Horizon Technology Finance Announces Q2 2025 Monthly Distributions of $0.33/Share
Horizon Technology Finance Corporation (NASDAQ: HRZN) (“Horizon”), an affiliate of Monroe Capital and a leading specialty finance company, has announced that its board of directors has declared monthly cash distributions of $0.11 per share, payable in April, May, and June 2025. This brings the total quarterly distribution to $0.33 per share. Horizon, which provides secured loans to venture capital-backed companies across various industries, including technology, life sciences, healthcare information and services, and sustainability, continues its commitment to returning value to shareholders. Since its initial public offering (IPO) in 2010, the company has paid out a total of $304 million in distributions.
Monthly Distributions Declared in the First Quarter of 2025
The following table outlines the monthly distributions scheduled for the second quarter of 2025:
| Ex-Dividend Date | Record Date | Payment Date | Amount per Share |
|---|---|---|---|
| March 17, 2025 | March 17, 2025 | April 15, 2025 | $0.11 |
| April 16, 2025 | April 16, 2025 | May 15, 2025 | $0.11 |
| May 16, 2025 | May 16, 2025 | June 13, 2025 | $0.11 |
| Total | $0.33 |
Overview of Horizon’s Distribution Strategy
Horizon’s board of directors determines distributions based on estimates of taxable income available for distribution. This Horizon Technology Finance taxable income may differ from the company’s consolidated net income under generally accepted accounting principles (GAAP) due to several factors:
- Unrealized Appreciation and Depreciation: The valuation of Horizon’s portfolio investments can fluctuate, impacting the company’s taxable income.
- Differences in Income and Expense Recognition: Temporary and permanent differences between taxable income and GAAP income may arise due to accounting adjustments.
- Spillover Income: Income earned in one year but not distributed within that year may be carried over to the following year.
The final determination of taxable income and the tax attributes of the distributions will be made at the close of the tax year.
Dividend Reinvestment Plan (DRIP)
Horizon maintains a Dividend Reinvestment Plan (“DRIP”), which allows stockholders to automatically reinvest their dividends into additional shares of Horizon’s Horizon Technology Finance common stock unless they have opted to receive cash payments. The DRIP provides an opportunity for shareholders to compound their investments over time without incurring transaction fees associated with purchasing additional shares on the open market.
Under the DRIP, Horizon has the discretion to satisfy share requirements either through the issuance of new shares of common stock Horizon Technology Financeor through open-market purchases executed by the plan administrator. The valuation of these shares is determined as follows:
- Newly Issued Shares: The price will be based on the final closing price of Horizon’s common stock on a specified valuation date set by the board of directors.
- Open Market Purchases: Shares acquired through the open market will be valued at the average price of the applicable shares purchased by the DRIP plan administrator, excluding brokerage or other associated costs, which are covered by Horizon.
Horizon’s Commitment to Investors
Since its IPO in 2010, Horizon has consistently demonstrated its commitment to returning capital to its shareholders. With cumulative distributions totaling $304 million to date, the company has established itself as a reliable income-generating investment. The board’s decision to maintain Horizon Technology Finance monthly distributions at $0.11 per share for the second quarter of 2025 reflects Horizon’s confidence in its financial health and ability to generate sustainable income.
Horizon’s investment strategy focuses on supporting venture capital-backed businesses across high-growth sectors, including:
- Technology: Companies engaged in software development, cybersecurity, artificial intelligence, and cloud computing.
- Life Sciences: Firms involved in biotechnology, pharmaceuticals, and medical device innovations.
- Healthcare Information and Services: Businesses providing digital health solutions, healthcare analytics, and telemedicine platforms.
- Sustainability: Enterprises working on clean energy, environmental technology, and sustainable infrastructure.
By focusing on these cutting-edge industries, Horizon aligns its investment portfolio with long-term market trends, ensuring robust returns for both the company and its shareholders.
Market Position
Horizon operates as a business development company (BDC), which means it is required to distribute at least 90% of its taxable income to shareholders in order to maintain Horizon Technology Finance its tax-advantaged status. This structure allows the company to offer attractive dividend yields, making it a compelling choice for income-focused investors.
The company’s disciplined underwriting process and active portfolio management enable it to maintain a strong balance sheet while Horizon Technology Finance strategically deploying capital Horizon Technology to high-potential investments. With a focus on risk mitigation, Horizon prioritizes secured loans with favorable terms, ensuring stability even in volatile market conditions.
As the macroeconomic environment evolves, Horizon remains well-positioned to capitalize on opportunities in venture lending. The demand for alternative Horizon Technology financing solutions continues to rise, driven by the need for flexible capital among emerging companies that may not have access to traditional bank loans.
