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

Quarterly investment income increased, but higher expenses pushed net investment income below the prior quarter.

Rhea-AI Summary

WhiteHorse Finance (WHF) reported third-quarter 2026 net investment income of $4.439 million and declared its next quarterly distribution.

Investment income rose 3.2% from the prior quarter to $14.829 million, but expenses increased 7.2%, reducing net investment income 5.2%. Net investment income per share was $0.207 versus $0.217. Core net investment income, a non-GAAP measure, increased 2.7% to $4.806 million. Net asset value per share rose to $11.82 from $11.77. Non-accrual investments declined following a restructuring, with no new additions during the quarter.

The portfolio totaled $569.1 million at fair value. The $0.25 quarterly distribution is payable January 6, 2027, to holders of record December 21, 2026. A previously declared $0.17 special distribution is payable December 10, 2026. The adviser reduced its net investment income incentive fee rate to 17.50% for the quarter ending December 31, 2026.

12 points · 0 major

MixediHow this balance works

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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0 major · 7 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointInvestment income rose 3.2% quarter over quarter to $14.829 million.
• Moderate pointNon-accrual investments declined following a completed restructuring; no new additions occurred during the quarter.
• Moderate pointCore net investment income rose 2.7% sequentially to $4.806 million, versus $6.101 million a year earlier.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Incentive fee rate voluntarily reduced from 20.00% to 17.50% for the quarter ending December 31, 2026.
• Moderate point$14.8 million invested in two new portfolio companies during the third quarter; all new originations were first-lien loans. 8.2% of market cap
• Moderate pointApproximately $10.0 million in sales and repayment proceeds included full realizations from Transervice and PFB equity. 5.5% of market cap
• Moderate point$21.4 million asset transfer to STRS JV yielded $14.2 million cash and a $7.2 million net JV investment. 12% of market cap

5 minor points

• Minor pointNet asset value per share increased 0.4% to $11.82 from $11.77 at June 30, 2026.
• Minor pointCore income per share increased 3.3% sequentially to $0.224, versus $0.263 a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.$0.17 special distribution payable December 10, 2026, to holders of record October 30, 2026.
• Minor point$6.2 million added to existing portfolio companies, alongside $0.2 million in net revolving-loan fundings.
• Minor point. Forward-looking: it has not happened yet and may not happen.Capital redeployment plan focuses on realizing equitized positions and reinvesting proceeds in income-producing investments.

Negative

• Moderate pointNet investment income declined 5.2% sequentially to $4.439 million, versus $6.101 million a year earlier.
• Moderate pointTotal expenses, including excise tax, increased 7.2% sequentially to $10.390 million.
• Moderate pointNet realized losses widened to $3.631 million from $0.051 million in the prior quarter.
• Moderate pointNet assets generated by operations fell 37.4% sequentially to $6.511 million.
• Minor pointNet investment income per share fell 4.7% sequentially to $0.207, versus $0.263 a year earlier.

2 minor points

• Minor pointNet unrealized appreciation declined 1.3% sequentially to $5.703 million.
• Minor pointSTRS JV investments at fair value declined 2.3% to $332.601 million from June 30, 2026.

News Explained

During the third quarter, WhiteHorse Finance transferred assets comprising five portfolio companies, totaling $21.4 million, to STRS JV in exchange for a $7.2 million net investment in the JV and $14.2 million in cash.

Key Figures

Net investment income per share: $0.207 per share Core net investment income per share: $0.224 per share Net asset value per share: $11.82 +3 more

Net investment income per share

$0.207 per share

Third quarter 2026; down 4.7% from the prior quarter

Core net investment income per share

$0.224 per share

Third quarter 2026; up 3.3% from the prior quarter

Net asset value per share

$11.82

As of September 30, 2026; up 0.4% from June 30, 2026

Quarterly distribution

$0.25 per share

Quarter ending December 31, 2026

Incentive fee on net investment income

Reduced from 20.00% to 17.50%

Waived and reduced for the fiscal quarter ending December 31, 2026

Weighted average effective yield

11.0%

Income-producing debt investments as of September 30, 2026

Previous Earnings Reports

1 past event · Latest: Aug 10

Same Type 1 event

1. Aug 10

   Quarterly earnings

   24h Move

   +6.6%

   Q2 net investment income was $0.217 per share; NAV per share reached $11.77.

