WhiteHorse Finance (WHF)
NASDAQ:WHF
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WhiteHorse
(NASDAQ:WHF)
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Rating:68Neutral
Price Target:
$7.00
â–¼(-7.53% Downside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by solid cash-flow strength and an inexpensive valuation (low P/E and very high yield). These positives are tempered by uneven operating fundamentals (TTM revenue decline and negative EBIT), moderate leverage, and earnings-call risks including credit-related marks, higher nonaccruals, and constrained capacity despite supportive buybacks and distributions.
Positive Factors
Consistent Cash Generation
WHF’s free cash flow consistently tracks reported net income and recently stepped up, providing durable distributable resources. Strong cash conversion supports the regular base distribution, funds opportunistic buybacks, and cushions credit mark volatility over the next several quarters.
Negative Factors
Volatile Revenue and Earnings
Sharp TTM revenue decline and an operating margin that swung negative highlight inconsistent core earning power. For a BDC reliant on NII, this volatility undermines predictability of distributable earnings and complicates long‑term planning for buybacks, distributions, and credit reserves.
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Positive Factors
Negative Factors
Consistent Cash Generation
WHF’s free cash flow consistently tracks reported net income and recently stepped up, providing durable distributable resources. Strong cash conversion supports the regular base distribution, funds opportunistic buybacks, and cushions credit mark volatility over the next several quarters.
Read all positive factors
WhiteHorse (WHF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$142.85M
Dividend Yield21.24%
Average Volume (3M)83.67K
Price to Earnings (P/E)―
Beta (1Y)0.28
Revenue Growth-58.30%
EPS Growth2.72%
CountryUS
Employees2
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.41
Shares Outstanding21,611,391
10 Day Avg. Volume122,811
30 Day Avg. Volume83,667
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 Cap3.18
Enterprise Value/Revenue10.62
Enterprise Value/Gross Profit20.73
Enterprise Value/Ebitda30.42
Forecast
1Y Price Target
$6.50Price Target Upside-14.13% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)1.03
Revenue Forecast (FY)$64.60M
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 generating investment income from its portfolio of debt investments. Its core revenue stream is interest income earned on secured loans it originates or acquires; these loans are typically structured with stated intere...
WhiteHorse Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Neutral
The call reflected a balanced tone: management acknowledged and had pre-flagged the quarter’s realized and unrealized losses that drove modest NAV and earnings declines, while emphasizing proactive value-enhancing actions — notably accretive share repurchases, an accretive STRS JV, maintained distributions, high first‑lien senior secured portfolio composition, and improving deal flow/pricing. Credit stress was concentrated in a small number of identified names and nonaccruals ticked higher, and the company faces constrained near-term balance-sheet capacity if buybacks are prioritized. Overall, positives such as NAV accretion from buybacks, JV performance, and strong collateral protections offset but did not overwhelmingly outweigh the quarter’s mark‑to‑market and earnings headwinds.Positive Updates
Share Repurchases Delivered NAV Accretion
Repurchased ~412k shares in Q1 at a weighted-average price of $7.31 (plus ~210k additional shares subsequent to quarter end). Q1 repurchases were accretive to NAV by ~$0.08 per share; cumulative buybacks since program inception have contributed ~ $0.31 per share of NAV accretion.
Negative Updates
Net Realized and Unrealized Losses in Q1
Recognized $6.3M of net realized and unrealized losses in Q1 (~$0.284 per share), driven primarily by markdowns in Honors Holdings, Outward Hound, and a realized Lumen Latam loss. These were the three credits the company had previously flagged.
Read all updates
Q1-2026 Updates
Positive
Negative
Share Repurchases Delivered NAV Accretion
Repurchased ~412k shares in Q1 at a weighted-average price of $7.31 (plus ~210k additional shares subsequent to quarter end). Q1 repurchases were accretive to NAV by ~$0.08 per share; cumulative buybacks since program inception have contributed ~ $0.31 per share of NAV accretion.
