WhiteHorse Finance (NASDAQ:WHF) Releases Earnings Results, Beats Expectations By $0.02 EPS

WhiteHorse Finance (NASDAQ:WHF) released its quarterly earnings data on Monday. The investment management company reported $0.29 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.02, FiscalAI reports. The firm had revenue of $17.34 million during the quarter, compared to analysts’ expectations of $16.91 million. WhiteHorse Finance had a net margin of 19.73% and a return on equity of 9.54%.

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 1.5%

Shares of NASDAQ WHF opened at $6.82 on Wednesday. The stock has a market cap of $158.50 million, a P/E ratio of 11.00 and a beta of 0.56. The business’s fifty day simple moving average is $6.75 and its 200-day simple moving average is $7.26. WhiteHorse Finance has a 12-month low of $6.07 and a 12-month high of $11.01. The company has a current ratio of 1.80, a quick ratio of 1.80 and a debt-to-equity ratio of 1.22.

WhiteHorse Finance Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, April 6th. Stockholders of record on Thursday, March 12th will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, March 12th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 14.7%. WhiteHorse Finance’s dividend payout ratio is currently 232.56%.

Wall Street Analyst Weigh In

Several research firms have issued reports on WHF. 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 report on Wednesday, January 21st. Three research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and a consensus target price of $7.75.

Insiders Place Their Bets

In other news, Director John Bolduc bought 8,974 shares of WhiteHorse Finance stock in a transaction that occurred on Wednesday, December 24th. The shares were purchased at an average price of $6.99 per share, with a total value of $62,728.26. Following the completion of the acquisition, the director directly owned 263,698 shares in the company, valued at $1,843,249.02. The trade was a 3.52% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Stuart D. Aronson purchased 7,000 shares of the stock in a transaction on Tuesday, December 23rd. The shares were purchased at an average price of $6.80 per share, with a total value of $47,600.00. Following the acquisition, the chief executive officer directly owned 67,000 shares in the company, valued at $455,600. This represents a 11.67% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have purchased a total of 44,676 shares of company stock worth $310,287 in the last quarter. 2.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On WhiteHorse Finance

Institutional investors have recently modified their holdings of the company. XTX Topco Ltd purchased a new position in WhiteHorse Finance in the fourth quarter valued at $207,000. Quadrature Capital Ltd acquired a new position in shares of WhiteHorse Finance during the 4th quarter worth about $339,000. CastleKnight Management LP purchased a new position in shares of WhiteHorse Finance in the 4th quarter valued at about $2,033,000. Trexquant Investment LP acquired a new stake in shares of WhiteHorse Finance during the 4th quarter worth about $108,000. Finally, Osaic Holdings Inc. lifted its stake in WhiteHorse Finance by 43.7% during the fourth quarter. Osaic Holdings Inc. now owns 18,634 shares of the investment management company’s stock worth $130,000 after purchasing an additional 5,665 shares during the last quarter. 13.20% of the stock is owned by hedge funds and other institutional investors.

WhiteHorse Finance Company Profile

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.