WhiteHorse Finance, Inc.
- Open
- 7.12
- Day high
- 7.17
- Day low
- 7.03
- Prev close
- 7.07
- Volume
- 34K
- Mkt cap
- $152M
- P/E (TTM)
- 9.0
- EPS (TTM)
- $0.79
- P/B
- 0.6
- P/S
- 3.2
- Yield
- 7.19%
- Per share
- $0.51
- ▲Insiders net buying $146K over the last 3 months (2 open-market buys, 0 sales)
- ◆Cluster buying — multiple insiders bought within days
- 🏛Institutions reducing (13F)
WhiteHorse Finance, Inc. (WHF) is a Financial Services company listed on NASDAQ. The stock is down 18% over the past year. Over the trailing 3 months, insiders filed 2 open-market buys and 0 sales (SEC Form 4).
WhiteHorse Finance, Inc. (WHF) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
WHF earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 11, 2026 | $0.25 | $0.22 | -12.3% | $14M | -8.2% |
| May 7, 2026 | $0.28 | $0.26 | -7.1% | $16M | -3.0% |
| Aug 7, 2025 | $0.31 | $0.28 | -9.7% | $10M | -48.2% |
| Mar 7, 2025 | $0.39 | $0.34 | -12.8% | $12M | -45.3% |
| Nov 7, 2024 | $0.42 | $0.39 | -7.1% | $2M | -93.2% |
| Feb 29, 2024 | $0.46 | $0.46 | +0.0% | $12M | -51.5% |
| Nov 9, 2023 | $0.46 | $0.47 | +2.2% | $14M | -43.4% |
| Mar 2, 2023 | $0.44 | $0.48 | +9.1% | $7M | -71.1% |
| Nov 14, 2022 | $0.36 | $0.37 | +2.8% | $11M | -49.5% |
| Aug 10, 2022 | $0.34 | $0.33 | -2.9% | $14M | -33.0% |
| Mar 3, 2022 | $0.37 | $0.33 | -10.8% | $10M | -49.5% |
| Mar 2, 2021 | $0.32 | $0.35 | +9.4% | $13M | -16.4% |
WHF insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 18, 2026 | BOLDUC JOHNdirector | Buy | 7,690 | $6.49 |
| Jun 16, 2026 | Aronson Stuart Ddirector, officer: Chief Executive Officer | Buy | 15,000 | $6.41 |
| Jun 5, 2026 | BOLDUC JOHNdirector | Buy | 3,570 | $6.77 |
| Jun 3, 2026 | BOLDUC JOHNdirector | Buy | 3,570 | $6.81 |
| Jun 2, 2026 | Volpe John Pauldirector | Buy | 1,000 | $6.74 |
| May 29, 2026 | BOLDUC JOHNdirector | Buy | 3,570 | $6.76 |
| May 26, 2026 | Thomas Joysonofficer: Chief Financial Officer | Buy | 3,000 | $6.62 |
| May 26, 2026 | Aronson Stuart Ddirector, officer: Chief Executive Officer | Buy | 7,000 | $6.38 |
| May 26, 2026 | Aronson Stuart Ddirector, officer: Chief Executive Officer | Buy | 20,000 | $6.67 |
| May 26, 2026 | Aronson Stuart Ddirector, officer: Chief Executive Officer | Buy | 5,000 | $6.40 |
| Mar 24, 2026 | Aronson Stuart Ddirector, officer: Chief Executive Officer | Buy | 8,000 | $6.95 |
| Mar 24, 2026 | Aronson Stuart Ddirector, officer: Chief Executive Officer | Buy | 5,000 | $7.10 |
| Mar 17, 2026 | Volpe John Pauldirector | Buy | 1,000 | $7.18 |
| Mar 16, 2026 | BOLDUC JOHNdirector | Buy | 4,195 | $7.12 |
| Mar 9, 2026 | BOLDUC JOHNdirector | Buy | 4,138 | $7.25 |
Source: WHF SEC Form 4 filings, latest Jun 18, 2026. For informational purposes only — not investment advice.
See the full WHF insider & 13F page →WhiteHorse Finance, Inc. company profile
Overview
WhiteHorse Finance, Inc. (NASDAQ:WHF) is a business development company (BDC) founded in 2012 and publicly traded since December 2012. The company operates as a specialty finance firm that provides debt capital to lower middle market companies across the United States. As a BDC, WhiteHorse is a regulated investment company that pools capital from investors to provide financing solutions to private companies that typically fall between traditional bank lending and larger institutional financing markets. The company has built a portfolio of approximately $650 million in investments and maintains a strategic joint venture partnership with STRS Ohio (State Teachers Retirement System of Ohio) to expand its lending capacity.
Business
WhiteHorse Finance operates in the middle market direct lending industry, which serves as a critical financing bridge for companies that have outgrown traditional bank credit but are not large enough to access public capital markets efficiently. The company specializes in originating senior secured loans to lower middle market companies, typically ranging from $5 million to $25 million per investment in businesses with enterprise values between $50 million and $350 million. The core business revolves around first lien, senior secured debt investments, which represent over 97% of the portfolio. First lien loans are the most senior form of debt in a company's capital structure, meaning WhiteHorse gets paid before other creditors in case of default or bankruptcy. These loans are also secured by the borrower's assets, providing additional protection. The company focuses on businesses across various industries but avoids highly cyclical sectors, preferring companies with stable cash flows and the ability to service debt through economic cycles. WhiteHorse operates through two main investment vehicles: its direct balance sheet (the BDC itself) and a joint venture with STRS Ohio. The joint venture, which represents approximately 45-50% of total managed assets, allows WhiteHorse to leverage institutional capital to increase its lending capacity while earning management fees on the joint venture assets. The portfolio is typically split between sponsor-backed deals (approximately 60-65%, where private equity firms are involved) and non-sponsor transactions (35-40%, direct lending to independent companies).
