WhiteHorse Finance, Inc. Announces First Quarter 2026 Earnings Results And Declares Quarterly Distribution of $0.25 Per Share

Rhea-AI Summary

WhiteHorse Finance (Nasdaq: WHF) reported results for the quarter ended March 31, 2026 and declared a quarterly distribution of $0.25 per share payable July 6, 2026 to holders of record May 21, 2026. Net investment income was $5.6M and NAV per share was $11.47 as of March 31, 2026. The adviser agreed to reduce the incentive fee on net investment income from 20.00% to 17.50% for the fiscal quarter ending June 30, 2026.

Portfolio fair value was $543.0M, with 128 positions and a weighted average effective yield of 10.8%.

Positive

• Declared quarterly distribution of $0.25 per share payable July 6, 2026
• Adviser reduced incentive fee to 17.50% for quarter ending June 30, 2026
• Net realized losses narrowed by 58.3% versus prior quarter
• Portfolio yield remains 10.8% weighted average effective yield

Negative

• Net investment income decreased 15.2% to $5.6M
• Total investments at fair value declined 6.2% to $543.0M
• Net unrealized depreciation of $1.6M vs prior quarter appreciation
• Net assets decreased resulting from operations by $0.7M

News Market Reaction – WHF

-0.26%

-0.26% Session close to close

In the May 7 session, WHF declined 0.26%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details Q1 2026 earnings with total investment income of $15,862K, net investment ...

Analysis

This announcement details Q1 2026 earnings with total investment income of $15,862K, net investment income per share of $0.253, and a small NAV decline to $11.47. The board maintained a $0.25 quarterly distribution and the adviser agreed to reduce the incentive fee to 17.50% for the next quarter. Historically, earnings have shown gradual portfolio and income pressure. Investors may focus on portfolio credit quality, deployment levels, and whether income comfortably covers the recurring payout over time.

Key Figures

Total investment income: $15,862K Total investment income prior quarter: $17,342K Net investment income: $5,603K +5 more

8 metrics

Total investment income $15,862K Three months ended March 31, 2026

Total investment income prior quarter $17,342K Three months ended December 31, 2025

Net investment income $5,603K Three months ended March 31, 2026

NII per share $0.253 Three months ended March 31, 2026

Quarterly distribution $0.25 per share Quarter ending June 30, 2026

Net asset value per share $11.47 As of March 31, 2026

Portfolio fair value $543.0M As of March 31, 2026

Incentive fee rate 17.50% Waived/reduced from 20.00% for quarter ending June 30, 2026

Previous Earnings Reports

5 past events · Latest: Mar 02 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Mar 02	Q4 2025 earnings	Positive	+6.7%	Q4 and full-year 2025 results with $0.25 base and $0.01 supplemental dividend.
Aug 07	Q2 2025 earnings	Negative	-3.0%	Q2 2025 results showing lower portfolio value and declining income versus prior quarter.
May 12	Q1 2025 earnings	Negative	-0.5%	Q1 2025 update with reduced total investment income and net investment income per share.
Mar 07	Q4 2024 earnings	Negative	-4.5%	Q4 2024 results with lower portfolio fair value but continued $0.385 quarterly distribution.
Nov 07	Q3 2024 earnings	Negative	-0.8%	Q3 2024 earnings showing income decline and NAV per share drop alongside steady dividend.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Earnings releases have usually led to modest moves, with negative or mixed fundamentals often seeing mild share price declines, and only one strong positive reaction on a recent quarter.

Recent Company History

Across prior earnings events from Q3 2024 through Q4 2025, WhiteHorse Finance consistently highlighted a predominantly first-lien, floating‑rate loan book, steady distributions (often $0.385 per share, later $0.25 plus supplements), and portfolio fair values mostly in the $600M range. Several quarters reported declining total investment income, net investment income, and NAV per share, which often coincided with small negative price reactions. Today’s Q1 2026 update continues that pattern of stable payouts against modest pressure on income and NAV.

