Horizon Technology Finance Corp
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 5, 2026
HRZN$3.960.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-04.
0001437749-26-025689
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001437749-26-035289
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 194 previous paragraphs and 198 current paragraphs.
122 unchanged; 59 reworded; 13 added; 11 removed; 2 previous and 4 current paragraphs rearranged.
Tables are not compared: 47 previous and 54 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
The RoHo Joint Venture is not consolidated by either us or CRFH for financial reporting purposes. Investments held by the RoHo Joint Venture are measured at fair value. As of September 30, 2026, the RoHo Joint Venture had total assets of $9.1 million. The RoHo Joint Venture’s portfolio consisted of a debt investment in one portfolio company as of September 30, 2026 with an aggregate principal amount was $10.0 million. As of September 30, 2026, The RoHo Joint Venture had no investments on non-accrual status. The RoHo Joint Venture invests in portfolio companies in the same industries in which we may directly invest.
Current report
During the three months ended September 30, 2026 and for the period March 18, 2026 (the commencement of the RoHo Joint Venture’s operations) through September 30, 2026, there were no distributions from the RoHo Joint Venture.
Current report
The following table shows a summary of the RoHo Joint Venture’s investment portfolio for the three months ended September 30, 2026 and for the period March 18, 2026 (the commencement of the RoHo Joint Venture’s operations) through September 30, 2026:
Current report
The following table shows the RoHo Joint Venture’s investments as of September 30, 2026:
Current report
Expenses related to the Merger were $0.05 million for the three months ended September 30, 2026.
Current report
Comparison of the nine months ended September 30, 2026 and 2025
Current report
On April 14, 2026, we completed our previously announced merger with MRCC, the Merger Sub, Monroe Capital BDC Advisors, LLC, and our Advisor, pursuant to the Merger Agreement. In connection with the Merger, our Advisor agreed to the Fee Waiver. During the nine months ended September 30, 2026, our Advisor waived $1.0 million of base management fee in connection with the Fee Waiver.
Current report
Expenses related to the Merger were $4.5 million for the nine months ended September 30, 2026.
Current report
On August 6, 2025, we purchased a portfolio of debt and related investments of Powerscourt XXV LP, a fund managed by Waterfall Asset Management (“WAM”), for a purchase price of $22.5 million, which assets at the purchase date had a fair value of $36.5 million and included debt investments on accrual status with a principal balance of $34.9 million. WAM and our Advisor had previously entered into Master Program Agreement in March 2023, whereby our Advisor offered WAM the opportunity to participate, as a co-lender with us, in debt investments originated by our Advisor. WAM retained all investment decisions. In 2023, WAM ceased making new investments under the program, as it no longer wished to pursue a venture debt strategy.
Current report
There were $181.0 million in advances made by the NYL Noteholders as of September 30, 2026, including $166.5 million on the NYL Class A Notes and $14.5 million on the NYL Class B Notes. There were $181.0 million in advances made by the NYL Noteholders December 31, 2025. The interest rate on the NYL Class A Notes was 6.72% as of September 30, 2026. The interest rate on the NYL Class B Notes was 7.86% as of September 30, 2026. The interest rate was 6.57% as of December 31, 2025. As of September 30, 2026 and December 31, 2025, we had borrowing capacity under the NYL Facility of $69.0 million. At September 30, 2026 and December 31, 2025, $15.2 million and $1.9 million, respectively, was available for borrowing, subject to existing terms and advance rates.
Current report
In September 2026, the FASB issued ASU 2026-03, Fair Value Measurement (Topic 820): Investment Companies with Equity Securities Subject to Contractual Sale Restrictions, which amends the fair value measurement guidance for investment companies to require that a contractual restriction prohibiting the sale of an equity security be considered in measuring the fair value of the security. The amendments also require additional disclosure of the discount attributable to the contractual sale restriction that is incorporated into the fair value measurement. ASU 2026-03 is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact ASU No. 2026-03.
Current report
On October 20, 2026, Hometeam Technologies, Inc. repaid $3.5 million of the outstanding principal balance on its venture loan.
Current report
On October 30, 2026, we funded a $10.0 million debt investment to an existing portfolio company, Pelthos Therapeutics, Inc.
Removed paragraphs (11)
Previous report
Expenses related to the Merger were $4.4 million for the three months ended June 30, 2026.
Previous report
Comparison of the six months ended June 30, 2026 and 2025
Previous report
Expenses related to the Merger were $4.4 million for the six months ended June 30, 2026.
Previous report
On July 1, 2026, we funded a $0.6 million debt investment to an existing portfolio company, Glass Routes LLC.
Previous report
On July 8, 2026, we funded a $5.0 million debt investment to an existing portfolio company, Onkos Surgical, Inc.
Previous report
On July 15, 2026, we funded a $2.5 million debt investment to an existing portfolio company, Ossio, Inc.
Previous report
On July 15, 2026, we funded a $23.3 million debt investment to a new portfolio company, StarCompliance Midco, LLC.
Previous report
On July 24, 2026, we funded a $6.8 million debt investment to an existing portfolio company, Avive Solutions, Inc.
Previous report
On August 3, 2026, we sold our debt investment in Havenly, Inc. (“Havenly”) and received proceeds in an amount equal to the outstanding principal balance of $11.8 million of the debt investment, plus accrued interest and $1.2 million of the end-of-term payment. We continue to hold warrants in Havenly.
Previous report
On August 3, 2026, our Board approved an increase in the amount of common stock that may be repurchased under the stock repurchase program to allow us to repurchase up to a total of $20.0 million of common stock.
Previous report
On August 3, 2026, we funded a $0.7 million debt investment to an existing portfolio company, Glass Routes LLC.
