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Sep 30
Whitehorse Finance Q3 2025 Earnings Report
Whitehorse Finance's third quarter 2025 earnings results were announced, including a stock repurchase program up to $15.0 million and a declared quarterly distribution of $0.25 per share.
Key Takeaways
WhiteHorse Finance reported a challenging third quarter with a decrease in total investment income and net investment income, primarily due to certain credits weighing on earnings. Despite this, the company is actively repositioning its portfolio, addressing underperformers, and has authorized a stock repurchase program and an adviser fee reduction to enhance long-term shareholder value.
Total investment income for Q3 2025 was $17.691 million, a 6.1% decrease from the previous quarter.
Net investment income and core net investment income for Q3 2025 was $6.101 million, a 7.0% decrease from the previous quarter.
Net investment income per share was $0.263, down from $0.282 in the prior quarter.
The board declared a quarterly distribution of $0.25 per share, a reduction from the previous quarter's $0.385 per share, to align payouts with current earnings power.
Whitehorse Finance
Whitehorse Finance
Forward Guidance
WhiteHorse Finance is focused on repositioning its portfolio, addressing underperforming assets, and pursuing new origination efforts with attractive risk-adjusted returns. The company has also implemented a stock repurchase program and an adviser fee reduction to enhance long-term shareholder value and align payouts with current earnings power.
Positive Outlook
- Authorization of a stock repurchase program up to $15.0 million, indicating confidence in the company's valuation.
- Voluntary waiver and reduction of the incentive fee on net investment income by WhiteHorse Advisers from 20.00% to 17.50% for the next two fiscal quarters, which should improve net investment income.
- Continued focus on new origination efforts in opportunities with attractive risk-adjusted returns.
- Dedicated restructuring team supporting efforts to work through challenged investments.
- The board's decision to reset the quarterly distribution is a necessary step to align payouts with current earnings power and strengthen the ability to deliver sustainable income.
Challenges Ahead
- Certain credits continue to weigh on earnings, impacting overall financial performance.
- The reduction in quarterly distribution per share from $0.385 to $0.25 may signal ongoing earnings pressure.
- The stock repurchase program does not guarantee any specific number of shares will be repurchased, and its effectiveness depends on market conditions.
- The company is still working through challenged investments, which may continue to impact future results.
- The forward-looking statements acknowledge risks and uncertainties that could cause actual results to differ materially.