WhiteHorse Finance (NASDAQ:WHF) Issues Earnings Results, Beats Estimates By $0.02 EPS

WhiteHorse Finance (NASDAQ:WHF) announced its quarterly earnings data on Monday. The investment management company reported $0.29 EPS for the quarter, beating the consensus estimate of $0.27 by $0.02, FiscalAI reports. The business had revenue of $17.34 million during the quarter, compared to the consensus estimate of $16.91 million. WhiteHorse Finance had a net margin of 12.91% and a return on equity of 9.93%.

Here are the key takeaways from WhiteHorse Finance’s conference call:

• Q4 results improved with GAAP and core NII of $6.6M ($0.287 per share) and NAV per share rising to $11.68 (up ~2.4% quarter-over-quarter).
• The board expanded the share repurchase program after repurchasing ~1M shares for $7.4M (accretive to NAV by ~$0.184), leaving ~ $15M available, and insiders also bought shares.
• The company reaffirmed its distribution framework (base dividend of $0.25 per quarter) and declared a Q1 2026 supplemental distribution of $0.01, supported by estimated spillover taxable income of ~$21.6M pro forma.
• Portfolio yields compressed as the weighted average effective yield on income-producing debt fell to 11.0% (from 11.6%) and overall portfolio yield declined to 9.1% (from 9.5%), reflecting lower spreads and base rates which could pressure future NII.
• Credit-specific losses and mark declines included $11.3M of realized losses (notably Aspect Software), Thermodisk moved to non-accrual, and expected markdowns at Honors Holdings and a ~$3M shortfall at Outward Hound, with non-accruals at 2.4% of the debt portfolio excluding the JV.

WhiteHorse Finance Stock Up 6.7%

NASDAQ:WHF opened at $6.72 on Tuesday. WhiteHorse Finance has a one year low of $6.07 and a one year high of $11.31. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.80 and a quick ratio of 1.80. The company has a market cap of $156.17 million, a PE ratio of 15.63 and a beta of 0.56. The firm’s 50 day simple moving average is $6.75 and its 200 day simple moving average is $7.27.

WhiteHorse Finance Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, April 6th. Investors of record on Thursday, March 12th will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 14.9%. The ex-dividend date is Thursday, March 12th. WhiteHorse Finance’s dividend payout ratio (DPR) is 232.56%.

Key WhiteHorse Finance News

Here are the key news stories impacting WhiteHorse Finance this week:

• Positive Sentiment: Q4 earnings and revenue beat estimates — WhiteHorse reported $0.29 EPS vs. a $0.27 Zacks consensus and revenue of $17.34M vs. $16.91M expected, which supports near‑term sentiment. WhiteHorse Finance (WHF) Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Board declared quarterly distribution $0.25 and supplemental $0.01 (annualized yield ~14.9%) — high yield and an upcoming ex‑dividend date (Mar 12) attract income investors and likely boosted the stock. WhiteHorse Finance, Inc. Announces Fourth Quarter and Full Year 2025 Earnings Results and Declares Quarterly Distribution
• Neutral Sentiment: Company hosted an earnings call and published transcripts/highlights — these provide additional color on portfolio performance, credit quality and distribution policy that investors will parse for sustainability of the high payout. WhiteHorse Finance Inc (WHF) Q4 2025 Earnings Call Highlights: Strong Earnings and Strategic … WhiteHorse Finance (WHF) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Full‑year 2025 earnings declined year‑over‑year — external summaries note lower 2025 earnings despite the quarter beat, which raises questions about sustainability and longer‑term earnings growth. WhiteHorse Finance Reports Lower 2025 Earnings, Declares Distributions

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. Zacks Research raised WhiteHorse Finance from a “strong sell” rating to a “hold” rating in a research note on Friday, December 12th. Weiss Ratings reiterated a “sell (d+)” rating on shares of WhiteHorse Finance in a research report on Wednesday, January 21st. Three equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, WhiteHorse Finance has a consensus rating of “Reduce” and an average price target of $7.75.

Insider Activity

In related news, Director John Bolduc bought 14,200 shares of the stock in a transaction that occurred on Tuesday, December 23rd. The stock was acquired at an average cost of $7.00 per share, with a total value of $99,400.00. Following the transaction, the director directly owned 259,085 shares in the company, valued at approximately $1,813,595. This trade represents a 5.80% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Joyson Thomas purchased 4,502 shares of WhiteHorse Finance stock in a transaction on Wednesday, December 24th. The stock was bought at an average price of $7.01 per share, for a total transaction of $31,559.02. Following the transaction, the chief financial officer directly owned 22,001 shares in the company, valued at approximately $154,227.01. The trade was a 25.73% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders acquired 44,676 shares of company stock valued at $310,287. Insiders own 2.50% of the company’s stock.

Institutional Trading of WhiteHorse Finance

Several institutional investors have recently added to or reduced their stakes in WHF. Advisory Services Network LLC bought a new position in WhiteHorse Finance during the 3rd quarter worth approximately $26,000. Kestra Advisory Services LLC acquired a new stake in shares of WhiteHorse Finance during the fourth quarter worth $44,000. Oxford Asset Management LLP bought a new position in WhiteHorse Finance during the second quarter worth $105,000. O Shaughnessy Asset Management LLC acquired a new position in WhiteHorse Finance in the fourth quarter valued at $88,000. Finally, Trexquant Investment LP acquired a new position in WhiteHorse Finance in the fourth quarter valued at $108,000. 13.20% of the stock is currently owned by institutional investors.

About WhiteHorse Finance

WhiteHorse Finance Corporation (NASDAQ: WHF) is a closed-end management investment company organized as a business development company under the Investment Company Act of 1940. The firm’s primary objective is to generate current income and, to a lesser extent, capital appreciation by making debt and equity investments in privately held middle-market companies. WhiteHorse Finance seeks to partner with established businesses across a range of industries, providing flexible financing solutions designed to support growth initiatives, acquisitions and recapitalizations.

The company’s investment portfolio predominantly comprises senior secured loans, second-lien debt, subordinated debt and select equity interests.