Reworded paragraphs (59)
Previous wording
We are a specialty finance company that lends to and invests in development-stage companies in the technology, life science, healthcare information and services and sustainability industries, which we refer to as our “Target Industries.” Our investment objective is to maximize our investment portfolio’s total return by generating current income from the debt investments we make and capital appreciation from the warrants we receive when making such debt investments. We are focused on making secured debt investments, which we refer to collectively as “Venture Loans,” to venture capital and private equity backed companies and publicly traded companies in our Target Industries, which we refer to as “Venture Lending.” Our debt investments are typically secured by first liens or first liens behind a secured revolving line of credit, or collectively “Senior Term Loans.” Some of our debt investments may also be subordinated to term debt provided by third parties. As of June 30, 2026, 97.7%, or $633.3 million, of our debt investment portfolio at fair value consisted of Senior Term Loans. Venture Lending is typically characterized by (1) the making of a secured debt investment after a venture capital or equity investment in the portfolio company has been made, which investment provides a source of cash to fund the portfolio company’s debt service obligations under the Venture Loan, (2) the senior priority of the Venture Loan which requires repayment of the Venture Loan prior to the equity investors realizing a return on their capital, (3) the amortization of the Venture Loan and (4) the lender’s receipt of warrants or other success fees with the making of the Venture Loan.
Current wording
We are a specialty finance company that lends to and invests in development-stage companies in the technology, life science, healthcare information and services and sustainability industries, which we refer to as our “Target Industries.” Our investment objective is to maximize our investment portfolio’s total return by generating current income from the debt investments we make and capital appreciation from the warrants we receive when making such debt investments. We are focused on making secured debt investments, which we refer to collectively as “Venture Loans,” to venture capital and private equity backed companies and publicly traded companies in our Target Industries, which we refer to as “Venture Lending.” Our debt investments are typically secured by first liens or first liens behind a secured revolving line of credit, or collectively “Senior Term Loans.” Some of our debt investments may also be subordinated to term debt provided by third parties. As of September 30, 2026, 100.0%, or $621.2 million, of our debt investment portfolio at fair value consisted of Senior Term Loans. Venture Lending is typically characterized by (1) the making of a secured debt investment after a venture capital or equity investment in the portfolio company has been made, which investment provides a source of cash to fund the portfolio company’s debt service obligations under the Venture Loan, (2) the senior priority of the Venture Loan which requires repayment of the Venture Loan prior to the equity investors realizing a return on their capital, (3) the amortization of the Venture Loan and (4) the lender’s receipt of warrants or other success fees with the making of the Venture Loan.
Previous wording
The following table shows total portfolio investment activity as of and for the three and six months ended June 30, 2026 and 2025:
Current wording
The following table shows total portfolio investment activity as of and for the three and nine months ended September 30, 2026 and 2025:
Previous wording
The largest debt investments in our portfolio may vary from period to period as new debt investments are originated and existing debt investments are repaid. Our five largest debt investments at cost represented 24% and 26% of total debt investments outstanding as of June 30, 2026 and December 31, 2025, respectively. Our five largest debt investments at fair value represented 25% and 26% of total debt investments outstanding as of June 30, 2026 and December 31, 2025, respectively. No single debt investment at cost or fair value represented more than 10% of our total debt investments as of June 30, 2026 and December 31, 2025.
Current wording
The largest debt investments in our portfolio may vary from period to period as new debt investments are originated and existing debt investments are repaid. Our five largest debt investments at cost represented 24% and 26% of total debt investments outstanding as of September 30, 2026 and December 31, 2025, respectively. Our five largest debt investments at fair value represented 27% and 26% of total debt investments outstanding as of September 30, 2026 and December 31, 2025, respectively. No single debt investment at cost or fair value represented more than 10% of our total debt investments as of September 30, 2026 and December 31, 2025.
Previous wording
As of June 30, 2026, there were five debt investments with an internal credit rating of 5, with an aggregate cost of $58.0 million and an aggregate fair value of $31.3 million and there were four debt investments with an internal credit rating of 4, with an aggregate cost of $57.1 million and an aggregate fair value of $48.0 million. On a recast basis as of December 31, 2025, there were four debt investments with an internal credit rating of 5 (previously reported as rating 1 on the prior 4-to-1 scale), with an aggregate cost of $33.8 million and an aggregate fair value of $24.5 million and there were four debt investments with an internal credit rating of 4 (previously reported as rating 2 on the prior 4-to-1 scale), with an aggregate cost of $56.8 million and an aggregate fair value of $53.5 million. The period-over-period change in investments with internal credit ratings of 4 or 5 was primarily a result of the increase in the risk of loss of principal caused by certain portfolio companies' low cash positions, the difficult equity fundraising market, and/or the underperformance of such portfolio companies. This period-over-period change reflects underlying credit developments and is not attributable to the methodology change described above.
Current wording
As of September 30, 2026, there were seven debt investments with an internal credit rating of 5, with an aggregate cost of $65.9 million and an aggregate fair value of $18.8 million and there were four debt investments with an internal credit rating of 4, with an aggregate cost of $77.3 million and an aggregate fair value of $54.9 million. On a recast basis as of December 31, 2025, there were four debt investments with an internal credit rating of 5 (previously reported as rating 1 on the prior 4-to-1 scale), with an aggregate cost of $33.8 million and an aggregate fair value of $24.5 million and there were four debt investments with an internal credit rating of 4 (previously reported as rating 2 on the prior 4-to-1 scale), with an aggregate cost of $56.8 million and an aggregate fair value of $53.5 million. The period-over-period change in investments with internal credit ratings of 4 or 5 was primarily a result of the increase in the risk of loss of principal caused by certain portfolio companies' low cash positions, the difficult equity fundraising market, and/or the underperformance of such portfolio companies. This period-over-period change reflects underlying credit developments and is not attributable to the methodology change described above.
