AFC Announces Financial Results for the Second Quarter 2026
Rhea-AI Summary
Advanced Flower Capital (Nasdaq: AFCG) reported second quarter 2026 total investment income of $8.7 million and GAAP net investment income (NII) of $3.5 million, or $0.15 per weighted average share. Net unrealized gains were $1.9 million, leading to a $5.4 million net increase in net assets, or $0.23 per share.
Net asset value per share rose to $8.25 from $7.90 on March 31, 2026, supported by the repurchase of 839,406 shares for approximately $2.8 million, which added $0.17 per share of NAV accretion. The investment portfolio stood at $289.8 million across 17 portfolio companies, fully in senior secured first lien debt, with a 13.2% weighted average yield. Debt-to-equity was 1.10x, net debt-to-equity 0.53x, and total assets $399.7 million. AFC paid a regular quarterly cash distribution of $0.05 per share and had over $70 million in available liquidity as of June 30, 2026.
Positive
- NAV per share increased to $8.25 from $7.90 QoQ
- Net increase in net assets from operations of $5.4 million
- Share repurchases of 839,406 shares at $3.29, $0.17 NAV accretion
- Investment portfolio grew to $289.8 million across 17 companies
- Weighted average yield on debt investments of 13.2%
- Asset coverage ratio at 190% with debt-to-equity of 1.10x
Negative
- Total investment income declined to $8.7 million from $9.8 million QoQ
- Net investment income fell to $3.5 million from $4.8 million QoQ
- NII per share decreased to $0.15 from $0.21 QoQ
- Net unrealized gains decreased to $1.9 million from $6.6 million QoQ
- Weighted average shares declined to 23.2 million after repurchases, reflecting capital returned
News Explained
AFC completed the repurchase and extinguishment of 839,406 common shares during the second quarter; absent offsetting changes, this reduces the share count and increases each remaining holder’s percentage ownership.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 07 | First-quarter earnings | Positive | +11.6% | Net investment income and NAV increased, alongside positive operating results. |
| Mar 04 | Full-year earnings | Negative | +9.1% | GAAP loss and negative distributable earnings accompanied the annual results. |
| Nov 12 | Third-quarter earnings | Negative | +0.6% | GAAP loss, credit provisions, and unrealized losses were reported. |
| Aug 14 | Second-quarter earnings | Negative | -3.7% | GAAP loss and strategic investment mandate changes defined the release. |
| May 14 | First-quarter earnings | Positive | -5.2% | GAAP income and distributable earnings were reported with a cash dividend. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings reactions were mixed, with positive and negative responses across the five prior comparable events.
Key Terms
gaap financial
debt-to-equity financial
net debt-to-equity financial
asset coverage financial
payment-in-kind interest financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second quarter 2026 GAAP net investment income (“NII”) of
or
WEST PALM BEACH, Fla., Aug. 13, 2026 (GLOBE NEWSWIRE) -- Advanced Flower Capital Inc. (Nasdaq: AFCG) (“AFC,” or the “Company”) today announced its financial results for the second quarter ended June 30, 2026.
