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

WhiteHorse Finance (NASDAQ:WHF) released its quarterly earnings results on Thursday. The investment management company reported $0.26 EPS for the quarter, missing the consensus estimate of $0.28 by ($0.02), Zacks reports. The company had revenue of $15.90 million for the quarter, compared to the consensus estimate of $16.35 million. WhiteHorse Finance had a net margin of 13.46% and a return on equity of 9.33%.

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 Up 1.3%

WHF stock opened at $7.68 on Friday. 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 stock has a market capitalization of $170.73 million, a price-to-earnings ratio of 18.73 and a beta of 0.41. The business’s fifty day moving average price is $7.32 and its two-hundred day moving average price is $7.11. WhiteHorse Finance has a fifty-two week low of $6.07 and a fifty-two week high of $9.66.

WhiteHorse Finance Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, July 6th. Shareholders of record on Thursday, May 21st will be given a dividend of $0.25 per share. The ex-dividend date is Thursday, May 21st. This represents a $1.00 annualized dividend and a yield of 13.0%. WhiteHorse Finance’s dividend payout ratio (DPR) is presently 161.29%.

Insider Buying and Selling at WhiteHorse Finance

In other news, CEO Stuart D. Aronson acquired 8,000 shares of the stock in a transaction on Monday, March 23rd. The shares were purchased at an average price of $6.95 per share, for a total transaction of $55,600.00. Following the transaction, the chief executive officer directly owned 80,000 shares of the company’s stock, valued at approximately $556,000. This represents a 11.11% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director John Bolduc bought 8,392 shares of the stock in a transaction dated Thursday, March 5th. The shares were acquired at an average cost of $7.12 per share, for a total transaction of $59,751.04. Following the completion of the acquisition, the director directly owned 267,894 shares of the company’s stock, valued at approximately $1,907,405.28. This trade represents a 3.23% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired a total of 47,448 shares of company stock worth $337,673 in the last quarter. Company insiders own 2.50% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. HRT Financial LP increased its position in shares of WhiteHorse Finance by 16.5% in the fourth quarter. HRT Financial LP now owns 19,922 shares of the investment management company’s stock worth $138,000 after purchasing an additional 2,815 shares during the period. Advisory Services Network LLC bought a new position in WhiteHorse Finance in the third quarter valued at approximately $26,000. Osaic Holdings Inc. increased its stake in WhiteHorse Finance by 43.7% in the fourth quarter. Osaic Holdings Inc. now owns 18,634 shares of the investment management company’s stock valued at $130,000 after acquiring an additional 5,665 shares during the last quarter. Kestra Advisory Services LLC bought a new position in WhiteHorse Finance in the fourth quarter valued at about $44,000. Finally, CANADA LIFE ASSURANCE Co grew its stake in shares of WhiteHorse Finance by 35.9% during the third quarter. CANADA LIFE ASSURANCE Co now owns 24,457 shares of the investment management company’s stock worth $169,000 after buying an additional 6,460 shares during the last quarter. Institutional investors own 13.20% of the company’s stock.

Key WhiteHorse Finance News

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

• Positive Sentiment: The board declared a quarterly distribution of $0.25 per share, reinforcing WhiteHorse Finance’s income-focused appeal for investors. Article Title
• Positive Sentiment: Management appears to be supporting the stock through buybacks even as it works through credit-related challenges, which can help offset earnings softness. Article Title
• Neutral Sentiment: The company’s Q1 earnings call and transcript give investors more detail on management’s outlook, portfolio quality, and capital allocation priorities. Article Title
• Negative Sentiment: Q1 results missed expectations, with earnings of about $0.25-$0.26 per share versus the $0.28 consensus, and revenue of $15.9 million below estimates, which likely pressured sentiment. Article Title
• Negative Sentiment: TipRanks described the quarter as “softer,” indicating earnings weakness and credit-related headwinds remain a concern despite the maintained payout. Article Title

Wall Street Analyst Weigh In

Separately, Weiss Ratings reiterated a “sell (d+)” rating on shares of WhiteHorse Finance in a report on Monday, April 20th. Three research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Reduce” and an average price target of $7.75.

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.