Key Terms

net investment income, net unrealized appreciation (depreciation), first lien secured loans, second lien secured loans, +3 more

7 terms

net investment income financial

"Net investment income and core net investment income (1) | | 5,603 |"

Net investment income is the money an investor or fund actually keeps from its investments after subtracting the costs of running those investments (like management fees, interest, and losses). Think of it as your paycheck from owning assets: gross returns minus the bills needed to earn them. Investors watch it because it shows how profitable the investment activities are, influences dividend payouts and cash available for growth, and helps compare true performance across funds or companies.

net unrealized appreciation (depreciation) financial

"Net unrealized appreciation (depreciation) | | (1,563) |"

Net unrealized appreciation (depreciation) is the total increase (or decrease) in the market value of assets that a fund or account still holds but has not sold, after subtracting any declines. Think of it like the gain or loss showing on items still sitting on a store shelf: the value has changed on paper but no sale has yet locked in the profit or loss. For investors, it signals potential future taxable events and affects the reported worth and health of a portfolio or plan.

first lien secured loans financial

"comprised of approximately 72.7% first lien secured loans, 0.9% second lien"

A first lien secured loan is a loan backed by specific assets where the lender has the top legal claim on those assets if the borrower cannot pay. Think of it like a first mortgage on a house: this lender gets paid before other creditors from the sale of the pledged collateral. Investors care because these loans usually carry lower risk and priority in repayment, which affects expected returns and loss exposure in defaults.

second lien secured loans financial

"72.7% first lien secured loans, 0.9% second lien secured loans, 0.2% unsecured"

A second lien secured loan is debt backed by specific assets but ranks behind a first lien claim on those assets, similar to a second mortgage on a house. It matters to investors because it offers higher interest rates to compensate for greater risk, yet holders recover less if the borrower defaults; understanding a company’s lien order helps assess potential returns and how safe your investment is compared with other creditors.

unsecured loans financial

"0.9% second lien secured loans, 0.2% unsecured loans, 6.7% equity"

Unsecured loans are borrowings made without specific collateral, so the lender relies on the borrower’s credit history and promise to repay rather than a pledged asset. For investors, they signal higher risk and usually higher interest costs for the borrower, affecting a company’s credit profile, cash flow and vulnerability in a downturn — like lending money based on a handshake instead of holding the borrower’s car as security.

Secured Overnight Financing Rate financial

"variable rate investments (primarily indexed to the Secured Overnight Financing Rate)"

A secured overnight financing rate (SOFR) is a daily benchmark interest rate that reflects the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Think of it as the market price to “rent” cash for a day with a very safe pledge, similar to paying a short-term rental fee for money backed by government bonds. Investors track SOFR because it underpins pricing for loans, bonds and derivatives, so movements change borrowing costs, interest income and the valuation of interest-rate–linked positions.

Form 1099-DIV regulatory

"tax characteristics of the distributions will be reported to stockholders on Form 1099-DIV"

Form 1099-DIV is a U.S. tax document brokers, mutual funds and other financial institutions send to investors showing dividends and other distributions paid during the year. Investors use it like an annual receipt to report taxable income — including regular dividends, dividends that may qualify for lower tax rates, and capital gains distributions — so it directly affects tax liability and helps reconcile brokerage records with a tax return.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

NEW YORK, May 7, 2026 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (Nasdaq: WHF) today announced its financial results for the first quarter ended March 31, 2026. In addition, the Company's board of directors has declared a distribution of $0.25 per share with respect to the quarter ended March 31, 2026. The distribution will be payable on July 6, 2026 to stockholders of record as of May 21, 2026.

Stuart Aronson, WhiteHorse Finance's Chief Executive Officer, commented, "During the first quarter, we continued to execute on the priorities we outlined last quarter, including actively managing previously identified credit situations, maintaining discipline in new originations, and repurchasing shares at a significant discount to NAV. While our results reflected anticipated portfolio markdowns, the majority of our portfolio remained stable, and share repurchases were accretive to book value. We remain focused on preserving liquidity, managing risk, and investing selectively. Our priority is to protect shareholder value while positioning the portfolio for improved performance over time."

Recent Developments:

On May 7, 2026, WhiteHorse Advisers voluntarily agreed to waive and reduce the incentive fee on net investment income from its stated annual rate of 20.00% to 17.50% for the next fiscal quarter ending June 30, 2026.

