Hercules Capital, Inc. (HTGC) 2026 Q1 法說會逐字稿

Good afternoon. My name is Stephanie, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Hercules Capital first quarter 2026 financial results conference call. (Operator Instructions) Please be advised that today's conference may be recorded. (Operator Instructions)

各位下午好。我是 Stephanie，今天將擔任本次電話會議的接線員。此時，我謹代表公司歡迎各位參加 Hercules Capital 2026 年第一季財務業績電話會議。（接線員指示）敬請注意，今天的會議可能會被錄音。（接線員指示）

I will now turn the call over to Michael Harrah, Managing Director of Investor Relations. Please go ahead.

現在我將把電話交給投資人關係董事總經理 Michael Harrah。請開始。

Thank you Stephanie. Good afternoon everyone and welcome to Hercules conference call for the first quarter of 2026. With us on the call today from Hercules are Scott Bluestein, CEO and Chief Investment Officer; and Seth Meyer, CFO. Hercules financial results were released just after today's market close and can be accessed from Hercules' Investor Relations section at investor.htgc.com.

謝謝 Stephanie。各位下午好，歡迎參加 Hercules 2026 年第一季電話會議。今天與會的 Hercules 團隊包括執行長兼首席投資長 Scott Bluestein，以及財務長 Seth Meyer。Hercules 的財務結果已於今日收盤後不久發布，可至 Hercules 投資人關係網站 investor.htgc.com 的投資人關係專區查閱。

An archived webcast replay will be available on the Investor Relations web page following the 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.

本次電話會議結束後，投資人關係網頁將提供網路直播重播存檔。在本次電話會議中，我們可能會基於自身假設與目前預期發表前瞻性陳述。這些前瞻性陳述不保證未來表現，且不應作為任何投資決策之依據。

Actual financial results may differ from the forward-looking statements made during this call for a number of reasons, including, but not limited to, the risks identified in our annual report on Form 10-K and other filings that are publicly available on the SEC's website. Any forward-looking statements made during this call are made only as of today's date, and Hercules assumes no obligation to update any such statements in the future.

由於多項原因，實際財務結果可能與本次電話會議中的前瞻性陳述有所差異，包括但不限於我們在 Form 10-K 年報及其他向美國證券交易委員會（SEC）申報、並可於 SEC 網站公開查閱之文件中所揭露的風險因素。本次電話會議中所作的任何前瞻性陳述僅截至今日，Hercules 不承擔日後更新任何此類陳述之義務。

And with that, I'll turn the call over to Scott.

接下來，我將把電話交給 Scott。

Thank you, Michael, and thank you all for joining the Hercules Capital Q1 2026 Earnings Call. In the first quarter of 2026, Hercules delivered another strong quarter of record originations, record total investment income and stable credit performance. During the quarter, we navigated through a period of significant market volatility. This was driven by a sharp pullback in certain parts of the equity and credit capital markets, macro concerns largely centered around the conflict in the Middle East as well as industry-specific concerns surrounding across private credit and the long-term impact from AI disruption.

謝謝你，Michael，也感謝各位參加 Hercules Capital 2026 年第一季財報電話會議。2026 年第一季，Hercules 再度交出亮眼成績，創下放款承作（originations）新高、總投資收益新高，且信用表現維持穩定。本季期間，我們在顯著的市場波動中前行。波動主要來自股權與信用資本市場部分領域的急劇回落、以中東衝突為核心的總體經濟疑慮，以及私募信貸產業的特定疑慮與 AI 顛覆所帶來的長期影響。

Since our first origination over 21 years ago, Hercules has maintained a disciplined credit first model that has served our shareholders and stakeholders well through a variety of market conditions and multiple cycles, and that will remain our focus going forward.

自 21 年前完成第一筆承作以來，Hercules 一直維持嚴謹、以信用為先（credit first）的經營模式，並在各種市場環境與多個景氣循環中良好地服務我們的股東與利害關係人；未來我們也將持續以此為核心。

Our balance sheet and liquidity position is strong. Our portfolio credit performance remains stable and our investment portfolio continued to generate net investment income in Q1 that comfortably covered our base shareholder distribution by 120%. Coming off a record-breaking year in 2025 for both originations and fundings, our momentum accelerated in Q1 with all-time record originations of over $1.81 billion.

我們的資產負債表與流動性部位強勁。投資組合的信用表現仍然穩定，且第一季持續產生淨投資收益，對基本股東配息的覆蓋率達 120%，相當充裕。2025 年我們在承作與撥款（fundings）方面皆創下破紀錄的一年，延續該動能，第一季承作加速，創下歷史新高，承作金額超過 18.1 億美元。

This is consistent with the guidance that we provided on our Q4 earnings call in February and the release that we put out in early April. The strong new business activity in the first quarter helped to deliver a new record for total investment income despite operating in a declining rate environment since late 2024. Driven by the growth of both the public BDC and our private credit funds business, Hercules Capital is now managing approximately $6.1 billion of assets.

這與我們在 2 月第四季財報電話會議中提供的指引，以及 4 月初發布的公告一致。第一季強勁的新業務活動，協助我們在自 2024 年底以來利率走低的環境下，仍創下總投資收益新高。在公開交易 BDC 與私募信貸基金業務雙雙成長的帶動下，Hercules Capital 目前管理資產約 61 億美元。

An increase of 21.8% from a year ago. To manage our growing asset base and expanded platform. We currently have 65 investments in credit professionals, over 25 finance and accounting professionals and 120 dedicated full-time employees in total at Hercules. As we entered 2026, we noted on our last earnings call that we continue to expect higher-than-normal market and macro volatility, and it certainly has played out that way.

較一年前增加 21.8%。為了管理不斷成長的資產規模與擴大的平台，我們目前擁有 65 位投資與信用專業人員、超過 25 位財務與會計專業人員，Hercules 全體專任員工總數為 120 人。進入 2026 年時，我們在上次財報電話會議中提到，預期市場與總體環境波動將高於常態，而實際情況確實如此。

Aside from the general market volatility experienced year-to-date, largely from AI disruption fears and the conflict in the Middle East, the results have been enhanced focus on liquidity and redemption across the broader private credit space. These particular issues are concentrated largely in the non-traded BDC segment where the investor base is predominantly retail and the shareholders hold quarterly redemption rights.

除了年初至今整體市場波動（主要源自對 AI 顛覆的擔憂與中東衝突）之外，市場結果也使得整體私募信貸領域更聚焦於流動性與贖回議題。這些問題主要集中在非交易型 BDC（non-traded BDC）板塊，因其投資人基礎以零售為主，且股東享有按季贖回權。

Hercules is different. 100% of the equity capital that we manage in the publicly traded BDC is true permanent capital that is not subject to redemption. Our investment adviser subsidiary manages exclusively institutional GP LP funds with predetermined long-term or evergreen investment periods, no retail investors, no non-traded BDCs, no near-term redemption risk.

Hercules 與此不同。我們在公開交易 BDC 中所管理的股權資本 100% 為真正的永久資本（permanent capital），不受贖回影響。我們的投資顧問子公司僅管理機構型 GP/LP 基金，投資期間為預先設定的長期或常青（evergreen）期間，沒有零售投資人、沒有非交易型 BDC，也沒有短期贖回風險。

This capital structure is deliberate and we believe it allows us to execute a long-term strategy through cycles without unpredictable redemptions and without forced asset sales. We remain confident in the strength and stability of the Hercules platform and our ability to continue to generate strong operating results irrespective of the market backdrop.

此一資本結構是刻意設計的；我們相信它使我們能在不同景氣循環中執行長期策略，不會面臨不可預測的贖回，也不會被迫出售資產。我們對 Hercules 平台的強度與穩定性，以及在任何市場背景下持續創造強勁營運成果的能力，仍然充滿信心。

With the expansion of our platform capabilities over the last several years and our expectation for continued market volatility, we continue to expect a robust new business environment for Hercules in 2026. Our platform scale, balance sheet and liquidity allow us to play offense during market volatility, which should position us to see a robust pipeline of high-quality companies throughout the year.

隨著過去數年平台能力的擴張，以及我們對市場波動將持續的預期，我們仍預期 2026 年對 Hercules 而言將是新業務環境相當強勁的一年。我們的平台規模、資產負債表與流動性，使我們能在市場波動期間採取進攻策略，並有望在全年看到高品質公司的強勁案源（pipeline）。

As we have done over the last several years, we will continue to manage our business and balance sheet defensively, while maintaining the flexibility to take advantage of market opportunities. This includes continuing to enhance our liquidity position as needed, further tightening our credit screens for new underwritings, staying focused on asset diversification and maintaining our higher-than-normal first lien exposure, which was approximately 89% in Q1.

如同過去幾年所做的，我們將持續以防禦性方式管理業務與資產負債表，同時保有把握市場機會的彈性。這包括：視需要持續強化流動性部位、進一步收緊新案承作的信用篩選標準、持續聚焦資產分散，以及維持高於常態的第一順位擔保（first lien）曝險；第一季該比重約為 89%。

Let me now recap some of the key highlights of our performance for Q1. In Q1, we originated record total new debt and equity commitments of $1.81 billion and gross fundings of over $706 million, which led to $298 million of net debt investment portfolio growth. We generated record total investment income of $141.5 million and net investment income of $88.1 million or $0.48 per share.

接下來我簡要回顧第一季表現的幾項重點。第一季，我們創下新高的新增債務與股權承諾總額 18.1 億美元，總撥款超過 7.06 億美元，帶動淨債務投資組合成長 2.98 億美元。我們創下總投資收益新高 1.415 億美元，淨投資收益為 8,810 萬美元，或每股 0.48 美元。

We generated a return on equity in Q1 of 16.9%, and our portfolio generated a GAAP effective yield of 12.8% and a core yield of 12.2% and which was consistent with our guidance. We expect core yield to remain relatively flat in Q2, given that the Fed is holding interest rates steady. As we have consistently communicated throughout 2025, we have increased leverage to support our continued growth and return effectives, allowing us to continue to focus on what we believe are high-quality originations versus chasing higher-yielding assets with more risk.

第一季股東權益報酬率（ROE）為 16.9%；投資組合 GAAP 有效殖利率為 12.8%，核心殖利率為 12.2%，與我們的指引一致。由於聯準會維持利率不變，我們預期第二季核心殖利率將大致持平。正如我們在 2025 年持續溝通的，我們已提高槓桿以支持持續成長並提升報酬效率，使我們能持續聚焦於我們認為高品質的承作，而非追逐風險更高、殖利率更高的資產。

While delivering record new originations in Q1, we still maintained a conservative and defensive balance sheet. Consistent with our objectives, GAAP leverage increased to 115.4% in Q1, up from 104.4% in Q4. Our Q1 GAAP leverage was at the high end of our typical historical range of 100% to 115% but still below the average of our BDC peers.

在第一季創下新承作紀錄的同時，我們仍維持保守且防禦性的資產負債表。符合我們的目標，第一季 GAAP 槓桿率升至 115.4%，高於第四季的 104.4%。第一季 GAAP 槓桿率位於我們歷史常態區間 100% 至 115% 的高端，但仍低於 BDC 同業平均水準。

We ended Q1 with over $1 billion of liquidity across the Hercules platform. The current market volatility is creating a very favorable capital deployment environment for Hercules and we want to ensure that we are positioned to opportunistically take advantage of that for the long-term benefit of our shareholders and stakeholders. The focus of our origination efforts in Q1 and was on maintaining a disciplined approach to capital deployment while emphasizing diversification across the asset base. Our Q1 commitments and fundings activity was weighted slightly towards life sciences companies. which reflects a more defensive posture.

第一季末，Hercules 平台整體流動性超過 10 億美元。當前市場波動正在為 Hercules 創造非常有利的資本部署環境，我們希望確保自身具備條件，能把握機會，為股東與利害關係人帶來長期利益。第一季我們的承作重點在於維持嚴謹的資本部署紀律，同時強調資產基礎的分散。第一季的承諾與撥款活動略偏向生命科學公司，反映出較為防禦的立場。

In Q1, approximately 56% of our commitments and 60% of our fundings were to life sciences companies. while approximately 44% of our commitments were to tech companies. We funded debt capital to 34 different companies in Q1, of which 13 were new borrower relationships. During the quarter, we were again able to opportunistically increase our commitments and fundings to several portfolio companies that have continued to demonstrate strong performance.

第一季，我們約 56% 的承諾與 60% 的撥款投向生命科學公司；約 44% 的承諾投向科技公司。第一季我們對 34 家不同公司提供債務資金，其中 13 家為新的借款人關係。本季期間，我們也再次把握機會，對多家持續展現強勁表現的投資組合公司提高承諾與撥款。

As it always has been, being able to continue to support our portfolio of companies as they scale is an important part of our business and a key differentiator of our expanded platform capabilities. Our available unfunded commitments increased slightly to $397.4 million from $385.6 million in Q4, still maintaining a more defensive positioning of the portfolio.

一如既往，能在投資組合公司擴張成長的過程中持續提供支持，是我們業務的重要一環，也是我們擴大平台能力的關鍵差異化因素。我們的可用未撥款承諾（unfunded commitments）由第四季的 3.856 億美元小幅增加至 3.974 億美元，投資組合仍維持較為防禦的配置。

Coming off a record Q1, we expect originations to moderate in Q2 and be more back-end weighted. Since the close of Q1 and as of May 1, 2026. Our investment team has closed $79.2 million of new commitments and funded $32.3 million. We have pending commitments of an additional $506.1 million, in signed, nonbinding term sheets, and we expect this number to continue to grow as we progress in Q2.

在創下第一季（Q1）歷史新高之後，我們預期第二季（Q2）的放款起案（originations）將趨於溫和，且更偏向於季度後段。自第一季結束以來，截至2026年5月1日，我們的投資團隊已完成7,920萬美元的新承諾（commitments）簽訂，並已撥款（funded）3,230萬美元。我們另有5.061億美元的待定承諾，已以簽署但不具約束力的條款書（term sheets）形式確認；隨著第二季推進，我們預期此數字將持續成長。

We will maintain a high bar for new originations. Our investment teams are continuing to update our modeling assumptions, structuring and underwriting criteria given the rapid pace of change that we are seeing across the technology ecosystem.

我們將對新的起案維持高標準。我們的投資團隊正持續更新模型假設、交易架構與承作（underwriting）標準，以因應我們在整體科技生態系中所見到的快速變化。

The volume of deals that we are screening and passing on remains elevated, and we intend to continue to remain disciplined, patient and focused on the long term while being aggressive where we believe it makes sense. Early loan repayments of $225.8 million came in at the higher end of our guidance for Q1.

我們目前篩選後決定不做的交易量仍維持在高檔；我們打算持續保持紀律、耐心並聚焦長期，同時在我們認為合理之處積極出手。2.258億美元的提前還款（early loan repayments）落在我們第一季指引區間的高端。

For Q2 2026, we expect prepayments to increase materially and be in the range of $350 million to $500 million, although this could change as we progress in the quarter. The increased guidance on prepayments in Q2 is being driven largely by M&A. And we believe that this positions us well to redeploy this capital in what we expect to be a more favorable originations environment.

對於2026年第二季，我們預期提前償還（prepayments）將顯著增加，落在3.5億至5億美元區間，但此預期可能會隨季度進展而變動。第二季提前償還指引上調主要由併購（M&A）所驅動。我們認為，這使我們能在預期更有利的起案環境中重新部署這些資本。

Our net asset value per share in Q1 was $11.90 a decrease of 1.9% from Q4 2025. We had $31.1 million of net unrealized depreciation from debt investments during the quarter approximately $23.2 million or 75% of which was attributable to market yield adjustments associated with the general market volatility. In addition, we had $12.3 million of net unrealized depreciation attributable to valuation movements in publicly and privately held equity positions.

我們第一季每股淨資產價值（NAV）為11.90美元，較2025年第四季（Q4）下降1.9%。本季我們在債務投資上錄得3,110萬美元的淨未實現減值（net unrealized depreciation），其中約2,320萬美元（約占75%）可歸因於與整體市場波動相關的市場殖利率調整。此外，我們在公開與非公開股權部位的估值變動上，另錄得1,230萬美元的淨未實現減值。

Again, largely associated with the general market volatility experienced during the quarter. We ended Q1 with solid liquidity of $454.5 million in BDC and over $1 billion of liquidity across the platform. With healthy liquidity, a low cost of debt relative to our peers and 4 investment-grade credit ratings we remain well positioned to compete aggressively on quality transactions, which we believe is prudent in the current environment.

同樣地，這主要與本季所經歷的整體市場波動有關。我們在第一季末維持充足流動性：BDC層級為4.545億美元，平台整體流動性超過10億美元。在流動性健康、相較同業更低的負債成本，以及擁有4項投資級信用評等的支撐下，我們仍具備良好條件在優質交易上積極競爭；我們認為在目前環境下這樣做是審慎的。

Credit quality of the debt investment portfolio remained strong quarter-over-quarter. Our weighted average internal credit rating of 2.11 was stable relative to the 2.20 rating in Q4 and remains within our normal historical range. Our Grade 1 and 2 credits increased to 70.5% compared to 66.6% in Q4. Grade 3 credits decreased slightly to 28.6% in Q1 versus 31.7% in Q4.

債務投資組合的信用品質較上季維持強勁。我們加權平均內部信用評等為2.11，較第四季的2.20持平並仍落在我們正常的歷史區間內。第1級與第2級信用品質占比提升至70.5%，高於第四季的66.6%。第3級占比在第一季小幅下降至28.6%，相較第四季為31.7%。

Our rated 4 credits decreased to 0.8% from 1.7% in Q4 and we had 1 rated 5 credit at 0.1%. Our loans rated at 4 and 5 as of Q1 were a combined 0.9% which is the lowest that we have reported since Q2 2022. In Q1, the number of companies with loans on nonaccrual remain the same with a single loan on nonaccrual with an investment cost and fair value of approximately $10.7 million and $3.7 million, respectively, or 0.2% and 0.1% as a percentage of our total investment portfolio at cost and value, respectively.

第4級占比由第四季的1.7%降至0.8%，且我們有1筆第5級部位，占比0.1%。截至第一季末，第4級與第5級合計為0.9%，為我們自2022年第二季以來所揭露的最低水準。第一季處於停計息（nonaccrual）的貸款公司數量維持不變，仍僅有1筆貸款停計息，其投資成本與公允價值分別約為1,070萬美元與370萬美元，分別占我們投資組合總成本與總價值的0.2%與0.1%。

As of the most recent reporting that we have, 100% of our debt investments that are on accrual are current with respect to the payment of scheduled principal and interest. With respect to our broader credit book and outlook, we generally remain pleased by what we are seeing on a portfolio level but our portfolio monitoring remains enhanced given the continued volatility in the markets.

依我們最新可得的報告，所有仍在計息（on accrual）的債務投資，在應付的本金與利息排程上均為正常（current）。就更廣泛的信用投資組合與展望而言，我們整體上對投資組合層面的表現仍感到滿意，但鑑於市場持續波動，我們仍加強投資組合監控。

We believe that our conservative underwriting and ensuring appropriate structural alignment on the deals that we do will continue to serve us well. Our asset base is intentionally diversified with approximately 50% of our assets in our life sciences vertical, and approximately 50% of our assets in our technology vertical.

我們相信，保守的承作以及在所做交易中確保適當的結構性對齊（structural alignment），將持續為我們帶來良好效果。我們的資產基礎刻意分散，約50%配置於生命科學垂直領域，約50%配置於科技垂直領域。

No single subsector makes up more than 25% of our total investment portfolio and our bet investments are spread across 139 different companies. Consistent with our historical experience as of the end of Q1 -- the average loan duration across our debt portfolio was approximately 21 months. While we remain pleased with the exit activity that we saw in our portfolio during the quarter, we are seeing that in certain parts of the market, there appears to be some ongoing pricing and process discovery.

沒有任何單一子產業占我們總投資組合超過25%，且我們的投資分散於139家不同公司。與我們的歷史經驗一致，截至第一季末——我們債務投資組合的平均貸款存續期間約為21個月。雖然我們對本季投資組合所見的退出（exit）活動仍感到滿意，但我們也觀察到在市場某些區塊，似乎仍存在持續的定價與流程探索（pricing and process discovery）。

The sharp pullback in equity valuations year-to-date in certain technology sectors has slowed some ongoing M&A discussions as buyers look to establish what the new norm may be for exits, particularly with respect to valuation and exit multiples.

今年以來，部分科技領域的股權估值大幅回落，已使部分正在進行的併購（M&A）討論放緩，因買方正試圖釐清退出（exit）的新常態可能為何，特別是在估值與退出倍數（exit multiples）方面。

This is something that we will monitor over the coming quarters. In Q1 and Q2 quarter-to-date, we've had 4 new M&A events in our portfolio, which included 1 life sciences company, and 3 technology companies announcing acquisitions. We also had 2 portfolio companies file registration statements for their IPOs with 1 of those companies completing their IPO in April.

這是我們在未來幾季將持續關注的事項。在第一季以及第二季截至目前（quarter-to-date），我們的投資組合中出現了4起新的併購事件，其中包括1家生命科學公司與3家科技公司宣布被收購。我們也有2家投資組合公司提交其IPO的註冊申報文件，其中1家公司已於4月完成IPO。

We view this as a positive sign for our ecosystem. Based on current market conditions and volatility, we continue to expect M&A exit activity to accelerate in 2026, although with more uncertainty with respect to valuations and process timing. In Q1, PIK declined meaningfully as a percentage of total revenue. falling to approximately 9.1% from 10.5% in fiscal year 2025. And we expect that figure to continue declining in the near term as loans pay off and accrued PIK is collected in cash.

我們將此視為對我們生態系的正面訊號。基於目前的市場狀況與波動性，我們仍預期2026年的併購退出活動將加速，但在估值與流程時程方面的不確定性將更高。第一季中，PIK（實物支付利息）占總收入的比重顯著下降，約降至9.1%，低於2025會計年度的10.5%。我們預期該比重在短期內將持續下降，因貸款償還以及已累計的PIK將以現金方式收回。

The most important point on PIK, however, is its source. Approximately 91% of our Q1 PIK income came from PIK that was part of the original underwriting, not of the result of any credit or performance-related amendment. This is PIK by design, not PIK by distress. Reinforcing that point, more than 98% of our Q1 PIK income came from loans rated 1, 2 or 3 and excluding a single convertible loan, every loan with a PIK component on accrual status is also paying cash interest.

然而，關於PIK最重要的一點在於其來源。我們第一季PIK收入約91%來自原始承作時即納入的PIK，而非任何因信用或績效相關修訂（amendment）所致。這是「設計使然」的PIK，而非「困境所致」的PIK。進一步佐證的是，我們第一季超過98%的PIK收入來自評等為1、2或3的貸款；且除了一筆可轉換貸款（convertible loan）外，所有含PIK成分且仍在計息狀態的貸款也都在支付現金利息。

Cash collections support the same conclusion. We collected $15.3 million in cash payments on accrued PIK during Q1. And because the majority of our PIK bearing loans were originated in 2024 and 2025, we expect strong cash collections to continue throughout 2026 as those loans approach their expected duration. We continue to use PIK judiciously and where we do, it is typically a small component of the overall deal economics.

現金回收也支持相同結論。我們在第一季就已累計的PIK收取了1,530萬美元的現金付款。由於我們多數帶有PIK的貸款是在2024與2025年起案，我們預期隨著這些貸款接近其預期存續期間，2026年全年將持續有強勁的現金回收。我們仍審慎使用PIK；即便使用，通常也僅占整體交易經濟條件（deal economics）的一小部分。

Our investment and credit teams continue to monitor the impact of AI on our portfolio and the broader markets. The pace of change is rapid and we expect the disruption we are seeing to play out over several years. Our most recent reporting and our ongoing dialogue with our companies and their investors continue to be constructive.

我們的投資與信用團隊持續監測AI對我們投資組合及更廣泛市場的影響。變化速度很快，我們預期目前所見的顛覆將在數年內逐步展開。我們最新的報告以及與投資組合公司及其投資人的持續對話，仍然具有建設性。

Many companies across our portfolio have been embracing AI as a competitive differentiator and are experiencing tailwinds from AI adoption, greater operating efficiency and faster cycles of innovation and go-to-market. Those companies that are more aggressively integrating AI into their core product offerings are benefiting from increased adoption and AI acceptance.

我們投資組合中的許多公司正將AI作為競爭差異化因素並受惠於AI採用所帶來的順風，包括更高的營運效率、更快的創新與產品上市（go-to-market）週期。那些更積極將AI整合進核心產品供給的公司，正受惠於更高的採用率與市場對AI的接受度提升。

We continue to expect AI to disrupt numerous industries over time and that there will be both winners and losers. Over the coming years, business models will change, margin profiles may change and in many cases, companies may actually become more efficient and innovative.

我們仍預期AI將隨時間推移顛覆眾多產業，且將同時出現贏家與輸家。在未來幾年，商業模式將改變、利潤率結構可能改變，而在許多情況下，公司實際上可能變得更有效率且更具創新性。

Our investment teams will continue to pursue software transactions as part of our origination efforts, and we will remain disciplined and conservative in terms of our approach to financing the sector. Venture capital investment activity in Q1, again, paralleled what we experienced in our deal flow and originations. Q1 2026 investment activity was the highest quarter on record at $267.2 billion according to data gathered by PitchBook and VCA.

我們的投資團隊將持續在起案工作中尋求軟體相關交易，並在對該產業的融資方式上維持紀律與保守。第一季的創投（venture capital）投資活動同樣與我們在交易流量與起案上的體感相呼應。根據PitchBook與VCA彙整的資料，2026年第一季投資活動以2,672億美元創下歷史最高單季紀錄。

While the aggregate data remains strong, it again needs to be noted that the deal value was extremely concentrated and that over 88% of the Q1 deal value involved AI and machine learning companies. Q1 fundraising improved and totaled $47.8 billion, across 172 firms. The capital was heavily concentrated among a few established managers. M&A exit activity remained consistent with Q4 but exit value in Q1 was extraordinary at $311.7 billion compared to $143.9 billion for all of 2025.

雖然整體數據仍然強勁，但仍需再次指出，交易金額的集中度極高，且第一季超過 88% 的交易金額涉及 AI 與機器學習公司。第一季募資有所改善，合計達 478 億美元，涵蓋 172 家公司。資金高度集中於少數已具規模的管理人。併購（M&A）退出活動與第四季一致，但第一季退出金額異常龐大，達 3,117 億美元，相較之下 2025 年全年僅為 1,439 億美元。

Consistent with the aggregate data for the ecosystem. During Q1, capital raising across our portfolio reached an all-time high with 21 companies raising approximately $3.4 billion in new capital. Despite the market volatility year-to-date, we have not observed a pulled portfolio. Subsequent to quarter end, we have had an additional 10 companies raised over $900 million in new capital.

這與生態系的整體數據一致。第一季期間，我們投資組合的募資規模創下歷史新高，共有 21 家公司募集約 34 億美元的新資本。儘管年初至今市場波動，我們未觀察到投資組合出現被抽離（pulled）的情況。季度結束後，另有 10 家公司再募集逾 9 億美元的新資本。

Given our strong sustained operating performance, we exited Q1 with undistributed earnings spillover of $149.1 million or $0.80 per ending shares outstanding. For Q1, our net investment income covered our base distribution by 120% and our full distribution, including our $0.07 supplemental distribution by 102%.

