Whitehorse Finance . 7.875% Notes Due 2028 Stock Earnings Reports

Key points for investors: 1) Q1 2026 results were driven by previously disclosed markdowns on three credits (Honors Holdings, Outward Hound, Lumen LATAM) that produced approximately $6.3 million ($0.284/share) of net realized and unrealized losses. GAAP and core NII were $5.6M ($0.253/share), down from $6.6M ($0.287) in Q4. NAV declined to $11.47 (down ~1.8% quarter-over-quarter), partially offset by accretive share repurchases. 2) Portfolio and credit profile: 98.8% of the debt portfolio is first‑lien senior secured; nonaccruals (ex-STRS JV) rose to 3.6% of debt at fair value (Honors Holdings, New Cycle Solutions, Outward Hound, Playmonster). Weighted average effective yield on income-producing debt fell to 10.8% (from 11.0%), and overall portfolio yield declined to 8.7% (from ~9.1%), impacted in part by one investment placed on nonaccrual. 3) Capital allocation and shareholder value: management and the Board are prioritizing disciplined portfolio positioning and accretive share buybacks (including a 10b5-1 plan). Q1 repurchases (~412k shares at $7.31 avg) were accretive to NAV by ~$0.08; cumulative buybacks since inception contributed ~ $0.31/share of NAV accretion. Adviser temporarily extended an incentive fee waiver (20% -> 17.5%) for Q2 2026. 4) Activity and liquidity: gross deployments $25.4M, repayments/sales $38M, net repayments ~ $12.6M before STRS JV transfers. Two new and two existing investments ($18.9M) transferred to the STRS JV (JV fair value $327.1M, avg. effective yield 9.9%). BDC balance-sheet capacity for new assets is limited (~$15M after reserving ~$11M for buybacks); STRS JV remaining capacity was ~ $35M at quarter end (pro forma nearer $10M). 5) Dividend policy and outlook: Board declared Q2 base distribution $0.25/share (payable July 6, 2026). Management sees ongoing deal flow (mid- and upper mid-market preferred), but notes geopolitical and macro uncertainty; competition has driven wider pricing (higher spreads), particularly on sponsor deals. Overall tone: proactive capital allocation to buybacks and JV, transparency on identified markdowns, and focus on preserving distributable earnings and NAV.