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

Quarterly report [Sections 13 or 15(d)]

Earnings Per Share

Earnings Per Share

3 Months Ended

Mar. 31, 2026

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 March 31,
	2026		2025
Numerator
Net increase (decrease) in net assets resulting from operations	$	42,502	$	50,337
Less: Total distributions declared	(86,733)		(81,384)
Total Earnings (loss), net of total distributions	(44,231)		(31,047)

Earnings (loss), net of distributions attributable to common shares	(44,230)		(31,048)
Add: Distributions declared attributable to common shares	85,885		80,616
Numerator for basic change in net assets per common share	41,655		49,568
Add: Income impact of assumed conversion of 2028 Convertible Notes	4,079		904
Numerator for diluted change in net assets per common share	$	45,734	$	50,472

Denominator
Basic weighted average common shares outstanding	182,760		171,494
Incremental shares from assumed conversion of 2028 Convertible Notes	13,387		3,272
Common shares issuable	674		617
Weighted average common shares outstanding assuming dilution	196,821		175,383

Change in net assets per common share:
Basic	$	0.23	$	0.29
Diluted	$	0.23	$	0.29

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 months ended March 31, 2026, 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 months ended March 31, 2026 and 2025, 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 March 31,
Anti-dilutive Securities	2026	2025
Unvested common stock options	326	1,974

Unvested restricted stock awards	125,767	23

As of March 31, 2026 and December 31, 2025, 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.