Hercules Capital, Inc. · NYSE:HTGC
Hercules Capital — Q1 2026 Earnings Presentation
46 slides from Hercules Capital's earnings presentation, May 5, 2026
Slide 1: Financing the Growth of Tomorrow's Companies Today
Financing the Growth of Tomorrow’s Companies Today Q1 2026 INVESTOR PRESENTATION May 5, 2026
Slide 2: Important Notice: Forward Looking Statements
Important Notice: Forward Looking Statements This presentation may contain “forward-looking However, by their nature, these forward-looking statements” within the meaning of the Private statements involve numerous assumptions, Securities Litigation Reform Act of 1995. You should uncertainties and ri
Slide 3: Hercules Capital
Hercules Capital Structure Internally Managed Business Development Company (BDC) IPO Date June 9, 2005 - Common Stock Institutional Notes PAR $1000.00/$2000.00 • 2.625% Notes due 2026 • 3.375% Notes due 2027 • 4.750% Notes due 2028 Investment Options • 5.350% Notes due 2029 • 6.000% Notes due 2030 S
Slide 4: We are HTGC: a Publicly Traded, Internally Managed BDC
We are HTGC: a Publicly Traded, Internally Managed BDC Highly Regulated | Financially Efficient | Uniquely Transparent As a business development company, or BDC, we invest mostly in smaller US businesses and do so under the stringent oversight of federal regulators and an independent board of direct
Slide 5: First Quarter 2026 Investor Presentation
First Quarter 2026 Investor Presentation • Key Performance Highlights • Company & Strategic Overview • Financial Highlights • Portfolio Highlights • Venture Capital Market Opportunity • Analyst Coverage
Slide 6: Key Performance Highlights
Key Performance Highlights
Slide 7: Q1 2026 Highlights
Q1 2026 Highlights • Net Investment Income (NII) of $88.1M Robust Earnings • Total Investment Income of $141.5M • NII per share of $0.48 • 1YR/3YR/5YR Total Shareholder Returns(1): -14.8% / 51.7% / 39.1% • ROAE(1,2): 16.9% Strong Shareholder Returns • ROAA(1,2): 8.1% • Net Interest Margin (NIM): 10.
Slide 8: Delivering Strong Sustainable Shareholder Returns
Delivering Strong Sustainable Shareholder Returns Return on Average Assets % (ROAA) Return on Average Equity % (ROAE) 12% 20% 21.3% 10% 16% 18.2% 10.6% 17.0% 16.9% 16.4% 8% 8.9% 8.8% 12% 8.2% 8.1% 6% 8% 4% 10.6% 12.5% 13.4% 10.6% 5.0% 5.3% 6.1% 4.9% 4.3% 9.9% 2% 4% 0% 0% 2022 2023 2024 2025 Q1 2026
Slide 9: Available Leverage for Potential Earnings Growth
Available Leverage for Potential Earnings Growth Leverage to Return on Average Equity % (ROAE) 115.4% 30% 113.7% 120% 104.4% 101.3% 99.7% 25% 89.6% 88.6% 100.1% 87.1% 97.8% 90% 77.4% 75.6% 86.0% 20% 71.9% 69.9% 15% 60% 10% 30% 5% 18.2% 21.3% 17.0% 16.4% 16.9% 0% 0% 2022 2023 2024 2025 Q1 2026 (1) (2
Slide 10: Hercules Has Consistently Maintained a Premium to NAV
Hercules Has Consistently Maintained a Premium to NAV Creates a strong capital raising position to support growth and stability 1.72 $16 1.7 1.55 1.46 1.5 $14 1.26 1.24 Price to NAV Multiple (x) 1.3 Net Asset Value (NAV) 1.1 0.96 0.93 $12 0.82 0.82 0.9 0.74 0.7 $10 0.5 $10.53 $11.43 $11.66 $12.13 $1
Slide 11: Hercules Key Performance Highlights
Hercules Key Performance Highlights Total Investment Income Net Investment Income “NII” ($ in millions) ($ in millions) $550 $350 $500 $300 $450 $400 $250 $350 $200 $300 $250 $150 $200 $150 $100 $188.1 $100.3 $108.7 $143.3 $157.1 $150.0 $304.0 $325.8 $341.7 $175.1 $190.9 $207.8 $267.9 $287.3 $281.0
Slide 12: Portfolio Growth with Underwriting Discipline
