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Hercules Capital Inc(HCXY)Earnings, Financials & Key Ratios
HCXY•NYSE
$24.95
13.5× P/E·Price updated Jul 2, 2026
AboutHercules Capital, Inc. is a business development company. The firm specializing in providing venture debt, debt, senior secured loans, and growth capital to privately held venture capital-backed companies at all stages of development from startups, to expansion stage including select publicly listed companies and select special opportunity lower middle market companies that require additional capital to fund acquisitions, recapitalizations and refinancing and established-stage companies. The firm provides growth capital financing solutions for capital extension; management buy-out and corporate spin-out financing solutions; company, asset specific, or intellectual property acquisition financing; convertible, subordinated and/or mezzanine loans; domestic and international corporate expansion; vendor financing; revenue acceleration by sales and marketing development, and manufacturing expansion. It provides asset-based financing with a focus on cash flow; accounts receivable facilities; equipment loans or leases; equipment acquisition; facilities build-out and/or expansion; working capital revolving lines of credit; inventory. The firm also provides bridge financing to IPO or mergers and acquisitions or technology acquisition; dividend recapitalizations and other sources of investor liquidity; cash flow financing to protect against share price volatility; competitor acquisition; pre-IPO financing for extra cash on the balance sheet; public company financing to continue asset growth and production capacity; short-term bridge financing; and strategic and intellectual property acquisition financings. It also focuses on customized financing solutions, emerging growth, mid venture, and late venture financing. The firm invests primarily in structured debt with warrants and, to a lesser extent, in senior debt and equity investments. The firm generally seeks to invest in companies that have been operating for at least six to 12 months prior to the date of their investment. It prefers to invest in technology, energy technology, sustainable and renewable technology, and life sciences. Within technology the firm focuses on advanced specialty materials and chemicals; communication and networking, consumer and business products; consumer products and services, digital media and consumer internet; electronics and computer hardware; enterprise software and services; gaming; healthcare services; information services; business services; media, content and information; mobile; resource management; security software; semiconductors; semiconductors and hardware; and software sector. Within energy technology, it invests in agriculture; clean technology; energy and renewable technology, fuels and power technology; geothermal; smart grid and energy efficiency and monitoring technologies; solar; and wind. Within life sciences, the firm invests in biopharmaceuticals; biotechnology tools; diagnostics; drug discovery, development and delivery; medical devices and equipment; surgical devices; therapeutics; pharma services; and specialty pharmaceuticals. It also invests in educational services. The firm invests primarily in United States based companies and considers investment in the West Coast, Mid-Atlantic regions, Southeast and Midwest; particularly in the areas of software, biotech and information services. The firm prefers to invest between $10 million and $250 million in equity per transactions. It invests generally between $1 million and $40 million in companies focused primarily on business services, communications, electronics, hardware, and healthcare services. The firm invests primarily in private companies but also have investments in public companies. For equity investments, the firm seeks to represent a controlling interest in its portfolio companies which may exceed 25% of the voting securities of such companies. The firm seeks to invest a limited portion of its assets in equipment-based loans to early-stage prospective portfolio companies. These loans are generally for amounts up to $3 million but may be up to $15 million for certain energy technology venture investments. The firm allows certain debt investments have the right to convert a portion of the debt investment into equity. It also co-invests with other private equity firms. The firm seeks to exit its investments through initial public offering, a private sale of equity interest to a third party, a merger or an acquisition of the company or a purchase of the equity position by the company or one of its stockholders. The firm has structured debt with warrants which typically have maturities of between two and seven years with an average of three years; senior debt with an investment horizon of less than three years; equipment loans with an investment horizon ranging from three to four years; and equity related securities with an investment horizon ranging from three to seven years. The firm prefers to invest through its balance sheet capital. The firm formerly known as Hercules Technology Growth Capital, Inc. Hercules Capital, Inc. was founded in December 2003 and is based in Palo Alto, California with additional offices in North America and Europe.Show more
- EBITDA$365M+38.7%
- Net Income$340M+29.2%
- EPS (Diluted)1.85+14.9%
- Gross Margin87.23%+6.3%
- EBITDA Margin66.81%+9.3%
- Operating Margin66.75%+9.4%
- Net Margin62.1%+1.8%
- ROE16.16%+16.5%
HCXY Price & Volume
Hercules Capital Inc (HCXY) stock price & volume — 10-year historical chart
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Cyclical Earnings Volatility Masks Structural Margin Resilience
Investment Thesis • Updated 2026Q1
VerdictNeutral
Growth:Mixed
Profitability:Strong
Financial:Healthy
Cash Flow:Mixed
Primary Risk:Portfolio Valuation Subjectivity
Key Thesis Takeaways
- Hercules Capital demonstrates significant pricing power with gross margins peaking at 98.1% in 2025Q4, yet the firm faces persistent earnings quality challenges due to its reliance on non-cash fair value adjustments.
