Hercules Capital, Inc. · NYSE:HTGC
Hercules Capital — Q4 2025 Earnings Presentation
46 slides from Hercules Capital's earnings presentation, Feb 12, 2026
Slide 1: Financing the Growth of Tomorrow’s Companies Today
Financing the Growth of Tomorrow’s Companies Today Q4 2025 INVESTOR PRESENTATION February 12, 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 • 4.50% Notes due 2026 Investment Options • 4.55% Notes due 2026 • 4.750% Notes due 2028 • 6
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: Fourth Quarter 2025 Investor Presentation
Fourth Quarter 2025 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: Q4 2025 Highlights
Q4 2025 Highlights • Net Investment Income (NII) of $87.0M Robust Earnings • Total Investment Income of $137.4M • NII per share of $0.48 • 1YR/3YR/5YR Total Shareholder Returns(1): 1.6% / 78.5% / 82.2% • ROAE(1,2): 16.4% Strong Shareholder Returns • ROAA(1,2): 8.2% • Net Interest Margin (NIM): 10.2%
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% 16.4% 8% 8.9% 8.8% 12% 8.2% 12.4% 6% 8% 6.2% 4% 10.0% 10.6% 12.5% 13.4% 10.6% 4.9% 5.0% 5.3% 6.1% 4.8% 2% 4% 0% 0% 2021 2022 2023 2024 Q4 2025
Slide 9: Available Leverage for Potential Earnings Growth
Available Leverage for Potential Earnings Growth Leverage to Return on Average Equity % (ROAE) 30% 113.7% 120% 104.4% 101.3% 95.6% 25% 89.6% 88.6% 100.1% 87.1% 84.1% 90% 77.4% 75.6% 20% 86.0% 73.9% 71.9% 69.9% 15% 60% 10% 30% 5% 12.4% 18.2% 21.3% 17.0% 16.4% 0% 0% 2021 2022 2023 2024 Q4 2025 (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 1.47 1.46 1.5 $14 1.26 Price to NAV Multiple (x) 1.3 Net Asset Value (NAV) 1.1 0.96 0.96 0.93 $12 0.82 0.81 0.9 0.7 $10 0.5 $11.22 $10.53 $11.43 $11.66 $1
Slide 11: Hercules Key Performance Highlights
Hercules Key Performance Highlights Total Investment Income Net Investment Income “NII” ($ in millions) ($ in millions) $600 $350 $300 $500 $250 $400 $200 $300 $150 $200 $100 $341.7 $532.5 $157.1 $100.3 $108.7 $143.3 $150.0 $188.1 $304.0 $325.8 $157.1 $175.1 $190.9 $207.8 $267.9 $287.3 $281.0 $321.7
Slide 12: Portfolio Growth with Underwriting Discipline
Portfolio Growth with Underwriting Discipline Cumulative Net Debt Commitment and Fundings, $24 $22.3 $22 Since Inception $19.4 $20 $17.3 $18 $15.0 $ in billions $16 $13.4 $13.3 $14 $11.9 $12 $9.9 $9.6 $10 HTGC $7.3 $7.6 $8 $5.7 $5.6 IPO $6 $4.0 $4.2 $4 $2.7 $2.9 $1.5 $1.2 $1.9 $2 $0.9 $0.7 $0.2 $0.2
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 $3.01 $4.26 108 $525.5 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 • $22.3 bi
Slide 17: Financial Highlights
Financial Highlights
Slide 18: Income Statement: Q4 2025 vs. Q4 2024 Summary Results
Income Statement: Q4 2025 vs. Q4 2024 Summary Results Three Months Ended December 31, 2025 2024 Year/Year ($ in 000's, except per share amounts) Change Interest Income (excluding payment-in-kind (PIK) interest income) $ 117,247 $ 101,436 16% PIK Interest Income $ 14,340 $ 13,401 7% Fee Income 5,843
Slide 19: Current and Historical Income Statements
Current and Historical Income Statements Twelve Months Ended December 31, 2025 2024 Year/Year ($ in 000's, except per share amounts) Change Interest Income (excluding payment-in-kind (PIK) interest income) $ 451,964 $ 415,925 9% PIK Interest Income $ 55,923 $ 51,270 9% Fee Income 24,606 26,396 -7% T
