WhiteHorse Finance (WHF) investor relations material

Executive summary

• Q1 2026 results were impacted by credit-driven losses and portfolio markdowns, with net investment income declining to $5.6 million ($0.253/share), down from $6.6 million ($0.287/share) in Q4 2025 and $6.8 million in Q1 2025, primarily due to lower yields, more non-accrual loans, and a smaller portfolio.

• Net realized and unrealized losses totaled $6.3 million, mainly from markdowns on specific investments, resulting in a net decrease in net assets from operations of $0.7 million.

• NAV per share decreased to $11.47 from $11.68 in Q4, a 1.8% decline, reflecting losses partially offset by accretive share repurchases.

• Share repurchases at a significant discount to NAV provided meaningful NAV accretion and supported shareholder value.

• The advisor voluntarily reduced its incentive fee rate from 20% to 17.5% for Q1 and Q2 2026, waiving $0.2 million in Q1 to support distributable earnings.

Financial highlights

• Total investment income for Q1 2026 was $15.9 million, down from $17.3 million in Q4 2025 and $18.8 million in Q1 2025.

• Net investment income per share was $0.253, with core NII also at $0.25.

• NAV per share was $11.47 at March 31, 2026, with net assets at $250.3 million and investments at fair value of $543.0 million.

• Gross leverage increased to 1.31x from 1.26x; net leverage was 1.12x, down from 1.15x.

• Share repurchases totaled 412,000 shares at $7.31 average price, accreting $0.08/share to NAV.

Outlook and guidance

• Management expects continued focus on share buybacks given the shares' significant discount to NAV, with capital reserved for this purpose.

• The company will maintain its quarterly base distribution of $0.25/share and evaluate supplemental distributions as warranted.

• Market outlook remains uncertain due to geopolitical, inflation, and consumer sentiment risks, but deal flow and portfolio rotation have improved recently.

• Adviser voluntarily reduced incentive fee rate to 17.5% for Q2 2026 to support net investment income.

• Focus remains on active portfolio management, risk mitigation, and selective new investments.