Hercules Capital, Inc. Earnings Per Share Disclosure
| (in thousands, except per share data) | Year Ended December 31, | |||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Numerator | ||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 339,737 | $ | 262,966 | $ | 337,484 | ||||||||||||||
| Less: Total distributions declared | (335,263) | (312,244) | (278,301) | |||||||||||||||||
| Total Earnings (loss), net of total distributions | 4,474 | (49,278) | 59,183 | |||||||||||||||||
| Earnings (loss), net of distributions attributable to common shares | 4,438 | (49,278) | 58,593 | |||||||||||||||||
| Add: Distributions declared attributable to common shares | 332,587 | 309,413 | 275,548 | |||||||||||||||||
| Numerator for basic change in net assets per common share | 337,025 | 260,135 | 334,141 | |||||||||||||||||
Add: Income impact of assumed conversion of 2028 Convertible Notes | 13,174 | — | — | |||||||||||||||||
| Numerator for diluted change in net assets per common share | $ | 350,199 | $ | 260,135 | $ | 334,141 | ||||||||||||||
| Denominator | ||||||||||||||||||||
| Basic weighted average common shares outstanding | 177,392 | 161,082 | 144,091 | |||||||||||||||||
| Incremental shares from assumed conversion of 2028 Convertible Notes | 10,859 | — | — | |||||||||||||||||
| Common shares issuable | 610 | 517 | 735 | |||||||||||||||||
| Weighted average common shares outstanding assuming dilution | 188,861 | 161,599 | 144,826 | |||||||||||||||||
| Change in net assets per common share: | ||||||||||||||||||||
| Basic | $ | 1.90 | $ | 1.61 | $ | 2.32 | ||||||||||||||
| Diluted | $ | 1.85 | $ | 1.61 | $ | 2.31 | ||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||
| Anti-dilutive Securities | 2025 | 2024 | 2023 | |||||||||||||||||
| Unvested common stock options | 1,324 | 1,105 | 1,496 | |||||||||||||||||
| Restricted stock units | — | — | 4,357 | |||||||||||||||||
| Unvested restricted stock awards | 917 | 298 | 30,028 | |||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 16, 2023 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.