AFCG

Completed the first quarter operating as a Business Development Company (BDC), expanding investment flexibility beyond real estate-backed cannabis loans. Shifted focus toward the lower middle market to capture an 'exceptional vintage' created by larger lenders moving upmarket to support existing portfolios. Targeting cash-flowing operating businesses with $5 million to $50 million in EBITDA, a segment management believes offers superior risk-adjusted returns. Achieved net fundings of $39.1 million in Q1, driven by $90 million in new non-cannabis commitments offset by $41.2 million in cannabis loan repayments. Emphasizing strong credit quality through the use of financial covenants, such as cash flow measures and fixed charge coverage ratios, rather than the covenant-light structures common in larger deals. Maintaining a robust active pipeline of over $1.5 billion in potential deals across healthcare, consumer, manufacturing, and services sectors. Expects overall portfolio yields to shift toward the low double-digit range as the company prioritizes higher-quality borrowers and sponsors over higher-yielding cannabis assets. Intends to redeploy capital from cannabis loan paydowns and non-accrual liquidations into performing lower middle market credits to support current income. Anticipates that federal rescheduling of cannabis could improve asset values and recovery prospects for non-accrual loans, though the primary growth focus remains non-cannabis lending. Plans to utilize available dry powder and an expanded $80 million credit facility for deployment throughout 2026, though specific timing remains subject to market conditions. Authorized a $5 million share buyback program as a flexible tool for capital allocation and enhancing long-term shareholder value. Reported three loans currently on non-accrual status, with a focus on maximizing recovery through liquidations and legal remedies. Expressed the intention to exercise rights and remedies against Justice Grown following a maturity default on 05/01/2026., targeting collateral including cultivation facilities and dispensaries in New Jersey and Pennsylvania. Received a $6.2 million paydown from the Debbie Holdings receivership during Q1, bringing total recoveries from that credit to $20.8 million. Expanded the senior secured revolving credit facility to $80 million, with a potential accordion feature to reach...

Advanced Flower Capital Inc. (AFCG) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.21 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +35.48%. A quarter ago, it was expected that this company would post a loss of $0.04 per share when it actually produced a loss of $0.12, delivering a surprise of -200%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Advanced Flower Capital Inc., which belongs to the Zacks Financial - SBIC & Commercial Industry industry, posted revenues of $9.81 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 36.39%. This compares to year-ago revenues of $6.64 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Advanced Flower Capital Inc. shares have lost about 2.8% since the beginning of the year versus the S&P 500's gain of 7.6%. While Advanced Flower Capital Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Advanced Flower Capital Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the ma...

Interested in AFC Gamma Inc.? Here are five stocks we like better. First quarter operating as a BDC: AFC Gamma shifted into lower middle market private credit, closing two non‑cannabis loans totaling about $90M (plus $5M post‑quarter), reporting net fundings of $39.1M and a deal pipeline of over $1.5B; management expects yields to normalize into the low double‑digit range. Portfolio stress and recovery actions: The firm has three loans on non‑accrual and its Justice Grown loan entered maturity default on May 1, 2026, with AFC pursuing guarantees and asset remedies; it also received $6.2M in Debbie Holt’s paydowns this quarter ( $20.8M total to date). NAV and capital allocation: NAV rose to $7.90 (+$0.44) driven by $0.21 per‑share net investment income and unrealized appreciation; the board declared a $0.05 quarterly dividend, authorized a $5M share buyback, and expanded the revolver to $80M (expandable to $100M). AFC Gamma (NASDAQ:AFCG) reported first-quarter 2026 results and discussed its expanding focus on lower middle market private credit during an earnings call covering the period ended March 31, 2026. Management highlighted the company’s first full quarter operating as a business development company (BDC), new non-cannabis originations, repayments in its cannabis loan book, and updates on certain challenged credits. President and Chief Investment Officer Robyn Tannenbaum said the company completed its “first quarter operating as a BDC,” which she said expanded AFC’s investment flexibility beyond real estate-backed lending. Tannenbaum said the change “better positions AFC to diversify its exposure across industries and credit risk profiles.” → Berkshire Hathaway’s Record Cash Hoard: Why and What's Next? During the quarter, the company closed two non-cannabis lower middle market deals totaling approximately $90 million in new commitments. Tannenbaum also noted that AFC received $41.2 million in cannabis loan repayments during the quarter and posted net fundings of $39.1 million for the period. Daniel Neville, Chief Executive Officer, provided more detail on the quarter’s new investments and additional post-quarter funding. He said AFC closed two loans totaling $90 million during the first quarter and, subsequent to quarter end, “closed an additional $5 million of loans.” → A Prada Payday: Is AMC Back in Style? Neville described a $60 million senior secur...

