Hercules Capital Inc. (NYSE: HTGC) closed at $17.97 on October 27, 2025, gaining 1.99% after announcing a total cash distribution of $0.47 per share for the third quarter of 2025.
Hercules Capital, Inc., HTGC
The company, a leading specialty finance provider to venture-backed and growth-stage firms, said the distribution highlights its commitment to returning value to shareholders while maintaining income stability.
The total cash distribution comprises $0.47 per share for Q3 2025, with a record date of November 12 and payment scheduled for November 19, 2025. Hercules’ Board of Directors maintained its variable distribution policy, targeting payouts approximating 90% to 100% of the company’s taxable quarterly income.
Hercules may also issue supplemental distributions during the year to ensure it distributes nearly all its taxable income in the year earned or retains the option to carry over a portion to the following year. This flexible approach supports both income consistency and balance sheet resilience.
Of the distributions declared during the quarter ended September 30, 2025, 100% were derived from current earnings and profits, reinforcing the company’s strong financial foundation. Hercules emphasized that while quarterly tax determinations are made, the final classification of distributions occurs annually based on full-year taxable income.
Under Internal Revenue Code Section 871(k), Hercules can designate part of its distributions as “Qualified Interest Income” (QII), exempting foreign shareholders from U.S. withholding tax with proper documentation. As of September 30, 2025, 79.05% of the company’s total year-to-date distributions qualified as QII.
Despite recent stock volatility, Hercules continues to show robust long-term performance. As of October 27, 2025, HTGC reported a year-to-date return of -3.72% and a one-year return of -0.80%. Over three and five years, total returns stood at 76.83% and 172.54%, respectively, outperforming many peers in the specialty finance sector.
As the largest specialty finance company serving venture-backed enterprises, Hercules Capital plays a critical role in supporting innovative businesses across technology, life sciences, and sustainability. The latest distribution reaffirms its steady income strategy while balancing growth through disciplined portfolio management.
With consistent quarterly payouts, growing Qualified Interest Income, and long-term shareholder value creation, Hercules Capital continues to position itself as a reliable income-generating investment in the venture lending space.
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