Revenue performance remains highly inconsistent, with net margins swinging from a peak of 56.4% in 2025Q4 to a negative 6.2% in 2026Q1 due to portfolio-level fair value adjustments.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Net Interest Income | 40.19M | 30.31M | 38.5M | 58.07M | 52.08M | 46.56M | 43.51M | 44.03M | 44.61M | 39.42M | 40.46M | -9.97M | -5.82M | -5.34M | -1.13M |
| NII Growth % | -42.38% | -21.28% | -33.69% | 11.5% | 11.85% | 7.01% | -1.19% | -1.29% | 13.16% | -2.57% | 505.83% | -71.36% | -8.93% | -372.24% | - |
| Net Interest Margin % | 6.63% | 4.93% | 5.69% | 7.95% | 6.54% | 5.47% | 6.05% | 6.98% | 8.68% | 8.12% | 9.07% | -2.26% | -1.36% | -1.43% | -0.3% |
| Interest Income | 62.14M | 53.45M | 66.4M | 87.98M | 74.02M | 63.15M | 56.63M | 57.5M | 56.21M | 49.23M | 48.65M | 0 | 0 | 0 | 0 |
| Interest Expense | 21.95M | 23.14M | 27.9M | 29.91M | 21.94M | 16.59M | 13.13M | 13.47M | 11.6M | 9.81M | 8.19M | 9.97M | 5.82M | 5.34M | 1.13M |
| Loan Loss Provision | -1.08M | -5.07M | -27.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.05M | -20.04M | -5.34M | -725K |
| Non-Interest Income | -19.35M | -15.56M | -49.31M | -32.38M | -30.72M | -11.21M | -7.49M | -9.79M | 16.69M | -2.25M | -6.23M | 639K | 23.33M | 22.39M | 40.71M |
| Non-Interest Income % | -45.22% | -41.06% | -288.43% | -58.25% | -70.96% | -21.57% | -15.24% | -20.53% | 22.9% | -4.8% | -14.68% | 100% | 100% | 100% | 100% |
| Total Revenue | 42.79M | 37.89M | 17.09M | 55.6M | 43.29M | 51.95M | 49.14M | 47.71M | 72.9M | 46.98M | 42.42M | 639K | 23.33M | 22.39M | 40.71M |
| Revenue Growth % | 318.11% | 121.65% | -69.25% | 28.42% | -16.66% | 5.7% | 3.01% | -34.56% | 55.18% | 10.74% | 6538.81% | -97.26% | 4.21% | -45.02% | - |
| Non-Interest Expense | 6.95M | -18.41M | 5.12M | 4.3M | 4.65M | 4.25M | 3.59M | 2.59M | 3.06M | 10.96M | 7.22M | 3.47M | 3.78M | 3.35M | 749K |
| Efficiency Ratio | 16.24% | -48.58% | 29.97% | 7.74% | 10.73% | 8.19% | 7.31% | 5.42% | 4.2% | 23.32% | 17.03% | 542.41% | 16.22% | 14.99% | 1.84% |
| Operating Income | 14.97M | 38.23M | 11.97M | 21.38M | 16.71M | 31.1M | 32.43M | 31.65M | 58.24M | 26.21M | 27.01M | 20.75M | 17M | 19.31M | 42.2M |
| Operating Margin % | 34.99% | 100.89% | 70.03% | 38.45% | 38.59% | 59.86% | 65.98% | 66.35% | 79.89% | 55.8% | 63.67% | 3248.04% | 72.88% | 86.26% | 103.65% |
| Operating Income Growth % | - | 219.3% | -44% | 27.95% | -46.28% | -4.1% | 2.44% | -45.65% | 122.2% | -2.96% | 30.14% | 22.08% | -11.96% | -54.24% | - |
| Pretax Income | 9.94M | 14.34M | 10.85M | 21.38M | 16.71M | 31.1M | 32.43M | 31.65M | 58.24M | 34.45M | 31.33M | -2.83M | 19.54M | 19.03M | 39.56M |
| Pretax Margin % | 23.23% | 37.84% | 63.47% | 38.45% | 38.59% | 59.86% | 65.98% | 66.35% | 79.89% | 73.33% | 73.85% | -442.41% | 83.78% | 85.01% | 97.16% |
| Income Tax | 557K | 0 | 0 | 965K | 1.02M | 1M | 742K | 813K | 942K | 0 | 0 | 1K | 0 | 0 | 0 |
| Effective Tax Rate % | 5.6% | 0% | 0% | 4.51% | 6.13% | 3.23% | 2.29% | 2.57% | 1.62% | 0% | 0% | -0.04% | 0% | 0% | 0% |
| Net Income | 9.39M | 14.34M | 10.85M | 20.41M | 15.68M | 30.09M | 31.68M | 30.84M | 57.3M | 34.45M | 31.33M | -2.83M | 19.54M | 19.03M | 39.56M |
| Net Margin % | 21.93% | 37.84% | 63.47% | 36.71% | 36.23% | 57.93% | 64.47% | 64.65% | 78.6% | 73.33% | 73.85% | -442.41% | 83.78% | 85.01% | 97.16% |
| Net Income Growth % | 2.62% | 32.13% | -46.84% | 30.15% | -47.89% | -5.02% | 2.74% | -46.18% | 66.34% | 9.96% | 1208.21% | -114.46% | 2.7% | -51.89% | - |
| Net Income (Continuing) | 9.39M | 14.34M | 10.85M | 20.41M | 15.68M | 30.09M | 31.68M | 30.84M | 57.3M | 34.45M | 31.33M | -2.83M | 19.54M | 19.03M | 39.56M |
| EPS (Diluted) | 0.42 | 0.62 | 0.47 | 0.88 | 0.68 | 1.42 | 1.54 | 1.50 | 2.79 | 1.77 | 1.71 | -0.18 | 1.30 | 1.27 | 2.64 |
