Whitehorse Finance Stock Earnings Reports

WhiteHorse Finance reported Q1 2026 results with GAAP net investment income and core NII of $5.6M, or $0.253 per share, down from $6.6M ($0.287) in Q4. NAV declined to $11.47 from $11.68 (a 1.8% decrease), driven primarily by previously-flagged markdowns (Honors Holdings, Outward Hound, Lumen LATAM) that produced ~$6.3M of net realized and unrealized losses (~$0.284 per share), partially offset by accretive share repurchases (~$0.08 per share). The company repurchased ~412,000 shares in Q1 at a $7.31 average price and continued repurchases into Q2; buybacks have contributed an estimated ~$0.31 per share of NAV accretion since the program began. Portfolio highlights: total investments fell to $543M from $578.6M due to net repayments, realizations and STRS JV transfers; 98.8% of debt portfolio is first-lien senior secured; weighted average effective yield on income-producing debt fell to 10.8% (from 11.0%) and overall portfolio yield to 8.7% (from 9.1%), impacted by one investment moving to nonaccrual. Nonaccruals (ex-STRS JV) rose to 3.6% of the debt portfolio at fair value; four issuers were on nonaccrual at quarter-end (Honors Holdings, New Cycle Solutions, Outward Hound, Playmonster). The STRS JV had fair value of $327.1M, average effective yield ~9.9%, and remains accretive (low-teens ROE to WhiteHorse). Liquidity/capital: cash of ~$49.4M (includes restricted cash and distribution reserves); gross leverage 1.31x, net effective debt-to-equity ~1.12x, asset coverage 176.2% (above 150% requirement). Board extended a temporary adviser incentive fee waiver (reducing rate from 20% to 17.5%) for Q2 to support distributable earnings. The Board declared a Q2 base distribution of $0.25 per share (payable July 6, 2026). Pipeline and market commentary: modest deployment in Q1 (gross $25.4M; net repayments ~$12.6M before JV transfers); 10 mandated deals in pipeline (4 non-sponsor, 6 sponsor), with limited remaining BDC capacity (~$15M after reserving ~$11M for buybacks) and STRS JV capacity tightening (~$10M pro forma). Management favors disciplined, structure-focused investing with emphasis on non-sponsor opportunities and will continue buybacks while shares trade at a sizable discount to NAV (~35%), balancing repurchases against new investments and leverage targets.