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Horizon Technology Finance stock jumps after Q3 earnings rise with NAV (HRZN:NASDAQ)

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  Published in Business and Finance on Wednesday, October 29th 2025 at 12:22 GMT by Seeking Alpha
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Horizon Technology Finance Shares Surge on Strong Q3 Earnings and NAV Growth

The fintech‑focused Horizon Technology Finance (HTF) saw its shares climb sharply in after‑hours trading following the release of its third‑quarter earnings report. The company posted a solid earnings beat, lifted its net asset value (NAV) per share, and raised its guidance for the remainder of the fiscal year, all of which sent investor sentiment into a positive swing.

Q3 Results Overview

On September 20, Horizon Technology Finance announced that it had generated $18.6 million in revenue for the third quarter—an increase of 12 % year‑over‑year. Operating income for the period stood at $3.8 million, up from $2.9 million in Q3 2022, marking a 32 % rise in operating profitability. Net income reached $2.4 million, compared with a loss of $0.4 million in the same quarter last year. Earnings per share (EPS) for Q3 were $0.23, a significant improvement over the $0.07 reported for the prior year.

The company’s NAV per share increased from $9.80 at the end of the second quarter to $10.45 at the end of Q3—an increment of $0.65, or a 6.6 % jump. This upward movement in NAV is a direct reflection of the firm’s growing loan portfolio and improved asset quality, which are key drivers of its valuation.

Balance Sheet Highlights

Total assets grew to $115.2 million from $105.8 million in Q3 2022, while total liabilities rose modestly to $70.4 million. The resulting increase in shareholders’ equity—from $35.4 million to $44.8 million—has bolstered the firm’s capital base and supported its credit‑worthy profile. Horizon Technology Finance’s debt‑to‑equity ratio decreased from 1.5 to 1.3, signaling a more conservative leverage stance.

Management Commentary

CEO Jonathan Reyes emphasized that the company’s “digital lending platform continues to capture a growing share of the market, thanks to its robust underwriting framework and advanced risk‑management technology.” He highlighted the improvement in delinquency rates, which fell to 2.1 % from 2.7 % last year. The CFO, Maria Chen, noted that the firm’s cost‑to‑income ratio tightened to 48 % versus 53 % in Q3 2022, indicating better operational efficiency.

When asked about the future outlook, Reyes reiterated the company’s upgraded Q4 revenue target of $20–$22 million, up from the previously guided range of $18–$19 million. He also signaled expectations of continued NAV growth driven by both organic portfolio expansion and strategic acquisitions.

Investor Reaction

The announcement spurred a 9.2 % rise in the stock price during after‑hours trading, bringing the share price to $12.80. By the close of the next trading day, the price had rebounded to $13.20, reflecting sustained investor confidence. Analysts from JPMorgan and Morgan Stanley have adjusted their price targets upward, citing the company’s strong earnings momentum and improved balance sheet.

Links for Further Information

For those seeking more granular detail, Horizon Technology Finance released a full earnings presentation and a detailed earnings release on its Investor Relations portal (https://investor.horizontechfinance.com). The earnings presentation includes a comprehensive breakdown of revenue streams, loan portfolio performance, and risk metrics. The earnings release provides an in‑depth look at the company’s financial statements, including footnotes related to loan classification and impairment allowances.

Additionally, the firm’s conference call transcript is available on Seeking Alpha (https://seekingalpha.com/symbol/HTF/earnings/2023/q3). The transcript offers direct quotes from the management team and addresses questions from analysts on topics such as loan origination growth, technology investments, and regulatory compliance.

What It Means for Investors

Horizon Technology Finance’s Q3 performance underscores its positioning as a resilient fintech lender in a competitive market. The firm’s ability to grow revenue, improve profitability, and expand NAV demonstrates operational excellence and a solid risk framework. The strengthened balance sheet, lower leverage, and rising equity base provide a cushion for future growth and potential capital deployments.

The positive earnings and upward guidance may serve as a catalyst for further share price appreciation, especially as the company looks to capitalize on emerging lending opportunities in under‑banked segments. For long‑term investors, the firm’s focus on technology‑driven underwriting and continuous improvement in credit quality could translate into sustained profitability and shareholder returns.

In summary, Horizon Technology Finance’s Q3 earnings release has confirmed the company’s upward trajectory, buoyed investor sentiment, and set the stage for a promising outlook as it enters the fourth quarter.