Hercules Capital, Inc. · NYSE:HTGC
Hercules Capital — Q3 2026 Earnings Presentation
49 slides from Hercules Capital's earnings presentation, Oct 29, 2026
Slide 1: Financing the Growth of Tomorrow’s Companies Today
Financing the Growth of Tomorrow’s Companies Today Q3 2026 INVESTOR PRESENTATION October 29, 2026
Slide 2: Important Notice: Forward Looking Statements
Important Notice: Forward Looking Statements This presentation may contain “forward-looking However, by their nature, these forward-looking statements” within the meaning of the Private statements involve numerous assumptions, Securities Litigation Reform Act of 1995. You should uncertainties and ri
Slide 3: Hercules Capital
Hercules Capital Structure Internally Managed Business Development Company (BDC) IPO Date June 9, 2005 - Common Stock Institutional Notes PAR $1000.00/$2000.00 • 3.375% Notes due 2027 • 4.750% Notes due 2028 • 5.350% Notes due 2029 Investment Options • 6.000% Notes due 2030 • 6.300% Notes due 2031 S
Slide 4: We are HTGC: a Publicly Traded, Internally Managed BDC
We are HTGC: a Publicly Traded, Internally Managed BDC Highly Regulated | Financially Efficient | Uniquely Transparent As a business development company, or BDC, we invest mostly in smaller US businesses and do so under the stringent oversight of federal regulators and an independent board of direct
Slide 5: Third Quarter 2026 Investor Presentation
Third Quarter 2026 Investor Presentation • Key Performance Highlights • Company & Strategic Overview • Financial Highlights • Portfolio Highlights • Venture Capital Market Opportunity • Analyst Coverage
Slide 6: Key Performance Highlights
Key Performance Highlights
Slide 7: Q3 2026 Highlights
Q3 2026 Highlights • Net Investment Income (NII) of $87.3M Robust Earnings • Total Investment Income of $140.1M • NII per share of $0.47 • 1YR/3YR/5YR Total Shareholder Returns(1): -2.6% / 31.6% / 47.5% • ROAE(1,2): 15.4% Strong Shareholder Returns • ROAA(1,2): 7.4% • Net Interest Margin (NIM): 9.3%
Slide 8: Delivering Strong Sustainable Shareholder Returns
Delivering Strong Sustainable Shareholder Returns Return on Average Assets % (ROAA) Return on Average Equity % (ROAE) 12% 20% 21.3% 10% 16% 18.2% 10.6% 17.0% 16.4% 8% 15.4% 8.9% 8.8% 12% 8.2% 6% 7.4% 8% 4% 10.6% 12.5% 13.4% 10.6% 5.0% 5.3% 6.1% 4.9% 4.3% 9.7% 2% 4% 0% 0% 2022 2023 2024 2025 Q3 2026
Slide 9: Available Leverage for Potential Earnings Growth
Available Leverage for Potential Earnings Growth Leverage to Return on Average Equity % (ROAE) 30% 113.7% 111.1% 120% 104.4% 101.3% 96.1% 25% 89.6% 88.6% 100.1% 87.1% 90% 94.0% 77.4% 75.6% 86.0% 20% 71.9% 69.9% 15% 60% 10% 30% 5% 18.2% 21.3% 17.0% 16.4% 15.4% 0% 0% 2022 2023 2024 2025 Q3 2026 (1) (2
Slide 10: Hercules Has Consistently Maintained a Premium to NAV
Hercules Has Consistently Maintained a Premium to NAV Creates a strong capital raising position to support growth and stability 1.72 $16 1.7 1.55 1.46 1.5 1.37 $14 1.26 Price to NAV Multiple (x) 1.3 Net Asset Value (NAV) 1.1 0.96 0.93 $12 0.82 0.82 0.9 0.76 0.7 $10 0.5 $10.53 $11.43 $11.66 $12.13 $1
Slide 11: Hercules Key Performance Highlights
Hercules Key Performance Highlights Total Investment Income Net Investment Income “NII” ($ in millions) ($ in millions) $550 $350 $500 $300 $450 $400 $250 $350 $200 $300 $250 $150 $200 $150 $100 $268.4 $430.8 $100.3 $108.7 $143.3 $157.1 $150.0 $188.1 $304.0 $325.8 $341.7 $175.1 $190.9 $207.8 $267.9
Slide 12: Portfolio Growth with Underwriting Discipline
Portfolio Growth with Underwriting Discipline Cumulative Net Debt Commitment and Fundings, $28 $26 Since Inception $24.9 $24 $22.3 $22 $19.4 $20 $17.3 $ in billions $18 $16.4 $15.0 $16 $13.4 $13.3 $14 $11.9 $12 $9.9 $9.6 $10 HTGC $7.3 $7.6 $8 IPO $5.7 $5.6 $6 $4.0 $4.2 $2.7 $1.9 $2.9 $4 $1.5 $1.2 $0
