Advanced Flower Capital Inc. Announces Financial Results for the First Quarter 2026
Rhea-AI Summary
Advanced Flower Capital (Nasdaq: AFCG) reported Q1 2026 results for the period ended March 31, 2026. GAAP net investment income was $4.8M, or $0.21 per share; net increase in net assets was $11.4M, or $0.49 per share. NAV per share rose to $7.90 from $7.46. Gross investment fundings were $80.9M and net fundings $39.1M. Net debt-to-equity, net of cash, was 0.48x. The company paid a $0.05 common stock distribution on April 15, 2026, and authorized up to $5.0M for share repurchases through May 4, 2027.
Positive
- GAAP net investment income of $4.8M ($0.21 per share)
- Net increase in net assets of $11.4M ($0.49 per share)
- Gross investment fundings of $80.9M and net fundings of $39.1M
- Board authorized $5.0M common stock repurchase program
Negative
- Distributions declared and payable of $1.2M ($0.05 per share) in Q1 2026
- Interest expense of $1.7M for the quarter
- Debt/equity ratio of 1.09x (leverage gross basis)
News Market Reaction – AFCG
In the May 7 session, AFCG gained 11.55%, reflecting a significant positive market reaction. Argus tracked a peak move of +15.3% during that session. Our momentum scanner triggered 14 alerts that day, indicating notable trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 04 | Q4/FY25 earnings | Negative | +9.1% | Reported FY 2025 GAAP net loss alongside BDC conversion completion and dividend. |
| Nov 12 | Q3 2025 earnings | Negative | +0.6% | Q3 GAAP net loss with Distributable Earnings positive and BDC conversion approval. |
| Aug 14 | Q2 2025 earnings | Negative | -3.7% | Q2 GAAP net loss but positive Distributable Earnings and strategic shift to BDC model. |
| May 14 | Q1 2025 earnings | Positive | -5.2% | Q1 GAAP net income and cash dividend of $0.23 per share announced. |
| Mar 13 | Q4/FY24 earnings | Positive | -20.4% | FY 2024 GAAP net income with strong Distributable Earnings and Q1 2025 dividend. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings headlines have often seen price moves that run counter to the profitability trend, with several positive or improving results followed by negative next-day performance.
Across the last five earnings releases from Mar 2024 to Mar 2026, AFC moved from a cannabis-focused mortgage REIT posting mixed GAAP results to a BDC structure targeting broader direct lending. Prior quarters showed sizeable GAAP losses but steady Distributable Earnings and recurring dividends, while the most recent FY 2025 report highlighted a $(20.7)M GAAP net loss alongside BDC conversion completion. Historically, these earnings updates have produced volatile and often negative next-day moves, regardless of whether GAAP results were profitable.
Key Terms
net asset value financial
business development company financial
payment-in-kind interest income financial
Regulation FD regulatory
Form 10-Q regulatory
Investment Company Act of 1940 regulatory
Rule 10b-18 regulatory
forward-looking statements regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
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
Share Repurchase Authorization
On May 4, 2026, the Company’s Board authorized a program for the purpose of repurchasing up to
Operating Results
| Three months ended March 31, 2026 | |||||
| (dollar amounts in millions, except per share data) | Total Amount | Per Share | |||
| Net investment income | $ | 4.8 | $ | 0.21 | |
| Net unrealized gain on investments, net of taxes | $ | 6.6 | $ | 0.28 | |
| Net increase in net assets resulting from operations | $ | 11.4 | $ | 0.49 | |
| Distributions declared and payable | $ | 1.2 | $ | 0.05 | |
| As of | ||
| (dollar amounts in millions, except per share data) | March 31, 2026 | |
| Portfolio investments at fair value | $ | 279.2 |
| Total assets | $ | 394.9 |
| Net assets | $ | 185.8 |
| Net asset value per share | $ | 7.90 |
| Debt/equity ratio | 1.09x | |
| Debt/equity ratio, net of cash | 0.48x | |
Additional Information
AFC issued a presentation of its first quarter 2026 results, titled “First Quarter 2026 Earnings Presentation,” which can be viewed on the Investor Relations section of AFC’s website found here AFC -- Investor Relations. The Company also filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, with the Securities and Exchange Commission on May 7, 2026.
AFC routinely posts important information for investors on its website here. The Company intends to use this webpage as a means of disclosing material information, for complying with our disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. AFC encourages investors, analysts, the media and others interested in AFC to monitor the Investor Relations section of its website, in addition to following its press releases, SEC filings, public conference calls, presentations, webcasts and other information posted from time to time on the website. To sign-up for email-notifications, please visit the “Email Alerts” section of the website under the “IR Resources” section.
Conference Call & Discussion of Financial Results
AFC will host a conference call at 10:00 am (Eastern Time) on Thursday, May 7, 2026, to discuss its quarterly financial results. All interested parties are welcome to participate. The call will be available through a live audio webcast at the Investor Relations section of AFC’s website found here AFC -- Investor Relations. To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. The complete webcast will be archived for 90 days on the Investor Relations section of AFC’s website.
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 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, targeting companies generating annual EBITDA of
| ADVANCED FLOWER CAPITAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | |||
| Three Months Ended March 31, 2026 | |||
| Investment income: | |||
| From non-controlled/non-affiliated investments: | |||
| Interest income | $ | 7,670,790 | |
| Payment-in-kind interest income | 332,640 | ||
| Other income | 1,809,788 | ||
| Total investment income | 9,813,218 | ||
| Expenses: | |||
| Interest expense | 1,726,540 | ||
| Management fee | 973,235 | ||
| Incentive fee on net investment income | 1,023,725 | ||
| General and administrative expenses | 860,496 | ||
| Director fees | 63,800 | ||
| Professional fees | 463,911 | ||
| Total expenses | 5,111,707 | ||
| Management fee rebate | (233,988 | ) | |
| Net expenses | 4,877,719 | ||
| Net investment income before taxes | 4,935,499 | ||
| Income tax expense | 109,368 | ||
| Net investment income | 4,826,131 | ||
| Net change in unrealized appreciation on investments | 7,118,443 | ||
| Provision for taxes on unrealized appreciation on investments | 517,227 | ||
| Net unrealized gain on investments, net of taxes | 6,601,216 | ||
| Net increase in net assets resulting from operations | $ | 11,427,347 | |
| Per share data: | |||
| Basic and diluted net investment income per share | $ | 0.21 | |
| Basic and diluted net increase in net assets resulting from operations per share | $ | 0.49 | |
| Basic and diluted weighted average shares of common stock outstanding | 23,528,844 | ||
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect our current views and projections with respect to, among other things, future events and financial performance. Words such as “believes,” “expects,” “will,” “intends,” “plans,” “guidance,” “estimates,” “projects,” “anticipates,” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements, including statements about our future growth and strategies for such growth, are subject to the inherent uncertainties in predicting future results and conditions and are not guarantees of future performance, conditions or results. Certain factors, including the ability of our adviser to locate suitable loan opportunities for us, monitor and actively manage our loan portfolio and implement our investment strategy; management’s current estimate of expected credit losses and current expected credit loss reserve and other factors could cause actual results and performance to differ materially from those projected in these forward-looking statements. More information on these risks and other potential factors that could affect our business and financial results is included in AFC’s filings with the SEC, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of AFC’s most recently filed periodic reports on Form 10-K, Form 10-Q and subsequent filings. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect AFC. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Investor Relations Contact
Robyn Tannenbaum
(561) 510-2293
ir@advancedflowercapital.com
