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Get filing alertsWhiteHorse Finance reports Q2 2026 NAV growth to $11.77/share, NII falls short of dividend
Filed August 10, 2026 · Period ending August 10, 2026 · ~2 min read
Key Changes
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Net investment income declined to $0.217/share in Q2 from $0.253/share in Q1, falling $0.033/share short of the $0.25 quarterly dividend. Investment adviser voluntarily reduced incentive fee from 20% to 17.5% for Q3 to improve coverage.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
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NAV per share increased $0.30 to $11.77 despite NII undercoverage, driven by $5.7M in net unrealized gains (primarily $4.8M markup on Sklar Holdings) and $0.06/share accretion from repurchasing 0.3M shares at $7.42 average price.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
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Board declared $0.25/share quarterly distribution payable October 5, 2026 to shareholders of record September 21, 2026, maintaining the regular distribution level.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
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Portfolio grew to $569.2M from $543.0M as the company deployed $25.4M into three new and five existing portfolio companies while receiving only $2.2M in repayments. Weighted average yield on debt investments held at 10.8%.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
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Net leverage increased to 1.19x from 1.12x as cash balances declined, while gross leverage remained stable at 1.30x within the target 1.25x-1.35x range.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR →
Summary
WhiteHorse Finance reported mixed Q2 2026 results that highlight the tension between current income generation and portfolio appreciation. Net investment income fell 14% quarter-over-quarter to $0.217 per share, creating a $0.033 per share shortfall against the $0.25 quarterly dividend.
This undercoverage matters because BDCs are required to distribute substantially all taxable income, and persistent NII shortfalls can pressure either the dividend or NAV over time. The investment adviser's voluntary fee reduction for Q3 (from 20% to 17.5% of NII) should help close this gap going forward.
Despite the income shortfall, NAV per share grew 2.6% to $11.77, driven by $5.7 million in unrealized gains concentrated in two portfolio companies and accretive share repurchases at a 37% discount to book value. The company deployed $25.4 million into new and existing investments while maintaining a 10.8% portfolio yield, suggesting the income decline may reflect timing rather than structural deterioration. Net leverage ticked up to 1.19x as cash balances were deployed, but remains within the stated target range. Retail holders should monitor whether Q3 NII (with the reduced fee) returns to dividend coverage levels. The current $0.25 distribution yields approximately 13% at the recent $7.42 share price, but that yield is sustainable only if portfolio income stabilizes. The NAV growth and opportunistic buybacks are positive, but a BDC trading at a 37% discount to book typically signals market skepticism about either asset quality or income sustainability.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
WhiteHorse Finance announced Q2 2026 financial results and declared a quarterly distribution.
Added in current filing · verify on EDGAR →
On August 10, 2026, WhiteHorse Finance, Inc. (the “Company”) issued a press release announcing a quarterly distribution and its financial results for the second quarter ended June 30, 2026.
WhiteHorse Finance disclosed its second quarter 2026 financial results and announced a quarterly distribution to shareholders. The specific financial metrics and distribution amount are contained in the press release exhibit, which was not provided in the 8-K body text.
Event · Item 7.01 — Regulation FD Disclosure
WhiteHorse Finance furnished an earnings presentation under Regulation FD disclosure requirements.
Show 1 minor / wording change
Added in current filing · verify on EDGAR →
A copy of an earnings presentation that is intended to be used by representatives of the Company is furnished as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.
The company furnished an earnings presentation as Exhibit 99.2 under Regulation FD disclosure rules. The filing is procedural, providing public access to materials company representatives will use. The presentation itself is not included in the 8-K body.
Event · Exhibit 99.1
WhiteHorse Finance reported Q2 2026 results with NAV growth to $11.77/share, declared $0.25/share distribution, and announced a fee waiver.
