Advanced Flower Capital Inc. Announces Financial Results for the Fourth Quarter and Full Year 2025
Rhea-AI Summary
Advanced Flower Capital (Nasdaq: AFCG) reported Q4 2025 GAAP net income $0.9M ($0.04/share) and Q4 Distributable Earnings $(2.8)M ($0.12/share). For full-year 2025, AFC recorded a GAAP net loss $(20.7)M ($0.95/share) and Distributable Earnings $8.7M ($0.39/share).
The company completed its BDC conversion, declared a $0.05 per share common dividend payable April 15, 2026 (record date March 31, 2026), filed its 2025 Form 10-K and posted an earnings presentation for investors.
Positive
- Distributable earnings of $8.7M for full-year 2025 ($0.39/share)
- Declared dividend of $0.05 per common share payable April 15, 2026
- BDC conversion completed, expanding AFC's investment universe
Negative
- GAAP net loss $(20.7)M for full-year 2025 ($0.95/share)
- Provision for credit losses $(22.59)M for 2025
- Stock-based compensation $6.84M for 2025
News Market Reaction – AFCG
In the Mar 4 session, AFCG gained 9.05%, reflecting a notable positive market reaction. Argus tracked a peak move of +17.7% during that session. Our momentum scanner triggered 13 alerts that day, indicating notable trading interest and price volatility. Trading volume was above average at 1.6x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Nov 12 | Q3 2025 earnings | Neutral | +0.6% | Reported Q3 2025 GAAP net loss with positive Distributable Earnings and planned BDC conversion. |
| Aug 14 | Q2 2025 earnings | Neutral | -3.7% | Q2 2025 GAAP net loss but positive Distributable Earnings and announced planned BDC conversion. |
| May 14 | Q1 2025 earnings | Positive | -5.2% | Q1 2025 GAAP net income and positive Distributable Earnings with dividend declaration. |
| Mar 13 | FY 2024 earnings | Positive | -20.4% | Full-year 2024 GAAP net income and strong Distributable Earnings alongside Q1 2025 dividend. |
| Nov 13 | Q3 2024 earnings | Positive | -2.2% | Q3 2024 GAAP net income and Distributable Earnings with quarterly dividend payment. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have often coincided with negative stock reactions, including selloffs after otherwise positive or mixed financial results.
Over the past five earnings cycles, AFCG has reported a mix of GAAP profits and losses alongside generally positive Distributable Earnings. Despite quarters such as Q1 2025 and full-year 2024 showing GAAP net income and solid Distributable Earnings, the stock frequently traded lower after results, including a 20.38% decline on the 2024 full-year report. Recent earnings also marked the strategic shift from REIT to BDC, with dividends stepping down over time, framing today’s 2025 Q4 and full-year report within a broader transition period.
Key Terms
gaap financial
distributable earnings financial
bdc financial
regulation fd regulatory
form 10-k regulatory
current expected credit losses financial
trs financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Fourth quarter 2025 GAAP net income of
Full year 2025 GAAP net loss of
WEST PALM BEACH, Fla., March 04, 2026 (GLOBE NEWSWIRE) -- Advanced Flower Capital Inc. (Nasdaq: AFCG) (“AFC,” or the “Company”) today announced its results for the fourth quarter and year ended December 31, 2025.
AFC reported generally accepted accounting principles (“GAAP”) net income of
“In 2025, we focused on disciplined portfolio management and the successful completion of our BDC conversion. As a BDC with a broader investment universe, we remain focused on unlocking value from underperforming loans and redeploying that capital into high-quality, cash-flowing businesses in the lower middle market,” said Dan Neville, AFC’s Chief Executive Officer. “In short, we remain committed to resolving legacy positions and leveraging our robust pipeline to drive long-term value for our shareholders.”
Common Stock Dividend
On March 2, 2026, the Company’s Board of Directors declared a regular cash dividend of
Additional Information
AFC issued a presentation of its fourth quarter and full year 2025 results, titled “Fourth Quarter and Full Year 2025 Earnings Presentation,” which can be viewed at advancedflowercapital.com on the Investor Relations section of AFC’s website found here AFC – Investor Relations. The Company also filed its Annual Report on Form 10-K for the year ended December 31, 2025, with the Securities and Exchange Commission on March 4, 2026.
AFC routinely posts important information for investors on its website, advancedflowercapital.com. 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 Wednesday, March 4, 2026, to discuss its quarterly and annual 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
Non-GAAP Metrics
In addition to using certain financial metrics prepared in accordance with GAAP to evaluate our performance, we also use Distributable Earnings to evaluate our performance excluding the effects of certain transactions and GAAP adjustments we believe are not necessarily indicative of our current loan activity and operations. Distributable Earnings is a measure that is not prepared in accordance with GAAP. Distributable Earnings and the other capitalized terms not defined in this section have the meanings ascribed to such terms in our most-recently filed Annual Report on Form 10-K. We use this non-GAAP financial measure both to explain our results to shareholders and the investment community and in the internal evaluation and management of our businesses. Our management believes that this non-GAAP financial measure and the information it provides is useful to investors since this measure permits investors and shareholders to assess the overall performance of our business using the same tools that our management uses to evaluate our past performance and prospects for future performance.