Second Quarter 2026 Highlights
- Total investment income of
$8.7 million and GAAP NII of$3.5 million , or$0.15 per weighted average share - Net asset value (“NAV”) per share of
$8.25 as of June 30, 2026, compared with$7.90 as of March 31, 2026 - GAAP net increase in net assets resulting from operations of
$5.4 million , or$0.23 per weighted average share - Gross and net investment fundings of
$17.2 million and$8.0 million , respectively - Investment portfolio of
$289.8 million at fair value across 17 portfolio companies, compared with$279.2 million as of March 31, 2026 - Weighted average yield on income producing debt investments of
13.2% as of June 30, 2026 - Debt-to-equity of 1.10x and net debt-to-equity of 0.53x; total available liquidity of over
$70 million - Repurchased 839,406 shares at a weighted average price of
$3.29 , generating$0.17 per share of NAV accretion in connection with our recently adopted Share Repurchase Program (as defined below)
“AFC generated net investment income of
Common Stock Distribution
On July 15, 2026, the Company paid a regular cash distribution of
Share Repurchase Program
On May 4, 2026, the Company’s Board of Directors (the “Board”) authorized a program for the purpose of repurchasing up to
During the quarter, AFC repurchased and extinguished 839,406 shares at a weighted average price of
Operating Results
| As of | |||||
| (in millions, except per share data and ratios) | June 30, 2026 | March 31, 2026 | |||
| Investment portfolio, at fair value | $ | 289.8 | $ | 279.2 | |
| Total assets | $ | 399.7 | $ | 394.9 | |
| Total debt outstanding | $ | 207.0 | $ | 203.0 | |
| Net assets | $ | 187.3 | $ | 185.8 | |
| Net asset value per share | $ | 8.25 | $ | 7.90 | |
| Debt-to-equity | 1.10 x | 1.09 x | |||
| Net debt-to-equity | 0.53 x | 0.48 x | |||
| Three months ended | |||||
| (in millions, except share and per share data) | June 30, 2026 | March 31, 2026 | |||
| Total investment income | $ | 8.7 | $ | 9.8 | |
| Total operating expenses and income tax expense(1) | $ | 5.2 | $ | 5.0 | |
| Net investment income after taxes | $ | 3.5 | $ | 4.8 | |
| Net unrealized gain on investments, net of taxes | $ | 1.9 | $ | 6.6 | |
| Net increase in net assets resulting from operations | $ | 5.4 | $ | 11.4 | |
| Net investment income per share | $ | 0.15 | $ | 0.21 | |
| Net unrealized appreciation per share | $ | 0.08 | $ | 0.28 | |
| Net increase in net assets per share | $ | 0.23 | $ | 0.49 | |
| Weighted average shares outstanding | 23,198,863 | 23,528,844 | |||
| Distributions declared per share | $ | 0.05 | $ | 0.05 | |
(1) Total operating expenses and income tax expense is presented net of the management fee rebate of
Amounts may not sum due to rounding.
Portfolio and Investment Activity
As of June 30, 2026, AFC’s investment portfolio had a fair value of
During the second quarter, AFC funded
Liquidity and Capital Resources
As of June 30, 2026, AFC had
Debt-to-equity was 1.10x as of June 30, 2026, compared with 1.09x as of March 31, 2026. Net debt-to-equity was 0.53x, compared with 0.48x. Asset coverage was
Additional Information
AFC issued a presentation of its second quarter 2026 results, titled “Second 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 June 30, 2026, with the Securities and Exchange Commission (the “SEC”) on August 13, 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 a.m. (Eastern Time) on Thursday, August 13, 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 (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, targeting companies generating annual EBITDA of
| ADVANCED FLOWER CAPITAL INC. CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (unaudited) | |||||||
| As of | |||||||
| June 30, 2026 | March 31, 2026 | ||||||
| Assets | |||||||
| Non-controlled, non-affiliated investments at fair value (cost of | $ | 289,763,599 | $ | 279,237,624 | |||
| Cash and cash equivalents | 106,508,623 | 112,730,935 | |||||
| Interest receivable | 1,717,513 | 1,290,660 | |||||
| Prepaid expenses and other assets | 1,728,446 | 1,617,704 | |||||