Previous wording
We have committed to invest up to $87.5 million in the RoHo Joint Venture and CRFH has committed to invest up to $12.5 million in the RoHo Joint Venture. Investments by each of us and CRFH in the RoHo Joint Venture will be made in the form of membership interests. All investments by the RoHo Joint Venture must be approved by the unanimous vote of the RoHo Joint Venture’s investment committee, which is comprised of an equal number of representatives designated by each of us and CRFH. Further, all other decisions regarding the management of the RoHo Joint Venture require the approval of the majority of the RoHo Joint Venture’s board of directors, which is comprised of an equal number of representatives from each us and CRFH.
Current wording
All investments by the RoHo Joint Venture must be approved by the unanimous vote of the RoHo Joint Venture’s investment committee, which is comprised of an equal number of representatives designated by each of us and CRFH. Further, all other decisions regarding the management of the RoHo Joint Venture require the approval of the majority of the RoHo Joint Venture’s board of directors, which is comprised of an equal number of representatives from each us and CRFH.
Previous wording
As of June 30, 2026, no investments were made by the RoHo Joint Venture. The following tables show certain summarized financial information for the RoHo Joint Venture as of June 30, 2026 and for the three months ended June 30, 2026 and for the period March 18, 2026 through June 30, 2026:
Current wording
The following tables show certain summarized financial information for the RoHo Joint Venture as of September 30, 2026 and for the three months ended September 30, 2026 and for the period March 18, 2026 (the commencement of the RoHo Joint Venture’s operations) through September 30, 2026:
Previous wording
Net decrease in net assets resulting from operations can vary substantially from period to period for various reasons, including, without limitation, the recognition of realized gains and losses and unrealized appreciation and depreciation on investments. As a result, quarterly comparisons of net decrease in net assets resulting from operations may not be meaningful.
Current wording
Net (decrease) increase in net assets resulting from operations can vary substantially from period to period for various reasons, including, without limitation, the recognition of realized gains and losses and unrealized appreciation and depreciation on investments. As a result, quarterly comparisons of net decrease in net assets resulting from operations may not be meaningful.
Previous wording
Total investment income increased by $0.5 million, or 2.1%, to $25.0 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. For the three months ended June 30, 2026, total investment income consisted primarily of (1) $23.9 million in interest income from investments, which included $5.5 million in income from the accretion of origination fees and end of term payments and $1.6 million in PIK interest income and (2) $1.1 million in fee income.
Current wording
Total investment income decreased by $2.3 million, or 8.6%, to $24.1 million for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025. For the three months ended September 30, 2026, total investment income consisted primarily of (1) $22.0 million in interest income from investments, which included $3.5 million in income from the accretion of origination fees and end of term payments and $0.8 million in PIK interest income and (2) $2.1 million in fee income.
Previous wording
Interest income on debt investments increased by $1.3 million, or 5.7%, to $23.9 million, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Interest income on debt investments for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 increased primarily due to an increase of $41.2 million, or 6.7%, in our average earning debt investments. The proportion of total investment income that resulted from the portion of ETPs not received in cash for the three months ended June 30, 2026 and 2025 was 4.4% and 2.8%, respectively. The increase in the proportion of total investment income that resulted from the portion of ETPs not received in cash was a result of an increase in accretion of final payments for the three months ended June 30, 2026 compared to the three months ended June 30, 2025.
Current wording
Interest income on debt investments decreased by $2.3 million, or 9.6%, to $22.0 million, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. Interest income on debt investments for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025 decreased primarily due to the recognition and capitalization of accrued, but previously unrecorded, interest income in connection with the settlement of two debt investments previously on non-accrual status during the three months ended September 30, 2025, partially offset by higher interest income due to an increase of $80.8 million, or 14.3%, in our average earning debt investments. The proportion of total investment income that resulted from the portion of ETPs not received in cash for the three months ended September 30, 2026 and 2025 was 1.5% and 3.5%, respectively. The decrease in the proportion of total investment income that resulted from the portion of ETPs not received in cash was a result of an increase in prepayments for the three months ended September 30, 2026 compared to the three months ended September 30, 2025.
Previous wording
PIK interest income increased by $1.3 million, or 544.4%, to $1.6 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. For the three months ended June 30, 2026 and 2025, 6.3% and 1.0%, respectively, of total investment income was attributable to non-cash PIK interest income. The increase in PIK interest income as a percentage of total investment income was primarily due to an increase in earning assets that contain a PIK feature for the three months ended June 30, 2026 compared to the three months ended June 30, 2025.
Current wording
PIK interest income increased by $0.2 million, or 24.8%, to $0.8 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. For the three months ended September 30, 2026 and 2025, 3.4% and 2.5%, respectively, of total investment income was attributable to non-cash PIK interest income. The increase in PIK interest income as a percentage of total investment income was primarily due to an increase in earning assets that contain a PIK feature for the three months ended September 30, 2026 compared to the three months ended September 30, 2025.
Previous wording
Fee income, which includes success fee, other fee and prepayment fee income on debt investments, decreased by $0.8 million, or 40.3%, to $1.1 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily due to a lower aggregate amount of principal prepayments for the three months ended June 30, 2026 compared to the three months ended June 30, 2025.
Current wording
Fee income, which includes success fee, other fee and prepayment fee income on debt investments, increased by $0.1 million, or 3.1%, to $2.1 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 primarily due to a higher aggregate amount of principal prepayments for the three months ended September 30, 2026 compared to the three months ended September 30, 2025.
Previous wording
Investment income, consisting of interest income and fees on debt investments, can fluctuate significantly upon repayment of large debt investments. Interest income from the five largest debt investments at cost in the aggregate accounted for 23% and 18% of investment income for the three months ended June 30, 2026 and 2025, respectively. Interest income from the five largest debt investments at fair value in the aggregate accounted for 23% and 22% of investment income for the three months ended June 30, 2026 and 2025, respectively.
