WhiteHorse (WHF)
NASDAQ:WHF
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WhiteHorse
(NASDAQ:WHF)
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Rating:63Neutral
Price Target:
$7.50
▼(-0.92% Downside)
Action:ReiteratedDate: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.
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.
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Positive Factors
Negative 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.
Read all positive factors
WhiteHorse (WHF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$170.31M
Dividend Yield21.24%
Average Volume (3M)116.36K
Price to Earnings (P/E)11.2
Beta (1Y)0.29
Revenue Growth-49.37%
EPS Growth32.52%
CountryUS
Employees2
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.29
Shares Outstanding22,234,045
10 Day Avg. Volume104,787
30 Day Avg. Volume116,357
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)0.62
Price to Sales (P/S)4.25
P/FCF Ratio8.35
Enterprise Value/Market Cap2.73
Enterprise Value/Revenue10.66
Enterprise Value/Gross Profit23.45
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.50Price Target Upside-14.13% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)1.09
Revenue Forecast (FY)$67.55M
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 ty...
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)...
WhiteHorse Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
The call presented a mix of constructive operational and capital-management actions — quarter-over-quarter NII growth (~8.2%), a NAV increase (~2.4%), accretive share repurchases, adviser fee relief and an accretive STRS JV — alongside credit realizations, yield compression and continued market skepticism evidenced by a large discount to NAV and a thinner near-term pipeline. Management has taken active steps to support distributions and shareholder value, but material realized losses, some post-quarter credit deterioration and the persistent share-price discount temper enthusiasm.Positive Updates
Improved Quarterly Earnings
Q4 GAAP and core net investment income rose to $6.6 million ($0.287 per share) from $6.1 million ($0.263 per share) in Q3, an increase of approximately 8.2% quarter-over-quarter.
Negative Updates
Realized Losses and Credit Conversions
Q4 recognized approximately $11.3 million in net realized losses (notably an $11.2 million loss from Aspect Software restructuring/exit and $0.5 million from Therm-O-Disc), reflecting conversion of previously marked unrealized losses into realized losses.
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Q4-2025 Updates
Positive
Negative
Improved Quarterly Earnings
Q4 GAAP and core net investment income rose to $6.6 million ($0.287 per share) from $6.1 million ($0.263 per share) in Q3, an increase of approximately 8.2% quarter-over-quarter.
Read all positive updates
Company Guidance
The company guided that the Board declared a Q1 2026 base dividend of $0.25 per share plus a $0.01 supplemental distribution, with supplemental payouts determined as the lesser of 50% of quarterly earnings in excess of the base (earnings = NII) and an amount that would cause no more than a $0.15 per‑share NAV decline over the current and prior quarter; management expects roughly 30% of the portfolio could repay in 2026 (consistent with a 3–3.5 year loan life) and noted a below‑normal pipeline today (five sponsored mandates priced at SOFR +4.50–5.50%, nonsponsor pricing generally SOFR +600 bps+). Capital activity/returns guidance includes continued opportunistic buybacks (Q4 repurchased ~1.0M shares for ~$7.4M, accretive to NAV by ≈$0.184/sh; buyback authorization increased by $7.5M to $22.5M with ≈$15M remaining), continued use of the STRS JV (JV fair value $323.6M, avg. yield 9.9%, leverage 1.07x, JV income ≈$3.8M in Q4), and a recent CLO-style securitization (≈$164M AAA notes at 3‑month SOFR +170 bps). They also noted a voluntary adviser incentive fee cut from 20% to 17.5% for Q4 and Q1 (reducing fees by ≈$200k in Q4), Q4 GAAP/core NII of $6.6M or $0.287/sh (vs Q3 $6.1M/$0.263), NAV $11.68 (up from $11.41, +≈2.4%), weighted avg. effective yield on income‑producing debt 11.0% (down from 11.6%) and on the overall portfolio 9.1% (down from 9.5%), total investments $578.6M, cash resources ≈$29.7M (incl. $22.7M restricted), asset coverage 179.1% (vs 150% minimum), net effective debt‑to‑equity ≈1.15x (vs 1.07x prior), and undistributed taxable income ("spillover") ≈$27.6M (pro forma ≈$21.6M after the January distribution).WhiteHorse Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
55
Neutral
Cash Flow
60
Neutral
| 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
Positive
7.57
Price Trends
6.92
Positive
6.84
Positive
7.02
Positive
Market Momentum
0.18
Positive
59.19
Neutral
60.51
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 7.57 is above the 20-day moving average (MA) of 7.40, above the 50-day MA of 6.92, and above the 200-day MA of 7.02, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 59.19 is Neutral, neither overbought nor oversold. The STOCH value of 60.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WHF.
WhiteHorse Risk Analysis
WhiteHorse disclosed 106 risk factors in its most recent earnings report. WhiteHorse reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
WhiteHorse Peers Comparison
UnderperformOutperform
Sector (68)
WHF
WhiteHorse
7.66
-0.39
-4.89%
BCIC
BCP Investment Corporation
7.95
-2.47
-23.70%
NXDT
NexPoint Diversified Real Estate Trust
5.27
2.27
75.49%
GECC
Great Elm Capital
5.56
-2.86
-33.94%
WhiteHorse Corporate Events
Business Operations and StrategyPrivate Placements and Financing
WhiteHorse Finance Amends Credit Facility, Halves Commitments
Negative
Mar 13, 2026
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...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
WhiteHorse Finance Reports Lower 2025 Earnings, Declares Distributions
Negative
Mar 2, 2026
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...
Financial Disclosures
WhiteHorse Finance to Announce Q4 and 2025 Results
Neutral
Feb 20, 2026
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....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.