The determination of Distributable Earnings is substantially similar to the determination of Core Earnings under our Management Agreement, provided that Core Earnings is a component of the calculation of any Incentive Compensation earned under the Management Agreement for the applicable time period, and thus Core Earnings is calculated without giving effect to Incentive Compensation expense, while the calculation of Distributable Earnings accounts for any Incentive Compensation earned for such time period.
We define Distributable Earnings as, for a specified period, the net income (loss) computed in accordance with GAAP, excluding (i) stock-based compensation expense, (ii) depreciation and amortization, (iii) any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss); provided that Distributable Earnings does not exclude, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with PIK interest and zero coupon securities), accrued income that we have not yet received in cash, (iv) provision for (reversal of) current expected credit losses, (v) taxable REIT (as defined below) subsidiary (“TRS”) (income) loss, net of any dividends received from TRS and (vi) one-time events pursuant to changes in GAAP and certain non-cash charges, in each case after discussions between our Manager and our independent directors and after approval by a majority of such independent directors.
We believe providing Distributable Earnings on a supplemental basis to our net income as determined in accordance with GAAP is helpful to shareholders in assessing the overall performance of our business. As a real estate investment trust (“REIT”), we are required to distribute at least
Distributable Earnings is a non-GAAP financial measure and should not be considered as a substitute for GAAP net income. We caution readers that our methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our reported Distributable Earnings may not be comparable to similar measures presented by other REITs.
| ADVANCED FLOWER CAPITAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| Three months ended December 31, 2025 | Year ended December 31, 2025 | |||||||
| Revenue | ||||||||
| Interest income | $ | 6,640,305 | $ | 31,322,137 | ||||
| Interest expense | (1,453,964 | ) | (6,758,536 | ) | ||||
| Net interest income | 5,186,341 | 24,563,601 | ||||||
| Expenses | ||||||||
| Management and incentive fees, net (less rebate of | 716,181 | 2,927,867 | ||||||
| General and administrative expenses | 976,593 | 3,231,642 | ||||||
| Stock-based compensation | 5,315,118 | 6,840,805 | ||||||
| Professional fees | 363,518 | 1,451,361 | ||||||
| BDC conversion expenses | 428,082 | 1,234,054 | ||||||
| Total expenses | 7,799,492 | 15,685,729 | ||||||
| Provision for current expected credit losses | (65,786 | ) | (22,590,706 | ) | ||||
| Gain on extinguishment of debt | 359,305 | 359,305 | ||||||
| Change in unrealized gains (losses) on loans at fair value, net | 3,520,599 | (7,933,276 | ) | |||||
| Net income (loss) before income taxes | 1,200,967 | (21,286,805 | ) | |||||
| Income tax expense (benefit) | 286,921 | (613,379 | ) | |||||
| Net income (loss) | $ | 914,046 | $ | (20,673,426 | ) | |||
| Earnings per common share: | ||||||||
| Basic | $ | 0.04 | $ | (0.95 | ) | |||
| Diluted | $ | 0.04 | $ | (0.95 | ) | |||
| Weighted average number of common shares outstanding: | ||||||||
| Basic weighted average shares of common stock outstanding | 22,652,344 | 22,246,019 | ||||||
| Diluted weighted average shares of common stock outstanding | 22,739,319 | 22,282,784 | ||||||
The following table provides a reconciliation of GAAP Net income (loss) to Distributable Earnings:
| Three months ended December 31, 2025 | Year ended December 31, 2025 | |||||||
| Net income (loss) | $ | 914,046 | $ | (20,673,426 | ) | |||
| Adjustments to net income (loss): | ||||||||
| Stock-based compensation expense | 5,315,118 | 6,840,805 | ||||||
| Depreciation and amortization | — | — | ||||||
| Unrealized (gains) losses or other non-cash items | (3,520,599 | ) | 7,933,276 | |||||
| (Reversal of) provision for current expected credit losses2 | (5,197,746 | ) | 15,549,928 | |||||
| TRS income, net of dividends | (324,560 | ) | (996,290 | ) | ||||
| One-time events pursuant to changes in GAAP and certain non-cash charges | — | — | ||||||
| Distributable earnings | $ | (2,813,741 | ) | $ | 8,654,293 | |||
| Basic weighted average shares of common stock outstanding | 22,652,344 | 22,246,019 | ||||||
| Distributable earnings per basic weighted average share | $ | (0.12 | ) | $ | 0.39 | |||
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
________________________________
1 Distributable Earnings is a non-GAAP financial measure. See the “Non-GAAP Metrics” section of this release for a reconciliation of GAAP Net Income to Distributable Earnings.
2 The provision for current expected credit losses is presented net of any write-offs.
