Hercules Capital expects prepayments between $200 million and $300 million [1] for the third quarter of 2026.

These projections provide a window into the company's liquidity management and its ability to maintain high yields amid a competitive lending environment. The figures signal how the firm intends to recycle capital to sustain its core growth targets.

For the third quarter of 2026, the company is targeting a core yield between 11.8% and 12% [1]. This follows a period of higher anticipated returns in the preceding quarter.

Regarding the second quarter of 2026, the firm anticipated prepayments in the range of $350 million to $500 million [2]. This represents a material increase in activity compared to the expectations for the following quarter.

CFO Meyer said, "For the second quarter, we expect our core yield to again be in the range of 12% to 12.5%" [2].

Regarding the second quarter's prepayment volume, Meyer said, "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..." [2].

The shift in prepayment expectations between the second and third quarters suggests a fluctuating pace of debt repayment from the company's portfolio. By targeting a core yield of 11.8% to 12% [1] for Q3, the firm is adjusting its expectations to align with current market conditions and competition.

“Hercules Capital expects prepayments between $200 million and $300 million for the third quarter of 2026.”

The discrepancy between the high prepayment expectations in Q2 ($350M-$500M) and the lower expectations for Q3 ($200M-$300M) indicates a projected cooling of early loan repayments. The slight dip in targeted core yield from 12%-12.5% in Q2 to 11.8%-12% in Q3 suggests that Hercules Capital is navigating a tightening margin environment or adjusting its risk appetite to maintain portfolio quality.