WhiteHorse Finance, Inc. Announces Second Quarter 2026 Earnings Results and Declares Quarterly Distribution of $0.25 Per Share
Rhea-AI Summary
WhiteHorse Finance (Nasdaq: WHF) reported second quarter 2026 results with total investment income of $14.4 million, down 9.4% from $15.9 million in the prior quarter. Net investment income was $4.7 million, or $0.217 per share, versus $5.6 million, or $0.253 per share.
Net unrealized appreciation of $5.8 million and significantly lower realized losses drove a $10.4 million net increase in net assets from operations, compared with a $0.7 million decrease in the previous quarter. Net asset value per share rose to $11.77 from $11.47. The investment portfolio at fair value grew to $569.2 million, spanning 131 positions across 67 companies, with a 10.8% weighted average effective yield on income-producing debt.
The board declared a quarterly cash distribution of $0.25 per share, payable on October 5, 2026, to shareholders of record on September 21, 2026. WhiteHorse Advisers also agreed to reduce the incentive fee on net investment income to 17.5% for the fiscal quarter ending September 30, 2026.
Positive
- Net assets from operations increased $10.4 million in Q2 2026 versus a $0.7 million decrease in the prior quarter
- NAV per share rose 2.6% to $11.77 from $11.47 quarter-over-quarter
- Investment portfolio fair value grew 4.8% quarter-over-quarter to $569.2 million
- Weighted average effective yield on income-producing debt investments was 10.8% as of June 30, 2026
- Quarterly cash distribution of $0.25 per share declared, payable October 5, 2026
- Incentive fee rate on net investment income voluntarily reduced from 20.0% to 17.5% for the quarter ending September 30, 2026
Negative
- Total investment income declined 9.4% quarter-over-quarter to $14.4 million
- Net investment income fell 16.5% quarter-over-quarter to $4.7 million
- Net investment income per share decreased from $0.253 to $0.217 quarter-over-quarter
- Special distribution per share fell from $0.01 in the prior quarter to zero
News Explained
The quarter combined new-investment deployment with a $5.5 million cash receipt from transferring assets to STRS JV.
The report records completed second-quarter capital activity: WhiteHorse Finance invested
Separately, the company transferred assets from two existing portfolio companies valued at
These disclosed flows show capital being deployed into new and existing investments while a separate asset transfer converted part of the portfolio into cash and a continuing STRS JV interest.
Reported second-quarter net investment income was
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 07 | First-quarter earnings | Neutral | -0.3% | Results included lower net investment income alongside a maintained quarterly distribution. |
| Mar 02 | Fourth-quarter earnings | Positive | +6.7% | Quarterly and supplemental distributions accompanied fourth-quarter and full-year financial results. |
| Aug 07 | Second-quarter earnings | Negative | -3.0% | Portfolio value, investment income, and new investments declined from prior reported levels. |
| May 12 | First-quarter earnings | Negative | -0.5% | Investment income and net investment income declined while the quarterly distribution remained unchanged. |
| Mar 07 | Fourth-quarter earnings | Negative | -4.5% | Portfolio fair value declined despite new investments and a quarterly distribution declaration. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings reactions averaged -0.32%, with four negative reactions and one positive reaction.
Key Terms
net asset value financial
core net investment income financial
first lien secured loans financial
secured overnight financing rate financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Stuart Aronson, WhiteHorse Finance's Chief Executive Officer, commented, "During the second 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 discount to NAV. Our results this quarter reflected a return to net asset value growth, driven by favorable portfolio markups and the accretive impact of our share repurchase program. The majority of our portfolio remained stable, and we selectively deployed capital into new investments while keeping leverage below our target range. We remain focused on preserving liquidity, managing risk, and investing selectively. Our priority continues to be protecting shareholder value while positioning the portfolio for continued improvement over time."
Recent Developments:
On August 10, 2026, WhiteHorse Advisers voluntarily agreed to waive and reduce the incentive fee on net investment income from its stated annual rate of
Summary Information as of June 30, 2026 and March 31, 2026 (unaudited):
Three Months Ended | Three Months Ended | Change | |||||||||
($ in thousands except per share data) | June 30, 2026 | March 31, 2026 | $ | % | |||||||
Total investment income | $ | 14,369 | $ | 15,862 | (1,493) | (9.4) | |||||
Total expenses, including excise tax | 9,688 | 10,259 | (571) | (5.6) | |||||||
Net investment income and core net investment income(1) | 4,681 | 5,603 | (922) | (16.5) | |||||||
Net investment income and core net investment income(1) per share | 0.217 | 0.253 | (0.036) | (14.2) | |||||||
Distributions per share | 0.250 | 0.250 | — | — | |||||||
Special distributions per share | — | 0.010 | (0.01) | (100.0) | |||||||
Net realized gains (losses) | (51) | (4,727) | 4,676 | 98.9 | |||||||
Net unrealized appreciation (depreciation) | 5,779 | (1,563) | 7,342 | NM | |||||||
Net increase (decrease) in net assets resulting from operations | 10,409 | (687) | 11,096 | NM | |||||||
($ in thousands except per share data) | As of June 30, 2026 | As of March 31, 2026 | $ | % | |||||||
Total investments, at fair value(2) | $ | 569,202 | $ | 543,040 | 26,162 | 4.8 | |||||
STRS JV total investments, at fair value | 340,272 | 327,061 | 13,211 | 4.0 | |||||||
Net asset value per share | 11.77 | 11.47 | 0.30 | 2.6 | |||||||
Portfolio and Investment Activity
As of June 30, 2026, the fair value of WhiteHorse Finance's investment portfolio was
During the three months ended June 30, 2026, WhiteHorse Finance made investments in three new portfolio companies for a total of
In addition to the transactions discussed above, during the three months ended June 30, 2026, WhiteHorse Finance transferred assets comprised of two existing portfolio companies, totaling
Distributions
The Company's board of directors has declared a distribution of
On May 7, 2026, the Company declared a distribution of
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 second quarter results for the period ended June 30, 2026, at 1:30 p.m. ET on Tuesday, August 11, 2026. To access the teleconference, please dial 800-267-6316 (domestic) or +1 203-518-9783 (international) approximately 10 minutes before the teleconference's scheduled start time and reference ID #WHFQ226. 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 August 18, 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
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 August 10, 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 June 30, 2026, and June 30, 2025.
The following table provides a reconciliation of net investment income to core net investment income for the three months ended June 30, 2026, and June 30, 2025 (in thousands, except per share data):
June 30, 2026 | June 30, 2025 | ||||||||||||||
Amount | Per Share | Amount | Per Share | ||||||||||||
Amounts | Amounts | ||||||||||||||
Net investment income | $ | 4,681 | $ | 0.217 | $ | 6,562 | $ | 0.282 | |||||||
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 | $ | 4,681 | $ | 0.217 | $ | 6,562 | $ | 0.282 | |||||||
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
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SOURCE WhiteHorse Finance, Inc.