-end 2025, a decline of roughly 17%. Shares now trade around $4.60, well below that already-reduced NAV."
"The new $0.06 monthly rate matches Q4's NII output almost exactly. The problem is that 1:1 coverage leaves zero margin for error in a portfolio carrying real credit stress."
Horizon Technology Finance reduced its monthly distribution from $0.11 to $0.06 per share in February 2026, a 45% cut. This decision followed a trend of net investment income (NII) falling short of distribution payments throughout 2025. By Q4 2025, NII per share was $0.18, while the distribution remained at $0.33. The company's portfolio faced significant credit losses, with net realized losses totaling $55.1 million in 2025, leading to a decline in net asset value (NAV) per share from $8.43 to $6.98.
#horizon-technology-finance #distribution-cut #net-investment-income #credit-losses #financial-performance
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