MeritValue

Horizon Technology Finance Corp

HRZNdata completeness 75%6 fiscal years on file

Data notes: no data for concept 'revenue'; no data for concept 'capex'; no data for concept 'incomeTaxExpense'; no data for concept 'pretaxIncome'

The thesis, from the filings

Horizon Technology Finance Corp earns about -0% on equity, but has diluted owners by 111% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue—————
Net income$27.8M1$21.2M2−$17.2M3−$5.63M3−$2.66M3
Operating cash flow−$76M4−$246.3M5−$5.26M6$3.94M6$56.6M6
Capital expenditure—————
Free cash flow (derived)—————
Total debt$257.6M7$434.1M8$462.2M9$467.9M10$473M10
Cash & equivalents$47.3M11$30.5M12$75.7M13$100.9M13$142.7M13
Diluted shares20.0M24.7M31.0M36.1M42.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$75.21
your share of equity
Profit it earned you last year
−$0.63
Free cash flow it threw off
—
Debt you’d be carrying
$111.7

10 shares is a claim on $75.21 of net worth that earned you −$0.63 last year, against $111.7 of debt.

iii. Is this a good business?
Moat signal · return on equity
-0% avg · 5y
FY21 —FY22 7%FY23 -5%FY24 -2%FY25 -1%

It earned an average -0% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+111% shares · 5y

Share count is up 111% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 84% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001437749-24-005719 (NetIncomeLoss)
  2. 10-K · period ending 2022-12-31 · accession 0001437749-25-006114 (NetIncomeLoss)
  3. 10-K · period ending 2023-12-31 · accession 0001437749-26-006636 (NetIncomeLoss)
  4. 10-K · period ending 2021-12-31 · accession 0001437749-24-005719 (NetCashProvidedByUsedInOperatingActivities)
  5. 10-K · period ending 2022-12-31 · accession 0001437749-25-006114 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2023-12-31 · accession 0001437749-26-006636 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2021-12-31 · accession 0001437749-23-004919 (LongTermDebt)
  8. 10-K · period ending 2022-12-31 · accession 0001437749-24-005719 (LongTermDebt)
  9. 10-K · period ending 2023-12-31 · accession 0001437749-25-006114 (LongTermDebt)
  10. 10-K · period ending 2024-12-31 · accession 0001437749-26-006636 (LongTermDebt)
  11. 10-K · period ending 2021-12-31 · accession 0001437749-24-005719 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  12. 10-K · period ending 2022-12-31 · accession 0001437749-25-006114 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  13. 10-K · period ending 2023-12-31 · accession 0001437749-26-006636 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)