WHFCL · WhiteHorse Finance, Inc.

WhiteHorse Finance, Inc. announced first quarter 2026 results showing net investment income of $5.6 million or $0.253 per share, a 15.2% decline from $6.6 million or $0.287 per share in the prior quarter, primarily due to lower total investment income of $15.9 million versus $17.3 million, partially offset by reduced expenses. CEO Stuart Aronson noted continued execution on priorities including managing credit situations, disciplined originations, and accretive share repurchases at a discount to NAV, with the majority of the portfolio remaining stable despite anticipated markdowns on positions like Camarillo Fitness Holdings, The Kyjen Company, and Patagonia Holdco. The portfolio fair value decreased to $543.0 million from $578.6 million, comprising 128 positions across 65 companies with a weighted average effective yield of 10.8% on income-producing debt investments, 72.7% first lien secured loans. Investment activity included $18.5 million in three new companies, $6.9 million add-ons, offset by $38.0 million repayments from full realizations in Trimlite, Monarch Collective, Patagonia Holdco, and Token Buyer, plus $18.9 million transfer to STRS JV. NAV per share fell 1.8% to $11.47 amid $6.3 million net realized and unrealized losses. The board declared a $0.25 per share distribution payable July 6, 2026, maintaining payout consistency, while WhiteHorse Advisers voluntarily reduced the incentive fee to 17.50% from 20.00% for the next quarter, waiving $0.2 million in Q1. Share repurchases of 0.4 million shares at $7.31 boosted NAV by $0.08 per share. Gross leverage rose to 1.31x from 1.26x, with net leverage at 1.12x.