Summary Information as of March 31, 2026 and December 31, 2025 (unaudited):

			Three Months Ended			Three Months Ended			Change
($ in thousands except per share data)			March 31, 2026			December 31, 2025			$		%
Total investment income		$	15,862		$	17,342			(1,480)		(8.5)
Total expenses, including excise tax			10,259			10,738			(479)		(4.5)
Net investment income and core net investment income(1)			5,603			6,604			(1,001)		(15.2)
Net investment income and core net investment income(1) per share			0.253			0.287			(0.034)		(12.0)
Distributions per share			0.250			0.250			—		—
Special distributions per share			0.010			—			0.010		NM
Net realized gains (losses)			(4,727)			(11,348)			6,621		58.3
Net unrealized appreciation (depreciation)			(1,563)			13,122			(14,685)		(111.9)
Net increase (decrease) in net assets resulting from operations			(687)			8,378			(9,065)		(108.2)
($ in thousands except per share data)			As of March 31, 2026			As of December 31, 2025			$		%
Total investments, at fair value(2)		$	543,040		$	578,649			(35,609)		(6.2)
STRS JV total investments, at fair value			327,061			323,552			3,508		1.1
Net asset value per share			11.47			11.68			(0.21)		(1.8)

Portfolio and Investment Activity

As of March 31, 2026, the fair value of WhiteHorse Finance's investment portfolio was $543.0 million, compared with $578.6 million as of December 31, 2025. The portfolio as of March 31, 2026 consisted of 128 positions across 65 companies with a weighted average effective yield of 10.8% on income-producing debt investments. The average debt investment size (excluding investments in STRS JV (as defined below)) was $4.8 million with the overall portfolio comprised of approximately 72.7% first lien secured loans, 0.9% second lien secured loans, 0.2% unsecured loans, 6.7% equity and 19.5% in investments in STRS JV. Almost all loans were variable rate investments (primarily indexed to the Secured Overnight Financing Rate) with fixed rate securities representing only 1.4% of loans at fair value. Nearly all performing floating rate investments have interest rate floors.

During the three months ended March 31, 2026, WhiteHorse Finance made investments in three new portfolio companies for a total of $18.5 million, added a total of $6.9 million to existing portfolio companies and net fundings of $0.7 million to revolver loans. Proceeds from sales and repayments totaled approximately $38.0 million for the three months ended March 31, 2026, driven by full realizations from Trimlite Buyer LLC (d/b/a Trimlite LLC), Monarch Collective Holdings, LLC, Patagonia Holdco LLC (d/b/a Lumen LATAM), and Token Buyer, Inc. (d/b/a Therm-O-Disc, Inc).

In addition to the transactions discussed above, during the three months ended March 31, 2026, WhiteHorse Finance transferred assets comprised of two new and two existing portfolio companies, totaling $18.9 million to STRS JV in exchange for cash.

Distributions

The Company's board of directors has declared a distribution of $0.25 per share with respect to the quarter ending June 30, 2026. The distribution will be payable on July 6, 2026 to stockholders of record as of May 21, 2026.

On March 2, 2026, the Company declared a distribution of $0.25 per share and a supplemental distribution of $0.01 per share with respect to the quarter ended March 31, 2026. The distribution was paid on April 6, 2026, to stockholders of record as of March 12, 2026.

Distributions are paid from taxable earnings and may include return of capital and/or capital gains. The specific tax characteristics of the distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year and in the Company's periodic reports filed with the Securities and Exchange Commission.

Conference Call

WhiteHorse Finance will host a conference call to discuss its first quarter results for the period ended March 31, 2026, at 2:00 p.m. ET on Thursday, May 7, 2026. To access the teleconference, please dial 800-267-6316 (domestic) or +1 203-518-9766 (international) approximately 10 minutes before the teleconference's scheduled start time and reference ID #WHFQ126. Investors may also access the call on the investor relations portion of the Company's website www.whitehorsefinance.com.

If you are unable to access the live teleconference, a replay will be available beginning approximately two hours after the call's completion through May 14, 2026. The teleconference replay can be accessed by dialing 800-938-1598 or +1 402-220-1545 for international callers. A webcast replay will also be available on the investor relations portion of the Company's website at www.whitehorsefinance.com. 

About WhiteHorse Finance, Inc.

WhiteHorse Finance is a business development company that originates and invests in loans to privately held, lower middle market companies across a broad range of industries. The Company's investment activities are managed by H.I.G. WhiteHorse Advisers, LLC, an affiliate of H.I.G. Capital, LLC, ("H.I.G. Capital"). H.I.G. Capital is a leading global alternative asset manager with $74 billion of capital under management⁽³⁾ across a number of funds focused on the small and mid-cap markets. For more information about H.I.G. Capital, please visit http://www.higcapital.com. For more information about the Company, please visit http://www.whitehorsefinance.com.