Current wording
Investment income, consisting of interest income and fees on debt investments, can fluctuate significantly upon repayment of large debt investments. Interest income from the five largest debt investments at cost in the aggregate accounted for 26% and 17% of investment income for the three months ended September 30, 2026 and 2025, respectively. Interest income from the five largest debt investments at fair value in the aggregate accounted for 26% and 21% of investment income for the three months ended September 30, 2026 and 2025, respectively.
Previous wording
Total expenses increased by $4.7 million, or 36.9%, to $17.4 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. Total expenses for each period consisted of interest expense, base management fee, incentive and administrative fees, professional fees and general and administrative expenses. For the three months ended June 30, 2026, transaction costs directly attributable to the Merger were included in total expenses.
Current wording
Total net expenses decreased by $0.4 million, or 3.6%, to $11.5 million for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025. Total expenses for each period consisted of interest expense, base management fee, incentive and administrative fees, professional fees and general and administrative expenses. For the three months ended September 30, 2026, transaction costs directly attributable to the Merger were included in total expenses.
Previous wording
Interest expense decreased by $0.4 million, or 4.9%, to $7.8 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. Interest expense, which includes the amortization of debt issuance costs, decreased primarily due to a decrease in average borrowings for the three months ended June 30, 2026 of $26.5 million, or 6.0%, as compared to the three months ended June 30, 2025.
Current wording
Interest expense decreased by $0.1 million, or 1.1%, to $7.8 million for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025. Interest expense, which includes the amortization of debt issuance costs, decreased primarily due to a decrease in average borrowings for the three months ended September 30, 2026 of $17.6 million, or 4.2%, as compared to the three months ended September 30, 2025, partially offset by an increase in our effective cost of debt.
Previous wording
Base management fee expense increased by $0.2 million, or 6.4%, to $3.1 million for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. Base management fee increased primarily due to an increase of $47.0 million, or 6.9%, in average gross assets less cash for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025.
Current wording
Base management fee expense, net of waiver, decreased by $0.7 million, or 26.7%, to $2.0 million for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025. Base management fee decreased primarily due to the Fee Waiver, partially offset by an increase of $66.4 million, or 10.6%, in average gross assets less cash for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025.
Previous wording
There was no performance based incentive fee expense for three months ended June 30, 2026 and 2025. The incentive fee on pre-incentive fee net investment income was subject to an Incentive Fee Cap and Deferral Mechanism in our Investment Management Agreement of $0.4 million for the three months ended June 30, 2026 compared to an Incentive Fee Cap of $2.3 million for the three months ended June 30, 2025. The Incentive Fee Cap and Deferral Mechanism resulted in $0.4 million and $2.3 million of reduced incentive fee expense and increased net investment income for the three months ended June 30, 2026 and 2025, respectively. The incentive fee on pre-incentive fee net investment income was subject to the Incentive Fee Cap for the three months ended June 30, 2026 due to the cumulative incentive fees paid exceeding 20% of cumulative pre-incentive fee net return during the applicable quarter and the 11 preceding full calendar quarters.
Current wording
There was no performance based incentive fee expense for three months ended September 30, 2026 and 2025. The incentive fee on pre-incentive fee net investment income was subject to an Incentive Fee Cap and Deferral Mechanism in our Investment Management Agreement of $2.5 million for the three months ended September 30, 2026 compared to an Incentive Fee Cap of $2.8 million for the three months ended September 30, 2025. The Incentive Fee Cap and Deferral Mechanism resulted in $2.5 million and $2.8 million of reduced incentive fee expense and increased net investment income for the three months ended September 30, 2026 and 2025, respectively. The incentive fee on pre-incentive fee net investment income was subject to the Incentive Fee Cap for the three months ended September 30, 2026 due to the cumulative incentive fees paid exceeding 20% of cumulative pre-incentive fee net return during the applicable quarter and the 11 preceding full calendar quarters.
Previous wording
Administrative fee expense, professional fees and general and administrative expenses were $2.0 million and $1.5 million for the three months ended June 30, 2026 and 2025, respectively.
Current wording
Administrative fee expense, professional fees and general and administrative expenses were $1.6 million and $1.3 million for the three months ended September 30, 2026 and 2025, respectively.
Previous wording
During the three months ended June 30, 2026, we realized netlosses on investments totaling$6.1 million primarily due to the settlement of one of our other investments. During the three months ended June 30, 2025, we realized net losses on investments totaling$9.3 million primarily due to the settlement of two of our debt investments. During the same period, we converted $12.5 million in outstanding principal of the 2031 Convertible Notes which resulted in a realized loss on extinguishment of debt of $0.8 million.
Current wording
During the three months ended September 30, 2026, we realized netlosses on investments totaling$11.3 million primarily due to the settlement of one of our equity investments. During the three months ended September 30, 2025, we realized net losses on investments totaling $22.5 million primarily due to (1) the settlement of two equity investments and two investments we categorize as other investments (investments not consisting of debt, equity or warrant investments) and (2) the realization of two warrant investments. During the same period, we converted $4.8 million in outstanding principal of the 2031 Convertible Notes which resulted in a realized loss on extinguishment of debt of $0.4 million. During the same period, we elected to exercise our option to redeem the outstanding balance of our 2022 Asset-Backed Notes (as defined below) which resulted in a realized loss on debt extinguishment of $0.9 million.
