Fourth Quarter 2025 Summary Highlights
Net Asset Value of $259.8 million, or $11.68 per share, compared to $12.31 per share in 2024
Investment portfolio(1) totaling $578.6 million
STRS JV investment portfolio totaling $323.6 million
Gross investment deployments of $77.1 million for the fourth quarter, including new originations of $64.0 million and $13.1 million of fundings for add-ons to existing investments
Gross investment deployments of $180.8 million for the year, including new originations of $152.1 million and $28.7 million of fundings for add-ons to existing investments
Net investment income and core net investment income(2) of $6.6 million, or $0.287 per share, for the fourth quarter
Annual net investment income and core net investment income(2) of $26.1 million, or $1.127 per share
Annual distributions of $1.44 per share, including a special distribution of $0.035 per share
During the fourth quarter, the Company and H.I.G. directors, officers, and employees purchased an aggregate of approximately 1.1 million shares for approximately $8.0 million
On February 26, 2026, the Company's board of directors approved a $7.5 million increase in the authorized amount available for repurchases under the Stock Repurchase Program up to $22.5 million
Stuart Aronson, WhiteHorse Finance's Chief Executive Officer, commented, "During the fourth quarter, we delivered improved earnings and an increase in NAV, supported by disciplined portfolio management and share repurchases executed at a meaningful discount to book value. With the prudent reset of our base dividend last quarter, we are positioned to earn our distribution on a more consistent basis, while maintaining our established framework for supplemental distributions when incremental earnings are available. Our portfolio remains overwhelmingly first lien and we continue to actively manage underperforming credits with dedicated restructuring resources, while remaining selective in a highly competitive origination environment and focused on structure and credit quality."
Portfolio and Investment Activity
As of December 31, 2025, the fair value of WhiteHorse Finance's investment portfolio was $578.6 million, compared with $642.2 million as of December 31, 2024. The portfolio as of December 31, 2025 consisted of 129 positions across 68 companies with a weighted average effective yield of 9.1% on income-producing debt investments. The average debt investment size (excluding investments in STRS JV (as defined below)) was $3.7 million with the overall portfolio comprised of approximately 74.3% first lien secured loans, 0.8% second lien secured loans, 0.2% unsecured loans, 6.4% equity and 18.3% in investments in STRS JV. Almost all loans were variable rate investments (primarily indexed to the Secured Overnight Financing Rate) with fixed rate securities representing only 1.3% of loans at fair value. Nearly all performing floating rate investments have interest rate floors.
During the three months ended December 31, 2025, WhiteHorse Finance made investments in seven new portfolio companies for a total of $64.0 million, added a total of $13.1 million to existing portfolio companies. Proceeds from sales and repayments totaled approximately $49.6 million for the three months ended December 31, 2025, driven by four full realizations in Bridgepoint Healthcare, LLC, Sleep OpCo LLC (d/b/a Brooklyn Bedding LLC), Event Services America, Inc. (d/b/a Contemporary Services Corporation) and ELM One Call Locators, Inc. (d/b/a One Call Locators, Ltd.), and the Company received net repayments of $1.2 million from revolver loans.
In addition to the transactions discussed above, during the three months ended December 31, 2025, WhiteHorse Finance transferred assets comprised of two new portfolio companies and two add-on investments, totaling $19.2 million to STRS JV in exchange for cash proceeds.
During the year ended December 31, 2025, WhiteHorse Finance invested $152.1 million across 19 new portfolio companies. The Company also invested $28.7 million in existing portfolio companies. Proceeds from sales and repayments totaled approximately $155.7 million for the year.
In addition to the transactions above, during the year ended December 31, 2025, WhiteHorse Finance transferred assets totaling $83.3 million in exchange for cash proceeds from STRS JV. As of December 31, 2025, the Company's investment in STRS JV was approximately $106.0 million, at fair value.
WHF STRS Ohio Senior Loan Fund LLC
As of December 31, 2025, STRS JV's portfolio totaled $323.6 million, consisted of 43 portfolio companies and had a weighted average effective yield of 9.9% on its portfolio.
