Hercules Capital, Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Earnings Per Share

Earnings Per Share

9 Months Ended

Sep. 30, 2025

Shares used in the computation of the Company’s basic and diluted earnings per share are as follows:


(in thousands, except per share data)	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Numerator
Net increase (decrease) in net assets resulting from operations	$	119,685	$	68,711	$	248,909	$	201,527
Less: Total distributions declared	(85,388)		(77,943)		(249,855)		(231,868)
Total Earnings (loss), net of total distributions	34,297		(9,232)		(946)		(30,341)

Earnings (loss), net of distributions attributable to common shares	34,042		(9,232)		(947)		(30,341)
Add: Distributions declared attributable to common shares	84,752		77,263		247,749		229,650
Numerator for basic change in net assets per common share	118,794		68,031		246,802		199,309
Add: Income impact of assumed conversion of 2028 Convertible Notes	4,116		—		9,096		—
Numerator for diluted change in net assets per common share	$	122,910	$	68,031	$	255,898	$	199,309

Denominator
Basic weighted average common shares outstanding	180,360		161,019		175,633		159,742
Incremental shares from assumed conversion of 2028 Convertible Notes	13,387		—		10,015		—
Common shares issuable	611		496		603		511
Weighted average common shares outstanding assuming dilution	194,358		161,515		186,251		160,253

Change in net assets per common share:
Basic	$	0.66	$	0.42	$	1.41	$	1.25
Diluted	$	0.63	$	0.42	$	1.37	$	1.24

In the table above, unvested share-based payment awards that have non-forfeitable rights to distributions or distribution equivalents are treated as participating securities for calculating earnings per share. Unvested common stock options and restricted stock units are also considered for the purpose of calculating diluted earnings per share.

The issuance of the 2028 Convertible Notes is considered part of the if-converted method for calculation of diluted earnings per share. In applying the if-converted method, conversion is not assumed for purposes of computing diluted earnings per share if the effect would be anti-dilutive. For the three and nine months ended September 30, 2025, there was no anti-dilution when applying the if-converted method for the 2028 Convertible Notes.

The calculation of change in net assets resulting from operations per common share assuming dilution, excludes all anti-dilutive shares. For the three and nine months ended September 30, 2025 and 2024, the number of anti-dilutive shares, as calculated based on the weighted average closing price of the Company’s common stock for the periods, are as follows:


	Three Months Ended September 30,		Nine Months Ended September 30,
Anti-dilutive Securities	2025	2024	2025	2024
Unvested common stock options	1,527	832	1,217	1,212

Unvested restricted stock awards	—	152	1,094	398

As of September 30, 2025 and December 31, 2024, the Company was authorized to issue 300.0 million shares of common stock with a par value of $0.001. Each share of common stock entitles the holder to one vote.