WhiteHorse Finance (NASDAQ:WHF) Issues Earnings Results, Misses Estimates By $0.03 EPS

Key Points

• WhiteHorse Finance reported Q1 EPS of $0.25, missing estimates by $0.03 and generating revenue of $15.9M; net realized and unrealized losses of about $6.3M (~$0.284/sh) reduced NAV to $11.47 and lowered core NII to $0.253.
• Management accelerated buybacks (~412k shares in Q1 at a weighted average of $7.31, plus ~210k post-quarter) and insiders purchased stock, while the board declared a Q2 base distribution of $0.25 and the advisor extended a temporary incentive fee waiver to 17.5% to support distributable earnings.
• Shares trade near $7.58, roughly a 35% discount to NAV and yield about 13.2%, but the dividend payout ratio is high at 161% and analysts carry a consensus "Reduce" rating (target ~$7.75), indicating valuation appeal alongside sustainability concerns.

WhiteHorse Finance (NASDAQ:WHF - Get Free Report) announced its quarterly earnings data on Thursday. The investment management company reported $0.25 earnings per share for the quarter, missing analysts' consensus estimates of $0.28 by ($0.03), FiscalAI reports. WhiteHorse Finance had a return on equity of 9.66% and a net margin of 19.73%.The firm had revenue of $15.90 million during the quarter, compared to analysts' expectations of $16.35 million.

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

• Net realized and unrealized losses totaled approximately $6.3 million (≈$0.284 per share), driven by the three previously-flagged credits (Honors Holdings, Outward Hound, Lumen LATAM), reducing NAV to $11.47 (down ~1.8%) and lowering core NII to $0.253 per share.
• Management accelerated share repurchases (≈412k shares in Q1 at a weighted average of $7.31, plus ~210k post-quarter), which were accretive ~$0.08 in Q1 and ~$0.31 cumulative to NAV; a 10b5-1 plan and insider purchases signal continued buyback support while shares trade at ~35% discount to NAV.
• Portfolio remains heavily first-lien senior secured (≈98.8%) but non-accruals rose to 3.6% (Honors, New Cycle, Outward Hound, PlayMonster); weighted average effective yields slipped to 10.8% on debt and 8.7% overall, while the STRS JV carries $327.1 million at ~9.9% yield and generates low‑teens ROE.
• The board declared the Q2 base distribution at $0.25 per share (Q1 included a $0.01 supplemental), and the advisor extended a temporary incentive fee waiver (reducing the incentive fee to 17.5% for Q2) to help support distributable earnings.

WhiteHorse Finance Stock Performance

Shares of NASDAQ:WHF traded down $0.02 during midday trading on Thursday, hitting $7.58. The company had a trading volume of 99,351 shares, compared to its average volume of 62,701. The company has a debt-to-equity ratio of 1.25, a current ratio of 1.25 and a quick ratio of 1.25. The company has a market cap of $168.50 million, a price-to-earnings ratio of 12.23 and a beta of 0.41. WhiteHorse Finance has a 12-month low of $6.07 and a 12-month high of $9.66. The company has a fifty day moving average of $7.32 and a two-hundred day moving average of $7.11.

WhiteHorse Finance Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, July 6th. Stockholders of record on Thursday, May 21st will be paid a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 13.2%. The ex-dividend date is Thursday, May 21st. WhiteHorse Finance's dividend payout ratio is 161.29%.

Insider Buying and Selling at WhiteHorse Finance

In other WhiteHorse Finance news, CEO Stuart D. Aronson acquired 8,000 shares of the stock in a transaction dated Monday, March 23rd. The shares were acquired at an average cost of $6.95 per share, for a total transaction of $55,600.00. Following the completion of the transaction, the chief executive officer directly owned 80,000 shares of the company's stock, valued at approximately $556,000. The trade was a 11.11% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director John Bolduc acquired 8,390 shares of the company's stock in a transaction dated Monday, March 16th. The stock was acquired at an average cost of $7.12 per share, with a total value of $59,736.80. Following the purchase, the director owned 284,617 shares of the company's stock, valued at approximately $2,026,473.04. This trade represents a 3.04% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought a total of 47,448 shares of company stock valued at $337,673 over the last 90 days. 2.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On WhiteHorse Finance

Hedge funds have recently made changes to their positions in the business. LPL Financial LLC boosted its stake in shares of WhiteHorse Finance by 49.5% in the fourth quarter. LPL Financial LLC now owns 69,644 shares of the investment management company's stock worth $484,000 after acquiring an additional 23,047 shares during the period. Osaic Holdings Inc. boosted its stake in shares of WhiteHorse Finance by 43.7% in the fourth quarter. Osaic Holdings Inc. now owns 18,634 shares of the investment management company's stock worth $130,000 after acquiring an additional 5,665 shares during the period. CANADA LIFE ASSURANCE Co boosted its stake in shares of WhiteHorse Finance by 35.9% in the third quarter. CANADA LIFE ASSURANCE Co now owns 24,457 shares of the investment management company's stock worth $169,000 after acquiring an additional 6,460 shares during the period. XTX Topco Ltd bought a new position in shares of WhiteHorse Finance in the fourth quarter worth about $207,000. Finally, Advisory Services Network LLC bought a new position in shares of WhiteHorse Finance in the third quarter worth about $26,000. Institutional investors own 13.20% of the company's stock.

Analyst Ratings Changes

Separately, Weiss Ratings restated a "sell (d+)" rating on shares of WhiteHorse Finance in a report on Monday, April 20th. Three equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus target price of $7.75.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.