Revenue model
WhiteHorse generates revenue primarily through net investment income from its loan portfolio, earning interest payments from borrowers typically structured as floating-rate loans tied to SOFR (Secured Overnight Financing Rate) plus a spread. Current portfolio yields range from 12-14%, with new originations typically priced at SOFR plus 475-525 basis points for sponsor deals and SOFR plus 600-800 basis points for non-sponsor transactions. The company's business model includes multiple revenue streams: 1) Interest income from loan investments, which represents the primary revenue source; 2) Management fees from the STRS Ohio joint venture, currently at 1.75% annually on committed capital; 3) Origination fees typically ranging from 1-3% of loan amount; and 4) Capital gains from successful exits when portfolio companies are sold or refinanced at higher valuations. Key factors that increase profitability include rising interest rates (since most loans are floating-rate), successful portfolio company performance leading to appreciation, and the ability to maintain low funding costs through the company's credit facilities. Conversely, factors that pressure margins include: credit deterioration leading to non-accrual status (currently 8.8% of the debt portfolio), aggressive market competition compressing loan spreads, rising funding costs, and economic downturns affecting borrower performance. The company's net effective leverage of approximately 1.2x provides modest financial leverage to enhance returns, but also amplifies both gains and losses.
Competitive moat
WhiteHorse Finance operates in a moderately competitive middle market lending space with limited sustainable competitive advantages. The company's primary moat lies in its established origination network and relationships with private equity sponsors, investment banks, and regional business networks that provide deal flow. However, this moat is relatively narrow as relationship-based advantages can be replicated by competitors over time. The company benefits from the joint venture structure with STRS Ohio, which provides access to lower-cost institutional capital and allows for larger deal sizes than pure balance sheet lending. This partnership creates some competitive advantage in bidding processes and fee generation. Additionally, WhiteHorse's focus on the lower middle market segment provides some protection from the largest direct lending funds that typically target larger transactions. However, the competitive landscape is intensifying with numerous well-capitalized BDCs, private credit funds, and even traditional banks competing for similar deals. The company faces significant competition from larger, better-capitalized players like Ares Capital, Blackstone Credit, and Apollo, which can offer more competitive pricing and larger check sizes. The direct lending market has seen substantial capital inflows, leading to compressed spreads and relaxed underwriting standards, which pressures returns. The company's relatively modest size (approximately $650 million in assets) limits its ability to lead larger transactions and may result in being relegated to smaller, potentially lower-quality deals over time.
Risks & safety
WhiteHorse Finance presents a moderate margin of safety profile with several areas of concern: • Liquidity and Solvency: Strong cash position of $19.3 million and access to credit facilities, but negative operating cash flow of -$7.0 million in Q1 2025 raises concerns about cash generation sustainability. • Credit Quality Deterioration: Non-accrual investments increased to 8.8% of debt portfolio (up from 7.2% prior quarter), indicating rising credit stress. Recent write-downs on American Crafts ($2.6 million) and Aspect Software ($2.2 million) demonstrate portfolio challenges. • Leverage Metrics: Net effective debt-to-equity ratio of 1.23x remains within regulatory limits (BDCs can lever up to 2:1) but provides limited cushion. Asset coverage ratio of 177.2% exceeds minimum requirements. • Valuation: Trading at approximately 0.77x book value ($9.33 price vs $12.11 NAV per share), suggesting market skepticism about asset quality and earnings sustainability. • Distribution Coverage: Current quarterly distribution of $0.385 per share appears challenging to maintain given recent net investment income of $0.294 per share, though substantial spillover income of $28.4 million provides temporary cushion.
Recent development
Over the past few years, WhiteHorse Finance has implemented several strategic initiatives while navigating a challenging credit environment. The company reduced its base management fee from 2.0% to 1.75% effective January 2024, responding to competitive pressures and improving shareholder value proposition. The STRS Ohio joint venture has been expanded with increased commitments, now representing approximately $325 million in assets under management. The company has shifted its investment strategy toward non-sponsor and off-the-run sponsor markets due to increasingly aggressive competition in the traditional sponsor-backed deal market. Management has expressed concerns about excessive leverage and compressed pricing in sponsor deals, leading to a more selective approach. Recent quarters have seen a focus on companies with positive free cash flow, limited cyclical exposure, and strong defensive characteristics. Credit challenges have emerged with several portfolio companies, including American Crafts (lost major customer), Honors Holdings (fitness industry pressures), and Telestream (operational difficulties). The company has been actively working on restructuring these investments, with management expecting resolution of the Telestream situation by mid-2025. Despite these challenges, WhiteHorse has maintained its quarterly distribution and declared special distributions when excess income warranted, though recent earnings coverage has become more challenging.
WHF company profile · for informational purposes only — not investment advice.
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