Horizon Technology Finance Corporation Common Stock (HRZN)

FairStock Score: 85/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Horizon as a lender first, not a tech story. It is a business development company making secured loans and venture-lending investments to venture-backed firms in technology, life sciences, healthcare information, cleantech and sustainability. That can produce attractive yields when credit is calm, but it is not a business with a wide moat: capital is plentiful, borrowers are often unproven, and underwriting skill is the only real edge. The numbers show why Graham would be cautious. At the 2026-10-13 close of $4.54, FairStock calculates a P/B of 0.73, a P/E of 12.27, a 15.42% dividend yield, a 33.4% FCF yield, ROE of 1.45%, ROCE of 6.08%, and D/E of 0.96. The discount to book and the Graham Number of $7.20, with a 36.94% margin of safety, look tempting. A FairStock Score of 85/100 also suggests the market is pricing in trouble. But the reported earnings are volatile. In fiscal Q3 2025, the quarter ended 2025-09-30, net income was $30.7M, or $0.68 per diluted share. In fiscal Q1 2026, net income was $2.8M, or $0.06 per diluted share. Then fiscal Q2 2026, the quarter ended 2026-06-30, swung to a net loss of $37.3M, or -$0.57 per diluted share. FY2025, FY2024 and FY2023 all showed net losses: -$2.7M, -$5.6M and -$17.2M. Piotroski of 3/9 and Altman Z of -0.09 are caution flags. The Lynch category is TURNAROUND, with the reason being a loss in the latest year after earlier profits. The price may be cheap, but the business has not yet proven the turnaround.

In plain English: Horizon lends money to smaller, newer companies in technology, health care and clean energy. The business looks weak right now: it lost money in its latest year and had a big loss in the most recent quarter, even though it had some profitable quarters before that. The shares look inexpensive compared with the value of its assets, but the high dividend and recent losses mean the cheapness comes with real risk.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer