Key Takeaways
- • Hercules Capital (NYSE: HTGC) declared a total cash distribution of $0.47 per share for the third quarter of 2026, consisting of a $0.40 per share base distribution and a $0.07 per share supplemental distribution.
- • The Board maintains a variable distribution policy targeting four quarterly distributions equal to roughly 90% to 100% of taxable quarterly or potential annual income.
- • All distributions declared in the quarter ended September 30, 2026 were derived from current and accumulated earnings and profits, though the company cautioned that the final tax character will be determined annually.
- • Qualified Interest Income accounted for 81.14% of year-to-date distributions declared through September 30, 2026, potentially exempting them from U.S. withholding tax for qualifying non-U.S. shareholders.
- • Hercules, the largest specialty financing provider to venture and growth-stage companies, has committed more than $28 billion to over 700 companies since its December 2003 inception.
Summary
Hercules Capital, Inc. announced on October 27, 2026 that its Board of Directors has declared a third quarter 2026 total cash distribution of $0.47 per share, according to a Business Wire release. The payment is composed of a $0.40 per share base distribution and a $0.07 per share supplemental distribution. The release lists key payment dates for the distribution, though the specific dates were not reproduced in the text available for this summary.
The company states that its Board maintains a variable distribution policy aimed at paying four quarterly distributions that approximate 90% to 100% of taxable quarterly income or potential annual income. The Board may also declare supplemental distributions during the year so that Hercules can distribute approximately all of its annual taxable income in the year earned, or elect to carry excess taxable income forward into the following year.
On tax treatment, Hercules reported that 100% of distributions declared during the quarter ended September 30, 2026 were derived from current and accumulated earnings and profits. The company noted that tax attributes are determined annually based on full-year taxable income and distributions, so quarterly determinations may not reflect the final character of 2026 full-year distributions. Separately, the company reported that Qualified Interest Income (QII) under Internal Revenue Code Section 871(k) represented 81.14% of distributions declared year-to-date through September 30, 2026. A regulated investment company may designate QII distributions as exempt from U.S. withholding tax when paid to non-U.S. shareholders with proper documentation.
Hercules describes itself as the largest and leading specialty finance company providing senior secured venture growth loans to high-growth, venture capital-backed companies in technology and life sciences. The company also operates an asset management business through Hercules Adviser LLC, which is registered under the Investment Advisers Act of 1940 and manages investments for external parties. Its common stock trades on the NYSE under the ticker HTGC, and it has a 6.25% Notes due 2033 trading under the symbol HCXY.
The company states that its Board maintains a variable distribution policy aimed at paying four quarterly distributions that approximate 90% to 100% of taxable quarterly income or potential annual income. The Board may also declare supplemental distributions during the year so that Hercules can distribute approximately all of its annual taxable income in the year earned, or elect to carry excess taxable income forward into the following year.
On tax treatment, Hercules reported that 100% of distributions declared during the quarter ended September 30, 2026 were derived from current and accumulated earnings and profits. The company noted that tax attributes are determined annually based on full-year taxable income and distributions, so quarterly determinations may not reflect the final character of 2026 full-year distributions. Separately, the company reported that Qualified Interest Income (QII) under Internal Revenue Code Section 871(k) represented 81.14% of distributions declared year-to-date through September 30, 2026. A regulated investment company may designate QII distributions as exempt from U.S. withholding tax when paid to non-U.S. shareholders with proper documentation.
Hercules describes itself as the largest and leading specialty finance company providing senior secured venture growth loans to high-growth, venture capital-backed companies in technology and life sciences. The company also operates an asset management business through Hercules Adviser LLC, which is registered under the Investment Advisers Act of 1940 and manages investments for external parties. Its common stock trades on the NYSE under the ticker HTGC, and it has a 6.25% Notes due 2033 trading under the symbol HCXY.
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