Slide 13: Company & Strategic Overview
Company & Strategic Overview
Slide 14: The Hercules Platform
The Hercules Platform Over two decades of proprietary originations to institutionally backed growth-oriented businesses across the life science and technology ecosystem $6.5B Assets Under Management 700+ Growth-stage Company Investments 120 Employees 290+ Portfolio Company IPO & M&A Exits $29.0B Loa
Slide 15: The Hercules Advantage
The Hercules Advantage Cycle-tested platform built for durable performance Leading Origination Platform Life Science and Technology Expertise • Largest non-bank specialty finance platform serving growth-stage life • Specialized focus on life sciences and technology since 2003 sciences and technology
Slide 16: Hercules Platform Structure
Hercules Platform Structure Hercules Capital, Inc. and Hercules Adviser LLC operate as a single, aligned platform — one investment team, one underwriting process, one origination engine, delivered across two vehicle structures 01 ONE OPERATING PLATFORM Shared Investment Team The same 60+ person inve
Slide 17: The Hercules Platform
The Hercules Platform Institutional investors access the platform through two entities- Hercules Capital, Inc. and Hercules Adviser LLC Hercules Platform $6.5B AUM Hercules Capital, Inc. Hercules Adviser LLC Publicly-traded BDC SEC-registered investment adviser Rated Notes / Evergreen Publicly Trade
Slide 18: Hercules Capital At-a-Glance
Hercules Capital At-a-Glance Largest BDC Focused on Providing Financing to High-Growth Venture Capital-Backed Companies $3.03 $4.64 114 $506.6 BILLION BILLION COMPANIES MILLION MARKET DEBT INVESTMENT WARRANT LIQUIDITY & BALANCE CAPITALIZATION PORTFOLIO PORTFOLIO SHEET FOUNDED DECEMBER 2003 DEBT INVE
Slide 19: Why Hercules is Different from Other BDCs
Why Hercules is Different from Other BDCs We invest in innovative venture growth-stage companies What We Don’t Do What We Do • No direct oil and gas exposure • We focus primarily on pre-IPO and M&A, innovative high-growth venture capital backed companies at their • No CLO exposure expansion (venture
Slide 20: We are at Center Stage of the Innovation Economy
We are at Center Stage of the Innovation Economy Hercules has domain expertise in its key industry sectors “We are not generalists” Technology Life Sciences • We Invest at the Expansion “Venture Growth” • Offices in key venture capital markets: and Established Stage CA | MA | NY | CO | UK • $24.9 bi
Slide 21: Financial Highlights
Financial Highlights
Slide 22: Income Statement: Q3 2026 vs. Q3 2025 Summary Results
Income Statement: Q3 2026 vs. Q3 2025 Summary Results Three Months Ended September 30, Year/Year 2026 2025 ($ in 000's, except per share amo unts) C hange Interest Inco me (excluding payment-in-kind (P IK) interest inco me) $ 123,663 $ 116,682 6% P IK Interest Inco me 10,563 14,475 -27% Fee Inco me
Slide 23: Current and Historical Balance Sheets
Current and Historical Balance Sheets September 30, December 31, ($ in 000's, except per share amo unts) 2026 2025 ASSETS Total Investments, at fair value $ 4,845,903 $ 4,466,647 (1) C ash and cash equivalents 48,331 56,987 Restricted C ash 2,225 2,467 Interest receivable 38,313 37,261 Right of use
Slide 24: Effective Yield vs. Core Yield – Leads to Strong Earnings
Effective Yield vs. Core Yield – Leads to Strong Earnings Median Core Yield of 12.9% (Q1 2023 – Q3 2026) 16.0% 16% 15.5% 15.3% 15.1% 14.9% 14.7% 14.4% 13.9% 13.7% 14% 13.5% 13.4% 14.2% 14.3% 13.0% 14.0% 14.1% 14.0% 12.9% 12.8% 13.7% 13.3% 12.3% 12.9% Effective Yield 12% 12.6% 12.5% 12.5% 12.5% 12.2%
Slide 25: NAV Roll-Forward – Q3 2026
NAV Roll-Forward – Q3 2026 $13.80 $13.30 $12.80 $0.06 $0.02 $0.47 $0.04 $(0.01) $12.30 $12.26 $12.15 $(0.47) $11.80 $11.30 $10.80 $10.30 Net investment income Net unreal. appreciation Stock Compensation & DRIP NAV/share at Q3 2026 NAV/share at Q2 2026 Net realized loss Public Offering Dividends paid