Results of Operations
For the three months and year ended December 31, 2025, the Company's net investment income was approximately $6.6 million and $26.1 million, compared with approximately $8.0 million and $37.2 million for the same periods in the prior year, representing a decrease of approximately 17.5% and a decrease of 29.8%, respectively. The decrease in net investment income for the year-over-year period was primarily attributable to lower yields, investments placed on non-accrual status and lower portfolio size. For the year ended December 31, 2025, the weighted average size and weighted average yield of the debt portfolio, excluding STRS JV, was $517.5 million and 9.2%, respectively. For the year ended December 31, 2024, the weighted average size and weighted average yield of the debt portfolio, excluding STRS JV, was $584.5 million and 10.4%, respectively.
For the three months ended December 31, 2025, the Company's investment in STRS JV generated an annualized, gross investment yield of approximately 13.2%.
For the three months and year ended December 31, 2025, core net investment income(3) was $6.6 million and $26.1 million, or $0.287 per share and $1.127 per share, respectively, compared with $8.0 million and $37.2 million, or $0.343 per share and $1.602 per share, respectively, for the same periods in the prior year.
For the three months and year ended December 31, 2025, WhiteHorse Finance reported a net realized and unrealized gain and loss on investments and foreign currency transactions of $1.8 million and ($11.8) million, respectively. This compares with the three months and year ended December 31, 2024 net realized and unrealized loss on investments and foreign currency transactions of ($4.1) million and ($26.4) million, respectively. The decrease for the year ended December 31, 2025 period was primarily attributable to markdowns of $6.0 million in Camarillo Fitness Holdings, LLC (f/k/a Honors Holdings, LLC) and net markdowns across the portfolio.
WhiteHorse Finance reported a net increase in net assets resulting from operations of approximately $8.4 million and $14.3 million for the three months and year ended December 31, 2025, respectively which compares with a net increase of $3.9 million and $10.8 million for the three months and year ended December 31, 2024, respectively.
WhiteHorse Finance's net asset value was $259.8 million, or $11.68 per share, as of December 31, 2025, compared with $265.2 million, or $11.41 per share, as of September 30, 2025. As of December 31, 2024, WhiteHorse Finance's net asset value was $286.1 million, or $12.31 per share.
Liquidity and Capital Resources
As of December 31, 2025, WhiteHorse Finance had cash and cash equivalents of $29.7 million, compared with $45.9 million as of September 30, 2025, inclusive of restricted cash. As of December 31, 2025, the Company also had $100.0 million of undrawn capacity under its revolving credit facility and due to borrowing based limitations approximately $43.8 million was available to be drawn by the company.
Distributions
The Company's board of directors has declared a distribution of $0.25 per share and a supplemental distribution of $0.01 per share with respect to the quarter ending March 31, 2026. The distribution will be payable on April 6, 2026, to stockholders of record as of March 12, 2026.
On November 10, 2025, the Company declared a distribution of $0.25 per share for the quarter ended December 31, 2025. The distribution was paid on January 5, 2026 to stockholders of record as of December 22, 2025. In addition, previously on October 15, 2025, the Company declared a special distribution of $0.035 per share, which was paid on December 10, 2025 to stockholders of record as of October 31, 2025.
Distributions are paid from taxable earnings and may include return of capital and/or capital gains. The specific tax characteristics of the distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year and in the Company's periodic reports filed with the Securities and Exchange Commission.
Conference Call
WhiteHorse Finance will host a conference call to discuss its full year financial results for the period ended December 31, 2025, at 1:30 p.m. ET on Monday, March 2, 2026. To access the teleconference, please dial 800-267-6316 (domestic) or +1 203-518-9783 (international) approximately 10 minutes before the teleconference's scheduled start time and reference ID #WHFQ425. Investors may also access the call on the investor relations portion of the Company's website www.whitehorsefinance.com.