Image source: The Motley Fool. Thursday, May 7, 2026 at 10 a.m. ET President — Robyn Tannenbaum Chief Executive Officer — Leonard Mark Tannenbaum Chief Financial Officer — Brandon Hetzel Chief Legal Officer — Gabriel A. Katz Chief Investment Officer — Daniel Neville Robyn providing an overview of our results. Len will then provide commentary on the lower middle market, and then Dan will provide an overview of our portfolio and pipeline. Finally, Brandon will conclude with a summary of our financial results before we open the lines for Q&A. With that, I will now turn the call over to our President, Robyn Tannenbaum. Robyn Tannenbaum: Thanks, Gabe, and good morning, everyone. We appreciate you joining us to discuss Advanced Flower Capital Inc.'s first quarter earnings. Before turning to earnings, we are pleased to have completed our first quarter operating as a BDC. The conversion to a business development company has expanded Advanced Flower Capital Inc.'s investment flexibility, which has allowed us to pursue opportunities beyond real estate-backed loans. We believe that this expanded opportunity better positions Advanced Flower Capital Inc. to diversify its exposure across industries and credit risk profiles. During the quarter, we closed two non-cannabis deals in the lower middle market, totaling approximately $90 million in new commitments. Additionally, we received $41.2 million in cannabis loan repayments during the quarter. For Q1 2026, Advanced Flower Capital Inc. had net fundings of $39.1 million. The two lower middle market deals are similar to other transactions in our pipeline and have many of the characteristics we look for: cash-flowing operating businesses backed by experienced sponsors. Turning to earnings, for the first quarter of 2026, Advanced Flower Capital Inc. generated net investment income of $0.21 per basic weighted average share of common stock. Additionally, the Board of Directors declared a first quarter distribution of $0.05 per share, which was paid on 04/15/2026 to shareholders of record on 03/31/2026. Before turning the call over to Len, I would like to note that the Board of Directors has put a $5 million share buyback program in place. We view the share buyback authorization as a flexible component of our capital allocation strategy designed to enhance long-term shareholder value. Now I will turn it over to Len to discuss the...

WEST PALM BEACH, Fla., May 07, 2026 (GLOBE NEWSWIRE) -- Advanced Flower Capital Inc. (Nasdaq: AFCG) (“AFC,” or the “Company”) today announced its financial results for the first quarter ended March 31, 2026. First Quarter 2026 Highlights GAAP net investment income (“NII”) for the quarter ended March 31, 2026, was $4.8 million, or $0.21 per basic weighted average share Net asset value per share as of March 31, 2026, was $7.90, as compared to $7.46 as of December 31, 2025 GAAP net increase in net assets resulting from operations for the quarter ended March 31, 2026, was $11.4 million, or $0.49 per basic weighted average share Gross and net investment fundings were $80.9 million and $39.1 million, respectively Net debt-to-equity as of March 31, 2026 was 0.48x “AFC delivered a strong first quarter with net investment income exceeding our quarterly dividend. Additionally, in our first quarter as a BDC, we saw an increase in investment fundings driven by our pipeline focused on the lower-middle market across various industries,” said Dan Neville, Chief Executive Officer. Common Stock Distribution On April 15, 2026, the Company paid a regular cash distribution of $0.05 per common share for the first quarter of 2026 to shareholders of record as of March 31, 2026. Share Repurchase Authorization On May 4, 2026, the Company’s Board authorized a program for the purpose of repurchasing up to $5.0 million of the Company's common stock (the “Repurchase Program”). Under the Repurchase Program, the Company may, but is not obligated to, repurchase its outstanding common stock in the open market from time to time, provided that the Company complies with the prohibitions under its compliance policies and procedures adopted in accordance with the Investment Company Act of 1940, as amended, and the guidelines specified in Rule 10b-18 under the Securities Exchange Act of 1934, as amended, including certain price, market, volume, and timing constraints. Unless amended or extended by the Company's Board of Directors, the Company expects the Repurchase Program to be in place until the later of such time that $5.0 million of the Company's outstanding shares of common stock have been repurchased, or May 4, 2027. Operating Results Additional Information AFC issued a presentation of its first quarter 2026 results, titled “First Quarter 2026 Earnings Presentation,” which can be viewed on...