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

Key Terms

non-accrual, first lien, secured overnight financing rate, non-gaap measure

4 terms

non-accrual financial

"Non-accruals declined following the completion of a restructuring"

A non-accrual loan or asset is one for which a lender has stopped counting expected interest as income because the borrower is very late on payments or in serious financial trouble. For investors, non-accruals signal that future cash from interest is uncertain and that the lender may need to write down the loan’s value or set aside extra reserves, similar to a landlord who stops recording rent when a tenant stops paying.

first lien financial

"all of our new originations were first lien loans"

A first lien is a legal claim that gives a lender the top priority to be repaid from specific collateral if a borrower defaults or liquidates assets. Think of it as being first in line for the proceeds from a sale—investors who hold a first lien are more likely to recover their money than holders of later claims, so these loans generally carry lower risk and different pricing compared with unsecured or subordinated debt.

secured overnight financing rate financial

"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.

non-gaap measure financial

"core net investment income, which is a non-GAAP measure"

A non-GAAP measure is a company-crafted financial metric that adjusts or excludes items from standard accounting numbers to highlight what management sees as the business’s core performance. Investors use these figures like a filtered photo to reveal trends or cash flow drivers that raw accounting totals might hide, but because companies decide which items to remove, these measures should be compared with standard statements to avoid being misled.

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

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NEW YORK, Nov. 9, 2026 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (Nasdaq: WHF) today announced its financial results for the third quarter ended September 30, 2026. In addition, the Company's board of directors has declared a distribution of $0.25 per share with respect to the quarter ending December 31, 2026. The distribution will be payable on January 6, 2027 to stockholders of record as of December 21, 2026.

Stuart Aronson, WhiteHorse Finance's Chief Executive Officer, commented, "During the third quarter, we continued to execute on the priorities we have previously outlined, including actively managing restructured and underperforming credits and maintaining discipline in new originations. Net asset value per share increased for a second consecutive quarter, driven by favorable portfolio markups. Non-accruals declined following the completion of a restructuring, and there were no new additions to non-accrual during the quarter. Core net investment income increased modestly from the prior quarter, and all of our new originations were first lien loans. We remain focused on realizing value from our equitized positions and redeploying that capital into income-producing investments, while managing risk and investing selectively."

Recent Developments:

On November 9, 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 December 31, 2026.

Summary Information as of September 30, 2026 and June 30, 2026 (unaudited):

			Three Months Ended			Three Months Ended			Change
($ in thousands except per share data)			September 30, 2026			June 30, 2026			$		%
Total investment income		$	14,829		$	14,369			460		3.2
Total expenses, including excise tax			10,390			9,688			702		7.2
Net investment income			4,439			4,681			(242)		(5.2)
Net investment income per share			0.207			0.217			(0.010)		(4.7)
Core net investment income(1)			4,806			4,681			125		2.7
Core net investment income(1) per share			0.224			0.217			0.007		3.3
Distributions per share			0.250			0.250			—		—
Net realized gains (losses)			(3,631)			(51)			(3,580)		NM
Net unrealized appreciation (depreciation)			5,703			5,779			(76)		(1.3)
Net increase (decrease) in net assets resulting from operations			6,511			10,409			(3,898)		(37.4)
($ in thousands except per share data)			As of September 30, 2026			As of June 30, 2026			$		%
Total investments, at fair value(2)		$	569,073		$	569,202			(129)		(0.0)
STRS JV total investments, at fair value			332,601			340,272			(7,671)		(2.3)
Net asset value per share			11.82			11.77			0.05		0.4

Portfolio and Investment Activity

As of September 30, 2026, the fair value of WhiteHorse Finance's investment portfolio was $569.1 million, compared with $569.2 million as of June 30, 2026. The portfolio as of September 30, 2026 consisted of 125 positions across 64 companies with a weighted average effective yield of 11.0% on income-producing debt investments. The average debt investment size (excluding investments in STRS JV (as defined below)) was $5.2 million with the overall portfolio comprised of approximately 70.7% first lien secured loans, 0.9% second lien secured loans, 0.2% unsecured loans, 7.9% equity and 20.3% 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 September 30, 2026, WhiteHorse Finance made investments in two new portfolio companies for a total of $14.8 million, added a total of $6.2 million to existing portfolio companies and net fundings of $0.2 million to revolving loans. Proceeds from sales and repayments totaled approximately $10.0 million for the three months ended September 30, 2026, driven by full realizations from Transervice and PFB equity.