If you are unable to access the live teleconference, a replay will be available beginning approximately two hours after the call's completion through March 9, 2026. The teleconference replay can be accessed by dialing 800-839-2417 (domestic) or +1 402-220-7209 (international). A webcast replay will also be available on the investor relations portion of the Company's website at www.whitehorsefinance.com.
About WhiteHorse Finance, Inc.
WhiteHorse Finance is a business development company that originates and invests in loans to privately held, lower middle market companies across a broad range of industries. The Company's investment activities are managed by H.I.G. WhiteHorse Advisers, LLC, an affiliate of H.I.G. Capital, LLC, ("H.I.G. Capital"). H.I.G. Capital is a leading global alternative asset manager with $74 billion of capital under management(3) across a number of funds focused on the small and mid-cap markets. For more information about H.I.G. Capital, please visit http://www.higcapital.com. For more information about the Company, please visit http://www.whitehorsefinance.com.
Forward-Looking Statements
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
(1) Includes investments in WHF STRS Ohio Senior Loan Fund LLC ("STRS JV"), an unconsolidated joint venture, totaling $106.0 million, at fair value.(2) "Core net investment income" is a non-GAAP financial measure. The Company believes that core net investment income provides useful information to investors and management because it reflects the Company's financial performance excluding (i) the net impact of costs associated with the refinancing of the Company's indebtedness, (ii) the accrual of the capital gains incentive fee attributable to net realized and unrealized gains and losses, and (iii) excise and other income taxes related to such net realized gains and losses (net of incentive fees). The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Additional information on core net investment income and a reconciliation of core net investment income to its most directly comparable GAAP financial measure, net investment income, are set forth in Schedule 1 hereto.(3) Based on total capital raised by H.I.G. Capital and affiliates.
SCHEDULE 1
As a supplement to GAAP financial measures, the Company has provided information relating to core net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income determined in accordance with GAAP. The Company's non-GAAP measures may differ from similar measures by other companies, even if similar terms are used to identify such measures. Core net investment income represents net investment income adjusted to exclude the net impact of costs associated with the refinancing of the Company's indebtedness, the accrual of the capital gains incentive fee attributable to net realized and unrealized gains and losses, and excise or other income taxes related to such net realized gains and losses (net of incentive fees). There were no excise or other income taxes related to net realized gains and losses for the quarters and years ended December 31, 2025 and December 31, 2024.
The following table provides a reconciliation of net investment income to core net investment income for the three months ended December 31, 2025 and December 31, 2024 (in thousands, except per share data):
December 31, 2025
December 31, 2024
Amount
Per Share
Amount
Per Share
Amounts
Amounts
Net investment income
$
6,604
$
0.287
$
7,976
$
0.343
Net impact of costs associated with refinancing of indebtedness
-
-
-
-
Accrual for capital gains incentive fee
-
-
-
-
Net impact of excise tax expense related to net realized gains and losses
-
-
-
-
Core net investment income
$
6,604
$
0.287
$
7,976
$
0.343
The following table provides a reconciliation of net investment income to core net investment income for the years ended December 31, 2025 and December 31, 2024 (in thousands, except per share data):
December 31, 2025
December 31, 2024
Amount
Per Share
Amount
Per Share
Amounts
Amounts
Net investment income
$
26,110
$
1.127
$
37,238
$
1.602
Net impact of costs associated with refinancing of indebtedness
-
-
-
-
Accrual for capital gains incentive fee
-
-
-
-
Net impact of excise tax expense related to net realized gains and losses
-
-
-
-
Core net investment income
$
26,110
$
1.127
$
37,238
$
1.602
WhiteHorse Finance, Inc.
