WhiteHorse Finance Inc. 7.875% Notes due 2028 (WHFCL)

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking at WhiteHorse Finance's 7.875% notes due 2028, not the common equity, so the central question is creditworthiness: can the issuer cover fixed obligations and repay principal? From the filed figures, the earnings record is uneven. In fiscal year 2023, the year ended 2023-12-31, net income was $20.4M. In fiscal year 2024, the year ended 2024-12-31, it fell to $10.9M, then recovered to $14.3M in fiscal year 2025, the year ended 2025-12-31. The quarterly pattern is lumpier: fiscal Q3 2025, the quarter ended 2025-09-30, had net income of -$556,000 and EPS -$0.02; fiscal Q1 2026, the quarter ended 2026-03-31, had net income of -$687,000 and EPS -$0.03; but fiscal Q2 2026, the quarter ended 2026-06-30, produced net income of $10.4M and EPS $0.48. FairStock's Lynch category is slow grower — shrinking, with profit -14.7% a year over five years. I see no durable moat in these numbers; a financial-services company with volatile profit must prove stable profitability. On valuation, FairStock's P/E, P/B, and ROE are N/A, revenue is n/a in all listed periods, and the price is $25.14 at the 2026-10-16 close within a 52-week range of $24.97–$25.65. Without interest coverage, asset coverage, leverage, cash flow, or yield-to-maturity, I cannot calculate a Graham-style margin of safety. The coupon and 2028 maturity are attractive only if the Q2 2026 rebound is real and recurring; otherwise the credit risk is the dominant fact.

In plain English: WhiteHorse Finance is a financial-services company; this security is its note paying 7.875% and due in 2028. The profit record looks uneven rather than strong, with losses in some recent quarters and lower annual profit than a few years ago. At $25.14, the price is within its 52-week range of $24.97 to $25.65, so on the limited numbers it looks close to fair rather than clearly cheap.

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Data as of 2026-10-16 close · note generated 2026-10-20 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer