Horizon Technology Finance: Can Its High Dividend Yield Survive Mounting Losses?

The investment thesis for Horizon Technology Finance Corporation, a business development company specializing in technology ventures, is facing its most serious challenge in years. Recent financial results have cast significant doubt on the sustainability of its prized dividend distribution, a cornerstone of its appeal to income-focused investors.

Financial data for the second quarter of 2025 painted a concerning picture for Horizon. The company reported a net loss of $20.78 million, a figure that more than doubled the loss from the same period a year earlier. This sharp deterioration occurred even as the firm’s core investment income, its primary revenue source, saw a slight contraction to $24.52 million. On a per-share basis, losses accelerated to $0.50.

Despite these starkly negative results, management has... Read more...