Previous wording
During the three months ended June 30, 2026, net unrealized depreciation on investments totaled $38.5 million which was primarily due to the unrealized depreciation on one of our equity investments and two of our debt investments partially offset by the reversal of previously recorded unrealized depreciation from the settlement of one of our other investments. During the three months ended June 30, 2025, net unrealized depreciation on investments totaled $22.2 million which was primarily due to (1) the unrealized depreciation on seven of our debt investments and (2) the unrealized depreciation on two of our other investments partially offset by (1) the reversal of previously recorded unrealized depreciation from the settlement of two of our debt investments and (2) the unrealized appreciation of two of our warrant investments.
Current wording
During the three months ended September 30, 2026, net unrealized depreciation on investments totaled $29.2 million which was primarily due to the unrealized depreciation on five of our debt investments, two of our equity investments and our warrant investments, partially offset by the reversal of previously recorded unrealized depreciation from the settlement of one of our equity investments. During the three months ended September 30, 2025, net unrealized appreciation on investments totaled $40.5 million which was primarily due to (1) the unrealized appreciation on three debt investments and one equity investment, (2) the reversal of previously recorded unrealized depreciation from the settlement of two other investments and two equity investments and (3) the unrealized appreciation on the acquisition of debt investments partially offset by (1) the unrealized depreciation of one debt investment, two other investments and two equity investments and (4) the reversal of previously recorded unrealized appreciation from the realization of two warrant investments.
Previous wording
The following table shows consolidated results of operations for the six months ended June 30, 2026 and 2025:
Current wording
The following table shows consolidated results of operations for the nine months ended September 30, 2026 and 2025:
Previous wording
Total investment income increased by $0.1 million, or 0.2%, to $49.1 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. For the six months ended June 30, 2026, total investment income consisted primarily of (1) $47.0 million in interest income from investments, which included $10.5 million in income from the accretion of origination fees and end of term payments and $2.8 million in PIK interest income and (2) $2.1 million in fee income.
Current wording
Total investment income decreased by $2.2 million, or 2.9%, to $73.2 million for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025. For the nine months ended September 30, 2026, total investment income consisted primarily of (1) $69.0 million in interest income from investments, which included $13.9 million in income from the accretion of origination fees and end of term payments and $3.7 million in PIK interest income and (2) $4.2 million in fee income.
Previous wording
Interest income on debt investments increased by $0.9 million, or 2.0%, to $47.0 million, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Interest income on debt investments for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 increased primarily due to an increase of $11.8 million, or 1.9%, in our average earning debt investments. The proportion of total investment income that resulted from the portion of ETPs not received in cash for the six months ended June 30, 2026 and 2025 was 5.2% and 3.7%, respectively. The increase in the proportion of total investment income that resulted from the portion of ETPs not received in cash was a result of an increase in accretion of final payments for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current wording
Interest income on debt investments decreased by $1.4 million, or 2.0%, to $69.0 million, for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. Interest income on debt investments for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025 decreased primarily due to the recognition and capitalization of accrued, but previously unrecorded, interest income in connection with the settlement of two debt investments previously on non-accrual status during the nine months ended September 30, 2025 partially offset by an increase of $34.6 million, or 5.7%, in our average earning debt investments. The proportion of total investment income that resulted from the portion of ETPs not received in cash for the nine months ended September 30, 2026 and 2025 was 4.0% and 3.6%, respectively. The increase in the proportion of total investment income that resulted from the portion of ETPs not received in cash was a result of an increase in accretion of final payments for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.
Previous wording
PIK interest income increased by $2.3 million, or 439.7%, to $2.8 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. For the six months ended June 30, 2026 and 2025, 5.8% and 1.1%, respectively, of total investment income was attributable to non-cash PIK interest income. The increase in PIK interest income as a percentage of total investment income was primarily due to an increase in earning assets that contain a PIK feature for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current wording
PIK interest income increased by $2.5 million, or 208.2%, to $3.7 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. For the nine months ended September 30, 2026 and 2025, 5.0% and 1.6%, respectively, of total investment income was attributable to non-cash PIK interest income. The increase in PIK interest income as a percentage of total investment income was primarily due to an increase in earning assets that contain a PIK feature for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.
Previous wording
Fee income, which includes success fee, other fee and prepayment fee income on debt investments, decreased by $0.8 million, or 28.1%, to $2.1 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to a lower aggregate amount of principal prepayments for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Current wording
Fee income, which includes success fee, other fee and prepayment fee income on debt investments, decreased by $0.8 million, or 15.5%, to $4.2 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to a lower aggregate amount of principal prepayments for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.
Previous wording
The following table shows our dollar-weighted annualized yield for the six months ended June 30, 2026 and 2025:
Current wording
The following table shows our dollar-weighted annualized yield for the nine months ended September 30, 2026 and 2025:
Previous wording
Investment income, consisting of interest income and fees on debt investments, can fluctuate significantly upon repayment of large debt investments. Interest income from the five largest debt investments at cost in the aggregate accounted for 22% and 17% of investment income for the six months ended June 30, 2026 and 2025, respectively. Interest income from the five largest debt investments at fair value in the aggregate accounted for 22% and 20% of investment income for the six months ended June 30, 2026 and 2025, respectively.
Current wording
Investment income, consisting of interest income and fees on debt investments, can fluctuate significantly upon repayment of large debt investments. Interest income from the five largest debt investments at cost in the aggregate accounted for 25% and 17% of investment income for the nine months ended September 30, 2026 and 2025, respectively. Interest income from the five largest debt investments at fair value in the aggregate accounted for 25% and 20% of investment income for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
Total expenses increased by $6.1 million, or 23.4%, to $32.2 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. Total expenses for each period consisted of interest expense, base management fee, incentive and administrative fees, professional fees and general and administrative expenses. For the six months ended June 30, 2026, transaction costs directly attributable to the Merger were included in total expenses.
Current wording
Total net expenses increased by $5.7 million, or 14.9%, to $43.7 million for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025. Total expenses for each period consisted of interest expense, base management fee, incentive and administrative fees, professional fees and general and administrative expenses. For the nine months ended September 30, 2026, transaction costs directly attributable to the Merger were included in total expenses.
