WhiteHorse Finance (WHF) Q4 2025 earnings summary

Executive summary

• Q4 2025 net investment income was $6.6 million ($0.287 per share), up from $6.1 million ($0.263 per share) in Q3, with NAV per share rising to $11.68 at year-end 2025.

• Share repurchases of about 1 million shares at $7.35–$8.00 per share were accretive to NAV by $0.18–$0.184 per share, and the repurchase program was expanded by $7.5 million to $22.5 million.

• Portfolio fair value was $578.6 million, diversified across 129 positions in 68 companies, with all new Q4 originations as first lien loans.

• Distributions included $0.25 per share in base dividends and $0.035 in special dividends for 2025, with a $0.01 supplemental declared for Q1 2026.

• Portfolio restructurings and insider purchases were notable in Q4.

Financial highlights

• Q4 GAAP and core NII were $6.6 million ($0.287 per share), up from $6.1 million ($0.263 per share) in Q3.

• Total investment income for Q4 was $17.3 million; fee income reached $0.8 million, mainly from prepayment activity.

• Net realized and unrealized gains for Q4 were $1.8–$1.9 million, with annual net losses of ($11.8) million, improved from ($26.4) million in 2024.

• Weighted average effective yield on income-producing debt investments declined to 11% in Q4 from 11.6% in Q3.

• Dividend yield was 15.9% based on a $0.25 per share quarterly distribution.

Outlook and guidance

• Q1 2026 base distribution set at $0.25 per share, with a $0.01 supplemental distribution declared; supplemental distributions are formula-based on excess earnings and NAV stability.

• Management expects about 30% of the portfolio to repay in 2026, consistent with historical loan life.

• Pipeline remains lower than normal, with five new sponsor mandates in progress.

• Management aims to maintain the base dividend and continue supplemental distributions when incremental earnings are available.