WhiteHorse Finance (WHF) Q2 2025 earnings summary

Executive summary

• Net investment income for Q2 2025 was $6.6 million ($0.282/share), down from $6.8 million ($0.294/share) in Q1 and $9.3 million in Q2 2024, with net realized and unrealized losses totaling $4.3 million due to portfolio markdowns and a $21.0 million write-off.

• Portfolio fair value at quarter-end was $629.3 million, with 132 positions in 71 companies; NAV per share declined 2.4% sequentially to $11.82.

• Gross investment deployments were $33.1 million in three new companies, with $36.2 million in repayments and $22.8 million in assets transferred to the STRS JV.

• Board declared a quarterly distribution of $0.385 per share, paid July 3, 2025, marking the 52nd consecutive quarter at or above $0.355.

• Second quarter results reflect ongoing portfolio-specific challenges, with progress in resolving underperforming investments.

Financial highlights

• Total investment income for Q2 2025 was $18.8 million, flat sequentially but down from $23.5 million in Q2 2024.

• Net realized losses for Q2 2025 were $22.0 million, mainly from restructurings and a $21.0 million write-off, offset by $17.7 million in unrealized appreciation.

• Net assets at quarter-end were $274.7 million, with a market cap of $204.1 million as of August 6, 2025.

• Weighted average effective yield on income-producing debt investments was 11.9% at quarter-end, down from 12.1% in Q1 and 13.8% in Q2 2024.

• Distributions declared for the six months ended June 30, 2025 totaled $17.9 million, or $0.77 per share.

Outlook and guidance

• Management expects continued pressure on yields due to high interest rates and non-accruals, with a focus on disciplined underwriting and portfolio monitoring.

• Portfolio strategy emphasizes downside protection, cash flow visibility, and selectivity in new originations.

• Sufficient liquidity and capital resources are highlighted, with no plans to increase JV size.