In addition to the transactions discussed above, during the three months ended September 30, 2026, WhiteHorse Finance transferred assets comprised of five portfolio companies, totaling $21.4 million to STRS JV in exchange for a net investment in STRS JV of $7.2 million as well as cash proceeds of $14.2 million.

Distributions

The Company's board of directors has declared a distribution of $0.25 per share with respect to the quarter ending December 31, 2026. The distribution will be payable on January 6, 2027 to stockholders of record as of December 21, 2026. In addition, on October 14, 2026, the Company declared a special distribution of $0.17 per share, which will be payable on December 10, 2026 to stockholders of record as of October 30, 2026.

On August 10, 2026, the Company declared a distribution of $0.25 per share with respect to the quarter ended September 30, 2026. The distribution was paid on October 5, 2026, to stockholders of record as of September 21, 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 SEC.

Conference Call

WhiteHorse Finance will host a conference call to discuss its third quarter results for the period ended September 30, 2026, at 1:00 p.m. ET on Monday, November 9, 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 #WHFQ326. 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 November 16, 2026. The teleconference replay can be accessed by dialing 800-757-4770 or +1 402-220-7228 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 $76 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 SEC. 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 (net of any incentive fee impact) (i) the impact of costs associated with the refinancing of the Company's indebtedness, (ii) the accrual of the capital gains incentive fee attributable to realized and unrealized gains and losses, (iii) certain excise or other income taxes and (iv) certain non-recurring expenses that are one-time in nature and are not representative of ongoing expenses incurred during the Company's normal course of business. 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 November 9, 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 and certain non-recurring expenses that are one-time in nature and are not representative of ongoing expenses incurred during the Company's normal course of business (net of any incentive fee impact). There were no excise or other income taxes related to net realized gains and losses for the quarters ended September 30, 2026, and September 30, 2025.

The following table provides a reconciliation of net investment income to core net investment income for the three months ended September 30, 2026, and September 30, 2025 (in thousands, except per share data):

		September 30, 2026								September 30, 2025
		Amount				Per Share				Amount				Per Share
						Amounts								Amounts
Net investment income		$	4,439			$	0.207			$	6,101			$	0.263
Net impact of non-recurring expenses			367				0.017				—				—
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		$	4,806			$	0.224			$	6,101			$	0.263

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-third-quarter-2026-earnings-results-and-declares-quarterly-distribution-of-0-25-per-share-302933316.html

SOURCE WhiteHorse Finance, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were WhiteHorse Finance's third-quarter 2026 earnings?

WhiteHorse Finance reported net investment income of $4.439 million, or $0.207 per share, for the quarter ended September 30, 2026. Core net investment income, a non-GAAP measure, was $4.806 million, or $0.224 per share.

When will WHF pay its next quarterly and special distributions?

The $0.25 quarterly distribution is payable January 6, 2027, to stockholders of record December 21, 2026. The previously declared $0.17 special distribution is payable December 10, 2026, to stockholders of record October 30, 2026.

What explains the difference between WhiteHorse Finance's GAAP and core income for third-quarter 2026?

The reconciliation adds $367,000, or $0.017 per share, in net non-recurring expenses to GAAP net investment income. This brings core net investment income to $4.806 million, or $0.224 per share. Core income supplements, rather than replaces, GAAP net investment income.

What was WhiteHorse Finance's investment portfolio composition at September 30, 2026?

The portfolio held 125 positions across 64 companies, with an 11.0% weighted average effective yield on income-producing debt investments. Approximately 70.7% was first-lien secured loans, 0.9% second-lien secured loans, 0.2% unsecured loans, 7.9% equity and 20.3% investments in STRS JV. Fixed-rate securities represented only 1.4% of loans at fair value.

How will WhiteHorse Finance distributions be classified for tax purposes?

Distributions are paid from taxable earnings and may include return of capital and/or capital gains. Their specific tax characteristics will be reported on Form 1099-DIV after the calendar year ends and in the company's periodic SEC reports.