Financial Data and Key Metrics Changes - The company's Q2 GAAP net investment income and core NII was $6,600,000 or $0.02 per share, down from $6,800,000 or $0.02 per share in Q1, and below the quarterly distribution of $0.03 per share [6][18] - NAV per share at the end of Q2 was $11.82, representing a 2.4% decrease from the prior quarter [6][10] - Total investments decreased by $21,700,000 from the prior quarter to $629,300,000 [10] Business Line Data and Key Metrics Changes - Gross capital deployments in Q2 were $39,000,000, partially offset by repayments and sales of $36,200,000, resulting in net deployments of $2,800,000 [7] - The weighted average effective yield on income-producing debt investments decreased to 11.9% at the end of Q2 compared to 12.1% in Q1 [10] - Nonaccrual investments totaled 4.9% of the debt portfolio, an improvement from 8.8% in the prior quarter [11] Market Data and Key Metrics Changes - M&A activity remains subdued due to tariff uncertainty, leading to reduced supply of new financing deals [12] - In the upper mid cap and large cap markets, deals are pricing at SOFR $4.25 to SOFR $4.75, while the middle market pricing is 50 basis points higher at SOFR $4.75 to SOFR $5.25 [13] - The non-sponsor market remains less competitive, with the company focusing on sourcing off-the-run sponsor deals and non-sponsor deals [14] Company Strategy and Development Direction - The company continues to focus significant resources on the non-sponsor market, where better risk returns are available [14] - The company has no plans to increase the size of the existing joint venture (JV) at this time, believing it is appropriately sized [37] - The company is actively working on getting deals off nonaccrual, leveraging a dedicated restructuring team [11] Management's Comments on Operating Environment and Future Outlook - Management noted that the portfolio is performing well despite tariff pressures, with less than 10% of the portfolio being heavily or moderately exposed to tariffs [12] - The company expects that a portion of MSI Information Services will likely return to accrual in Q3, subject to successful restructuring [11] - The company anticipates a fully deployed balance sheet this quarter based on current mandates and repayment activity [35] Other Important Information - The company announced a third-quarter distribution of $0.03 per share, consistent with the prior quarter [22] - The company completed a CLO term debt securitization, issuing $174,000,000 in debt, which is expected to result in cost savings of $0.01 to $0.15 per share per quarter [20][21] Q&A Session Summary Question: Was the American Crafts exit a sale or a restructuring? - It was a sale of the remaining piece of the company, yielding very little in terms of proceeds, and there is no further downside on that account [25] Question: What is the term of the CLO reinvestment period? - The reinvestment period is through 05/25/2029 [26] Question: Can you elaborate on the tariff pressure and mitigating actions? - Companies are negotiating with suppliers to absorb tariff costs, and some are moving sourcing from China to Vietnam [32] Question: Should we expect elevated repayment activity given the higher number of mandates? - The company expects a good balance between repayment and new mandates, with the BDC balance sheet expected to be fully deployed this quarter [35] Question: Any plans to upsize the existing JV or pursue additional joint ventures? - There are no plans to increase the JV at this time, as it is believed to be sized appropriately [37] Question: Any updates on working down the spillover through 2025 and into 2026? - The company is considering the undistributed spillover income in combination with other factors when thinking about dividends for 2026 [41]

Company Overview - WhiteHorse Finance's portfolio fair value was $629.3 million as of June 30, 2025 [8] - The company's net asset value (NAV) per share was $11.82 as of June 30, 2025 [8] - The company's current dividend yield is 17.5% based on the August 6, 2025 share price of $8.78 [8] - Since its IPO in December 2012, WhiteHorse Finance has invested $2,811 million across 263 transactions [12] Portfolio Performance - The weighted average effective yield on income-producing investments was approximately 11.9% at the end of Q2 2025, compared to 12.1% in Q1 2025 [16] - The company's return on its investment in STRS JV at the end of Q2 2025 was 14.0% [16] - Total fair value of investments decreased from $651.0 million in Q1 2025 to $629.3 million in Q2 2025 [24] - Investments on non-accrual status were $24.0 million in fair value, representing 4.2% of investments based on fair value [24] Financial Highlights - Q2 Net Investment Income (NII) and Core NII was $6.6 million, or $0.282 per share [16] - The company completed a $298.15 million CLO term debt securitization in June 2025 [16]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission file number: 814-00967 WHITEHORSE FINANCE, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 45-4247759 (State or Other Jurisdiction of (I.R.S. Employer Incorporation or Organization) Identification No.) Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO S ...

