WhiteHorse (WHF) AI Stock Analysis

• Market Cap: $162.31M
• Dividend Yield: 21.24%
• Average Volume (3M): 128.68K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.23
• Revenue Growth: -55.82%
• EPS Growth: -4.97%
• Country: US
• Employees: 3
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.29
• Shares Outstanding: 22,234,045
• 10 Day Avg. Volume: 173,180
• 30 Day Avg. Volume: 128,682
• PEG Ratio: 0.35
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 4.25
• P/FCF Ratio: 8.35
• Enterprise Value/Market Cap: 2.81
• Enterprise Value/Revenue: 10.47
• Enterprise Value/Gross Profit: 23.04
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.50
• Price Target Upside: -10.96% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.09
• Revenue Forecast (FY): $67.55M

• Rating: 63 Neutral
• Price Target: $7.50 ▲(2.74% Upside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

WHF scores mid-range primarily due to acceptable but risk-tilted financials (leverage and coverage concerns alongside volatile/declining revenue) and a mixed earnings update (NAV/NII improvement and buybacks offset by realized losses, yield compression, and credit/pipeline headwinds). Technicals are supportive but near overbought, while valuation is only moderately attractive given the market-implied risk in the very high yield.

Positive Factors

Senior‑secured, first‑lien portfolio

A portfolio overwhelmingly composed of first‑lien, senior‑secured, floating‑rate loans with modest nonaccruals materially improves recovery prospects and downside protection. That structural credit quality supports more durable interest income and NAV stability across credit cycles.

Accretive STRS JV income

A large, accretive JV producing mid‑to‑high single‑digit returns diversifies earnings away from the BDC’s direct loan book and supplies predictable income. The JV’s scale and yield provide a durable earnings cushion and a levered return stream that helps stabilize NII and ROE over time.

Improved funding and lower adviser fees

Securing term funding via a CLO and a temporary adviser incentive fee cut reduce financing and operating cost pressure. Structural funding diversification and lower incentive drag enhance net investment income sustainability and provide more durable margin support versus relying solely on short‑term bank lines.

Negative Factors

Elevated leverage

Materially elevated leverage reduces the company’s capacity to absorb credit losses and limits balance sheet flexibility. In a stressed environment, higher debt ratios increase refinancing and covenant risk and constrain opportunistic deployment or defensive capital actions over the medium term.

Yield compression and declining revenue

Sustained yield compression reduces net interest margins and, together with a shrinking portfolio, compresses core recurring revenue. This structural pressure makes covering distributions and maintaining NII growth harder absent materially higher deployment spreads or lower funding costs.

Realized losses and credit deterioration

Large realized losses convert previously presumed recoveries into permanent NAV impairment, signaling credit stress. Persistent or additional write‑downs erode capital, reduce distributable earnings, and can restrain future originations and buybacks as management prioritizes balance sheet repair.

WhiteHorse Business Overview & Revenue Model

Company Description

WhiteHorse Finance, Inc. is business development company, non-diversified, closed end management company specializing in originating senior secured loans, lower middle market, growth capital industries. It prefers to invest in United States. It typically invests between $5 million to $25 million in companies having enterprise value of between $50 million and $350 million.

How the Company Makes Money

WHF makes money primarily by earning interest income and related fees on the debt investments it originates and holds. Its core revenue stream is recurring interest collected on loans (typically structured as senior secured and other secured debt), including any applicable spread over a base reference rate and, where applicable, income from original issue discount and payment-in-kind components. In addition to interest, WHF can generate fee income associated with originating and structuring transactions (e.g., origination, closing, and amendment fees) and may earn prepayment-related fees when borrowers refinance or repay early. WHF may also realize gains (or losses) from the sale of investments or from changes in the fair value of its portfolio, though these are generally less predictable than interest and fee income. As a BDC, it typically funds its lending activity through a combination of equity capital and borrowings, and its net investment income is the primary driver of earnings after accounting for financing costs, operating expenses, and any realized/unrealized gains or losses.

WhiteHorse Financial Statement Overview

Summary

Reported profitability and cash generation are solid, but revenue has been volatile/declining and leverage is meaningfully elevated. The 2025 debt service coverage metric reported as 0.0 is a notable risk given the capital structure.

Income Statement

Profitability is strong on paper, with consistently high net margins and a sharp improvement in 2025 (annual) profitability versus 2023–2024. However, revenue is volatile and has declined in 2024 and materially in 2025 (annual), which raises questions about the durability of earnings and the underlying fee/investment income environment.

Balance Sheet

Leverage is meaningfully elevated, with debt running around ~1.2–1.36x equity across the period, which limits flexibility in a weaker market. The positive offset is that equity remains sizable and return on equity has generally been mid-single to ~10% (with 2025 improving), but the balance sheet is still more levered than ideal for stability.

