WhiteHorse Finance, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total investment income for the three months ended September 30, 2026, was $14.829 million, a 3.2% increase from $14.369 million in the prior quarter.
• Total expenses, including excise tax, rose 7.2% to $10.390 million from $9.688 million in the prior quarter.
• Net investment income decreased 5.2% to $4.439 million from $4.681 million in the prior quarter, resulting in net investment income per share of $0.207 versus $0.217.
• Core net investment income increased 2.7% to $4.806 million from $4.681 million in the prior quarter, or $0.224 per share compared to $0.217.
• Net realized losses were $3.631 million, a significant increase from $51,000 in the prior quarter.
• Net unrealized appreciation was $5.703 million, a 1.3% decrease from $5.779 million in the prior quarter.
• Net increase in net assets resulting from operations was $6.511 million, down 37.4% from $10.409 million in the prior quarter.
• Net asset value per share increased to $11.82 as of September 30, 2026, from $11.77 as of June 30, 2026.
• Total investments at fair value were $569.073 million as of September 30, 2026, essentially flat from $569.202 million as of June 30, 2026.
• Investments in STRS JV totaled $332.601 million, down 2.3% from $340.272 million in the prior quarter.

Business Segments and Product Lines:

• The portfolio consisted of 125 positions across 64 companies with a weighted average effective yield of 11.0% on income-producing debt investments.
• The portfolio composition was approximately 70.7% first lien secured loans, 0.9% second lien secured loans, 0.2% unsecured loans, 7.9% equity, and 20.3% in STRS JV investments.
• Average debt investment size (excluding STRS JV) was $5.2 million.
• Nearly all loans were variable rate investments indexed to the Secured Overnight Financing Rate, with fixed rate securities representing only 1.4% of loans at fair value.
• Nearly all performing floating rate investments have interest rate floors.
• During the quarter, the company made new investments in two portfolio companies totaling $14.8 million and added $6.2 million to existing portfolio companies.
• Proceeds from sales and repayments totaled approximately $10.0 million, driven by full realizations from Transervice and PFB equity.
• The company transferred assets comprising five portfolio companies totaling $21.4 million to STRS JV in exchange for a net investment of $7.2 million and $14.2 million in cash proceeds.
• All new originations during the quarter were first lien loans.
• Non-accruals declined following the completion of a restructuring, with no new additions to non-accruals during the quarter.

Distributions:

• The board declared a quarterly distribution of $0.25 per share for the quarter ending December 31, 2026, payable on January 6, 2027, to stockholders of record as of December 21, 2026.
• A special distribution of $0.17 per share was declared on October 14, 2026, payable on December 10, 2026, to stockholders of record as of October 30, 2026.
• A distribution of $0.25 per share for the quarter ended September 30, 2026, was paid on October 5, 2026.

Other Key Points:

• WhiteHorse Advisers voluntarily agreed to reduce the incentive fee on net investment income from 20.00% to 17.50% for the fiscal quarter ending December 31, 2026.
• Stuart Aronson, CEO, noted that net asset value per share increased for a second consecutive quarter driven by favorable portfolio markups.
• The company remains focused on realizing value from equitized positions and redeploying capital into income-producing investments while managing risk.
• The company is a business development company originating and investing in loans to privately held, lower middle market companies, managed by H.I.G. WhiteHorse Advisers, LLC.
• H.I.G. Capital, the affiliate managing the company, reported $76 billion of capital under management as of November 9, 2026.