- While the company has successfully scaled its asset base to $4.8B as of 2026Q1, investors should remain cautious regarding the sustainability of dividends given that operating cash flow frequently diverges from net income, as evidenced by the -5.43x OCF/NI ratio in 2026Q1.
- Future performance remains tethered to the subjective valuation of Level 3 assets and the timing of venture-backed portfolio exits.
Verdict Logic
while the 5.7% dividend yield is attractive, the significant disconnect between net income and operating cash flow, exemplified by the -5.43x OCF/NI ratio in 2026Q1, suggests that dividend sustainability may be at risk during periods of lower portfolio liquidity.
HCXY Growth Metrics
Hercules Capital Inc (HCXY) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years15.77%
5 Years8.89%
3 Years31.72%
TTM-
Profit CAGR
10 Years22.99%
5 Years8.37%
3 Years49.3%
TTM49.28%
EPS CAGR
10 Years12.11%
5 Years-1.65%
3 Years32.79%
TTM33.08%
Return on Capital
10 Years7.01%
5 Years7.68%
3 Years9.03%
Last Year8.8%
HCXY Recent Earnings
Hercules Capital Inc (HCXY) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 1/9 qtrs (20%)●Beat Revenue 0/9 qtrs (0%)
Q2 2026Latest
Apr 30, 2026Metric
Actual
Est
EPS
$0.23-52.0%
$0.48
Rev
$123M-12.5%
$141M
Q1 2026
Feb 12, 2026Metric
Actual
Est
EPS
$0.48-2.5%
$0.49
Rev
$137M-2.9%
$142M
Q4 2025
Oct 30, 2025Metric
Actual
Est
EPS
$0.61+27.3%
$0.48
Rev
$117M-14.8%
$137M
Q3 2025
Jul 31, 2025Metric
Actual
Est
EPS
$0.41-12.9%
$0.47
Rev
$80M-38.1%
$129M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | Apr 30, 2026 | $0.23vs $0.48-52.0% | $123Mvs $141M-12.5% |
| Q1 2026 | Feb 12, 2026 | $0.48vs $0.49-2.5% | $137Mvs $142M-2.9% |
| Q4 2025 | Oct 30, 2025 | $0.61vs $0.48+27.3% | $117Mvs $137M-14.8% |
| Q3 2025 | Jul 31, 2025 | $0.41vs $0.47-12.9% | $80Mvs $129M-38.1% |
Based on last 9 quarters of dataView full earnings history →
Peers Comparison
Key metrics vs top competitors for Hercules Capital Inc (HCXY)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $24.95 | $3.52B | 13.49 | 26.97% | 62.1% | 16.16% | 5.68% | |
| $18.66 | $13.4B | 10.03 | 32.87% | 43.69% | 8.11% | — | |
| $12.84 | $3.34B | 9.04 | 42.5% | 26.91% | 5.24% | — | |
| $5.07 | $205.84M | 4.16 | 36.55% | -19.55% | -3.39% | — | |
| $15.92 | $2.98B | 8.61 | 26.97% | 50.05% | 13.18% | — | |
| $10.94 | $760.3M | 10.83 | 17.9% | 23.81% | 4.42% | — |
Compare HCXY vs Peers
Hercules Capital Inc (HCXY) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
HCXY SEC Filings & Documents
Hercules Capital Inc (HCXY) SEC filings — annual & quarterly reports (10-K, 10-Q)
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HCXY Frequently Asked Questions
Hercules Capital Inc (HCXY) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Hercules Capital Inc's revenue?
Hercules Capital Inc (HCXY) reported $550.6M in revenue for fiscal year 2025.
How fast is Hercules Capital Inc growing?
Hercules Capital Inc (HCXY) grew revenue by 27.0% over the past year. This is strong growth.
Is HCXY profitable?
Yes, Hercules Capital Inc (HCXY) is profitable, generating $331.9M in net income for fiscal year 2025 (62.1% net margin).
Dividend & Returns
Does HCXY pay dividends?
Yes, Hercules Capital Inc (HCXY) pays a dividend with a yield of 5.68%. This makes it attractive for income-focused investors.
What is HCXY's return on equity?
Hercules Capital Inc (HCXY) has a return on equity (ROE) of 16.2%. This is reasonable for most industries.
What is Hercules Capital Inc's free cash flow?
Hercules Capital Inc (HCXY) had negative free cash flow of $351.7M in fiscal year 2025, likely due to heavy capital investments.