Exhibit 99.1 WhiteHorse Finance, Inc. Announces Second Quarter 2025 Earnings Results and Declares Quarterly Distribution of $0.385 Per Share NEW YORK, August 7, 2025 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (Nasdaq: WHF) today announced its financial results for the second quarter ended June 30, 2025. In addition, the Company's board of directors has declared a distribution of $0.385 per share with respect to the quarter ended June 30, 2025. The distribution will be p ...

NEW YORK, Aug. 7, 2025 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (Nasdaq: WHF) today announced its financial results for the second quarter ended June 30, 2025. In addition, the Company's board of directors has declared a distribution of $0.385 per share with respect to the quarter ended June 30, 2025. The distribution will be payable on October 3, 2025 to stockholders of record as of September 19, 2025.Stuart Aronson, WhiteHorse Finance's Chief Executive Officer, comm ...

NEW YORK, July 25, 2025 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (Nasdaq: WHF) today announced that it will release its second quarter financial results for the period ended June 30, 2025 on Thursday, August 7, 2025. The Company will discuss its financial results on a conference call on the same day at 2:00 p.m. ET.To access the teleconference, please dial 800-267-6316 (domestic) or +1 203-518-9783 (international) approximately 10 minutes before the teleconference's s ...

Core Insights - The article emphasizes the importance of a hybrid investment strategy that combines high-quality dividend stocks with other asset classes such as Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The investment approach focuses on creating a balanced portfolio that not only provides income through dividends but also captures growth, aiming for a total return that aligns with the performance of the S&P 500 [1]. - The strategy is designed to be efficient in boosting investment income while maintaining a solid foundation of classic dividend growth stocks [1].

Financial Data and Key Metrics Changes - The first quarter results for 2025 were disappointing, with GAAP net investment income and core NII at $6,800,000 or $0.02 per share, down from $8,000,000 or $0.03 per share in Q4 2024 [6][19] - NAV per share decreased by approximately 1.6% to $12.11 from the prior quarter, impacted by net realized losses and markdowns totaling $2,600,000 [6][19] - The weighted average effective yield on income-producing debt investments decreased to 12.1% from 12.5% in the previous quarter [9][19] Business Line Data and Key Metrics Changes - Gross capital deployments in Q1 totaled $45,500,000, with net deployments of $26,100,000 after repayments and sales of $19,400,000 [6][9] - The portfolio mix at the end of Q1 was approximately 90.3% first lien, senior secured debt, with a mix of 2:3 sponsor to non-sponsor deals [8][9] - Nonaccrual investments increased to 8.8% of the debt portfolio from 7.2% in the prior quarter [13][19] Market Data and Key Metrics Changes - The STRS JV portfolio had an aggregate fair value of $310,200,000, with an average effective yield of 10.8%, down from 11.1% in Q4 [9][21] - The lending market has seen increased volatility, with a 25 to 50 basis point increase in direct lending market prices, although most of that premium has dissipated [15][19] - The M&A market has slowed significantly, with many deals being put on hold due to negative sentiment and tariff negotiations [14][45] Company Strategy and Development Direction - The company continues to focus on the non-sponsor market, where there are better risk-return profiles and less competition [16][19] - A new coverage region was added in Nashville, Tennessee, to enhance non-sponsor and off-the-run sponsor origination capabilities [16][19] - The company is actively monitoring tariff risks and has expanded its analysis to include other countries with potential tariffs [11][19] Management's Comments on Operating Environment and Future Outlook - Management noted that challenges in the quarter were more company-specific rather than related to the overall economy, with no signs of a recession yet in the portfolio [10][19] - The company expects a decent amount of refinancing activity in the second half of the year as prepayment penalties on higher-rate deals expire [51][19] - Management is cautious about the environment for deal closures in Q3, anticipating a relative quiet period [46][19] Other Important Information - The company declared a first-quarter distribution of $0.03 per share, consistent with the prior quarter, and will continue to evaluate quarterly distributions based on core earnings power [24][19] - Cash resources at the end of Q1 were approximately $19,600,000, with an asset coverage ratio of 177.2%, above the minimum requirement [22][19] Q&A Session Summary Question: Update on Telestream and its return to accrual status - Management indicated progress on restructuring Telestream, hoping to complete it by May, which would allow a portion of the existing debt to return to cash-paying status [28][19] Question: Insights on dividend and spillover income - Spillover income was approximately $28,400,000, with a current dividend run rate equating to about $8,950,000 in distributions, highlighting a shortfall in Q1 [39][19] Question: Market conditions regarding bid-ask spreads - Management noted that good companies without significant risks are trading at high multiples, while those with recession or tariff risks are seeing buyers being cautious [44][19] Question: Expectations on repayment activity - Management observed a slowdown in repayment activity due to recent market volatility, with a light visible repayment pipeline currently [53][19]