WEST PALM BEACH, Fla., April 15, 2026 (GLOBE NEWSWIRE) -- AFC today announced that it will release its financial results for the first quarter ended March 31, 2026, on Thursday, May 7, 2026, before market open. Management will review AFC’s financial results at 10:00 am ET via webcast available on the Investor Relations section of AFC’s website found here AFC -- Investor Relations. Participants are also invited to access the conference call by registering in advance at this link. A replay will be available one hour after the event. AFC distributes its earnings releases via its website and email lists. Those interested in receiving firm updates by email can sign up for them here. About AFC AFC (Nasdaq: AFCG) is a publicly traded business development company that provides flexible credit solutions to lower middle market companies. The company primarily originates, structures, invests and manages direct senior debt investments typically ranging from $10 to $100 million. The company seeks to maximize risk-adjusted returns for its stockholders with an opportunistic approach across all industries. AFC is headquartered in West Palm Beach, Florida. For additional information regarding the company, please visit the AFC website here. Investor Relations Contact Robyn Tannenbaum 561-510-2293 [email protected]

Advanced Flower Capital Inc. (NASDAQ:AFCG) is one of the 11 Best Marijuana Stocks to Buy Right Now. On March 4, 2026, Advanced Flower Capital Inc. (NASDAQ:AFCG) reported fourth-quarter 2025 GAAP net income of $0.9 million, or $0.04 per share, with distributable earnings of $(2.8) million, or ($0.12) per share. The corporation announced a full-year GAAP net loss of $(20.7) million, or $0.95 per share, while producing distributable earnings of $8.7 million, or $0.39 per share. Advanced Flower Capital Inc. (NASDAQ:AFCG)’s CEO, Dan Neville, stated that the company focused on disciplined portfolio management and completed its BDC conversion in 2025 by resolving underperforming loans and reallocating capital to lower-middle-market enterprises. On March 2, 2026, the firm declared a cash dividend of $0.05 per common share for the first quarter of 2026, which will be paid on April 15, 2026, to shareholders of record as of March 31, 2026. Advanced Flower Capital Inc. (NASDAQ:AFCG) offers commercial real estate finance services. Its primary business is to originate, structure, underwrite, and manage senior secured loans and other types of loans for established businesses in the cannabis market across states. While we acknowledge the potential of AFCG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. Disclosure: None. Follow Insider Monkey on Google News.

This article first appeared on GuruFocus. Release Date: March 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Advanced Flower Capital Inc (NASDAQ:AFCG) successfully converted from a real estate investment trust to a business development company (BDC), expanding its investment flexibility. The company received $117 million in paydowns from both performing and underperforming credits, indicating effective portfolio management. AFCG originated $53 million in new commitments during 2025 and closed on $89.7 million of new commitments in the lower middle market after year-end. The active pipeline increased significantly to $1.4 billion, reflecting the expanded investment universe post-conversion to a BDC. AFCG closed two significant loans in Q1 2026, including a $60 million senior secured credit facility and a $30 million senior secured term loan, supporting growth in diverse industries. AFCG reported distributable earnings per share of negative $0.12 for the quarter, primarily due to losses from underperforming credits. The company has three loans on non-accrual status, which could continue to affect earnings and recovery value. AFCG's GAAP net loss for the full year 2025 was $20.7 million, indicating financial challenges. The company faces difficulties in deploying fresh capital into the cannabis sector due to regulatory and financial challenges within the industry. AFCG's capacity to sustain a $100 million per quarter lending pace is uncertain, given current credit facilities and cash on hand. Warning! GuruFocus has detected 3 Warning Signs with AFCG. Is AFCG fairly valued? Test your thesis with our free DCF calculator. Q: The active pipeline increased significantly to $1.4 billion from last quarter's $400 million. What factors contributed to this increase, and how quickly could this translate to closed originations? A: The increase is primarily due to our conversion from a REIT to a BDC, which expanded our investable universe beyond cannabis and real estate-backed loans. This allows us to invest in cash flow loans not fully covered by real estate, broadening our opportunities. Q: Can you provide a split between the cannabis and non-cannabis pipeline, and how do the expected yields for non-cannabis compare to the legacy portfolio? A: We view the active pipeline as spanning lower middle market compani...

Completed conversion from a REIT to a Business Development Company (BDC) as of January 1, 2026, to remove real estate coverage restrictions and expand the investable universe. Focused 2025 efforts on reducing exposure to underperforming credits to preserve capital, with $117,000,000 in total paydowns received from early 2025 through the reporting date. Shifted strategic focus toward the lower middle market, targeting cash-flowing borrowers with EBITDA between $5,000,000 and $50,000,000 across diverse industries. Attributed 2025 distributable earnings pressure primarily to realized losses from two underperforming credits, resulting in dividends being characterized as a tax-free return of capital. Maintained a high bar for new cannabis investments due to a lack of industry equity capital, burgeoning tax liabilities, and slow incremental progress on regulatory reforms. Actively managing three nonaccrual loans with the intent to redeploy recovered capital into performing credits to unlock future earnings potential. Identified an active deal pipeline of over $1,400,000,000 as of February 2026, a significant increase driven by the expanded BDC investment mandate. Anticipates continued distributions from Private Company A throughout 2026 as operating assets under agreement meet regulatory milestones. Expects the sale of all collateral for Private Company K to be completed within 2026, with two dispensaries currently awaiting regulatory approval for sale. Management is evaluating options to refinance $77,000,000 in unsecured bonds prior to their May 2027 maturity date. Future dividend characterization may continue as a return of capital if additional losses are recognized during the 2026 fiscal year. Recorded a CECL reserve of $46,100,000, representing approximately 18.2% of loans at carrying value as of year-end 2025. Recognized a total unrealized loss of $27,700,000 on the balance sheet for loans held at fair value. Repurchased $13,000,000 of unsecured bonds during the quarter to manage the company's debt profile. Noted the upcoming maturity of the Justice Grown loan on May 1, 2026, amid ongoing legal appeals regarding a preliminary injunction. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the growth to the BDC conversion, which allows f...