Slide 26: High-Yield Portfolio of Earning Assets
High-Yield Portfolio of Earning Assets Median Effective Yield of 13.9% (Q1 2023 to Q3 2026) 16.0% 15.5% 15.3% 16% 15.1% 14.9% 14.7% 14.4% $5,000 13.7% 13.9% 13.5% 13.4% 12.3% 14% 13.0% 12.9% 12.8% 13.9% Total Debt Investments, at value (millions) 12% $4,000 10% Effective Yield (%) $3,000 8% $2,000 6
Slide 27: Strong, Consistent Net Interest Margin - NIM
Strong, Consistent Net Interest Margin - NIM Median NIM of 11.7% (Q1 2023 to Q3 2026) 13.7% 13.7% $150,000 13.3% 14% 13.0% 12.7% 12.6% 12.5% $130,000 11.7% 11.5% 12% 10.7% 10.8% 10.5% 11.7% Net Interest Margin (in thousands) 10.2% 10.1% $110,000 9.3% 10% $90,000 Net Interest Margin (%) 8% $70,000 6%
Slide 28: Impact of Early Payoffs on Effective Yields
Impact of Early Payoffs on Effective Yields Early Payoffs Lead to Higher Effective Yields and Earnings Effective Yields 15.1% 16.0% 15.5% 15.3% 14.9% 14.7% 16% 14.4% 13.7% 13.9% 13.5% 13.0% 13.4% 12.9% 12.8% 12.3% 14.0% 14.1% 14.2% 14.3% 14.0% 12% 13.7% 13.3% 12.9% 12.6% 12.5% 12.5% 12.5% 12.0% 12.0
Slide 29: Non-Interest and Fee Expense to Average Total Assets
Non-Interest and Fee Expense to Average Total Assets Median adjusted OPEX to average total assets of 2.1% (Q1 2023 to Q3 2026) $40,000 3% 2.8% 2.7% 2.7% 2.6% $35,000 2.5% 2.2% 2.2% $30,000 2.1% 2.1% 2.0% 2.0% 2.0% 2.0% 2.1% 1.9% 2% OPEX as a % of Total Assets (%) OPEX (in thousands) $25,000 1.6% $20
Slide 30: Unfunded Commitments as a Percentage of Total Assets
Unfunded Commitments as a Percentage of Total Assets $1,000 20% Available Unfunded Commitments as % Total Assets 17.3% Available Unfunded Commitments (in millions) $900 18% $800 16% $700 13.1% 13.1% 13.4% 14% 11.8% 12.0% 11.7% $600 11.3% 11.0% 12% 9.8% 9.9% $500 10% 8.4% 8.7% 8.2% 8.0% $400 8% $300
Slide 31: Consistent and Disciplined Underwriting Standards
Consistent and Disciplined Underwriting Standards Our disciplined credit underwriting standards have delivered consistent long-term results $6,000 1.0 High Quality Debt Portfolio Value $5,000 2.16 2.18 2.11 2.17 2.12 2.26 2.24 2.28 2.24 2.24 2.26 2.31 2.26 2.27 2.20 2.0 ($ in millions) Credit Rating
Slide 32: Diversified Sources of Funding: Q3 2026
Diversified Sources of Funding: Q3 2026 Capital Sources as of 9/30/26 $ in Millions % of Total Equity $2,324.7 47.4% SBA License 3 – HC IV $175.0 3.6% SBA License 4 – SBIC V $175.0 3.6% January 2027 Notes (Institutional) $350.0 7.1% Entity July 2031 Notes (Institutional) October 2033 Notes (Baby Bon
Slide 33: Diversified Sources of Funding: Q3 2026 ($ in millions)
Diversified Sources of Funding: Q3 2026 Notes SBA Debentures SMBC SMBC MUFG Bank Jan. 2027 July 2031 Oct. 2033 Sept. 2028 Feb. 2029 Inst. June 2030 License 3 License 4 LOC Facility Credit Facility Credit Facility Inst. Notes Inst. Notes Retail Notes Conv. Notes Notes Inst. Notes HC IV SBIC V Securit
Slide 34: Interest Rates & Asset Sensitivity
Interest Rates & Asset Sensitivity Basis Point Movement in Prime Rate $25,000 $0.16 $0.12 $20,000 $0.12 Net Income ($ in thousands) $15,000 $0.07 Earning per Share (EPS) $0.08 $10,000 $0.04 $5,000 $0.04 $0 $0.00 -200 -100 -75 -50 -25 25 50 75 -$5,000 -$0.04 -$10,000 -$0.03 -$0.05 -$0.06 -$0.08 -$15,
Slide 35: Portfolio Highlights
Portfolio Highlights
Slide 36: Hercules’ Investment Portfolio: Q3 2026
Hercules’ Investment Portfolio: Q3 2026 Floating vs. Fixed Rate Investment Type Breakout 2.1% 3.0% 0.1% 1.6% 1.0% Sr. Sec. 1st Pos. Debt Investments 9.2% Sr. Sec. 2nd Pos. Debt Investments Floating Unsecured Debt Investments Fixed Equity Investments 97.9% 85.1% Investment Funds & Vehicles Warrant Po
Slide 37: Hercules' Warrant & Equity Portfolio: Potential Future Upside