Added in current filing · view on EDGAR → · paraphrased
Net asset value per share 11.77 11.47 0.30 2.6 Net investment income and core net investment income(1) 4,681 5,603 (922) (16.5) Net investment income and core net investment income(1) per share 0.217 0.253 (0.036) (14.2) Net unrealized appreciation (depreciation) 5,779 (1,563) 7,342 NM Net increase (decrease) in net assets resulting from operations 10,409 (687) 11,096 NM
WhiteHorse Finance reported Q2 2026 net asset value per share of $11.77, up $0.30 or 2.6% from the prior quarter's $11.47. Net investment income was $4.7 million ($0.217 per share), down 16.5% from Q1's $5.6 million ($0.253 per share). The company recorded net unrealized appreciation of $5.8 million, reversing the prior quarter's $1.6 million depreciation, driving a net increase in net assets from operations of $10.4 million versus a $0.7 million decrease in Q1.
Added in current filing · view on EDGAR →
As of June 30, 2026 ... , the fair value of WhiteHorse Finance’s investment portfolio was $569.2 million, compared with $543.0 million as of March 31, 2026. The portfolio as of June 30, 2026 consisted of 131 positions across 67 companies with a weighted average effective yield of 10.8% on income-producing debt investments. ... During the three months ended June 30, 2026, WhiteHorse Finance made investments in three new portfolio companies for a total of $23.1 million, added a total of $2.3 million to existing portfolio companies and net fundings of $1.8 million to revolver loans.
The investment portfolio grew to $569.2 million from $543.0 million, a $26.2 million increase. The company deployed $23.1 million into three new portfolio companies and $2.3 million into existing companies, while receiving only $2.2 million in repayments. The portfolio maintained a 10.8% weighted average yield on debt investments across 131 positions in 67 companies.
Show 1 minor / wording change
Added in current filing · view on EDGAR →
during the three months ended June 30, 2026, WhiteHorse Finance transferred assets comprised of two existing portfolio companies, totaling $7.8 million to STRS JV in exchange for a net investment in STRS JV of $2.3 million as well as cash proceeds of $5.5 million.
The company transferred $7.8 million in assets from two portfolio companies to its STRS JV joint venture, receiving $5.5 million in cash and a $2.3 million net investment in the JV. This transaction provided liquidity while maintaining exposure through the joint venture structure.
Event · Exhibit 99.2
WhiteHorse Finance reported Q2 2026 earnings with NII of $0.217/share, NAV increase to $11.77/share, and declared $0.25/share quarterly dividend.
Added in current filing · view on EDGAR →
Q2 Net Investment Income (“NII”) and Q2 Core NII(1) was $4.7 million, or $0.217 per share, which compares with Q1 NII and Core NII of $5.6 million, or $0.253 per share.
Net investment income declined to $0.217 per share in Q2 2026 from $0.253 per share in Q1 2026, a decrease of $0.036 per share. This represents the company's core earnings from its lending portfolio before realized and unrealized gains. The decline means Q2 NII fell short of covering the $0.25 quarterly dividend by $0.033 per share.
Added in current filing · view on EDGAR →
Made gross investment deployments of $25.4 million, comprising $23.1 million in three new portfolio companies and $2.3 million in add-ons to five portfolio companies, plus $1.8 million in net revolver fundings. ... Gross leverage decreased in Q2 2026 to 1.30x from 1.31x at Q1 2026. Net leverage as of Q2 2026 was 1.19x, versus 1.12x at Q1 2026.
The company deployed $25.4 million in new and add-on investments while receiving $2.2 million in repayments and transferring $7.8 million to the STRS joint venture. Gross leverage remained stable at 1.30x (down slightly from 1.31x), within the target 1.25x-1.35x range, while net leverage increased modestly to 1.19x from 1.12x as cash balances declined.
Added in current filing · view on EDGAR →
Repurchased approximately 0.3 million shares at an average price of $7.42, for a total cost of $2.6 million, resulting in net asset value accretion of approximately $0.06 per share.
The company repurchased 0.3 million shares at an average price of $7.42 per share, spending $2.6 million. Since shares were repurchased at a 37% discount to the $11.77 NAV, the buyback was accretive by $0.06 per share to remaining shareholders. This represents opportunistic capital allocation given the wide discount to book value.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 12, 2026 · How we verify