WhiteHorse Finance: JPM 2Q26 Earnings Scorecard – Review

Research evidence excerpt

J P M O R G A N

North America Equity Research

11 August 2026

WhiteHorse Finance

JPM 2Q26 Earnings Scorecard – Review

Underweight

WHF, WHF US

Price (10 Aug 26):$6.71

Consumer Finance

Today (8/11) BMO, WHF reported 2Q26 NII per share of $0.217, below JPM and

consensus estimates of $0.23/$0.25, respectively. NAV per share increased 2.6%

sequentially to $11.77, above our forecast of $11.71. WHF maintained its regular

quarterly distribution of $0.25/sh (stable Q/Q). WHF will host an earnings call

today at 1:30PM ET. We expect a muted reaction as investors weigh a modest NII

miss and essentially flat (but elevated) non-accruals (5.8% at cost from 5.9% in 1Q)

versus higher NAV (+2.6% Q/Q).

NII/sh of $0.217 was below JPMe ($0.23) and consensus estimate ($0.25).

Total investment income was $14.4M, below JPMe of $14.8M and consensus

of $15.5M. Pre-tax net investment income was $4.7M, below JPMe $5.2M and

consensus estimate of $5.4M. Interest expense was $4.8M vs. JPMe of $4.6M;

total other expenses (including management and incentive fees) were $4.8M.

WHF reported a weighted average effective yield of 10.8% on debt

investments, flat Q/Q.

NAV increased 2.6% sequentially to $11.77 (versus JPMe of $11.71), driven

by accretive share repurchases and net realized and unrealized gains on

investments and foreign currency transactions. Net realized and unrealized

gains totaled $5.7M for the quarter; we estimate that these were comprised of

$0.1M of net realized losses and $5.8M of net unrealized gains. During the

quarter, WHF also repurchased 0.3M shares at an average price of $7.42/sh,

resulting in NAV accretion of ~$0.06/sh.

Gross originations outpace repayments and exits in 2Q26. WHF had

$30.5M of gross originations in 2Q26 (above JPMe $25.0M), while exits and

repayments totaled $11.0M (below JPMe $50.0M), resulting in $19.5M of net

originations vs. JPMe of $25M net repayments. Portfolio investments totaled

$569.2M (up from $543.0M Q/Q) and D:E decreased slightly to ~1.28x, (from

1.29x Q/Q).

Non-accruals essentially unchanged (but remain elevated). 2Q26 nonaccruals at cost were 5.8% and 3.0% at FV, compared to 5.9% (cost) and 3.0%

(FV), respectively, Q/Q.

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