Hercules' Warrant & Equity Portfolio: Potential Future Upside for Shareholder’s Total Return 2 Portfolio Companies have filed Current Warrant & Equity Portfolio – Q3 2026 for/completed an Initial Public • 114 warrant holdings Offering – YTD 2026 • GAAP fair value: $46.3 million • Alamar Biosciences,
Slide 38: Selected List of Warrant and Equity Portfolio Holdings
Selected List of Warrant and Equity Portfolio Holdings Technology Life Sciences 38
Slide 39: A Broadly Diversified Portfolio Re-Balanced According to Market Conditions
A Broadly Diversified Portfolio Re-Balanced According to our Assessment of Ongoing Market Conditions Mitigates Risk ($M) $3,248.0 $3,660.0 $4,466.6 $4,845.9 100% 3.5% 3.1% 2.4% 2.3% 1.5% 1.2% 4.5% 2.8% 9.3% 3.1% 4.1% Diversified Financial Services 90% 1.4% Energy Technologies 0.3% 3.0% 16.7% Financi
Slide 40: Select List of Diversified Portfolio Companies
Select List of Diversified Portfolio Companies Technology Life Sciences Cybersecurity BioPharma Internet Services Defense Tech & Space Tech Software Healthcare Energy Technologies For illustrative purposes only. The companies listed above do not constitute a full list of all investments made by Herc
Slide 41: Diversified Investment Approach Mitigates Risk
Diversified Investment Approach Mitigates Risk Four Key Diversification Strategies FINANCIAL INDUSTRY STAGES OF GEOGRAPHIC SPONSORS SECTORS DEVELOPMENT LOCATION More than Technology Expansion or Key VC Investment 1000 Venture Life Sciences “Venture Growth” Centers: Capital & Silicon Valley & Establi
Slide 42: Primarily Invest at Stages of High Growth
Primarily Invest at Stages of High Growth Expansion Stage Established Follow-on Rounds Private Late Stage/ Type of Company of Growth Capital Select Public Companies (Series B-Liquidity Event) Venture Capital/ Public Markets/ Equity Capital Provider Private Equity Private Equity Expectation for Addit
Slide 43: Venture Capital Market Opportunity
Venture Capital Market Opportunity
Slide 44: Over $3.0 Trillion in VC Investments Since 1997
Over $3.0 Trillion in VC Investments Since 1997 Venture Capital Investment Activity 2016 – Q3 2026 $600 25,000 Dollars Invested (billions) 19,706 $500 18,320 20,000 15,514 15,471 15,709 $400 14,246 # of Deals 15,000 11,800 $300 10,000 $200 4,649 4,995 4,341 4,496 5,000 $100 $60.2 $80.2 $108.5 $103.3
Slide 45: Exits of Venture Capital–Backed Companies
Exits of Venture Capital–Backed Companies Mergers & Acquisitions $200 1600 Amount Paid (billions) 1338 1155 1400 1073 $150 952 1200 703 708 885 862 # of Deals 730 759 798 1000 $100 800 600 $50 400 $120.5 $89.0 $129.5 $123.4 $105.1 $153.7 $80.3 $62.9 $83.4 $128.5 $465.3 200 $0 0 2016 2017 2018 2019 2
Slide 46: Hercules’ Total Commitments vs. VC Dollars Invested
Hercules’ Total Commitments VS. VC Dollars Invested Venture Capital Investment Activity 2016 – Q3 2026 $600 VC Dollars Invested $4,500 Hercules Debt & Equity Commitments $3,924 Hercules Debt & Equity Commitments $3,441 $4,000 $500 Note: Represents US VC investments only $3,121 $3,500 VC Dollars Inve
Slide 47: Investment Highlights
Investment Highlights Large Market Opportunity and Differentiated Asset Class of Investments Experienced Attractive Yields and Management Team Upside from Equity and with Domain Expertise Warrant Portfolio Strict Focus on Credit Strong Venture Capital and Underwriting Process Private Equity Relation
Slide 48: Analyst Coverage
Analyst Coverage
Slide 49: Broad Industry Analyst Coverage
Broad Industry Analyst Coverage Finian O’Shea John Hecht Christopher Muller Transferred Coverage Initiated Coverage Assumed Coverage 7/13/2018 6/30/2015 7/28/2026 Paul Johnson Crispin Love Jason Stewart Transferred Coverage Re-initiated Coverage Assumed Coverage 2/20/2024 7/20/2020 5/7/2026 Christop