Previous wording
Interest expense decreased by $0.9 million, or 5.4%, to $16.0 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. Interest expense, which includes the amortization of debt issuance costs, decreased primarily due to a decrease in average borrowings for the six months ended June 30, 2026 of $25.9 million, or 5.7%, as compared to the six months ended June 30, 2025.
Current wording
Interest expense decreased by $1.0 million, or 4.0%, to $23.8 million for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025. Interest expense, which includes the amortization of debt issuance costs, decreased primarily due to a decrease in average borrowings for the nine months ended September 30, 2026 of $23.1 million, or 5.2%, as compared to the nine months ended September 30, 2025.
Previous wording
Base management fee expense increased by $0.1 million, or 2.1%, to $6.3 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. Base management fee increased primarily due to an increase of $16.0 million, or 2.3%, in average gross assets less cash for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025.
Current wording
Base management fee expense, net of waiver, decreased by $0.6 million, or 6.8%, to $8.3 million for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025. Base management fee decreased primarily due to the Fee Waiver, partially offset by an increase of $32.8 million, or 4.8%, in average gross assets less cash for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025.
Previous wording
Performance based incentive fee expense increased by $1.8 million to $1.8 million for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. There was no performance based incentive fee expense for six months ended June 30, 2025. This increase was due to an Incentive Fee Cap calculated based on the Incentive Fee Cap and Deferral Mechanism in our Investment Management Agreement of $0.8 million for the six months ended June 30, 2026 compared to an Incentive Fee Cap of $4.4 million for the six months ended June 30, 2025. The Incentive Fee Cap and Deferral Mechanism resulted in $0.8 million and $4.4 million of reduced incentive fee expense and increased net investment income for the six months ended June 30, 2026 and 2025, respectively. The incentive fee on pre-incentive fee net investment income was subject to the Incentive Fee Cap for the six months ended June 30, 2026 due to the cumulative incentive fees paid exceeding 20% of cumulative pre-incentive fee net return during the applicable quarter and the 11 preceding full calendar quarters.
Current wording
Performance based incentive fee expense increased by $1.8 million to $1.8 million for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025. There was no performance based incentive fee expense for nine months ended September 30, 2025. This increase was due to an Incentive Fee Cap calculated based on the Incentive Fee Cap and Deferral Mechanism in our Investment Management Agreement of $3.2 million for the nine months ended September 30, 2026 compared to an Incentive Fee Cap of $7.2 million for the nine months ended September 30, 2025. The Incentive Fee Cap and Deferral Mechanism resulted in $3.2 million and $7.2 million of reduced incentive fee expense and increased net investment income for the nine months ended September 30, 2026 and 2025, respectively. The incentive fee on pre-incentive fee net investment income was subject to the Incentive Fee Cap for the nine months ended September 30, 2026 due to the cumulative incentive fees paid exceeding 20% of cumulative pre-incentive fee net return during the applicable quarter and the 11 preceding full calendar quarters.
Previous wording
Administrative fee expense, professional fees and general and administrative expenses were $3.8 million and $3.1 million for the six months ended June 30, 2026 and 2025, respectively.
Current wording
Administrative fee expense, professional fees and general and administrative expenses were $5.4 million and $4.4 million for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
During thesix months ended June 30, 2026, we realized net losses on investments totaling $6.3 million primarily due to the settlement of one of our other investments. During the six months ended June 30, 2026, we converted $15.1 million in outstanding principal of the 2030 Convertible Notes (as defined below) which resulted in a realized loss on extinguishment of debt of $1.3 million. During the same period, we redeemed all of the outstanding principal balance of the 2026 Notes (as defined below) which resulted in a realized loss on extinguishment of debt of $0.1 million. During thesix months ended June 30, 2025, we realized net losses on investments totaling$9.3 million primarily due to the settlement of two of our debt investments. During the same period, we converted $12.5 million in outstanding principal of the 2031 Convertible Notes which resulted in a realized loss on extinguishment of debt of $0.8 million.
Current wording
During thenine months ended September 30, 2026, we realized net losses on investments totaling $17.6 million primarily due to the settlement of one of our other investments and one of our equity investments. During thenine months ended September 30, 2026, we converted $15.1 million in outstanding principal of the 2030 Convertible Notes (as defined below) which resulted in a realized loss on extinguishment of debt of $1.3 million. During the same period, we redeemed all of the outstanding principal balance of the 2026 Notes (as defined below) which resulted in a realized loss on extinguishment of debt of $0.1 million. During thenine months ended September 30, 2025, we realized net losses on investments totaling $31.8 million primarily due to (1) the settlement of two debt investments, two equity investments and two other investments and (2) the realization of two warrant investments. During the same period, we converted $17.3 million in outstanding principal of the 2031 Convertible Notes which resulted in a realized loss on extinguishment of debt of $1.2 million. During the same period, we elected to exercise our option to redeem the outstanding balance of our 2022 Asset-Backed Notes (as defined below) which resulted in a realized loss on debt extinguishment of $0.9 million.
Previous wording
During the six months ended June 30, 2026, net unrealized appreciation on investments totaled $43.1 million which was primarily due to the unrealized depreciation on one of our equity investments and three of our debt investments partially offset by the reversal of previously recorded unrealized depreciation from the settlement of one of our other investments. During the six months ended June 30, 2025, net unrealized depreciation on investments totaled $54.3 million which was primarily due to (1) the unrealized depreciation on seven of our debt investments, (2) the unrealized depreciation on four of our other investments and (3) the unrealized depreciation on two of our equity investments partially offset by (1) the reversal of previously recorded unrealized depreciation from the settlement of one of our debt investments and (2) the unrealized appreciation of two of our warrant investments. The difficult equity fundraising market and under performance of certain portfolio companies, among other factors, resulted in our reduction of the fair market value of the debt investments in such portfolio companies, thus resulting in the unrealized depreciation on such debt investments.