鑑於我們強勁且持續的營運表現，我們在第一季結束時的未分配盈餘結轉（spillover）為 1.491 億美元，或按期末流通在外股數計每股 0.80 美元。第一季，我們的淨投資收益（NII）對基本配息的覆蓋率為 120%，而對包含每股 0.07 美元補充配息在內的全額配息覆蓋率為 102%。

This is our 23rd consecutive quarter of being able to provide our shareholders with a supplemental distribution in addition to our regular quarterly base distribution. Finally, I would like to highlight our recent announcement on May 4 regarding the expansion of our leadership team. Effective May 18 and Seth will become President of Hercules.

這是我們連續第 23 個季度，能在例行的季度基本配息之外，向股東提供補充配息。最後，我想強調我們於 5 月 4 日就領導團隊擴編所發布的最新公告。自 5 月 18 日起，Seth 將出任 Hercules 總裁。

Seth and I will continue to work closely on scaling our platform and enhancing our operational capabilities to ensure that we continue to deliver long-term value for our shareholders and stakeholders. Succeeding him as CFO will be Andrew Olson, who is returning to Hercules after working most recently at Revelation Partners, and prior to that, SVB Capital. Andrew's experience and track record in finance, alternative assets and private credit is strong, and I welcome him back and look forward to working with Andrew again.

Seth 與我將持續緊密合作，擴大我們的平台規模並提升營運能力，以確保我們持續為股東與利害關係人創造長期價值。接任其 CFO 的將是 Andrew Olson，他在最近於 Revelation Partners 任職後回到 Hercules，此前曾任職於 SVB Capital。Andrew 在財務、另類資產與私募信貸方面的經驗與實績都很扎實，我歡迎他回歸，並期待再次與 Andrew 共事。

To continue to build on our success and position Hercules for its next phase of growth. As we set our sights on the continued growth and scaling of our platform, I believe that this expansion of our leadership team will best position us for continued long-term success.

為了延續我們的成功並讓 Hercules 為下一階段的成長做好準備。當我們把目標放在平台的持續成長與規模化時，我相信這次領導團隊的擴編將使我們更能掌握並延續長期成功。

In closing, our scale institutionalized lending platform and our ability to capitalize on a rapidly changing competitive and macro environment continues to drive our business forward and our operating performance to record levels.

總結而言，我們具規模且制度化的放款平台，以及在快速變化的競爭與總體環境中把握機會的能力，持續推動業務向前，並使我們的營運表現達到創紀錄水準。

Our continued success is attributable to the tremendous dedication, efforts and capabilities of our 120 employees and the trust that our venture capital and private equity partners place with us every day. We are thankful to the many companies, management teams, and investors that continue to make Hercules their partner of choice.

我們持續的成功，歸功於 120 位員工的高度投入、努力與能力，以及創投與私募股權合作夥伴每天對我們的信任。我們也感謝眾多公司、管理團隊與投資人持續選擇 Hercules 作為首選合作夥伴。

I will now turn the call over to Seth.

接下來我把電話會議交給 Seth。

Thank you, Scott, and good afternoon, ladies and gentlemen. Q1 2026 was another all-around strong quarter for Hercules Capital, building on the record-setting pace established in 2025. As communicated by Scott, our strong business momentum continued into the first quarter as we delivered all-time records for both new originations and total investment income.

謝謝你，Scott，各位女士先生下午好。2026 年第一季對 Hercules Capital 而言是全面強勁的季度，延續 2025 年創紀錄的成長步伐。如 Scott 所述，我們強勁的業務動能延續至第一季，並在新承作（originations）與總投資收益兩方面皆創下歷史新高。

We delivered strong growth across both the BDC and our wholly owned RIA managed private credit fund business, which continues to provide us with significant capital flexibility and capacity. Notwithstanding a more volatile and challenging market backdrop in Q1, the Hercules platform delivered strong and stable financial results. We continue to maintain strong available liquidity of $454.5 million as of quarter end in the BDC and more than $1 billion across the platform, including the advisers funds managed by our wholly owned subsidiary, Hercules Adviser LLC.

我們在 BDC 以及由我們全資擁有的 RIA 管理之私募信貸基金業務兩方面都實現了強勁成長，該業務持續為我們提供顯著的資本彈性與承作容量。儘管第一季市場環境更為波動且具挑戰，Hercules 平台仍交出強勁且穩健的財務成果。截至季末，我們在 BDC 端維持 4.545 億美元的充裕可用流動性，而包含由全資子公司 Hercules Adviser LLC 管理之顧問基金在內，整個平台的可用流動性超過 10 億美元。

As previously disclosed, during the quarter, we strengthened our liquidity position even more by issuing $300 million of institutionally backed 5.35% unsecured notes due in 2029. In addition, we raised over $50 million in accretive capital via our ATM to help support our nearly $300 million of net debt portfolio growth during the first quarter. Finally, based on the performance of the quarter, Hercules Adviser delivered another quarterly dividend of $2.1 million to HTGC which, when combined with the expense reimbursement of $4.6 million resulted in approximately $6.7 million of NII contribution to the BDC for the quarter.

如先前揭露，季度期間我們透過發行 3 億美元、由機構支持、票面利率 5.35%、2029 年到期的無擔保票據，進一步強化流動性部位。此外，我們透過 ATM 以增厚（accretive）的方式募集逾 5,000 萬美元資本，以支援第一季近 3 億美元的淨負債投資組合成長。最後，基於本季表現，Hercules Adviser 再次向 HTGC 發放 210 萬美元的季度股利；加上 460 萬美元的費用補償，合計為本季 BDC 貢獻約 670 萬美元的淨投資收益（NII）。

These points in mind, we'll review the income statement performance and highlights, NAV, unrealized and realized activity, leverage and liquidity, and finally, the financial outlook. Turning first to the income statement performance and highlights. Total investment income in Q1 was a record $141.5 million, an increase of 3% quarter-over-quarter and 18.4% year-over-year, supported by our continued debt portfolio growth.

基於上述重點，我們將依序回顧損益表表現與重點、每股淨資產價值（NAV）、未實現與已實現損益活動、槓桿與流動性，最後是財務展望。首先看損益表表現與重點。第一季總投資收益創紀錄達 1.415 億美元，較上季增加 3%，較去年同期增加 18.4%，主要受惠於我們持續的債務投資組合成長。

Core investment income, a non-GAAP measure, increased as well to a record $134.9 million compared to $133.3 million in Q4 and was up 16.8% on a year-over-year basis. Core investment income excludes the benefit of income recognized because of loan prepayments.

核心投資收益（Core investment income，非 GAAP 指標）亦上升至創紀錄的 1.349 億美元，較第四季的 1.333 億美元增加，並較去年同期成長 16.8%。核心投資收益不包含因貸款提前清償而認列的收益利益。

Net investment income was $88.1 million or $0.48 per share in Q1, an increase of 1.3% quarter-over-quarter and 13.8% year-over-year. Our effective and core yields were 12.8% and 12.2%, respectively, compared to 12.9% and 12.5% in the prior quarter. The decrease in core yield was near the midpoint of our communicated range, in line with our guidance and driven by the continued impact of rate reductions in the second half of 2025.

第一季淨投資收益為 8,810 萬美元，或每股 0.48 美元，較上季增加 1.3%，較去年同期增加 13.8%。我們的有效收益率與核心收益率分別為 12.8% 與 12.2%，相較前一季的 12.9% 與 12.5%。核心收益率的下降接近我們先前溝通區間的中點，符合指引，並主要受 2025 年下半年降息影響的延續所致。

Although as noted previously, this impact has been progressively muted. As of quarter end, more than 75% of our prime-based loans were at the contractual floor and thus the impact of any future rate reductions will continue to be muted. First quarter operating expenses were $58.1 million compared to $54.9 million in the prior quarter.

不過如先前所述，該影響已逐步減弱。截至季末，我們以最優惠利率（prime）為基準的貸款中，超過 75% 已達合約利率下限（floor），因此未來任何進一步降息的影響將持續被弱化。第一季營運費用為 5,810 萬美元，較前一季的 5,490 萬美元增加。

Net of costs recharged to the RIA, our net operating expenses were $53.4 million. The increase in operating expenses was largely driven by increased compensation tied to record quarter for new originations. Interest expense and fees increased to $30.8 million compared to $28.2 million in Q4 due to the growth of the business and corresponding increase of leverage to support our record origination activity.

扣除向 RIA 轉收的成本後，我們的淨營運費用為 5,340 萬美元。營運費用增加主要由薪酬上升所致，該薪酬與本季新承作創紀錄表現相關。利息費用與手續費增加至 3,080 萬美元，較第四季的 2,820 萬美元上升，原因在於業務成長以及為支援創紀錄承作活動而相應提高槓桿。

SG&A increased to $27.2 million, just above my guidance on the growth of the business. Net of costs recharged to the RIA, the SG&A expenses were $22.6 million. Our weighted average cost of debt remained stable at 5.1%. Our ROAE or NII over average equity increased to 16.9% for the first quarter compared to 16.4% in Q4, and our ROAA or NII over average total assets was 8.1% compared to 8.2% in Q4.

SG&A 增加至 2,720 萬美元，略高於我先前對業務成長的指引。扣除向 RIA 轉收的成本後，SG&A 費用為 2,260 萬美元。我們的加權平均負債成本維持穩定在 5.1%。第一季 ROAE（即 NII / 平均股東權益）上升至 16.9%，相較第四季為 16.4%；ROAA（即 NII / 平均總資產）為 8.1%，相較第四季為 8.2%。

Switching to NAV unrealized and realized activity. During the quarter, our NAV per share decreased by $0.23 to $11.90 per share or 1.9% quarter-over-quarter. The main driver was net unrealized depreciation on investments, primarily reflecting broad-based increases in market yields during the quarter.

接著看 NAV、未實現與已實現損益活動。本季每股 NAV 下降 0.23 美元至每股 11.90 美元，較上季下降 1.9%。主要原因是投資的淨未實現減值，主要反映本季市場收益率普遍上升。

Our $45 million net unrealized depreciation was primarily attributable to $31.1 million -- excuse me, of net unrealized depreciation on debt investments, approximately $23.2 million of which was attributable to market yield adjustments associated with market volatility in the quarter.

我們 4,500 萬美元的淨未實現減值，主要歸因於 3,110 萬美元——抱歉，是債務投資的淨未實現減值，其中約 2,320 萬美元可歸因於本季市場波動所帶來的市場收益率調整。

There was also $7.9 million in fair value markdowns of 2 previously impaired loans. Additionally, $12.3 million of net unrealized depreciation was attributable to valuation movements in publicly and privately held equity and $1.9 million of net unrealized depreciation was due to reversals of previous quarter appreciation upon a realization event.

此外，兩筆先前已減損貸款亦出現 790 萬美元的公允價值下調。另外，1,230 萬美元的淨未實現減值來自公開與非公開股權的估值變動；而 190 萬美元的淨未實現減值則源於在發生已實現事件時，回轉前一季的未實現增值。

This was partially offset by $0.3 million of net unrealized appreciation attributable to valuation movements in public and privately held warrants. Hercules had unrealized losses or net realized losses of $0.6 million in Q1, primarily due to losses on legacy equity investments.

上述情況部分被 30 萬美元的淨未實現增值所抵銷，該增值來自公開與非公開認股權證的估值變動。Hercules 在第一季的未實現損失或淨已實現損失為 60 萬美元，主要由傳承（legacy）股權投資的損失所致。

Turning next to leverage and liquidity. In line with our previous guidance, our GAAP and regulatory leverage increased to 115.4% and 99.7%, respectively, compared to 104.4% and 88.6% in the prior quarter due to the growth in the balance sheet being financed primarily by leverage to support our record originations activity.

接下來談槓桿與流動性。依照我們先前的指引，由於資產負債表成長主要透過槓桿融資以支撐我們創紀錄的放款承作活動，我們的 GAAP 與監管槓桿分別上升至 115.4% 與 99.7%，相較於前一季的 104.4% 與 88.6%。

Netting out leverage with cash on the balance sheet, our net GAAP and regulatory leverage was 113.5% and 97.8%, respectively. We ended the quarter with $454.5 million of available liquidity. As a reminder, this excludes capital raised by the funds managed by our wholly owned RIA subsidiary. Inclusive of these amounts, the Hercules platform had more than $1 billion of available liquidity as of quarter end.

若將資產負債表上的現金與槓桿相抵，我們的淨 GAAP 與監管槓桿分別為 113.5% 與 97.8%。本季末我們的可用流動性為 4.545 億美元。提醒一下，這不包含由我們全資 RIA 子公司所管理基金募集的資本。若將這些金額納入，截至季末 Hercules 平台的可用流動性超過 10 億美元。

The strong liquidity positions us very well to support our existing portfolio companies and source new opportunities. As previously disclosed, the quarter -- during the quarter, Hercules Capital raised $300 million of institutional 5.35% unsecured notes due in 2029. As a final point, we continue to opportunistically access the ATM market during the quarter and raised approximately $52 million in the first quarter, selling 3.5 million shares.

強勁的流動性使我們能非常有效地支持既有投資組合公司並開發新機會。如先前揭露，本季期間，Hercules Capital 發行了 3 億美元、票面利率 5.35%、2029 年到期的機構投資人無擔保票據。最後一點，我們在本季也持續視情況運用 ATM 市場，第一季約募集 5,200 萬美元，出售 350 萬股。

The ATM usage was driven by our record new business originations and which drove very strong net debt portfolio growth in Q1. Finally, on the outlook points. For the second quarter, we expect our core yield to again be in the range of 12% to 12.5%.

ATM 的使用主要是由我們創紀錄的新業務放款承作所帶動，並在第一季推動淨債務投資組合大幅成長。最後，談到展望。第二季我們預期核心收益率將再次落在 12% 至 12.5% 的區間。

As a reminder, 98% of our debt portfolio is floating with the floor. And as of today, more than 75% of our prime-based portfolio is at the contractual floor. Although difficult to predict, as stated by Scott, we expect $350 million to $500 million in prepayment activity in the second quarter. The expected elevated prepayments in Q2 will provide us with significant flexibility and optionality and with respect to liquidity and capital raising.

提醒一下，我們的債務投資組合中有 98% 為附利率下限的浮動利率。且截至今日，我們以最優惠利率（prime）為基準的投資組合中，超過 75% 已達到合約利率下限。雖然難以預測，但如 Scott 所述，我們預期第二季將有 3.5 億至 5 億美元的提前償還活動。第二季預期偏高的提前償還，將在流動性與資本募集方面為我們提供顯著的彈性與選擇性。

We expect our second quarter interest expense to increase compared to the prior quarter based on the debt portfolio growth. For the second quarter, we expect SG&A expenses of $27.5 million to $28.5 million and an RIA expense allocation of approximately $4.5 million.

由於債務投資組合成長，我們預期第二季利息費用將較前一季增加。第二季我們預期 SG&A 費用為 2,750 萬至 2,850 萬美元，RIA 費用分攤約為 450 萬美元。

Finally, we expect a quarterly dividend from the RIA of approximately $2 million to $2.5 million per quarter. In closing, we have started 2026 with record-setting momentum, delivering all-time highs in originations and total investment income while navigating meaningful market volatility. Our balance sheet, liquidity position and credit discipline positions us well to continue scaling our platform and capitalizing on opportunities throughout the year.

最後，我們預期每季來自 RIA 的股利約為 200 萬至 250 萬美元。總結而言，我們以創紀錄的動能開啟 2026 年，在面對顯著市場波動的同時，放款承作與總投資收益均創下歷史新高。我們的資產負債表、流動性部位與信貸紀律，使我們具備良好條件持續擴大平台規模，並在全年把握各項機會。

As Scott noted, effective May 18 I will be transitioning to the role of President at HTGC where I will continue to work closely with Scott and the rest of our senior leadership team to further scale and diversify the Hercules platform. During my 7-plus years at Hercules, the company has delivered exceptionally strong operational and financial performance as well as record platform growth. And this expanded leadership team positions us for continued success. I look forward to working closely with Andrew and the rest of the Hercules Capital team in my new role.

如 Scott 所提，自 5 月 18 日起，我將轉任 HTGC 總裁一職，並將持續與 Scott 及其他資深領導團隊密切合作，進一步擴大並多元化 Hercules 平台。在我於 Hercules 服務的 7 年多期間，公司展現了極為強勁的營運與財務表現，並創下平台成長紀錄。而擴大的領導團隊也讓我們更有利於持續成功。我期待在新職務中與 Andrew 以及 Hercules Capital 團隊其他成員密切合作。

I will now turn the call all over to the operator to begin the Q&A portion of the call. Stephanie, over to you.

接下來我把電話交回給接線員，開始本次電話會議的問答環節。Stephanie，交給你。

(Operator Instructions)

（接線員指示）

Brian McKenna, Citizens.

Brian McKenna，Citizens。

Okay, great, thanks. Hope everyone is doing well. And congrats, Seth, on the new role. So given your focus on the venture market, it's not shocking you have more exposure to software but your portfolio is really one of the best, if not the best performing BDCs in the market today based on ROE and credit quality. It would be helpful to get your perspective on why there's such a big disconnect between the reality and fundamentals of your business relative to perceptions? And then from your seat, what are the biggest drivers of your portfolio delivering such strong results despite all the recent volatility.

好的，謝謝。希望大家都一切順利。也恭喜 Seth 擔任新職務。鑑於你們聚焦創投市場，你們在軟體領域曝險較高並不令人意外；但以 ROE 與信用品質來看，你們的投資組合可說是目前市場上表現最好、甚至可能是最好的 BDC 之一。想請你分享一下，為什麼市場對你們業務的現實與基本面，和外界認知之間會有這麼大的落差？另外，以你們的角度來看，儘管近期波動不斷，你們的投資組合仍能交出如此強勁成果，最大的驅動因素是什麼？

Yes. Thanks for the question, Brian. I think it's sort of consistent with what we talked about on the last call that we did in February. Underwriting and venture in growth -- in growth -- venture in growth stage market is fundamentally different than traditional underwriting.

是的，謝謝你的問題，Brian。我認為這與我們在 2 月上次電話會議中談到的內容一致：在成長期創投市場的承作與傳統授信承作在本質上是不同的。

If you look at how our investment teams underwrite software loans specifically, and we talked about this extensively on the last call, we are generally targeting to be under 1 time debt to ARR. We are generally targeting to be sub 20% LTV. We are generally targeting to be debt to invested equity of less than 30% so there is significantly more equity cushion beneath our debt across the majority of our software companies.

如果你看我們投資團隊對軟體貸款的承作方式——我們在上次電話會議已詳細說明——我們通常目標是將債務對 ARR 控制在 1 倍以下；通常目標是 LTV 低於 20%；通常目標是債務對已投入股權低於 30%。因此，在我們多數軟體公司投資中，債務之下有顯著更厚的股權緩衝。

We've also said consistently we are very confident in our portfolio. We're not perfect. We've made mistakes before. I'm sure we will make mistakes again. But from everything that we are seeing to date, we continue to feel pretty good about how our portfolio is holding up.

我們也一再表示，我們對投資組合非常有信心。我們並不完美；過去犯過錯，我相信未來也還會犯錯。但就目前我們所看到的一切而言，我們仍然對投資組合的韌性表現感到相當不錯。

I would also emphasize that our portfolio is highly diversified. 50% of our investment portfolio is in our life sciences vertical, and then a significant portion of our technology portfolio is not in software companies. Many of the non-software industries are performing incredibly well in the current environment, and that gives us confidence that the portfolio as a whole will continue to perform well.

我也要強調，我們的投資組合高度分散。我們投資組合中有 50% 在生命科學垂直領域；此外，我們科技投資組合中也有相當大一部分並非軟體公司。許多非軟體產業在目前環境下表現非常出色，這也讓我們對整體投資組合能持續良好表現更有信心。

That's helpful. Thanks, Scott. And then I appreciate the commentary around prepayments for the second quarter. I mean, it is a significant amount of capital coming back to you and ultimately, that's going to get redeployed. Two questions here. How should we think about fee income in the second quarter? And then how do all-in yields and spreads on new deals today compare to the investments tied to the prepayments?

很有幫助，謝謝你，Scott。另外也感謝你對第二季提前償還的評論。我的意思是，會有相當可觀的資金回流到你們這邊，最終也會再部署。我有兩個問題：第二季的費用收入該如何看待？以及目前新案的全口徑收益率與利差，和那些因提前償還而回收的投資相比如何？

Sure. So a couple of things there. On the prepayment side, we did increase our guidance pretty significantly for prepayments in Q2. I want to emphasize that we view that as a positive indicator of the quality and strength of our portfolio.

當然。這裡有幾點。就提前償還而言，我們確實把第二季的提前償還指引大幅上調。我想強調的是，我們將其視為投資組合品質與強度的正面指標。

The majority of that increased guidance is coming from known M&A events that have either already happened or that we expect to happen in Q2 and that gives us confidence in the overall portfolio quality that will lead to slightly higher fee income in the quarter. We're not going to give any specific guidance on what that will be because that still has to play out?

這次上調指引的大部分，來自已經發生或我們預期會在第二季發生的已知併購（M&A）事件；這也讓我們對整體投資組合品質更有信心，並可能使本季費用收入略為提高。我們不會就此提供任何具體指引，因為仍需視後續進展而定。

And then with respect to the second part of the question on spreads, I would say a couple of things on this. So first, in the midst of the most volatile parts of the last 4 months, which I would sort of highlight as late February and early March, we did see probably 50 basis points to 75 basis points of spread widening on new originations. I would caveat that by saying that over the last 30 days or so as the volatility has decreased -- we've seen some of that come back in.

至於問題第二部分、關於利差，我會這樣說。首先，在過去 4 個月波動最劇烈的期間——我大概會點名 2 月下旬到 3 月上旬——我們確實看到新承作的利差大約擴大 50 到 75 個基點。不過我也要補充，過去約 30 天左右，隨著波動下降——我們看到其中一部分又回落了。

So while we are seeing some spread benefit, I would sort of say 25-ish basis points relative to where we were at the beginning of the year. I think the most important thing that I would highlight is actually not on the spread, but it's the fact that we are very focused on enhancing structure across the underwriting on new loans.

因此，雖然我們確實看到一些利差上的好處，但相較年初大概只有約 25 個基點左右。我認為更重要、我想強調的其實不是利差，而是我們非常專注於在新貸款承作上強化交易結構。

And that will continue to be our priority going forward versus pushing or fighting for an incremental 25 basis points to 50 basis points of spread.

相較於去爭取或拚搏額外 25 到 50 個基點的利差，未來我們仍會把這件事作為優先事項。

All right. I'll leave it there. Thanks so much.

好的，我就先到這裡。非常感謝。

Thanks, Brian.

謝謝你，Brian。

Crispin Love, Piper Sandler.

Crispin Love，Piper Sandler。

Hi. Good afternoon. This is Ben Graham for Crispin Love. Thanks for taking the question. I'm just wondering if you could discuss the deployment backdrop for 2026. I know you've touched on how market volatility can create a favorable backdrop for you and just wondered if that's continued for the most part. And if there's been heightened deployment in any particular sector such as tech or life sciences?

嗨，下午好。我是代 Crispin Love 提問的 Ben Graham。謝謝讓我提問。我想請教你們能否談談 2026 年的資金部署環境。我知道你們提過市場波動可能為你們創造有利的部署背景，想了解這種情況是否大致仍在延續？另外，是否在特定產業（例如科技或生命科學）出現更高的部署量？

Sure. Thanks, Ben. So with respect to just deployment, a couple of comments. Number one, we're going to continue to focus on diversification. We think having a diversified portfolio on the asset side has been critical to our historical success and we think that it will be critical to our go-forward success.

當然。謝謝你，Ben。關於資金部署，我有幾點評論。第一，我們將持續聚焦於分散化。我們認為在資產端擁有多元化的投資組合，對我們過去的成功至關重要，也將對我們未來的成功同樣關鍵。

So continuing to try to find the right balance between life sciences and technology. From a big picture perspective, I would tell you that we continue to be very optimistic about originations in 2026.

因此，我們會持續在生命科學與科技之間尋找適當的平衡。從宏觀角度來看，我會告訴你，我們對 2026 年的放款/承作來源（originations）仍然非常樂觀。

Our Q1 activity was a record-breaking for us at $1.8 billion of commitments. We've closed an additional approximately $79 million of commitments quarter-to-date, and we have another $506 million of signed nonbinding pending commitments.

我們第一季的活動創下紀錄，承諾額達 18 億美元。我們在本季迄今另外完成了約 7,900 萬美元的承諾，並且還有 5.06 億美元已簽署但不具約束力、仍待完成的承諾。

And as I said in my prepared remarks, based on the current pipeline, we expect that number to continue to grow. And our investment teams are continuing to stay very focused and patient and disciplined with respect to capital deployment. But given the volume of deal flow that we are seeing given how we've positioned our business in terms of having appropriate liquidity and conservative balance sheet, we feel pretty optimistic about what that will translate into for 2026 capital deployment.

正如我在事先準備的發言中所說，基於目前的案源管線，我們預期該數字還會持續成長。我們的投資團隊在資金部署方面仍然非常專注、耐心且自律。不過，考量到我們看到的交易流量，以及我們在適當流動性與保守資產負債表方面的布局，我們對這將如何轉化為 2026 年的資金部署感到相當樂觀。

Awesome. That's it for me. Appreciate the color there.

太好了。我這邊就到這裡。感謝你提供這些補充說明。

Thanks, Ben.

謝謝你，Ben。

Corey Johnson, UBS.

Corey Johnson，瑞銀（UBS）。

I was wondering if you can maybe square '08. So you guys have had or having quite a bit of M&A in your portfolio when the M&A market is a bit slow, I guess, at the moment. So I guess what maybe are you seeing in your portfolio, what type of companies are you seeing the M&A market where you're able to see the success and have upcoming higher prepayments and such?

我想請教一下，能否把這點串起來理解。你們的投資組合裡有相當多的併購（M&A），但目前併購市場似乎有點放緩。所以我想問的是，你們在投資組合中看到了什麼？你們看到哪些類型的公司在併購市場中能夠成功，並帶來接下來較高的提前還款等情況？

Thanks, Cory. I think honestly, the credit goes to our investment teams. I've said this consistently over the last several years. I think our investment teams do an incredible job at identifying, selecting and underwriting deals for the best companies that are out there.

謝謝你，Cory。老實說，我認為功勞要歸於我們的投資團隊。過去幾年我一直這麼說：我認為我們的投資團隊在辨識、篩選與承作（underwrite）市場上最優質公司的交易方面，做得非常出色。

And they've done a great job over the last few years, finding companies that we think are very attractive M&A targets for both strategic and financial buyers.

而且過去幾年，他們也很擅長找到我們認為對策略型買家與財務型買家而言都非常具吸引力的併購標的公司。

Year-to-date, we've had, as I mentioned in my prepared remarks, we've had 4 new companies announced M&A events that covers both life sciences companies and technology companies.

今年迄今，如我在事先準備的發言中提到的，我們已有 4 家新公司宣布發生併購事件，涵蓋生命科學公司與科技公司。

I would also emphasize that we are aware of several additional companies in our portfolio that are in active M&A discussions and so I think that gives us confidence that we'll see continued strong M&A activity for the remainder of 2026.

我也要強調，我們知道投資組合中還有幾家其他公司正在進行積極的併購討論，因此這讓我們有信心，在 2026 年剩餘期間將會看到持續強勁的併購活動。

I would sort of caveat that statement by saying and reiterating what I said in my prepared remarks is that we are seeing some, I would say, increased variability with respect to timing and valuation, and that's something that we'll continue to monitor over the coming quarters.