| Total assets | $ | 399,718,181 | $ | 394,876,923 | |||
| Liabilities | |||||||
| Accrued interest | $ | 975,398 | $ | 2,065,620 | |||
| Distribution payable | 1,134,883 | 1,176,442 | |||||
| Management fee payable | 902,372 | 739,247 | |||||
| Income based incentive fee payable | 738,455 | 1,023,725 | |||||
| Accrued direct administrative expenses | 995,450 | 717,039 | |||||
| Director fees payable | 63,750 | 63,750 | |||||
| Accounts payable and other liabilities | 1,036,803 | 823,992 | |||||
| Amounts payable for common stock repurchased | 26,234 | — | |||||
| Senior notes payable, net | 76,575,336 | 76,448,216 | |||||
| Line of credit payable | 110,000,000 | 106,000,000 | |||||
| Line of credit payable to affiliate | 20,000,000 | 20,000,000 | |||||
| Total liabilities | 212,448,681 | 209,058,031 | |||||
| Commitments and contingencies (Note 8) | |||||||
| Net assets | |||||||
| Common stock, par value | 226,894 | 235,288 | |||||
| Additional paid-in capital | 255,928,446 | 258,694,609 | |||||
| Distributable (loss) earnings | (68,885,840 | ) | (73,111,005 | ) | |||
| Total net assets | 187,269,500 | 185,818,892 | |||||
| Total liabilities and net assets | $ | 399,718,181 | $ | 394,876,923 | |||
| Net asset value per share | $ | 8.25 | $ | 7.90 | |||
| ADVANCED FLOWER CAPITAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | |||||||
| Three months ended June 30, 2026 | Three months ended March 31, 2026 | ||||||
| Investment income: | |||||||
| From non-controlled/non-affiliated investments: | |||||||
| Interest income | $ | 7,908,745 | $ | 7,670,790 | |||
| Payment-in-kind interest income | 783,060 | 332,640 | |||||
| Other income | — | 1,809,788 | |||||
| Total investment income | 8,691,805 | 9,813,218 | |||||
| Expenses: | |||||||
| Interest expense | 1,921,879 | 1,726,540 | |||||
| Management fee | 1,078,792 | 973,235 | |||||
| Incentive fee on net investment income | 738,455 | 1,023,725 | |||||
| General and administrative expenses | 1,017,310 | 860,496 | |||||
| Director fees | 63,750 | 63,800 | |||||
| Professional fees | 356,055 | 463,911 | |||||
| Total expenses | 5,176,241 | 5,111,707 | |||||
| Management fee rebate | (176,420 | ) | (233,988 | ) | |||
| Net expenses | 4,999,821 | 4,877,719 | |||||
| Net investment income before taxes | 3,691,984 | 4,935,499 | |||||
| Income tax expense | 210,696 | 109,368 | |||||
| Net investment income | 3,481,288 | 4,826,131 | |||||
| Net change in unrealized appreciation on investments | 2,124,417 | 7,118,443 | |||||
| Provision for taxes on unrealized appreciation on investments | (245,657 | ) | (517,227 | ) | |||
| Net unrealized gain on investments, net of taxes | 1,878,760 | 6,601,216 | |||||
| Net increase in net assets resulting from operations | $ | 5,360,048 | $ | 11,427,347 | |||
| Per share data: | |||||||
| Basic and diluted net investment income per share | $ | 0.15 | $ | 0.21 | |||
| Basic and diluted net increase in net assets resulting from operations per share | $ | 0.23 | $ | 0.49 | |||
| Basic and diluted weighted average shares of common stock outstanding | 23,198,863 | 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 our ability to maintain our status as a BDC; our ability to maintain our status under Subchapter M of the Internal Revenue Code of 1986, as amended, as a regulated investment company (“RIC”) and our qualification for tax treatment as a RIC; the ability of our adviser to locate suitable loan opportunities for us, monitor and actively manage our loan portfolio and implement our investment strategy; actual and potential conflicts of interest with our adviser and its affiliates; our being subject to regulations and SEC oversight as a BDC, including limits on affiliated transactions, co-investments, asset diversification requirements, and limits on issuance of debt; changes in interest rates and impacts of such changes on our results of operations, cash flows and the market value of our loans; 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@afcbdc.com
Media Contact
Doug Allen
Dukas Linden Public Relations
646-722-6530
TCG@DLPR.com