Current wording
During the nine months ended September 30, 2026, net unrealized appreciation on investments totaled $72.3 million which was primarily due to the unrealized depreciation on seven of our debt investments, two of our equity investments and our warrant investments and the reversal of previously recorded unrealized appreciation from the settlement of one of our equity investments, partially offset by the reversal of previously recorded unrealized depreciation from the settlement of one of our other investments. During the nine months ended September 30, 2025, net unrealized depreciation on investments totaled $13.8 million which was primarily due to (1) the unrealized depreciation of four debt investments, three other investments and three equity investments and (2) the reversal of previously recorded unrealized appreciation from the realization of two warrant investments partially offset by (1) the unrealized appreciation on two debt investments and one equity investment, (2) the reversal of previously recorded unrealized depreciation from the settlement of one debt investment, one other investment, one equity investment and (3) the unrealized appreciation on the acquisition of debt investments.
Previous wording
As of June 30, 2026 and December 31, 2025, we had cash and investments in money market funds of $132.3 million and $140.2 million, respectively. Cash and investments in money market funds are available to fund new investments, reduce borrowings, pay expenses, repurchase common stock and pay distributions. In addition, as of June 30, 2026 and December 31, 2025, we had $2.7 million and $2.5 million, respectively, of restricted investments in money market funds. Restricted investments in money market funds may be used to make monthly interest and principal payments on our NYL Facility or our Nuveen Facility. Our primary sources of capital have been from our public equity offerings, use of our revolving credit facility (the “Key Facility”) with KeyBank National Association (“Key”), the Note Funding Agreement (the “NYL Facility”), with several entities owned or affiliated with New York Life Insurance Company and the Nuveen Note Funding Agreement (the “Nuveen Facility”, together with the Key Facility and the NYL Facility, the “Credit Facilities”) with several entities owned or affiliated with Nuveen Alternative Advisors LLC, and issuance of our public and private debt securities.
Current wording
As of September 30, 2026 and December 31, 2025, we had cash and investments in money market funds of $105.2 million and $140.2 million, respectively. Cash and investments in money market funds are available to fund new investments, reduce borrowings, pay expenses, repurchase common stock and pay distributions. In addition, as of September 30, 2026 and December 31, 2025, we had $2.6 million and $2.5 million, respectively, of restricted investments in money market funds. Restricted investments in money market funds may be used to make monthly interest and principal payments on our NYL Facility or our Nuveen Facility. Our primary sources of capital have been from our public equity offerings, use of our revolving credit facility (the “Key Facility”) with KeyBank National Association (“Key”), the Note Funding Agreement (the “NYL Facility”), with several entities owned or affiliated with New York Life Insurance Company and the Nuveen Note Funding Agreement (the “Nuveen Facility”, together with the Key Facility and the NYL Facility, the “Credit Facilities”) with several entities owned or affiliated with Nuveen Alternative Advisors LLC, and issuance of our public and private debt securities.
Previous wording
During the three and six months ended June 30, 2026, we did not sell any shares of common stock under the 2023 Equity Distribution Agreement.
Current wording
During the three and nine months ended September 30, 2026, we did not sell any shares of common stock under the 2023 Equity Distribution Agreement.
Previous wording
During the six months ended June 30, 2025, we sold 404,305 shares of common stock under the 2023 Equity Distribution Agreement. For the same period, we received total accumulated net proceeds of approximately $3.6 million, including $0.2 million of offering expenses, from these sales.
Current wording
During the three months ended September 30, 2025, we sold 1,570,248 shares of common stock under the 2023 Equity Distribution Agreement. For the same period, we received total accumulated net proceeds of approximately $10.6 million, including $0.3 million of offering expenses, from these sales.
Previous wording
On May 1, 2026, our Board extended a previously authorized stock repurchase program which allows us to repurchase up to $10.0 million of our common stock at prices below our net asset value (“NAV”) per share as reported in our most recent consolidated financial statements, provided such purchases, in the aggregate, do not exceed two percent (2%) of the shares outstanding at the time of purchase and such shares are purchased only when the such shares are trading below 90% of our most recently disclosed NAV per share. Under the repurchase program, we may, but are not obligated to, repurchase shares of our outstanding common stock in the open market or in privately negotiated transactions from time to time. Any repurchases by us will comply with the requirements of Rule 10b‑18 under the Exchange Act and any applicable requirements of the 1940 Act. Unless extended by our Board, the repurchase program will terminate on the earlier of June 30, 2027 or the repurchase of $10.0 million of our common stock. During the three and six months ended June 30, 2026, we repurchased 1,365,222 shares of our common stock at an average price of $4.54 on the open market at a total cost of $6.2 million. During the three and six months ended June 30, 2025, we did not make any repurchases of our common stock under our stock repurchase program. From the date of the inception of our stock repurchase program through June 30, 2026, we repurchased 1,532,687 shares of our common stock at an average price of $5.27 on the open market at a total cost of $8.1 million. From time to time, our Board assesses the size and effectiveness of the stock repurchase program and could elect to increase or decrease the size of the program in the future.
