WhiteHorse Finance, Inc. Announces Second Quarter 2025 Earnings Results and Declares Quarterly Distribution of $0.385 Per Share

Core Viewpoint - WhiteHorse Finance reported its financial results for Q2 2025, highlighting ongoing portfolio challenges but expressing confidence in the overall stability of its investments [2][3]. Financial Results - Total investment income for Q2 2025 was $18.838 million, a slight increase of 0.2% from $18.801 million in Q1 2025 [3]. - Total expenses, including excise tax, rose to $12.276 million, up 2.7% from $11.958 million in the previous quarter [3]. - Net investment income decreased to $6.562 million, down 4.1% from $6.843 million in Q1 2025, with a per-share income of $0.282 compared to $0.294 [3][18]. - The company declared a distribution of $0.385 per share for Q2 2025, consistent with the previous quarter [7][8]. Portfolio and Investment Activity - As of June 30, 2025, the fair value of the investment portfolio was $629.3 million, down 3.3% from $651.0 million as of March 31, 2025 [4]. - The portfolio consisted of 132 positions across 71 companies, with a weighted average effective yield of 11.9% on income-producing debt investments [4]. - During Q2 2025, the company invested $33.1 million in three new portfolio companies and added $5.9 million to existing companies [5]. Asset Management - The company transferred assets totaling $22.8 million to STRS JV in exchange for cash during the quarter [6]. - The net realized losses for the quarter were $22.045 million, while net unrealized appreciation was $17.733 million [3]. Shareholder Information - The distribution of $0.385 per share will be payable on October 3, 2025, to stockholders of record as of September 19, 2025 [7]. - The company has maintained distributions at or above $0.355 for 51 consecutive quarters since its IPO [8]. Management Commentary - The CEO noted that while earnings power remains below prior-year levels, progress is being made in resolving underperforming investments [2]. - The focus remains on credits with strong fundamentals, leveraging diversified sourcing capabilities and disciplined underwriting [2].