WhiteHorse Finance Inc (NASDAQ:WHF) Stock Falls After Q3 2025 Earnings Miss

WhiteHorse Finance Inc (NASDAQ:WHF) reported its third quarter 2025 financial results, revealing a performance that fell short of analyst expectations on key profitability and revenue metrics. The market's immediate reaction has been notably negative, with the stock trading significantly lower in pre-market activity following the earnings release.

Earnings and Revenue Performance

The company's financial results for the quarter ended September 30, 2025, did not meet the forecasts set by Wall Street analysts. The discrepancy between expectations and actual performance was evident in both earnings per share and total revenue.

• Reported Non-GAAP EPS: $0.26
• Analyst Estimated EPS: $0.2901
• Reported Revenue: $17.69 million
• Analyst Estimated Revenue: $18.99 million

The company missed on the bottom line by approximately 10.4% and on the top line by about 6.8%. For a business development company like WhiteHorse Finance, which generates income primarily from its lending activities, these misses on core income statements are closely scrutinized by investors as indicators of the company's ability to effectively deploy capital and manage its investment portfolio.

Market Reaction

The financial markets delivered a swift verdict on the earnings miss. In pre-market trading, shares of WhiteHorse Finance are down approximately 6.9%. This sharp decline suggests that investors were disappointed by the company's failure to meet consensus estimates. The negative price action effectively erases the modest gains the stock had accumulated over the past month, highlighting the significance the market places on quarterly earnings performance relative to expectations.

Key Announcements from the Press Release

Beyond the earnings figures, the company's board of directors made two significant announcements. First, they declared a quarterly distribution of $0.25 per share, payable to stockholders of record as of December 22, 2025. The maintenance of this distribution could be seen as a signal of management's confidence in the company's liquidity and ability to generate stable income, despite the quarterly earnings miss.

Second, the board authorized a new stock repurchase program of up to $15.0 million. Such a program is often interpreted as a belief by management that the company's stock is undervalued. The announcement of a buyback can sometimes provide support to a stock price by signaling confidence and reducing the number of shares outstanding, though in this instance it was not enough to offset the negative sentiment from the earnings results.

Looking Ahead

With the third quarter results now public, investor attention will begin to shift toward the final quarter of 2025. Analyst estimates for the upcoming period are already in place, providing a benchmark for future performance.

• Analyst Estimated Q4/2025 EPS: $0.29
• Analyst Estimated Q4/2025 Revenue: $18.77 million

The company's ability to meet or exceed these estimates in the next quarter will be critical in determining whether the current negative reaction is a short-term setback or indicative of a longer-term trend.

For a more detailed look at historical earnings, future estimates, and analyst projections for WhiteHorse Finance, you can review the data here.

---

Disclaimer: This article is for informational purposes only and is not intended as investment advice. The author has no position in the security mentioned. All investment decisions involve risk, and readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.