Current wording
On August 3, 2026, our Board extended a previously authorized stock repurchase program which allows us to repurchase up to $20.0 million of our common stock at prices below our net asset value per share (“NAV”) as reported in our most recent consolidated financial statements, provided such purchases, in the aggregate, do not exceed two percent (2%) of the shares outstanding at the time of purchase and such shares are purchased only when the such shares are trading below 90% of our most recently disclosed NAV per share. Under the repurchase program, we may, but are not obligated to, repurchase shares of our outstanding common stock in the open market or in privately negotiated transactions from time to time. It is our intention that any repurchases of common stock will comply with the requirements of Rule 10b‑18 under the Exchange Act and any applicable requirements of the 1940 Act. Unless extended by our Board, the repurchase program will terminate on the earlier of June 30, 2027 or the repurchase of $20.0 million of our common stock. During the three months ended September 30, 2026, we repurchased 2,033,991 shares of our common stock at an average price of $4.90 on the open market at a total cost of $10.0 million. For the nine months ended September 30, 2026, we repurchased 3,399,213 shares of our common stock at an average price of $4.76 on the open market at a total cost of $16.2 million. During the three and nine months ended September 30, 2025, we did not make any repurchases of our common stock under our stock repurchase program. From the date of the inception of our stock repurchase program through September 30, 2026, we repurchased 3,566,678 shares of our common stock at an average price of $5.06 on the open market at a total cost of $18.1 million. From time to time, our Board assesses the size and effectiveness of the stock repurchase program and could elect to increase or decrease the size of the program in the future.
Previous wording
At June 30, 2026 and December 31, 2025, there was no outstanding principal balance under the Key Facility. As of June 30, 2026 and December 31, 2025, we had borrowing capacity under the Key Facility of $150.0 million. At June 30, 2026 and December 31, 2025, $82.7 million and $49.6 million, respectively, was available for borrowing under the Key Facility, subject to existing terms and advance rates.
Current wording
At September 30, 2026 and December 31, 2025, there was no outstanding principal balance under the Key Facility. As of September 30, 2026 and December 31, 2025, we had borrowing capacity under the Key Facility of $150.0 million. At September 30, 2026 and December 31, 2025, $86.8 million and $49.6 million, respectively, was available for borrowing under the Key Facility, subject to existing terms and advance rates.
Previous wording
There were $181.0 million in notes issued to the NYL Noteholders as of June 30, 2026 and December 31, 2025 at an interest rate of 6.61% and 6.57%, respectively. As of June 30, 2026 and December 31, 2025, we had borrowing capacity under the NYL Facility of $69.0 million. At June 30, 2026 and December 31, 2025, $7.9 million and $1.9 million, respectively, was available for borrowing, subject to existing terms and advance rates.
Current wording
There were $181.0 million in advances made by the NYL Noteholders as of September 30, 2026, including $166.5 million on the NYL Class A Notes and $14.5 million on the NYL Class B Notes. There were $181.0 million in advances made by the NYL Noteholders December 31, 2025. As of September 30, 2026 and December 31, 2025, we had borrowing capacity under the NYL Facility of $69.0 million. At September 30, 2026 and December 31, 2025, $15.2 million and $1.9 million, respectively, was available for borrowing, subject to existing terms and advance rates.
Previous wording
There were $90.0 million in notes issued to the Nuveen Noteholders as of June 30, 2026 and December 31, 2025 at an interest rate of 7.21%. As of June 30, 2026 and December 31, 2025, we had borrowing capacity under the Nuveen Facility of $110.0 million. At June 30, 2026 and December 31, 2025, $26.7 million and $12.1 million, respectively, was available for borrowing, subject to existing terms and advance rates.
Current wording
There were $90.0 million in advances made by the Nuveen Noteholders as of September 30, 2026, including $90.0 million on the Nuveen Class A Notes. There were $90.0 million in advances made by the Nuveen Noteholders as of December 31, 2025. As of September 30, 2026 and December 31, 2025, we had borrowing capacity under the Nuveen Facility of $60.0 million and $110.0 million, respectively. At September 30, 2026 and December 31, 2025, $21.5 million and $12.1 million, respectively, was available for borrowing, subject to existing terms and advance rates.
Showing the first 40 of 59 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
We have committed to invest up to $87.5 million in the RoHo Joint Venture and CRFH has committed to invest up to $12.5 million in the RoHo Joint Venture. Investments by each of us and CRFH in the RoHo Joint Venture will be made in the form of membership interests. As of September 30, 2026, $79.0 of our commitment was unfunded.
Current report — wording carried from elsewhere
The following table shows the RoHo Joint Venture’s total portfolio investment activity as of and for the three months ended September 30, 2026 and for the period March 18, 2026 (the commencement of the RoHo Joint Venture’s operations) through September 30, 2026:
Current report — wording carried from elsewhere
On April 14, 2026, we completed our previously announced merger with MRCC, the Merger Sub, Monroe Capital BDC Advisors, LLC, and our Advisor, pursuant to the Merger Agreement. In connection with the Merger, our Advisor agreed to waive $4.0 million of base management fees and/or incentive fees due and payable to our Advisor pursuant to the terms of the Investment Management Agreement at the rate of $1.0 million per quarter commencing with our third fiscal quarter of 2026 (the “Fee Waiver”). During the three months ended September 30, 2026, our Advisor waived $1.0 million of base management fee in connection with the Fee Waiver.
Current report — wording carried from elsewhere
During the nine months ended September 30, 2025, we sold 1,974,553 shares of common stock under the 2023 Equity Distribution Agreement. For the same period, we received total accumulated net proceeds of approximately $14.2 million, including $0.5 million of offering expenses, from these sales.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
During the three months ended June 30, 2025, we did not sell any shares of common stock under the 2023 Equity Distribution Agreement.
Previous report — wording carried elsewhere
At June 30, 2026 and December 31, 2025, the outstanding principal balance under the NYL Facility was $181.0 million. As of June 30, 2026 and December 31, 2025, we had borrowing capacity under the NYL Facility of $69.0 million. At June 30, 2026 and December 31, 2025, $7.9 million and $1.9 million, respectively, was available for borrowing under the NYL Facility, subject to existing terms and advance rates.