Key Points – Record first-quarter performance: Hercules Capital reported record Q1 2026 originations of $1.81 billion and record total investment income of $141.5 million.
Net investment income was $88.1 million ($0.48 per share) and covered both its base and supplemental distributions. – Credit quality remained solid: Management said portfolio credit performance was stable, with no meaningful deterioration and only one non-accrual loan
Loans rated 4 and 5 fell to a combined 0.9% of the portfolio, the lowest level since Q2 2022. – Liquidity rose, but leverage increased with growth: Hercules ended the quarter with $454.5 million of available liquidity in the BDC and more than $1 billion across the broader platform. GAAP leverage rose to 115.4% from 104.4% as the company issued new notes and used its ATM program to support expansion. Hercules Capital (NYSE:HTGC) reported record first-quarter 2026 originations and total investment income while emphasizing stable credit quality and strong liquidity amid heightened market volatility.
Chief Executive Officer and Chief Investment Officer Scott Bluestein said the company delivered “another strong quarter of record originations, record total investment income, and stable credit performance” despite a backdrop that included equity and credit market volatility, concerns tied to the Middle East conflict, private credit redemptions and questions about artificial intelligence disruption. The venture and growth-stage lender originated $1.81 billion of new debt and equity commitments in the quarter, with gross fundings of more than $706 million. Net debt investment portfolio growth totaled $298 million.