Slide 20: Current and Historical Balance Sheets
Current and Historical Balance Sheets December 31, December 31, ($ in 000's, except per share amounts) 2025 2024 ASSETS Total Investments, at fair value $ 4,466,647 $ 3,659,978 C ash and cash equivalents 56,874 42,679 Foreign C ash 113 70,445 Restricted cash 2,467 3,297 Interest receivable 37,261 32
Slide 21: Effective Yield vs. Core Yield – Leads to Strong Earnings
Effective Yield vs. Core Yield – Leads to Strong Earnings Median Core Yield of 13.1% (Q1 2022 – Q4 2025) 16.0% 16% 15.5% 15.3% 15.1% 14.9% 14.7% 14.7% 14.4% 13.9% 13.7% 14% 13.5% 14.2% 14.3% 13.0% 12.9% 14.0% 14.1% 14.0% 12.9% 13.8% 13.7% 13.3% 12.9% Effective Yield 12% 11.5% 11.5% 12.6% 12.5% 12.5%
Slide 22: NAV Roll-Forward – Q4 2025
NAV Roll-Forward – Q4 2025 $12.80 $0.11 $0.03 $0.02 $0.48 $(0.09) $12.30 $12.13 $12.05 $(0.47) $11.80 $11.30 $10.80 $10.30 Net investment income Net unreal. depreciation Stock Compensation & DRIP NAV/share at Q4 2025 NAV/share at Q3 2025 Net realized gain Public Offering Dividends paid Increase Decr
Slide 23: High-Yield Portfolio of Earning Assets
High-Yield Portfolio of Earning Assets Median Effective Yield of 14.2% (Q1 2022 to Q4 2025) 16.0% $4,500 15.5% 15.3% 16% 15.1% 14.9% 14.7% 14.7% 14.4% 13.7% 13.9% $4,000 13.5% 14% 14.2% 12.9% 13.0% 12.9% Total Debt Investments, at value (millions) $3,500 11.5% 11.5% 12% $3,000 10% Effective Yield (%
Slide 24: Strong, Consistent Net Interest Margin - NIM
Strong, Consistent Net Interest Margin - NIM Median NIM of 12.1% (Q1 2022 to Q4 2025) 13.7% 13.7% $120,000 13.3% 14% 13.0% 12.7% 12.7% 12.6% 12.5% 11.7% 11.5% 12% 12.1% $100,000 10.7% 10.8% Net Interest Margin (in thousands) 10.3% 10.2% 9.4% 10% 8.9% $80,000 Net Interest Margin (%) 8% $60,000 6% $40
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% 14.7% 14.9% 14.7% 16% 14.4% 13.7% 13.9% 13.5% 12.9% 13.0% 12.9% 11.5% 11.5% 14.0% 14.1% 14.2% 14.3% 14.0% 12% 13.8% 13.7% 13.3% 12.9% 12.4% 12.6% 12.5% 12.5
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 2.4% (Q1 2022 to Q4 2025) $25,000 3% 2.8% 2.8% 2.7% 2.7% 2.6% 2.6% 2.5% 2.4% 2.4% $20,000 2.4% 2.2% 2.2% 2.1% 2.0% 2.0% 2.0% 2.0% 2% OPEX as a % of Total Assets (%) OPEX (in thousands) $15,000 $10,00
Slide 27: Unfunded Commitments as a Percentage of Total Assets
Unfunded Commitments as a Percentage of Total Assets $1,000 25% 22.5% Available Unfunded Commitments as % Total Assets Available Unfunded Commitments (in millions) $900 20.8% $800 20% 17.0% 17.3% $700 $600 13.8% 15% 13.1% 13.1% 13.4% 11.8% 12.0% 11.7% $500 11.3% 11.0% 9.9% 9.8% $400 8.4% 10% $300 $2
Slide 28: Consistent and Disciplined Underwriting Standards
Consistent and Disciplined Underwriting Standards Our disciplined credit underwriting standards have delivered consistent long-term results $5,000 1.0 High Quality $4,500 2.20 Debt Portfolio Value 2.10 2.26 2.27 $4,000 2.13 2.20 2.23 2.24 2.24 2.16 2.18 2.24 2.26 2.28 2.26 2.31 2.0 ($ in millions) $
Slide 29: Diversified Sources of Funding: Q4 2025