Consolidated Statements of Assets and Liabilities
(in thousands, except share and per share data)
December 31, 2025
December 31, 2024
Assets
Investments, at fair value
Non-controlled/non-affiliate company investments
$
436,589
$
504,832
Non-controlled affiliate company investments
36,042
29,851
Controlled affiliate company investments
106,018
107,530
Total investments, at fair value (amortized cost $607,574 and $695,240, respectively)
578,649
642,213
Cash and cash equivalents
7,033
12,424
Restricted cash and cash equivalents
22,287
14,548
Restricted foreign currency (cost of $405 and $894, respectively)
405
864
Interest and dividend receivable
5,647
5,631
Amounts receivable on unsettled investment transactions
124
112
Prepaid expenses and other receivables
984
1,009
Unrealized appreciation on foreign currency forward contracts
—
20
Total assets
$
615,129
$
676,821
Liabilities
Debt (net of unamortized debt issuance costs of $4,666 and $2,876, respectively)
$
323,834
$
353,117
Distributions payable
5,597
8,949
Management fees payable
2,660
2,932
Incentive fees payable
19,157
17,848
Amounts payable on unsettled investment transactions
—
3,539
Interest payable
1,392
1,821
Accounts payable and accrued expenses
1,884
2,141
Advances received from unfunded credit facilities
490
340
Unrealized depreciation on foreign currency forward contracts
323
—
Total liabilities
$
355,337
$
390,687
Commitments and contingencies
Net assets
Common stock, 22,234,045 and 23,243,088 shares issued and outstanding, par value $0.001 per share, respectively, and100,000,000 shares authorized
22
23
Paid-in capital in excess of par
329,122
337,205
Accumulated earnings (losses)
(69,352)
(51,094)
Total net assets
259,792
286,134
Total liabilities and total net assets
$
615,129
$
676,821
Number of shares outstanding
22,234,045
23,243,088
Net asset value per share
$
11.68
$
12.31
WhiteHorse Finance, Inc.Consolidated Statements of Operations(in thousands, except share and per share data)
Year ended December 31,
2025
2024
2023
Investment income
From non-controlled/non-affiliate company investments
Interest income
$
53,449
$
66,402
$
78,493
Payment-in-kind income
1,637
6,175
3,960
Fee income
2,207
2,247
2,966
Dividend income
82
116
450
From non-controlled affiliate company investments
Interest income
378
93
—
Payment-in-kind income
513
705
314
Dividend income
—
—
84
From controlled affiliate company investments
Interest income
9,070
9,838
9,488
Payment-in-kind income
—
380
1,347
Dividend income
5,336
6,861
6,158
Total investment income
72,672
92,817
103,260
Expenses
Interest expense
23,139
27,899
29,915
Base management fees
11,111
12,127
14,684
Performance-based incentive fees
6,477
9,309
10,678
Administrative service fees
683
683
683
General and administrative expenses
4,690
4,440
3,622
Total expenses, before fees waived
46,100
54,458
59,582
Performance-based incentive fees waived
(200)
—
—
Total expenses
45,900
54,458
59,582
Net investment income before excise tax
26,772
38,359
43,678
Excise tax
662
1,121
965
Net investment income after excise tax
26,110
37,238
42,713
Realized and unrealized gains (losses) on investments and foreign currency transactions