Portfolio Growth with Underwriting Discipline Cumulative Net Debt Commitment and Fundings, $26 $24 Since Inception $22.3 $23.6 $22 $19.4 $20 $17.3 $18 $ in billions $15.0 $15.5 $16 $13.4 $13.3 $14 $11.9 $12 $9.9 $9.6 $10 HTGC $7.3 $7.6 $8 IPO $5.7 $5.6 $6 $4.0 $4.2 $2.7 $1.9 $2.9 $4 $1.5 $1.2 $0.9 $
Slide 13: Company & Strategic Overview
Company & Strategic Overview
Slide 14: Hercules At-a-Glance
Hercules At-a-Glance Largest BDC Focused on Providing Financing to High-Growth Venture Capital-Backed Companies $2.97 $4.56 113 $454.5 BILLION BILLION COMPANIES MILLION MARKET DEBT INVESTMENT WARRANT LIQUIDITY & BALANCE CAPITALIZATION PORTFOLIO PORTFOLIO SHEET FOUNDED DECEMBER 2003 DEBT INVESTMENTS
Slide 15: Why Hercules is Different from Other BDCs
Why Hercules is Different from Other BDCs We invest in innovative venture growth-stage companies What We Don’t Do What We Do • No direct oil and gas exposure • We focus primarily on pre-IPO and M&A, innovative high-growth venture capital backed companies at their • No CLO exposure expansion (venture
Slide 16: We are at Center Stage of the Innovation Economy
We are at Center Stage of the Innovation Economy Hercules has domain expertise in its key industry sectors “We are not generalists” Technology Life Sciences • We Invest at the Expansion “Venture Growth” • Offices in key venture capital markets: and Established Stage CA | MA | NY | CO | UK • $23.6 bi
Slide 17: Financial Highlights
Financial Highlights
Slide 18: Income Statement: Q1 2026 vs. Q1 2025 Summary Results
Income Statement: Q1 2026 vs. Q1 2025 Summary Results Three Months Ended March 31, 2026 2025 Year/Year ($ in 000's, except per share amounts) Change Interest Income (excluding payment-in-kind (PIK) interest income) $ 123,489 $ 102,099 21% PIK Interest Income $ 12,914 $ 13,473 -4% Fee Income 5,133 3,
Slide 19: Current and Historical Income Statements
Current and Historical Income Statements Three Months Ended Twelve Months Ended March 31, December 31, ($ in 000's, except per share amounts) 2026 2025 Interest Income (excluding payment-in-kind (PIK) interest income) $ 123,489 $ 451,964 PIK Interest Income $ 12,914 $ 55,923 Fee Income 5,133 24,606
Slide 20: Current and Historical Balance Sheets
Current and Historical Balance Sheets March 31, December 31, ($ in 000's, except per share amounts) 2026 2025 ASSETS Total Investments, at fair value $ 4,721,987 $ 4,466,647 (1) C ash and cash equivalents 42,365 56,987 Restricted cash 2,561 2,467 Interest receivable 40,377 37,261 Right of use asset
Slide 21: Effective Yield vs. Core Yield – Leads to Strong Earnings
Effective Yield vs. Core Yield – Leads to Strong Earnings Median Core Yield of 13.3% (Q1 2023 – Q1 2026) 16.0% 16% 15.5% 15.3% 15.1% 14.9% 14.7% 14.4% 13.9% 13.7% 14% 13.5% 14.2% 14.3% 13.0% 14.0% 14.1% 14.0% 12.9% 12.8% 13.7% 13.3% 12.9% Effective Yield 12% 12.6% 12.5% 12.5% 12.5% 12.2% 12.0% 12.0%
Slide 22: NAV Roll-Forward – Q1 2026
NAV Roll-Forward – Q1 2026 $13.80 $13.30 $12.80 $0.48 $(0.00) $0.05 $12.30 $(0.25) $(0.04) $12.13 $11.90 $11.80 $(0.47) $11.30 $10.80 $10.30 Net investment income Net unreal. depreciation Stock Compensation & DRIP NAV/share at Q1 2026 NAV/share at Q4 2025 Net realized loss Public Offering Dividends
Slide 23: High-Yield Portfolio of Earning Assets
High-Yield Portfolio of Earning Assets Median Effective Yield of 14.4% (Q1 2023 to Q1 2026) 16.0% $5,000 15.5% 15.3% 16% 15.1% 14.9% 14.7% 14.4% $4,500 13.7% 13.9% 14.4% 13.5% 12.9% 14% 13.0% 12.8% $4,000 Total Debt Investments, at value (millions) 12% $3,500 10% Effective Yield (%) $3,000 $2,500 8%
