Strategy Inc Q2 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

Hercules Capital (HTGC) Q2 2026 Earnings Summary

  • Overview: Record operating performance with strong originations, stable credit, and improved market backdrop vs. Q1 2026. Platform AUM reached $6.1B (+14.4% YoY). NII covered base distribution by 125% (full distribution including $0.07 supplemental by 106%). 24th consecutive quarter with supplemental distribution. Focus remained on disciplined underwriting, strong balance sheet, and proactive credit management. H1 2026 originations hit records: $2.74B commitments (+35.6% YoY) and $1.35B fundings (+8.5% YoY).

Financial Performance (Q2 2026 vs. Q1 2026 and YoY)

  • Total investment income: Record $149.1M (+5.4% QoQ, +8.5% YoY), driven by net debt portfolio growth of $127.8M YTD and $572.1M in prepayments.
  • Core investment income (ex-prepayment revenue): $134.4M (vs. record $134.9M in Q1; +7.8% YoY).
  • Net investment income: Record $92.9M or $0.50/share (+5.5% QoQ, +4.7% YoY).
  • Effective yield: 13.4% (vs. 12.8% in Q1); core yield: 12% (vs. 12.2% in Q1), impacted by Dec 2025 rate cut and portfolio mix.
  • ROAE: 16.8% (vs. 16.9% in Q1); ROAA: 8.3% (vs. 8.1% in Q1).
  • Gross operating expenses: $61.1M (vs. $58.1M in Q1); net of RIA recharges: $56.2M. Interest expense stable at $31.1M (vs. $30.8M in Q1). Weighted avg. cost of debt: 5.2%.

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Operator: Good afternoon. My name is Leo, and I will be your conference operator today. At this time, I would like to welcome everyone to the Hercules Capital Second Quarter 2026 Financial Results Conference Call. All participant lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question at that time, please press star one on your telephone keypad. Please be advised that today's conference may be recorded. Lastly, if you should require operator assistance, please press star zero. I will now turn the call over to Michael Hara, Managing Director of Investor Relations. Please go ahead. Michael Hara: Thank you, Leo. Good afternoon, everyone, and welcome to the Hercules conference call for the second quarter of 2026. With us on the call today from Hercules are Scott Bluestein, CEO and Chief Investment Officer, Seth Meyer, President, and Andrew Olson, CFO. Hercules financial results were released just after today's market close and can be accessed from the Hercules Investor Relations section at investor.htgc.com. An archive webcast replay will be available on the investor relations webpage following the conference call. During this call, we may make forward-looking statements based on our own assumptions and current expectations. These forward-looking statements are not guarantees of future performance and should not be relied upon in making any investment decision. A

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