Net realized gains (losses)
Non-controlled/non-affiliate company investments
(14,403)
(17,993)
309
Non-controlled affiliate company investments
—
—
(339)
Controlled affiliate company investments
(20,980)
—
—
Foreign currency transactions
(784)
(1)
950
Foreign currency forward contracts
602
13
27
Net realized gains (losses)
(35,565)
(17,981)
947
Net change in unrealized appreciation (depreciation)
Non-controlled/non-affiliate company investments
7,511
7,421
(7,871)
Non-controlled affiliate company investments
(2,877)
(7,775)
(5,608)
Controlled affiliate company investments
19,468
(9,213)
(8,490)
Translation of assets and liabilities in foreign currencies
33
1,098
(1,239)
Foreign currency forward contracts
(343)
63
(40)
Net change in unrealized appreciation (depreciation)
23,792
(8,406)
(23,248)
Net realized and unrealized gains (losses) on investments and foreign currency transactions
(11,773)
(26,387)
(22,301)
Net increase (decrease) in net assets resulting from operations
$
14,337
$
10,851
$
20,412
Per Common Share Data
Basic and diluted earnings (losses) per common share
$
0.62
$
0.47
$
0.88
Dividends and distributions declared per common share
$
1.44
$
1.79
$
1.55
Basic and diluted weighted average common shares outstanding
23,174,909
23,243,088
23,243,088
WhiteHorse Finance, Inc.Consolidated Schedule of InvestmentsDecember 31, 2025(in thousands)
Issuer
Investment Type(1)
Floor
Reference Rate(2)
SpreadAboveIndex
InterestRate(3)
AcquisitionDate(4)
MaturityDate
Principal/ShareAmount
AmortizedCost
FairValue(5)
Fair ValueAs APercentageof NetAssets
Debt Investments
Advertising
Avision Holdings, LLC (d/b/a Avision Sales Group)(28)
First Lien Secured Term Loan
1.00 %
SOFR (1M)
6.00 %
9.82 %
05/31/24
12/15/26
652
$
647
$
650
0.3
%
Avision Holdings, LLC (d/b/a Avision Sales Group)(29)
First Lien Secured Delayed Draw Loan
1.00 %
SOFR (1M)
6.00 %
9.82 %
05/31/24
12/15/26
548
544
546
0.2
1,191
1,196
0.5
Air Freight & Logistics
Gulf Winds International Acquisition LLC (d/b/a Gulf Winds International, Inc.)(30)
First Lien Secured Term Loan
1.00 %
SOFR (1M)
7.00 %
10.72% (9.72%
Cash + 1.00%
PIK)
12/16/22
12/18/28
8,956
8,820
8,697
3.3
Gulf Winds International Acquisition LLC (d/b/a Gulf Winds International, Inc.)(7)(29)
First Lien Secured Revolving Loan
1.00 %
SOFR (1M)
7.00 %
10.72 %
12/16/22
12/18/28
605
596
584
0.2
Motivational Marketing, LLC (d/b/a Motivational Fulfillment)(29)(34)
First Lien Secured Term Loan
1.00 %
Base Rate
6.50 %
10.37 %
07/12/21
07/12/28
13,175
13,104
13,135
5.0
Motivational Marketing, LLC (d/b/a Motivational Fulfillment)(7)(29)
First Lien Secured Revolving Loan
1.00 %
SOFR (3M)
6.50 %
10.48 %
07/12/21
07/12/28
630
626
637
0.2
Transervice Holdings, Inc. (d/b/a Transervice Logistics, Inc.)(28)
First Lien Secured Term Loan
2.00 %
SOFR (1M)
7.25 %
11.07 %
06/29/23
06/29/28
7,701
7,586
7,701
3.0
30,732
30,754
11.7
Application Software
MBS Highway, LLC(28)
First Lien Secured Term Loan
1.00 %
SOFR (6M)
8.00 %
12.03 %
10/13/22
10/13/27
9,204
9,122
9,184
3.5
Colonnade Parent, Inc. (d/b/a Naviga Inc.)(17)(29)
First Lien Secured Term Loan