Financial Data and Key Metrics Changes - The company's Q1 2025 GAAP net investment income and core NII was $6,800,000 or $0.02 per share, down from $8,000,000 or $0.03 per share in Q4 2024, and below the quarterly distribution of $0.03 per share [6][18] - NAV per share at the end of Q1 was $12.11, representing a 1.6% decrease from the prior quarter, impacted by net realized losses and markdowns totaling $2,600,000 [6][18] - The weighted average effective yield on income-producing debt investments decreased to 12.1% at the end of Q1 from 12.5% in Q4 2024 [9][18] Business Line Data and Key Metrics Changes - Gross capital deployments in Q1 totaled $45,500,000, with net deployments of $26,100,000 after repayments and sales of $19,400,000 [6][9] - The portfolio mix at the end of Q1 consisted of approximately 90.3% first lien, senior secured debt, with a mix of two-thirds sponsor and one-third non-sponsor deals [7][9] - Nonaccrual investments totaled 8.8% of the debt portfolio, up from 7.2% in the prior quarter [13][18] Market Data and Key Metrics Changes - The STRS JV portfolio had an aggregate fair value of $310,200,000 with an average effective yield of 10.8%, down from 11.1% in Q4 [8][20] - The lending market has seen a 25 to 50 basis point increase in pricing due to increased volatility, but most of that premium has dissipated recently [15][18] - The M&A market has slowed significantly, with many deals being put on hold due to uncertainty in the economic environment [41][42] Company Strategy and Development Direction - The company continues to focus on the non-sponsor market, where there are better risk-return profiles and less competition [16][18] - The company added a new coverage region in Nashville, Tennessee, to enhance non-sponsor and off-the-run sponsor origination capabilities [16][18] - The company is actively monitoring the debt capital markets for opportunities to optimize or refinance its capital structure [21][18] Management's Comments on Operating Environment and Future Outlook - Management noted that challenges in the portfolio are more company-specific rather than related to the overall economy, with no signs of a recession yet [10][18] - The company expects a decent amount of refinancing activity in the second half of the year as prepayment penalties on higher-rate deals expire [46][18] - Management is cautious about the environment for deal closures in Q3, anticipating a quiet period due to the current market conditions [42][18] Other Important Information - The company declared a first-quarter distribution of $0.03 per share, consistent with the prior quarter, and will continue to evaluate its quarterly distribution based on core earnings power [22][18] - Cash resources at the end of Q1 were approximately $19,600,000, including $8,200,000 in restricted cash [21][18] Q&A Session Summary Question: Update on Telestream and its return to accrual status - Management indicated progress on restructuring Telestream, hoping to complete it by May, which would allow a portion of the existing debt to return to cash-paying status [26][27] Question: Dividend update and spillover income - Spillover income was approximately $28,400,000, with a current dividend run rate equating to about $8,950,000 in distributions, indicating a shortfall for Q1 [33][35] Question: Market conditions and bid-ask spreads - Management noted that good companies without significant tariff or recession risk are trading at high multiples, while those with risks are seeing buyers being conservative [40][41]

WhiteHorse Finance, Inc. Earnings Presentation Quarter Ended March 31, 2025 NASDAQ: WHF (Common Stock) NASDAQ: WHFCL (7.875% Notes due 2028) Important Information and Forward Looking Statements References in this presentation to "WHF", "WhiteHorse Finance", "we", "us", "our" and "the Company" refer to WhiteHorse Finance, Inc. This presentation and the information and views included herein do not constitute investment advice, or a recommendation or an offer to enter into any transaction with the Company or a ...