| EPS Growth % | -21.2% | 31.91% | -46.59% | 29.41% | -52.11% | -7.79% | 2.67% | -46.24% | 57.63% | 3.51% | 1050% | -113.85% | 2.36% | -51.89% | - |
| EPS (Basic) | - | 0.62 | 0.47 | 0.88 | 0.68 | 1.42 | 1.54 | 1.50 | 2.79 | 1.77 | 1.71 | -0.18 | 1.30 | 1.27 | 2.64 |
| Diluted Shares Outstanding | 22.17M | 23.17M | 23.24M | 23.24M | 23.23M | 21.15M | 20.55M | 20.55M | 20.54M | 19.43M | 18.3M | 15.32M | 14.98M | 14.97M | 14.97M |
Portfolio fair value volatility
As evidenced by the quarterly income statement data, WHF's revenue trajectory remains highly inconsistent, characterized by significant fluctuations such as the sharp contraction to $1.5M in 2024Q3 followed by a rebound, suggesting that top-line performance is heavily dependent on non-recurring transactional events rather than steady organic growth.
The lack of a stable revenue baseline implies that investors should be cautious about extrapolating recent quarterly figures into long-term projections. This volatility likely stems from the timing of loan originations and repayments, which are inherent to the lower middle market BDC model but appear particularly pronounced in WHF's recent history.
Based on reported financial statements, WHF's gross margins have demonstrated extreme variability, ranging from a negative 3.5% in 2024Q3 to a peak of 66.1% in 2025Q4, indicating that the firm's profitability is highly susceptible to fair value adjustments and portfolio-level credit events.
The wide swings in gross margin suggest that the company's underlying yield on debt investments is frequently overshadowed by unrealized gains or losses. This makes it difficult to assess the true pricing power of the portfolio, as the reported figures appear to be more reflective of accounting valuations than consistent interest income generation.
According to the provided income statement data, WHF's net income frequently diverges from operational performance, with net margins swinging from 56.4% in 2025Q4 to negative 6.2% in 2026Q1, highlighting the significant impact of non-cash fair value marks on the bottom line.
The reliance on Level 3 asset valuations introduces a layer of subjectivity that complicates the assessment of true earnings quality. Investors should monitor the extent to which reported net income is driven by these non-cash adjustments versus actual cash-based net investment income to determine the sustainability of dividend distributions.
Analysis of the income statement suggests that WHF's profitability is currently masked by accounting volatility, as evidenced by the 2024Q3 period where gross profit turned negative, raising concerns about the potential for future credit losses within the lower middle market portfolio.
Short-sellers would likely focus on the inconsistency of the gross profit line as a proxy for underlying credit deterioration. The recurring nature of these margin swings warrants further investigation into whether the firm's underwriting standards are sufficiently robust to withstand a broader downturn in the U.S. credit environment.
Quick answers to the most common questions about buying WHF stock.
WhiteHorse Finance, Inc. (WHF) is profitable, generating $14.3M in net income for the fiscal year ending 2025 with a net profit margin of 37.8%.
WhiteHorse Finance, Inc. (WHF) reported an operating income of $38.2M, resulting in an operating profit margin of 100.9%. This margin reflects the operational efficiency of the business before interest and taxes.
WhiteHorse Finance, Inc. (WHF) generated $19.8M in gross profit for the year, representing a gross profit margin of 52.3%. This demonstrates the company's core pricing power and production efficiency.