AFC Gamma, Inc. Earnings Recaps
Q1 2026
May 8, 2026
Advanced Flower Capital’s shares surged 16.2% after the first quarter report, driven primarily by investors’ positive reaction to the company’s expansion into the lower middle market and its growing pipeline of non-cannabis private credit deals.
Key takeaways
- Completed first quarter operating as a BDC, broadening investment flexibility beyond cannabis-backed loans.
- Closed two lower middle market loans totaling $90 million during the quarter, with strong pipeline of $1.5 billion in potential deals.
- Reported net investment income of $0.21 per share and declared a $0.05 per share dividend.
- Received $41.2 million in cannabis loan repayments during Q1, contributing to net fundings of $39.1 million.
- Maintains three non-accrual loans with ongoing asset liquidation and paydowns; $6.2 million received in Q1 toward one distressed investment.
Q3 2025
Nov 12, 2025
Advanced Flower Capital Inc. demonstrated resilient performance in Q3 2025, with distributable earnings of $0.16 per share and a successful shareholder vote to convert to a Business Development Company, enhancing growth prospects.
Key takeaways
- Generated distributable earnings of $0.16 per share, supported by a $0.15 quarterly dividend payout.
- Received $43 million in principal repayments, improving cash flow and enabling reinvestment into higher yield opportunities.
- Shareholder approval for BDC conversion set to diversify investment strategies beyond the cannabis sector, effective in 2026.
- Continued management focus on underperforming loans, including successful recoveries from ongoing liquidations.
Q2 2025
Aug 14, 2025
Advanced Flower Capital reported second quarter 2025 distributable earnings of $0.15 per share, maintaining its dividend amidst ongoing challenges with legacy loans and strategic shifts toward converting to a business development company (BDC).
Key takeaways
- Distributable earnings of $0.15 per share matched the declared dividend, reflecting operational stability despite legacy loan challenges.
- The company fully exited an underperforming equipment loan, impacting current earnings but not book value due to prior reserves.
- Proposed conversion from REIT to BDC seeks to broaden investment opportunities, allowing lending to operators without real estate coverage and enhancing growth prospects in the cannabis sector.
- Continued focus on realizing value from troubled loans, particularly with legal proceedings surrounding Justice Grown, highlights proactive credit management strategies.
- Management signaled optimism around potential sector tailwinds from federal cannabis rescheduling, presenting new capital influx opportunities.