Forward-Looking Statements

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

(1) "Core net investment income" is a non-GAAP financial measure. The Company believes that core net investment income provides useful information to investors and management because it reflects the Company's financial performance excluding (i) the net impact of costs associated with the refinancing of the Company's indebtedness, (ii) the accrual of the capital gains incentive fee attributable to net realized and unrealized gains and losses, and (iii) excise and other income taxes related to such net realized gains and losses (net of incentive fees). The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Additional information on core net investment income and a reconciliation of core net investment income to its most directly comparable GAAP financial measure, net investment income, are set forth in Schedule 1 hereto.
(2) Includes investments in WHF STRS Ohio Senior Loan Fund LLC ("STRS JV"), an unconsolidated joint venture.
(3) As of May 6, 2026, Based on total capital raised by H.I.G. Capital and affiliates.

SCHEDULE 1

As a supplement to GAAP financial measures, the Company has provided information relating to core net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income determined in accordance with GAAP. The Company's non-GAAP measures may differ from similar measures by other companies, even if similar terms are used to identify such measures. Core net investment income represents net investment income adjusted to exclude the net impact of costs associated with the refinancing of the Company's indebtedness, the accrual of the capital gains incentive fee attributable to net realized and unrealized gains and losses, and excise or other income taxes related to such net realized gains and losses (net of incentive fees). There were no excise or other income taxes related to net realized gains and losses for the quarters ended March 31, 2026, and March 31, 2025.

The following table provides a reconciliation of net investment income to core net investment income for the three months ended March 31, 2026, and March 31, 2025 (in thousands, except per share data):

		March 31, 2026								March 31, 2025
		Amount				Per Share				Amount				Per Share
						Amounts								Amounts
Net investment income		$	5,603			$	0.253			$	6,843			$	0.294
Net impact of costs associated with refinancing of indebtedness			—				—				—				—
Accrual for capital gains incentive fee			—				—				—				—
Net impact of excise tax expense related to net realized gains and losses			—				—				—				—
Core net investment income		$	5,603			$	0.253			$	6,843			$	0.294

Contacts

Stuart Aronson
WhiteHorse Finance, Inc.
212-506-0500
saronson@higwhitehorse.com

or

Joyson Thomas
WhiteHorse Finance, Inc.
305-379-2322
jthomas@higwhitehorse.com 

or

Robert Brinberg
Rose & Company
212-257-5932
whitehorse@roseandco.com

View original content:https://www.prnewswire.com/news-releases/whitehorse-finance-inc-announces-first-quarter-2026-earnings-results-and-declares-quarterly-distribution-of-0-25-per-share-302765014.html

SOURCE WhiteHorse Finance, Inc.

FAQ

What distribution did WhiteHorse Finance (WHF) declare for Q2 2026 and when is it payable?

WhiteHorse Finance declared a $0.25 per share quarterly distribution, payable on July 6, 2026. According to the company, the record date for the distribution is May 21, 2026 and tax characteristics will be reported on Form 1099-DIV.

How did WhiteHorse Finance (WHF) perform on net investment income for Q1 2026?

Net investment income was $5.6 million for the quarter ended March 31, 2026. According to the company, this represents a 15.2% decline versus the prior quarter, with per-share NII of $0.253.

What change did WhiteHorse Finance (WHF) make to its adviser incentive fee for June 2026 quarter?

The adviser agreed to reduce the incentive fee on net investment income to 17.50% for the fiscal quarter ending June 30, 2026. According to the company, the prior stated annual rate was 20.00%.

What is WhiteHorse Finance's (WHF) portfolio size, composition, and yield as of March 31, 2026?

The investment portfolio was valued at $543.0 million with 128 positions and about 72.7% first lien secured loans. According to the company, the weighted average effective yield on income-producing debt was 10.8%.

Did WhiteHorse Finance (WHF) report any material investment realizations in Q1 2026?

Yes, proceeds from sales and repayments totaled approximately $38.0 million during the quarter. According to the company, full realizations included positions such as Trimlite, Monarch Collective, Patagonia Holdco, and Therm-O-Disc.