Slide 24: Strong, Consistent Net Interest Margin - NIM
Strong, Consistent Net Interest Margin - NIM Median NIM of 12.5% (Q1 2023 to Q1 2026) 13.7% 13.7% $120,000 13.3% 14% 13.0% 12.7% 12.6% 12.5% 11.7% 11.5% 12.5% 12% $100,000 10.7% 10.8% Net Interest Margin (in thousands) 10.2% 10.1% 10% $80,000 Net Interest Margin (%) 8% $60,000 6% $40,000 4% $102,692
Slide 25: Impact of Early Payoffs on Effective Yields
Impact of Early Payoffs on Effective Yields Early Payoffs Lead to Higher Effective Yields and Earnings Effective Yields 15.1% 16.0% 15.5% 15.3% 14.9% 14.7% 16% 14.4% 13.7% 13.9% 13.5% 13.0% 12.9% 12.8% 14.0% 14.1% 14.2% 14.3% 14.0% 12% 13.7% 13.3% 12.9% 12.6% 12.5% 12.5% 12.5% 12.0% 12.0% 12.0% 11.9
Slide 26: Non-Interest and Fee Expense to Average Total Assets
Non-Interest and Fee Expense to Average Total Assets Median adjusted OPEX to average total assets of 2.2% (Q1 2023 to Q1 2026) $30,000 3% 2.8% 2.7% 2.7% 2.6% 2.5% $25,000 2.2% 2.2% 2.1% 2.0% 2.0% 2.0% 2.0% 2.2% $20,000 1.9% 2% OPEX as a % of Total Assets (%) OPEX (in thousands) $15,000 $10,000 1% $5
Slide 27: Unfunded Commitments as a Percentage of Total Assets
Unfunded Commitments as a Percentage of Total Assets $1,000 20% Available Unfunded Commitments as % Total Assets 17.3% Available Unfunded Commitments (in millions) $900 18% $800 16% 13.1% 13.1% 13.4% $700 14% 11.8% 12.0% 11.7% $600 11.3% 11.0% 12% 9.8% 9.9% $500 10% 8.4% 8.2% $400 8% $300 6% $200 4%
Slide 28: Consistent and Disciplined Underwriting Standards
Consistent and Disciplined Underwriting Standards Our disciplined credit underwriting standards have delivered consistent long-term results $6,000 1.0 High Quality Debt Portfolio Value $5,000 2.16 2.18 2.11 2.26 2.24 2.28 2.24 2.24 2.26 2.31 2.26 2.27 2.20 2.0 ($ in millions) Credit Rating $4,000 $3
Slide 29: Diversified Sources of Funding: Q1 2026
Diversified Sources of Funding: Q1 2026 Capital Sources as of 3/31/26 $ in Millions % of Total Equity $2,227.0 46.5% SBA License 3 – HC IV $175.0 3.6% SBA License 4 – SBIC V $175.0 3.6% January 2027 Notes (Institutional) $350.0 7.3% Entity September 2026 Notes (Institutional) October 2033 Notes (Bab
Slide 30: Diversified Sources of Funding: Q1 2026 ($ in millions)
Diversified Sources of Funding: Q1 2026 Notes SBA Debentures SMBC SMBC MUFG Bank Jan. 2027 Sept. 2026 Oct. 2033 Sept. 2028 Feb. 2029 Inst. June 2030 License 3 License 4 LOC Facility Credit Facility Credit Facility Inst. Notes Inst. Notes Retail Notes Conv. Notes Notes Inst. Notes HC IV SBIC V Securi
Slide 31: Interest Rates & Asset Sensitivity
Interest Rates & Asset Sensitivity Basis Point Movement in Prime Rate $20,000 $0.12 $15,000 $0.08 $0.08 Net Income ($ in thousands) $0.05 Earning per Share (EPS) $10,000 $0.04 $5,000 $0.02 $0 $0.00 -200 -100 -75 -50 -25 25 50 75 -$5,000 -$0.02 -$0.02 -$0.04 -$0.03 -$10,000 -$0.04 -$0.06 -$15,000 -$0
Slide 32: Portfolio Highlights
Portfolio Highlights
Slide 33: Hercules' Investment Portfolio: Q1 2026
Hercules’ Investment Portfolio: Q1 2026 Floating vs. Fixed Rate Investment Type Breakout 2.0% 2.8% 0.2% 1.5% 0.9% Sr. Sec. 1st Pos. Debt Investments 9.5% Sr. Sec. 2nd Pos. Debt Investments Floating Unsecured Debt Investments Fixed Equity Investments 98.0% 85.1% Investment Funds & Vehicles Warrant Po
Slide 34: Hercules' Warrant & Equity Portfolio: Potential Future Upside
Hercules' Warrant & Equity Portfolio: Potential Future Upside for Shareholder’s Total Return 2 Portfolio Companies have filed Current Warrant & Equity Portfolio – Q1 2026 for/completed an Initial Public • 113 warrant holdings Offering – YTD 2026 • GAAP fair value: $42.5 million • Alamar Biosciences,