1.00 %
SOFR (3M)
1.00 %
4.77 %
06/14/19
09/30/26
3,667
2,988
1,925
0.7
Colonnade Parent, Inc. (d/b/a Naviga Inc.)(17)(29)
First Lien Secured Revolving Loan
1.00 %
SOFR (3M)
1.00 %
4.77 %
06/14/19
09/30/26
301
287
158
0.1
UserZoom Technologies, Inc. (d/b/a UserZoom, Inc.)(28)
First Lien Secured Term Loan
1.00 %
SOFR (6M)
7.50 %
11.63 %
01/12/23
04/05/29
9,819
9,665
9,621
3.7
22,062
20,888
8.0
Building Products
Trimlite Buyer LLC (d/b/a Trimlite LLC)(9)(13)(26)(29)
First Lien Secured Term Loan
1.00 %
CORRA (3M)
5.50 %
8.08 %
07/27/21
07/27/27
18,868
14,957
13,748
5.3
14,957
13,748
5.3
Construction & Engineering
Kelso Industries LLC(30)
First Lien Secured Term Loan
1.00 %
SOFR (3M)
5.75 %
9.57 %
12/26/24
12/31/29
4,785
4,710
4,823
1.9
PGI Parent LLC (d/b/a Prime Electric, Inc.)(29)
First Lien Secured Term Loan
1.00 %
SOFR (3M)
5.00 %
8.67 %
12/31/25
12/31/31
5,077
5,026
5,026
1.9
PGI Parent LLC (d/b/a Prime Electric, Inc.)(7)(8)
First Lien Secured Revolving Loan
1.00 %
SOFR (3M)
5.00 %
8.67 %
12/31/25
12/31/31
—
—
—
—
9,736
9,849
3.8
Construction Materials
Claridge Products and Equipment, LLC(29)
First Lien Secured Term Loan
1.00 %
SOFR (1M)
8.75 %
12.57% (8.19%
Cash + 4.38%
PIK)
12/30/20
03/31/27
5,124
5,123
4,661
1.8
Claridge Products and Equipment, LLC(7)(29)(31)
First Lien Secured Revolving Loan
1.00 %
Base Rate
8.38 %
13.54% (9.11%
Cash + 4.19%
PIK)
12/30/20
03/31/27
561
561
498
0.2
5,684
5,159
2.0
Data Processing & Outsourced Services
BUSA Acquisition Co. (d/b/a BankCard USA Merchant Services Inc.)(28)
First Lien Secured Term Loan
1.00 %
SOFR (6M)
6.50 %
10.29 %
04/04/24
03/30/29
7,374
7,231
7,331
2.8
BUSA Acquisition Co. (d/b/a BankCard USA Merchant Services Inc.)(7)(29)
First Lien Secured Revolving Loan
1.00 %
SOFR (6M)
6.50 %
10.34 %
04/04/24
03/30/29
276
270
283
0.1
Future Payment Technologies, L.P.(30)
First Lien Secured Term Loan
1.00 %
SOFR (1M)
8.25 %
12.22 %
12/23/16
12/07/26
19,175
19,160
19,175
7.4
26,661
26,789
10.3
Distributors
Midwest Texas Tea CA, LLC (d/b/a US Petroleum Partners, LLC)(28)
First Lien Secured Term Loan
1.00 %
SOFR (1M)
7.50 %
11.32 %
12/22/23
12/22/28
9,188
9,051
9,193
3.5
Midwest Texas Tea CA, LLC (d/b/a US Petroleum Partners, LLC)(28)
First Lien Secured Delayed Draw Loan
1.00 %
SOFR (1M)
7.50 %
11.32 %
12/22/23
12/22/28
639
629
639
0.2
Midwest Texas Tea CA, LLC (d/b/a US Petroleum Partners, LLC)(29)
First Lien Secured Revolving Loan
1.00 %
SOFR (1M)
7.50 %
11.32 %
12/22/23
12/22/28
572
563
572
0.2
10,243
10,404
3.9
Diversified Chemicals
Chase Products Co. (f/k/a Starco)(6)(21)(29)
Second Lien Secured Term Loan
1.00 %
SOFR (3M)
5.50 %
9.17% (8.99%
Cash + 0.18%
PIK)
03/16/23
03/16/28
3,404
$
3,404
$
3,404
1.3
%
3,404
3,404
1.3
Diversified Support Services
NNA Services, LLC(28)
First Lien Secured Term Loan
1.00 %
SOFR (3M)
6.75 %
10.57 %
08/27/21
08/27/26
8,073
8,060
8,037
3.1
Quest Events, LLC(29)
First Lien Secured Term Loan
1.00 %
SOFR (3M)
6.75 %
10.48 %
09/13/24
09/30/27
1,270
1,258
1,187
0.5
Quest Events, LLC(7)(29)
First Lien Secured Revolving Loan
1.00 %
SOFR (3M)
7.50 %
11.48 %
03/21/25
09/30/27
124
122
113
—
9,440
9,337
3.6
Education Services
