Horizon Technology Finance Corporation

HRZN

Asset Management · Financial Services

Price

$4.66

-0.04 (-0.85%)

Market Cap

$205.6M

Exchange

NASDAQ

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+111.5% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 20.0M (2021) → 42.3M (2025)

Horizon Technology Finance Corporation is a business development company specializing in lending and and investing in development-stage investments. It focuses on making secured debt and venture lending investments to venture capital backed companies in the technology, life science, healthcare information and services, and cleantech industries. It seeks to invest in companies in the United States.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+321.1% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

-78.3% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

0.8%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$34M cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Horizon Technology Finance Corporation grew revenue 321% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

76.9%

Premium pricing power — 76.9% gross margin

Operating Margin

51.8%

Excellent — 51.8% operating margin

ROCE

1.6%

Weak — 1.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+1597.6%

Fast-growing sales (1597.6% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

553%

Turns 553% of profit into real cash

FCF Margin

159.3%

Converts sales into free cash efficiently (159.3%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

1.34

Elevated debt (1.34)

Interest Cover

0.99x

Dangerous — barely covers interest (1.0x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

P/E Ratio (TTM)

9.9x

Attractive valuation — P/E 9.9

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

+2.9

GROWING

Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend Yield

24.36%

Healthy income — 24.36% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend Growth

-2.9%

Dividend cut (-2.9% YoY) — warning sign

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