Slide 35: Selected List of Warrant and Equity Portfolio Holdings
Selected List of Warrant and Equity Portfolio Holdings Technology Life Sciences 35
Slide 36: A Broadly Diversified Portfolio Re-Balanced According to Market Conditions
A Broadly Diversified Portfolio Re-Balanced According to our Assessment of Ongoing Market Conditions Mitigates Risk ($M) $3,248.0 $3,660.0 $4,466.6 $4,722.0 100% 3.5% 3.1% 2.4% 2.3% 1.5% 1.4% 4.5% 3.1% 3.3% Diversified Financial Services 9.3% 90% Electronics & Computer Hardware 0.3% 3.0% 16.7% Space
Slide 37: Select List of Diversified Portfolio Companies
Select List of Diversified Portfolio Companies Technology Life Sciences Security Software BioPharma Aerospace & Defense Fintech Healthcare Marketplaces For illustrative purposes only. The companies listed above do not constitute a full list of all investments made by Hercules Capital, Inc. or the fu
Slide 38: Diversified Investment Approach Mitigates Risk
Diversified Investment Approach Mitigates Risk Four Key Diversification Strategies FINANCIAL INDUSTRY STAGES OF GEOGRAPHIC SPONSORS SECTORS DEVELOPMENT LOCATION More than Technology Expansion or Key VC Investment 1000 Venture Life Sciences “Venture Growth” Centers: Capital & Silicon Valley & Establi
Slide 39: Primarily Invest at Stages of High Growth
Primarily Invest at Stages of High Growth Expansion Stage Established Follow-on Rounds Private Late Stage/ Type of Company of Growth Capital Select Public Companies (Series B-Liquidity Event) Venture Capital/ Public Markets/ Equity Capital Provider Private Equity Private Equity Expectation for Addit
Slide 40: Venture Capital Market Opportunity
Venture Capital Market Opportunity
Slide 41: Over $2.8 Trillion in VC Investments Since 1997
Over $2.8 Trillion in VC Investments Since 1997 Venture Capital Investment Activity 2016 – Q1 2026 $400 25,000 19,689 Dollars Invested (billions) $350 18,383 20,000 $300 14,202 15,708 15,464 15,377 $250 # of Deals 15,000 $200 $150 10,000 4,649 4,995 4,341 $100 4,496 3,336 5,000 $50 $60.2 $80.2 $108.
Slide 42: Exits of Venture Capital–Backed Companies
Exits of Venture Capital–Backed Companies Mergers & Acquisitions $200 1340 1600 Amount Paid (billions) 1400 1066 1108 $150 944 1200 703 759 708 885 853 # of Deals 730 1000 $100 800 600 $50 228 400 $120.5 $89.0 $129.5 $123.4 $105.1 $152.8 $79.6 $62.8 $83.8 $143.9 $311.7 200 $0 0 2016 2017 2018 2019 2
Slide 43: Hercules' Total Commitments vs. VC Dollars Invested
Hercules’ Total Commitments VS. VC Dollars Invested Venture Capital Investment Activity 2016 – Q1 2026 $400 VC Dollars Invested $4,500 Hercules Debt & Equity Commitments $3,924 $350 Hercules Debt & Equity Commitments $4,000 $300 Note: Represents US VC investments only $3,121 $3,500 VC Dollars Invest
Slide 44: Investment Highlights
Investment Highlights Large Market Opportunity and Differentiated Asset Class of Investments Experienced Attractive Yields and Management Team Upside from Equity and with Domain Expertise Warrant Portfolio Strict Focus on Credit Strong Venture Capital and Underwriting Process Private Equity Relation
Slide 45: Analyst Coverage
Analyst Coverage
Slide 46: Broad Industry Analyst Coverage
Broad Industry Analyst Coverage Finian O’Shea John Hecht Brian McKenna Transferred Coverage Initiated Coverage Re-initiated Coverage 7/13/2018 6/30/2015 11/2/2020 Paul Johnson Crispin Love Jason Stewart Transferred Coverage Re-initiated Coverage Transferred Coverage 2/20/2024 7/20/2020 5/7/2026 Chri