Cash Flow

Cash generation appears solid in absolute terms, with operating cash flow and free cash flow positive each year and peaking around 2023, though both drift lower into 2024–2025. A notable concern is that the 2025 (annual) debt service coverage metric is reported as 0.0, which is a red flag in the context of meaningful leverage, even though free cash flow is shown matching net income.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	37.89M	17.09M	55.60M	43.29M	51.95M
Gross Profit	19.82M	17.09M	25.68M	21.35M	35.35M
EBITDA	37.48M	11.97M	21.38M	16.71M	31.10M
Net Income	14.34M	10.85M	20.41M	15.68M	30.09M
Balance Sheet
Total Assets	615.13M	676.82M	730.75M	796.47M	851.02M
Cash, Cash Equivalents and Short-Term Investments	29.32M	12.42M	10.75M	9.51M	12.19M
Total Debt	323.83M	353.12M	386.45M	440.43M	475.96M
Total Liabilities	355.34M	390.69M	413.98M	464.09M	501.27M
Stockholders Equity	259.79M	286.13M	316.77M	332.39M	349.75M
Cash Flow
Free Cash Flow	19.28M	78.76M	90.37M	29.00M	30.34M
Operating Cash Flow	19.28M	78.76M	90.37M	29.00M	30.34M
Investing Cash Flow	57.99M	0.00	0.00	42.99M	-120.53M
Financing Cash Flow	-75.42M	-75.40M	-92.13M	-68.49M	97.01M

WhiteHorse Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WHF, the sentiment is Positive. The current price of 7.3 is above the 20-day moving average (MA) of 6.71, above the 50-day MA of 6.60, and above the 200-day MA of 7.06, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 69.46 is Neutral, neither overbought nor oversold. The STOCH value of 40.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WHF.

WhiteHorse Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWKH	77 Outperform	$202.12M	5.02	8.40%	―	2.70%	100.41%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WHF	63 Neutral	$162.31M	11.23	5.30%	21.24%	-55.82%	-4.97%
MRCC	59 Neutral	$104.22M	12.10	6.46%	14.03%	-34.92%	-132.22%
BCIC	57 Neutral	$96.61M	11.33	5.90%	16.60%	-5.23%	193.87%
GECC	49 Neutral	$68.17M	-2.74	-24.20%	22.43%	47.01%	-179.46%

WhiteHorse Corporate Events

WhiteHorse Finance Amends Credit Facility, Halves Commitments

On March 10, 2026, WhiteHorse Finance Credit I, LLC, a subsidiary of WhiteHorse Finance, Inc., executed a Twelfth Amendment to its existing loan agreement with JPMorgan Chase Bank and Citibank that reduced the aggregate financing commitments under the facility from $100 million to $50 million. The administrative agent and lenders also agreed to waive a 1% premium that would otherwise have been payable, signaling a recalibration of the company’s borrowing capacity and cost structure that may affect its near-term funding flexibility and leverage profile but could also modestly ease its financing expenses under the amended credit arrangement.

The most recent analyst rating on (WHF) stock is a Buy with a $8.50 price target. To see the full list of analyst forecasts on WhiteHorse stock, see the WHF Stock Forecast page.

WhiteHorse Finance Reports Lower 2025 Earnings, Declares Distributions

On March 2, 2026, WhiteHorse Finance reported fourth-quarter and full-year 2025 results, showing net investment income of $6.6 million for the quarter and $26.1 million for the year, down 17.5% and 29.8% year-over-year, respectively, due mainly to lower yields, non-accruals, and a smaller portfolio. Net asset value stood at $259.8 million, or $11.68 per share, as of December 31, 2025, slightly above the prior quarter but below $12.31 a year earlier, while annual distributions totaled $1.44 per share, including a special payout, and the board declared a $0.25 regular and $0.01 supplemental distribution for the March 31, 2026 quarter.

The company deployed $180.8 million into new and existing investments during 2025, offset by $155.7 million of sales and repayments and $83.3 million of asset transfers into STRS JV, where its investment generated a 13.2% annualized gross yield in the fourth quarter. Management highlighted improved quarterly earnings, share repurchases executed at a discount to book value, and a portfolio dominated by first lien, floating-rate loans as key supports for net asset value and future distribution coverage, while also noting a cautious stance on new originations in a competitive credit environment and continued active management of underperforming credits.

The most recent analyst rating on (WHF) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on WhiteHorse stock, see the WHF Stock Forecast page.

WhiteHorse Finance to Announce Q4 and 2025 Results

WhiteHorse Finance, Inc. announced on February 20, 2026 that it plans to release its fourth quarter and full-year financial results for the period ended December 31, 2025 on Monday, March 2, 2026. The company will host a conference call at 1:30 p.m. ET that day and provide both live and replay webcasts on its investor relations website, offering current and prospective investors an opportunity to assess recent portfolio performance and capital deployment in the lower middle market lending space.

The planned disclosure of year-end 2025 results and associated investor call underscore WhiteHorse Finance’s efforts to maintain transparency with stakeholders and signal how its loan portfolio and earnings have evolved in a shifting credit environment. By emphasizing accessible teleconference and webcast replays, the company is aiming to broaden engagement from domestic and international investors who track its role as a specialized lender to privately held lower mid-market businesses.

The most recent analyst rating on (WHF) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on WhiteHorse stock, see the WHF Stock Forecast page.