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HTFC Stock Analysis 2026 - Horizon Technology Finance Corp AI Rating

HTFC Nasdaq DE CIK: 0001487428
Recently Updated • Analysis: Apr 11, 2026 • SEC Data: 2025-12-31
STRONG SELL
78% Conf
Pending
Analysis scheduled

📊 HTFC Key Takeaways

Revenue: $1.8M
Net Margin: -145.8%
Free Cash Flow: $56.6M
Current Ratio: N/A
Debt/Equity: 1.49x
EPS: $-0.06
AI Rating: STRONG SELL with 78% confidence

Is HTFC a Good Investment? Thesis Analysis

Claude

Horizon Technology Finance faces a catastrophic 67.4% YoY revenue collapse coupled with deepening losses (-$2.7M net income, -145.8% net margin), indicating fundamental deterioration in its core venture debt financing business. While positive operating cash flow and $105.5M cash provide near-term liquidity, the 1.49x debt-to-equity ratio and $473M long-term debt burden make the company vulnerable should the revenue decline persist.

Why Buy HTFC? Key Strengths

Claude
  • + Positive operating cash flow of $56.6M despite unprofitability
  • + Solid cash position of $105.5M provides liquidity buffer
  • + EPS improved 62.5% YoY from worse loss levels

HTFC Investment Risks to Consider

Claude
  • ! Severe 67.4% YoY revenue decline indicates loss of core business competitiveness
  • ! Unprofitable with -145.8% net margin and negative ROE/ROA
  • ! High leverage with 1.49x debt/equity and $473M long-term debt against deteriorating cash generation capacity
  • ! Zero insider Form 4 filings in 90 days signals lack of management confidence
  • ! Operating cash flow sustainability questionable given revenue collapse

Key Metrics to Watch

Claude
  • * Quarterly revenue trend and revenue stabilization
  • * Path to profitability and operating margin improvement
  • * Debt refinancing ability and leverage reduction progress

HTFC Financial Metrics

Revenue
$1.8M
Net Income
$-2.7M
EPS (Diluted)
$-0.06
Free Cash Flow
$56.6M
Total Assets
$811.1M
Cash Position
$105.5M

💡 AI Analyst Insight

The 3,103.0% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.

HTFC Profitability Ratios

Gross Margin N/A
Operating Margin N/A
Net Margin -145.8%
ROE -0.8%
ROA -0.3%
FCF Margin 3,103.0%

HTFC vs Default Sector

How Horizon Technology Finance Corp compares to Default sector averages

Net Margin
HTFC -145.8%
vs
Sector Avg 12.0%
HTFC Sector
ROE
HTFC -0.8%
vs
Sector Avg 15.0%
HTFC Sector
Current Ratio
HTFC 0.0x
vs
Sector Avg 1.8x
HTFC Sector
Debt/Equity
HTFC 1.5x
vs
Sector Avg 0.7x
HTFC Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is HTFC Overvalued or Undervalued?

Based on fundamental analysis, Horizon Technology Finance Corp shows some fundamental concerns relative to the Default sector in 2026.

Return on Equity
-0.8%
Sector avg: 15%
Net Profit Margin
-145.8%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
1.49x
Sector avg: 0.7x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

HTFC Balance Sheet & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
1.49x
Debt/Assets
60.7%
Interest Coverage
N/A
Long-term Debt
$473.0M

HTFC 5-Year Financial Trend & Growth Analysis

HTFC 5-year financial data:
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Horizon Technology Finance Corp's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $-0.56 indicates the company is currently unprofitable.

HTFC Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
3,103.0%
Free cash flow / Revenue

HTFC Capital Allocation

Operating Cash Flow
$56.6M
Cash generated from operations
Dividends Paid
$53.1M
Returned to shareholders

HTFC SEC 10-K & 10-Q Filing Analysis

Access official SEC EDGAR filings for Horizon Technology Finance Corp (CIK: 0001487428)

📋 Recent SEC Filings

Date Form Document Action
Mar 19, 2026 8-K hrzn20260318_8k.htm View →
Mar 16, 2026 8-K hrzn20260315_8k.htm View →
Mar 13, 2026 8-K hrzn20260313_8k.htm View →
Mar 6, 2026 8-K hrzn20260305_8k.htm View →
Mar 3, 2026 10-K hrzn20251231_10k.htm View →

Frequently Asked Questions about HTFC

What is the AI rating for HTFC?

Horizon Technology Finance Corp (HTFC) has an AI rating of STRONG SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.

What are HTFC's key strengths?

Claude: Positive operating cash flow of $56.6M despite unprofitability. Solid cash position of $105.5M provides liquidity buffer.

What are the risks of investing in HTFC?

Claude: Severe 67.4% YoY revenue decline indicates loss of core business competitiveness. Unprofitable with -145.8% net margin and negative ROE/ROA.

What is HTFC's revenue and growth?

Horizon Technology Finance Corp reported revenue of $1.8M.

Does HTFC pay dividends?

Horizon Technology Finance Corp pays dividends, with $53.1M distributed to shareholders in the trailing twelve months.

Where can I find HTFC SEC filings?

Official SEC filings for Horizon Technology Finance Corp (CIK: 0001487428) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is HTFC's EPS?

Horizon Technology Finance Corp has a diluted EPS of $-0.06.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is HTFC a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Horizon Technology Finance Corp has a STRONG SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is HTFC stock overvalued or undervalued?

Valuation metrics for HTFC: ROE of -0.8% (sector avg: 15%), net margin of -145.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

Should I buy HTFC stock in 2026?

Our dual AI analysis gives Horizon Technology Finance Corp a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is HTFC's free cash flow?

Horizon Technology Finance Corp's operating cash flow is $56.6M, with capital expenditures of N/A. FCF margin is 3,103.0%.

How does HTFC compare to other Default stocks?

Vs Default sector averages: Net margin -145.8% (avg: 12%), ROE -0.8% (avg: 15%), current ratio N/A (avg: 1.8).

Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 11, 2026 | Data as of: 2025-12-31 | Powered by Claude AI