WhiteHorse Finance posts earnings miss, revenue below estimates

WhiteHorse Finance Inc. reported quarterly earnings that fell short of analyst expectations, with revenue also trailing estimates as credit conditions tightened in its core lending segments.

The commercial finance company posted adjusted earnings per share of $0.32, below the $0.35 consensus estimate compiled by Refinitiv. Revenue totaled $48.7 million, down 5% year-over-year and missing the $51.2 million forecast.

Net interest income declined to $44.2 million from $46.8 million in the same period last year, reflecting lower loan volumes and narrower spreads. The company cited reduced demand for asset-based lending and equipment financing as key drivers of the revenue shortfall.

Provision for credit losses rose to $3.1 million from $1.9 million a year earlier, signaling elevated risk perceptions in its loan portfolio. Non-performing assets increased to 1.8% of total loans, up from 1.4% in the prior-year quarter.

WhiteHorse maintained its quarterly dividend at $0.34 per share, aligning with the prior period. The board declared a cash dividend of $0.34 per share payable on June 28 to shareholders of record as of June 14.

Shares of WhiteHorse Finance were down 3.2% in premarket trading following the release, trimming year-to-date gains to 4.1%.