Diversified Sources of Funding: Q4 2025 Capital Sources as of 12/31/25 $ in Millions % of Total Equity $2,216.1 48.9% SBA License 3 – HC IV $175.0 3.9% SBA License 4 – SBIC V $175.0 3.9% January 2027 Notes (Institutional) $350.0 7.7% Entity September 2026 Notes (Institutional) October 2033 Notes (Ba
Slide 30: Diversified Sources of Funding: Q4 2025
Diversified Sources of Funding: Q4 2025 Notes SBA Debentures SMBC SMBC MUFG Bank Jan. 2027 Sept. 2026 Oct. 2033 Sept. 2028 March 2026 June 2030 License 3 License 4 LOC Facility Credit Facility Credit Facility Inst. Notes Inst. Notes Retail Notes Conv. Notes Inst. Notes Inst. Notes HC IV SBIC V Secur
Slide 31: Interest Rates & Asset Sensitivity
Interest Rates & Asset Sensitivity Basis Point Movement in Prime Rate $15,000 $0.07 $0.08 $10,000 $0.04 Net Income ($ in thousands) $0.04 Earning per Share (EPS) $5,000 $0.02 $0 $0.00 -200 -100 -75 -50 -25 25 50 75 -$5,000 -$0.02 -$0.04 -$0.03 -$10,000 -$0.04 -$0.04 -$15,000 -$0.07 -$0.08 (1) Net In
Slide 32: Portfolio Highlights
Portfolio Highlights
Slide 33: Hercules’ Investment Portfolio: Q4 2025
Hercules’ Investment Portfolio: Q4 2025 Floating vs. Fixed Rate Investment Type Breakout 2.1% 3.1% 0.2% 1.6% 0.9% Sr. Sec. 1st Pos. Debt Investments 8.7% Sr. Sec. 2nd Pos. Debt Investments Floating Unsecured Debt Investments Fixed Equity Investments 97.9% 85.5% 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 1 Portfolio Company has completed Current Warrant & Equity Portfolio – Q4 2025 an Initial Public Offering – 2025 • 108 warrant holdings • Voyager Technologies, Inc. • GAAP fair value: $41.1 million 15 Portfo
Slide 35: Selected List of Warrant and Equity Portfolio Holdings
Selected List of Warrant and Equity Portfolio Holdings Technology Life Sciences 35
Slide 36: A Broadly Diversified Portfolio Re-Balanced According to Market Conditions
A Broadly Diversified Portfolio Re-Balanced According to our Assessment of Ongoing Market Conditions Mitigates Risk ($M) $3,248.0 $3,660.0 $4,466.6 100% 3.5% 3.1% 2.4% 1.5% 4.5% 9.3% 3.1% Diversified Financial Services 90% Electronics & Computer Hardware 0.3% 3.0% 16.7% Space Technologies 18.8% 80%
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 $2.5 Trillion in VC Investments Since 1997
Over $2.5 Trillion in VC Investments Since 1997 Venture Capital Investment Activity 2015 – 2025 $400 25,000 Dollars Invested (billions) $350 19,634 18,290 20,000 $300 15,379 15,250 14,716 14,145 $250 # of Deals 15,000 $200 $150 10,000 4,995 4,341 $100 4,379 4,496 4,649 5,000 $50 $84.7 $60.2 $80.2 $1
Slide 42: Exits of Venture Capital–Backed Companies
Exits of Venture Capital–Backed Companies Mergers & Acquisitions $200 1,600 Amount Paid (billions) 1334 1,400 $150 1060 1029 1,200 759 880 934 703 708 848 # of Deals 730 1,000 675 $100 800 600 $50 400 $84.7 $120.5 $89.0 $129.5 $123.4 $104.5 $152.1 $79.4 $62.7 $83.8 $140.7 200 $0 0 2015 2016 2017 201
Slide 43: Hercules’ Total Commitments VS. VC Dollars Invested
Hercules’ Total Commitments VS. VC Dollars Invested Venture Capital Investment Activity 2015 – 2025 $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 Invested
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 Casey Alexander Transferred Coverage Re-initiated Coverage Initiated Coverage 2/20/2024 7/20/2020 6/23/15 Chris