Image source: The Motley Fool. Wednesday, March 4, 2026 at 10 a.m. ET Chief Executive Officer — Daniel Neville Chief Financial Officer — Brandon Hetzel President and Chief Investment Officer — Robyn Tannenbaum Daniel Neville, our Chief Executive Officer; and Brandon Hetzel, our Chief Financial Officer. Before we begin, I would like to note that this call is being recorded. Replay information is included in our 02/10/2026 press release and is posted on the Investor Relations portion of Advanced Flower Capital Inc.'s website at advancedflowercapital.com, along with our fourth quarter and full year earnings release and investor presentation. Today's conference call includes forward-looking statements and projections that reflect the company's current views with respect to, among other things, anticipated market developments, portfolio yield, and financial performance in 2026 and beyond. These statements are subject to inherent uncertainties in predicting future results. Please refer to Advanced Flower Capital Inc.'s most recent periodic filings with the SEC, including our Annual Report on Form 10-K filed earlier this morning, for certain conditions and significant factors that could cause actual results to differ materially from these forward-looking statements and projections. During this call, we will refer to distributable earnings, which is a non-GAAP financial measure. Reconciliations to net income, the most comparable GAAP measure, for distributable earnings can be found in Advanced Flower Capital Inc.'s earnings release and investor presentation available on our website. Today's call will begin with Robyn providing a high-level recap of our 2025 fiscal year, including the conversion to a BDC. Dan will then provide an overview of our portfolio. Finally, Brandon will conclude with a summary of our financial results before we open the lines for Q&A. With that, I will now turn the call over to our President and CIO, Robyn Tannenbaum. Robyn Tannenbaum: Thanks, Gabe, and good morning to all our investors and analysts that have joined us today. Looking back on 2025, Advanced Flower Capital Inc. was focused on, one, reducing our exposure to underperforming credits through active portfolio management, and two, converting from a real estate trust to a business development company, or BDC, to expand the universe of transactions Advanced Flower Capital Inc. could in...

Converted to a BDC (effective Jan. 1, 2026), broadening AFC Gamma’s investment mandate beyond real-estate-backed loans to cash-flow lending; management says the active pipeline exceeds $1.4 billion and the company has already closed sizable lower-middle-market deals, including a $60 million facility and a $30 million commitment in early 2026. AFC spent 2025 on credit remediation, receiving about $117 million of paydowns while still carrying three loans on non-accrual and a CECL reserve of $46.1 million (≈18.2% of loans), with ongoing recovery efforts in legacy positions (Private Company A/K and Justice Grown) expected to drive further distributions. Financially, Q4 distributable earnings were -$2.8 million (GAAP net income $0.9M) while full-year 2025 showed distributable earnings of $8.7 million but a GAAP net loss of $20.7 million; the board declared a $0.05 per share first-quarter dividend payable April 15, 2026. Interested in AFC Gamma Inc.? Here are five stocks we like better. Advanced Flower Capital’s leadership said the company spent 2025 actively managing underperforming credits, generating meaningful loan paydowns, and preparing for a strategic shift that broadened its investment universe. On the company’s fourth-quarter and full-year 2025 earnings call, executives also discussed the completion of a conversion from a REIT to a business development company (BDC) effective Jan. 1, 2026, along with early activity under the expanded lending mandate. Robyn Tannenbaum, President and Chief Investment Officer of AFC Gamma (NASDAQ:AFCG), said the company’s focus during 2025 centered on reducing exposure to underperforming credits through active portfolio management and completing the conversion from a REIT to a BDC to expand the universe of transactions it can pursue. → IonQ in Rebound Mode: Buy the Thesis, Respect the Risk Tannenbaum said AFC received $117 million of paydowns from performing and underperforming credits from the start of 2025 through the date of the call. She also said the company originated $53 million of new commitments during fiscal 2025 and, subsequent to year-end, closed $89.7 million of new commitments in the lower middle market. Management framed the paydowns and redeployment effort as an opportunity to improve earnings power over time, noting that repayments from underperforming assets could be reinvested into performing credits. → Bi...