我會對這個說法加上一點但書，並重申我在事先準備的發言中所說：我們確實看到在時點與估值方面出現一些、我會說是更高的變動性，而這也是我們在接下來幾個季度會持續關注的。

And then just one other thing, going back to the structural changes that you mentioned that you've been able to see in the terms of your underwriting. You also had mentioned earlier about how there was a significant decline in PIK. Is that decline in PIK that you're expecting, is that just to do with the payoffs?

另外再問一點，回到你提到的、你們在承作條款上看到的結構性變化。你先前也提到 PIK 有顯著下降。你們預期的 PIK 下降，是否只是因為貸款清償（payoffs）所致？

Or are you sort of more leaning a way towards PIK. Is that something that's possibly changing in the terms that perhaps you might not have to give as much on that end as perhaps you did before to win deals?

還是說你們其實更傾向於降低 PIK 的比重？是否代表條款可能正在改變，也就是為了拿下交易，你們不需要像以前那樣在 PIK 這一端讓步那麼多？

Sure. Great question Cory. And I would sort of say 2 specific things. So first and foremost, the majority of the deals that we underwrote with PIK occurred in 2024 and 2025, and that was consistent with our public guidance about moving into larger, later-stage, more mature companies where PIK is a little bit more prevalent.

當然。這是個很好的問題，Cory。我會從兩點來回答。首先，我們承作含 PIK 的交易多數發生在 2024 與 2025 年，這也符合我們公開指引：我們轉向更大規模、較後期、更成熟的公司，而在那類公司中 PIK 相對更常見。

Given the fact that our average loan duration has tended to be roughly 18 to 24 months over the last several years, we expect, and we're currently seeing many of those loans now come up for prepayment.

鑑於過去幾年我們的平均貸款存續期間大約是 18 到 24 個月，我們預期、而且目前也正在看到，許多這些貸款現在開始出現提前還款。

As those loans prepay, the accrued PIK is satisfied and paid in cash. So we saw significant activity related to that point in Q1 and we expect to continue to see significant activity over the next several quarters in that regard. The second element is also what you just asked, which is we are intentionally deprioritizing PIK on new investments.

當這些貸款提前還款時，累計的 PIK 會被結清並以現金支付。因此我們在第一季看到與此相關的顯著活動，並預期未來幾個季度仍會持續看到相當多的相關活動。第二個因素也就是你剛剛問到的：我們正有意在新投資上降低 PIK 的優先順序。

And so it's really a combination of those 2 things. But the largest driver of the decrease has to do with the fact that we had significant cash collections, and we expect that to continue in 2026.

所以這其實是兩者的綜合作用。不過，下降的最大驅動因素在於我們有大量現金回收，而我們預期這種情況在 2026 年仍會延續。

Casey Alexander, Compass Point.

Casey Alexander，Compass Point。

Yeah, hi, good afternoon. First of all, congratulations, Seth, on the new posting. And Andrew, welcome back to the publicly traded BDC marketplace. I'm struck by -- that's a really healthy amount of prepayments that you're suggesting. And to my knowledge, at least one of them is a really good-sized software prepayment and I'm just wondering, this gives you -- does this give you a chance to kind of influence and restructure the portfolio a little bit and move off of software some or Hercules' history has been to kind of fly into the wind when things get turbulent, and that's where better results have come from? Seth said, there's higher optionality coming from these repayments. And I'm just kind of curious as to how you think you might use that optionality to influence the portfolio?

是的，嗨，午安。首先，恭喜 Seth 新的職務任命。Andrew，也歡迎你回到公開交易的 BDC 市場。我注意到——你們所暗示的提前還款金額相當健康。就我所知，至少其中一筆是規模很大的軟體貸款提前還款。我想問的是，這是否讓你們有機會在某種程度上影響並重新調整投資組合，例如稍微降低軟體比重？但 Hercules 過去的風格是在市場動盪時逆風而行，而往往能帶來更好的結果。Seth 說，這些還款帶來更高的選擇性（optionality）。我想了解你們打算如何運用這種選擇性來影響投資組合？

Yes. It's a great question, Casey. And again, we did increase the guidance pretty considerably, and we feel very confident with that increased guidance because of either already occurred or known M&A events and you identified one, which is a large software loan that has already repaid as a result of M&A.

是的。這是個很好的問題，Casey。而且我們確實大幅上調了指引；我們對上調後的指引非常有信心，因為這是基於已經發生或已知的併購事件，而你也點出其中一個例子：一筆大型軟體貸款因併購而已經完成償還。

We view it very favorably and it does give us the opportunity to reposition the portfolio on a go-forward basis. That does not mean we are deprioritizing software. That does not mean that we are running from software companies.

我們非常正面看待這件事，這也確實讓我們有機會在未來重新定位投資組合。但這並不代表我們要降低軟體的優先順序，也不代表我們要遠離軟體公司。

And I said that specifically in my prepared remarks, our team is continuing to look at, evaluate, identify what we think are very strong, attractive software loans, and we're going to continue to pursue that. Having said that, all of that recycling gives us the ability to also redeploy that capital into other parts of our technology book, space tech, defense tech, network communications, business services, et cetera.

我在事先準備的發言中也特別提到，我們的團隊仍在持續觀察、評估並辨識我們認為非常強勁、具吸引力的軟體貸款，我們也會繼續追求。話雖如此，這些資金回收也讓我們能把資本重新部署到科技投資組合的其他領域，例如太空科技、國防科技、網路通訊、商業服務等等。

And so I would expect to see a repositioning of the portfolio as that capital comes in from payoffs and as our teams get to redeploy it. We are focused on identifying what we think are the most attractive debt opportunities irrespective of specific subsector allocation.

因此，隨著清償資金回流、以及團隊得以重新部署資本，我預期投資組合會出現重新定位。我們專注於辨識我們認為最具吸引力的債務投資機會，而不拘泥於特定次產業的配置比例。

Okay. Great. My follow-up to that is, I would imagine that if there's a software deal being done, that spreads are considerably wider, but most participants that we've heard from thus far have said that as health and happens, when there's volatility and considerable widening of spreads deals just kind of dry up in that sector.

好的，很好。我接著想問的是，我會想像如果有軟體交易在進行，利差應該明顯更寬；但截至目前我們聽到的大多數市場參與者都說，當市場出現波動、利差大幅擴大時，該產業的交易往往就會變得很少、甚至乾涸。

Is there stuff that can actually be done? Are there deals that are actually getting done that are out there because some of the other participants in the market have said that it's really short.

真的還有交易能做嗎？市場上是否真的還有交易在成交？因為一些其他參與者說，現在真的很缺。

Yes. So it is certainly less than it was, but it has not dried up. So we are continuing to see, we are continuing to evaluate, we are continuing to talk to venture and growth stage software companies.

是的。確實比以前少，但並沒有乾涸。我們仍持續看到機會、持續評估、也持續與創投與成長期的軟體公司洽談。

I would say that the volume right now is lower than it was, for example, in the second half of last year, but I would absolutely not characterize it as having dried up. The ones that we are speaking to in our team's opinion, are of a very high quality and deals that we would feel very comfortable underwriting.

我會說目前的量比起例如去年下半年要低，但我絕對不會把它形容為已經乾涸。我們正在接觸的案子，在我們團隊看來品質非常高，也都是我們會很有信心去承作的交易。

Whether we can get to a point where a deal makes sense for us and them is still TBD, but that's certainly not slowing down our capital deployment, as evidenced by the fact that we have between closed quarter-to-date and pending quarter-to-date over $580 million of signed term sheets.

至於我們能否達到一個對我們與對方都合理的交易條件，目前仍有待觀察（TBD）；但這並沒有拖慢我們的資金部署，從我們在本季迄今已完成與待完成合計超過 5.8 億美元的已簽署條款書（term sheets）即可看出。

Great. Thank you for taking my questions. I appreciate it.

太好了。感謝讓我提問。我很感激。

Thanks, Casey.

謝謝你，Casey。

John Hecht, Jefferies.

John Hecht，Jefferies。

Hey, there. Thanks very much, guys. I think this is just sort of an extension of the last discussion, and that is when you are getting to the table to do a new debt deal or with a software company or somebody that might be in the thesis of vulnerable to changes from AI.

嗨，你們好。非常感謝，各位。我想這算是延續上一段討論，也就是當你們坐上談判桌要做一筆新的債務交易，或是面對一家軟體公司或某些可能符合「容易受到 AI 變化影響」這個投資論點的公司時。

What are -- you guys are getting consistent terms well covered, which is consistent with what you guys have had forever. What are the -- I'm interested in the other side of that equation are the venture capitalists, when they're adding more capital to the businesses, are they taking a different approach to valuation or how they think about deploying their capital back into these businesses?

你們——你們拿到的條款一向都很一致、保障也很充分，這也符合你們一直以來的作風。我想問的是這個等式的另一端：創投在對這些企業追加資金時，他們在估值方式或在思考如何把資本投入回這些企業時，是否採取了不同的做法？

Thanks for the question, John. A couple of things. First, with respect to new investments, I want to emphasize again -- as we think about underwriting in this environment, we are choosing to prioritize structure over pricing.

謝謝你的問題，John。有幾點。第一，關於新投資，我想再次強調——在這樣的環境下思考承作（underwriting）時，我們選擇把「結構」放在「定價」之前。

So rather than pushing for an additional 20, 25, 30 basis points of yield, our teams are pushing for tighter structure, stronger covenants and better overall underwriting. Whether you ultimately close a deal with a 12% yield or a 12.25% yield, not going to make a big difference. You closed the deal that's not structured appropriately and it results in a loss it's going to make a big difference. So that's what we are emphasizing. That's what we are prioritizing with respect to new originations.

因此，我們的團隊不是去爭取額外 20、25、30 個基點的收益率，而是去爭取更緊的交易結構、更強的契約條款（covenants）以及整體更好的承作品質。你最後是以 12% 的收益率成交，或是 12.25% 的收益率成交，差別不大；但如果你成交的是一筆結構不恰當、最後造成損失的交易，那差別就非常大。所以這就是我們所強調的，也是我們在新案源上所優先考量的。

Okay. And then -- you mentioned -- I mean this is consistent with what everything you would say, but a little bit more in bioscience and less in tech and the time frame given what you just said.

好的。然後——你提到——我的意思是，這跟你們一貫的說法一致，但在你剛才所說的時間框架下，現在在生物科學的比重稍微高一些、科技稍微低一些。

Anything worth calling out in life sciences that is an interesting development that you guys are sort of following and think could be the big new wave of opportunity?

在生命科學領域，有沒有什麼值得特別點出的、有趣的發展，是你們正在追蹤並認為可能成為下一波重大機會的？

Yeah, it's a great question. I think the key for us is portfolio balance, right? We tend not to overreact to a material degree in either direction. For the last several quarters, we have been slightly more weighted towards life sciences, but we're talking about 55%, 60% allocation versus our sort of traditional 50-50 target.

是的，這是個很好的問題。我認為對我們而言關鍵在於投資組合的平衡，對吧？我們通常不會在任何一個方向上做出過度反應。過去幾個季度，我們對生命科學的配置略高一些，但大概是 55%、60% 的配置，相較於我們傳統的 50/50 目標。

We're seeing high-quality opportunities on both life sciences and technology. I think specifically on the life sciences side, I would sort of note a couple of things that we think are ultimately tailwinds. Number one, there's obviously been a fair amount of disruption and turmoil with the FDA. I think that has caused a lot of what we believe to be very strong companies to want to be positioned from a balance sheet strength perspective.

我們在生命科學與科技兩邊都看到高品質的機會。特別是在生命科學這一側，我想指出幾個我們認為最終會形成順風（tailwinds）的因素。第一，FDA 顯然出現了相當程度的干擾與動盪。我認為這使得許多我們認為非常優質的公司，從資產負債表強度的角度，希望把自己定位得更穩健。

And so we're seeing companies that maybe historically where the FDA was a little bit more sort of consistent and reliable. We're seeing those companies want to strengthen their balance sheet and get ahead of that. So I think that's working in our favor.

因此，我們看到一些公司——在過去當 FDA 相對更一致、更可靠的時候——現在這些公司希望強化資產負債表、提前因應。我認為這對我們是有利的。

Obviously, we're watching the developments at the FDA pretty closely. But we have continued to see companies produce strong positive clinical results. We have continued to see companies get drugs approved. So we're very optimistic about what the life sciences ecosystem looks like on a go-forward basis.

當然，我們會非常密切關注 FDA 的發展。但我們仍持續看到公司產出強勁且正面的臨床結果；也持續看到公司取得藥物核准。因此，對於未來生命科學生態系的樣貌，我們非常樂觀。

And I do just think these companies right now, given some of the FDA uncertainty and volatility want to strengthen their balance sheets and get ahead of that, and that's working in our favor.

而且我確實認為，這些公司目前在面對 FDA 的一些不確定性與波動時，會希望強化資產負債表、提前布局，而這對我們是有利的。

Perfect. Thanks very much.

太好了。非常感謝。

Christopher Nolan, Ladenburg Thalmann.

Christopher Nolan，Ladenburg Thalmann。

Hey, thank you for taking my questions. Scott, on your comments on prioritizing structure over yield, given AI right now is everything is in flux for these companies, and it could result in replacing a lot of headcount. Is the structure about expense -- income statement related items, more so than in the past?

嗨，謝謝讓我提問。Scott，關於你提到把結構優先於收益率的評論，鑑於 AI 目前讓這些公司的情勢一切都在變動，而且可能會導致大量人力被取代。你所說的「結構」是否比過去更偏向於費用——損益表相關的項目？

I certainly appreciate the question. I'm not going to give our road map on a public call, just given that we're doing some very specific things right now on the underwriting and structuring side, and we want to keep that internal and proprietary.

我確實理解這個問題。不過我不會在公開電話會議上提供我們的路線圖，因為我們目前在承作與結構設計方面正在做一些非常具體的事情，我們希望把這些內容保留在內部並作為專有資訊。

I will say that we have made some changes with respect to how we are thinking about structuring these deals that involves duration that involves structure that involves covenants. It really involves the totality of things. And there's no one size fits all. There's no cookie cutter for us. We try to custom tailor a solution for each individual company that we think gives us the best risk-adjusted returns.

我可以說的是，我們在思考如何設計這些交易結構方面做了一些調整，涵蓋了期限（duration）、交易結構、契約條款（covenants）——基本上是整體的全盤考量。而且沒有一體適用的做法，對我們而言也沒有制式模板。我們會為每一家個別公司量身打造解決方案，以期取得最佳的風險調整後報酬。

Great. And then as a follow-up on the increased M&A activity, how much of this is being driven by AI just companies looking to exit?

很好。接著追問一下關於併購活動增加：其中有多少是由 AI 驅動，也就是公司想要尋求退出？

Very little of it, to be honest. There's a balance -- our increased guidance reflects the balance of life sciences and technology companies. In the majority of those, there's really no correlation at all to AI. On a couple of the larger M&A events, you could argue that strategics are trying to get ahead of the AI curve, but we would not attribute the increase to anything specifically with respect to AI.

老實說，非常少。我們上調指引反映的是生命科學與科技公司的組合平衡。在其中大多數案例裡，與 AI 幾乎完全沒有關聯。在少數較大型的併購事件上，你可以說策略買家是在試圖走在 AI 曲線之前，但我們不會把這次增加歸因於任何特定與 AI 相關的因素。

Thank you for taking my questions.

謝謝讓我提問。

Thank you.

謝謝。

(Operator Instructions)

（接線員指示）

Ethan Kaye, Lucid Capital Markets.

Ethan Kaye，Lucid Capital Markets。

Hey, guys. Thanks for taking the question. I'll keep it relatively short here. You mentioned, just a follow-up on the PIK conversation. You mentioned you're deemphasizing pick on new investments. I guess I'm just curious what's the motivation for doing that? We've heard kind of many peers over the last several years defending the virtues of PIK usage. I guess I'm curious whether something has changed in your view on that topic?

嗨，各位。謝謝讓我提問。我會盡量簡短。你們提到——就 PIK 的討論追問一下。你們說在新投資上會降低 PIK 的比重。我想知道這麼做的動機是什麼？過去幾年我們聽到不少同業為使用 PIK 的優點辯護。我想了解的是，你們對這個議題的看法是否有所改變？

It's a good question. Nothing has changed outside of -- we were pretty consistent that we did not want PIK to become a significant part of our income. Towards the end of last year, our PIK as a percentage of revenue increased to approximately 10.5%.

這是個好問題。除了——我們一直都相當一致地表示，我們不希望 PIK 成為我們收入的重要組成之外，沒有什麼改變。去年年底，我們的 PIK 佔營收的比例上升到約 10.5%。

That was close to sort of the self-imposed limit that we have put internally. So I think naturally, we just want that to slowly work its way down. And I would also say in the current environment, we are not finding a need to use PIK as frequently as we were over the course of '24 and '25. And all else being equal, we would certainly prefer cash versus PIK income.

那已接近我們內部自行設定的上限。因此我認為很自然地，我們希望它能逐步下降。另外我也想說，在目前的環境下，我們並不覺得有必要像在 2024 年與 2025 年那段期間一樣頻繁使用 PIK。在其他條件相同的情況下，我們當然更偏好現金收入，而不是 PIK 收入。

Understood. Thanks very much. That's it for me.

了解。非常感謝。我這邊就到這裡。

Thank you. I'm showing no further questions. I would like to now turn the call back to Scott Bluestein for any closing remarks.

謝謝。我這邊顯示沒有其他問題了。現在我想把電話會議交回給 Scott Bluestein，請他做結語。

Thank you, Stephanie, and thanks to everyone for joining our call today. We look forward to reporting our progress on our Q2 2026 earnings call. Thanks, and have a great rest of the day. Thank you.

謝謝你，Stephanie，也謝謝各位今天參加我們的電話會議。我們期待在 2026 年第二季財報電話會議上向各位報告我們的進展。謝謝，祝各位今天剩下的時間愉快。謝謝。

Thank you. This does conclude today's Hercules Capital first quarter 2026 financial results conference call. You may now disconnect your lines, and have a wonderful day.

謝謝。今天的 Hercules Capital 2026 年第一季財務結果電話會議到此結束。各位現在可以掛線，祝各位有美好的一天。