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Horizon Technology Finance

HTFC
41
Asset Management · Financial Services
Price
$24.98
+0.00 (+0.00%)
Market Cap
$230.1M
Exchange
New York Stock Exchange
Winston Score
41
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 26, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Mixed
Growth
Weak
Cash Flow
Exceptional
Stability
Mixed
Valuation
Exceptional
Dividends
Good

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)

Winston Score History

The full picture

Horizon Technology Finance Corp. functions as a dedicated financial entity, primarily offering capital through secured lending to businesses supported by venture capital. Furthermore, it extends financing and makes equity investments in portfolio enterprises operating within high-growth sectors like technology, life sciences, healthcare information and services, and clean technology. The firm was established on March 16, 2010, by John C. Bombara, Daniel S. Devorsetz, Robert D. Pomeroy, and Gerald A. Michaud, and its principal operations are based in Farmington, Connecticut.

Score breakdown

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Quality

Profit per sale
Gross Margin
81.1%
Premium pricing power — 81.1% gross margin
Profit after running costs
Operating Margin
-132.2%
Losing money on operations — -132.2%
Return on the money invested
ROCE
3.3%
Weak — 3.3% 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 growth
Sales YoY
N/A
Data not available
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
2977%
Turns 2977% of profit into real cash
Spare cash per sale
FCF Margin
145.7%
Converts sales into free cash efficiently (145.7%)

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

What it owes vs what it owns
Debt / Equity
0.96
Moderate — manageable debt (0.96)
Covers its interest
Interest Cover
0.85x
Dangerous — barely covers interest (0.9x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
12.0x
Attractive valuation — P/E 12.0

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+11.1
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (12.0 → 0.9)

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Dividends

Dividend
Dividend Yield
6.25%
Healthy income — 6.25% yield

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

Dividend record
Dividend Growth
-0.0%
Dividend cut (-0.0% YoY) — warning sign

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