| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 66 | 8.1x | 17.4x | Top tier | |
Growth | 74 | 12.1% | 7.1% | Top tier | |
Quality | 89 | — | — | Top tier | |
Safety | 62 | — | — | Around median | |
Capital Return | 72 | 11.00% | 0.18% | Top tier | |
Momentum | 63 | -5.5% | 1.3% | Around median | |
Sentiment | 76 | 6 | 3 | Top tier |
10-year US Treasury yield 5.31% as of 2026-10-05. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Hercules Capital, Inc. is a specialized finance company operating through a publicly traded business development company and private credit funds managed by Hercules Adviser LLC. The company generates income primarily by providing debt financing to technology and life sciences companies, with equity investments and warrants linked to some transactions; in fiscal Q1 2026, approximately 50% of assets were in life sciences and approximately 50% in technology, spread across 139 companies, with no subsector accounting for more than 25% of the portfolio. Assets managed by the platform totaled approximately $6.1 billion, up 21.8% year over year, while first-lien loans represented approximately 89% of the portfolio.
In fiscal Q2 2026, revenue according to EDGAR data totaled approximately $138.0 million, compared with approximately $136.4 million in fiscal Q1 2026, while net income was $130.2 million and earnings per share were $0.67. The data does not include a gross profit margin for this quarter, but published operating indicators showed total investment income growth of 8.5% year over year and an effective portfolio yield of 13.4%. Net asset value increased to $12.15 per share, while non-accrual loans remained at 0.1% of the portfolio by value.
The latest available details on the business mix showed that fiscal Q1 2026 saw 56% of commitments and 60% of fundings directed to life sciences companies, compared with 44% of commitments to technology companies. New debt and equity commitments reached a record $1.81 billion, with total fundings exceeding $706 million and net debt portfolio growth of $298 million. In that quarter, net investment income totaled $88.1 million, or $0.48 per share, and covered the base distribution by 120%.
The analyst consensus is “Buy,” with an average price target of $15.5 and identical high and low targets of $15.5. This target lies within the 52-week range of $13.70–$19.62, but is approximately 21% below the top of the range and approximately 13% above its bottom; this positioning reflects a balance between credit quality and distribution coverage on the one hand, and elevated leverage, yield pressure, and interest costs on the other.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Hercules Capital generates income primarily from interest on financing provided to technology and life sciences companies, along with income from equity investments and warrants. Assets managed through the business development company and private credit funds totaled approximately $6.1 billion in fiscal Q1 2026, up 21.8% year over year. During the same period, the effective portfolio yield was 12.8% and the core yield was 12.2%, while Hercules Adviser LLC contributed approximately $6.7 million to net investment income, including distributions and expense reimbursements.
Revenue according to EDGAR data totaled approximately $138.0 million, net income was $130.2 million, and earnings per share were $0.67 in fiscal Q2 2026. Published indicators showed total investment income growth of 8.5% year over year and an effective yield of 13.4%. Net asset value also increased to $12.15 per share, while distribution coverage reached 125% and non-accrual loans remained at 0.1%.
Automated analysis for informational purposes only — not investment advice.
Non-accrual loans represented only 0.1% of the portfolio by value in both fiscal Q1 and Q2 2026. In the first quarter, loans rated 4 and 5 together represented approximately 0.9% of the portfolio, the lowest reported level since fiscal Q2 2022, and all debt investments due for repayment were current on principal and interest payments according to the latest report available at the time. First-lien loans also represented approximately 89% of the portfolio, but elevated leverage of 115.4% increases the impact of any subsequent credit deterioration.
The investment and credit teams monitor the impact of artificial intelligence on portfolio companies, particularly borrowers in the software sector. Management said on May 5, 2026, that some companies benefit from greater efficiency, faster innovation, and the adoption of artificial intelligence products, but acknowledged that business models and profit margins could change and that the market would include winners and losers. The company therefore tightened loan structures, covenants, and terms, and typically targets debt of less than one times annual recurring revenue and a loan-to-value ratio below 20% for software loans.
Management projected prepayments of between $350 million and $500 million in fiscal Q2 2026, compared with approximately $225.8 million in the previous quarter, attributing the increase primarily to known mergers and acquisitions. These payments can generate fees and release liquidity for redeployment in life sciences and technology, including space and defense technologies, network communications, and business services. However, they also create reinvestment risk if repaid loans are not quickly replaced with assets of suitable quality and yield, particularly given the expected moderation in originations following the first quarter's record $1.81 billion.