Read all positive updates
Company Guidance
Management’s guidance and commentary emphasized that Q1 2026 results reflected previously‑flagged credit marks and moderated core earnings, with GAAP and core NII of $5.6 million (25.3¢ per share) versus $6.6 million (28.7¢) in Q4, NAV of $11.47 down from $11.68 (≈1.8%), and aggregate net realized and unrealized losses of $6.3 million (≈28.4¢ per share) comprised of $4.7M realized and $1.6M unrealized losses; share repurchases (≈412k shares in Q1 at a $7.31 weighted average, plus ~210k subsequently) were accretive ~8¢ in Q1 and ~31¢ cumulatively to NAV. Portfolio metrics included total investments of $543M (down $35.6M from $578.6M), gross deployments $25.4M, repayments/sales $38.0M (net repayments ≈$12.6M), three new originations totaling $18.5M (avg leverage ~5.5x EBITDA), 98.8% first‑lien, ~38% non‑sponsor, income‑producing debt yield 10.8% (vs 11.0% Q4), overall portfolio yield 8.7% (vs 9.1%), nonaccruals ~3.0% (vs 2.4%), STRS JV fair value $327.1M with 9.9% avg effective yield and 1.08x leverage (JV income ≈$3.6M; low‑teens ROE), cash resources ~$49.4M (incl. $37.6M restricted, $11.8M reserved), asset coverage 176.2%, gross leverage 1.31x (1.26x prior), net effective debt/equity 1.12x (1.15x prior), remaining BDC capacity ≈$15M, STRS JV capacity ≈$35M (pro forma ≈$10M), a 10‑deal pipeline (4 non‑sponsor at SOFR+600+, 6 sponsor targeted for the JV), a temporary incentive fee waiver to 17.5% (from 20%) for 2026, and an ongoing distribution policy of a 25¢ quarterly base distribution (plus potential supplemental distributions; Q1 supplemental was $0.01), all against shares trading at roughly a 35% discount to NAV.WhiteHorse Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
57
Neutral
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 42.79M | 37.89M | 17.09M | 55.60M | 43.29M | 51.95M |
| Gross Profit | 21.92M | 19.82M | 17.09M | 25.68M | 21.35M | 35.35M |
| EBITDA | 14.94M | 37.48M | 11.97M | 21.38M | 16.71M | 31.10M |
| Net Income | 9.39M | 14.34M | 10.85M | 20.41M | 15.68M | 30.09M |
Balance Sheet | ||||||
| Total Assets | 606.04M | 615.13M | 676.82M | 730.75M | 796.47M | 851.02M |
| Cash, Cash Equivalents and Short-Term Investments | 11.79M | 29.32M | 12.42M | 10.75M | 9.51M | 12.19M |
| Total Debt | 324.14M | 323.83M | 353.12M | 386.45M | 440.43M | 475.96M |
| Total Liabilities | 355.70M | 355.34M | 390.69M | 413.98M | 464.09M | 501.27M |
| Stockholders Equity | 250.34M | 259.79M | 286.13M | 316.77M | 332.39M | 349.75M |
Cash Flow | ||||||
| Free Cash Flow | 81.75M | 19.28M | 78.76M | 90.37M | 29.00M | 30.34M |
| Operating Cash Flow | 81.75M | 19.28M | 78.76M | 90.37M | 29.00M | 30.34M |
| Investing Cash Flow | 30.77M | 57.99M | 0.00 | 0.00 | 42.99M | -120.53M |
| Financing Cash Flow | -82.79M | -75.42M | -75.40M | -92.13M | -68.49M | 97.01M |
WhiteHorse Technical Analysis
Negative
7.57
Price Trends
7.15
Negative
6.75
Negative
6.73
Negative
Market Momentum
-0.10
Positive
29.95
Positive
-1.02
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WHF, the sentiment is Negative. The current price of 7.57 is above the 20-day moving average (MA) of 7.16, above the 50-day MA of 7.15, and above the 200-day MA of 6.73, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 29.95 is Positive, neither overbought nor oversold. The STOCH value of -1.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $94.32M | -2.30 | 0.70% | 16.60% | 50.90% | 97.62% | |
68 Neutral | $142.85M | -59.70 | 3.58% | 21.24% | -58.30% | 2.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $80.71M | -23.51 | -26.36% | 22.43% | 2.83% | -679.99% |
* Financial Sector Average
WHF
WhiteHorse
6.58
-0.82
-11.09%
BCIC
BCP Investment Corporation
7.52
-2.75
-26.80%
NXDT
NexPoint Diversified Real Estate Trust
4.62
1.71
58.49%
GECC
Great Elm Capital
5.70
-3.25
-36.28%
WhiteHorse Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
WhiteHorse Finance Posts Softer Q1 2026 Results, Maintains Payout
Neutral
May 7, 2026
WhiteHorse Finance, Inc. reported first-quarter 2026 results on May 7, 2026, showing total investment income of $15.9 million and net investment income of $5.6 million, both down from the prior quarter, alongside portfolio markdowns that led to a ...
Financial Disclosures
WhiteHorse Finance Schedules First-Quarter 2026 Earnings Release
Neutral
Apr 23, 2026
WhiteHorse Finance, Inc., a business development company focused on originating and investing in loans to privately held, lower middle market companies across multiple industries, has its investment activities managed by H.I.G. WhiteHorse Advisers...
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...
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.