AFC Announces Financial Results for the Third Quarter 2026
Quarterly share repurchases added $0.06 to net asset value per share, while debt-to-equity declined to 1.03x.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Advanced Flower Capital (Nasdaq: AFCG) reported third-quarter 2026 GAAP net investment income of $3.5 million, with earnings per share increasing sequentially. Net investment income per share was $0.16 versus $0.15 in the second quarter, while investment income declined to $8.6 million from $8.7 million. Net assets increased from operations by $6.4 million, versus $5.4 million.
Net asset value per share rose to $8.55 from $8.25 at June 30. Quarterly repurchases of 285,656 shares at an average $3.46 added $0.06 per share to net asset value. Debt fell to $197.0 million from $207.0 million, and debt-to-equity declined to 1.03x from 1.10x. The investment portfolio was $289.6 million across 18 investments, with a 13.3% yield on income-producing debt investments. AFC paid its unchanged $0.05 quarterly distribution on October 15, 2026.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointGAAP net investment income per share rose to $0.16 from $0.15 sequentially; total income remained $3.5 million rounded.
- Moderate pointNet asset value per share increased to $8.55 from $8.25 at June 30, 2026.
- Moderate pointNet assets increased from operations by $6.4 million, or $0.28 per share, versus $5.4 million and $0.23.
- Moderate pointDebt declined to $197.0 million from $207.0 million; debt-to-equity fell to 1.03x from 1.10x.
- Minor pointAfter-tax unrealized investment gains increased to $2.9 million from $1.9 million in the second quarter.
7 minor points
- Minor pointOperating expenses and income tax expense declined to $5.0 million from $5.2 million sequentially.
- Minor pointQuarterly repurchases of 285,656 shares at $3.46 averaged approximately $1.0 million, adding $0.06 per share to NAV.
- Minor pointNet debt-to-equity improved to 0.49x from 0.53x at June 30, 2026.
- Minor pointAsset coverage increased to 197% from 190% at June 30, 2026.
- Minor pointGross investment funding totaled $4.6 million: $3.1 million for one new company and $1.5 million for four existing companies.
- Minor pointIncome-producing debt investments had a weighted average yield of 13.3% at September 30, 2026.
- Minor pointSenior secured first-lien debt represented 100% of portfolio fair value, placing AFC first in repayment priority.
Negative
- Minor pointTotal investment income declined to $8.6 million from $8.7 million in the second quarter.
- Minor pointCash and cash equivalents declined to $102,117,304 from $106,508,623 at June 30, 2026.
- Minor pointInvestment portfolio fair value declined to $289.6 million from $289.8 million at June 30, 2026.
- Minor pointTotal assets declined to $395.1 million from $399.7 million at June 30, 2026.
- Minor pointNet investment fundings were $(3.5) million after $8.1 million of repayments and amortization.
News Explained
The AFC board authorized up to
Key Figures
- Total investment income
- $8.6 million
- Third quarter 2026
- GAAP net investment income
- $3.5 million; $0.16 per weighted average share
- Third quarter 2026
- Net increase in net assets from operations
- $6.4 million; $0.28 per weighted average share
- Third quarter 2026
- NAV per share
- $8.55
- As of September 30, 2026
- Share repurchases
- 285,656 shares; approximately $1.0 million
- Third quarter 2026
- NAV accretion from repurchases
- $0.06 per share
- Third quarter 2026
- Weighted average yield on income-producing debt investments
- 13.3%
- As of September 30, 2026
- Net debt-to-equity
- 0.49x, compared with 0.53x
- September 30, 2026 versus June 30, 2026
Previous Earnings Reports
-
Reported $3.5 million GAAP NII and NAV per share of $8.25.
-
Reported $4.8 million GAAP NII and a $11.4 million net increase in assets.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
gaap financial
net asset value financial
payment-in-kind interest income financial
senior secured first lien debt financial
regulation fd regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Third quarter 2026 GAAP net investment income (“NII”) of
WEST PALM BEACH, Fla., Nov. 05, 2026 (GLOBE NEWSWIRE) -- Advanced Flower Capital Inc. (Nasdaq: AFCG) (“AFC,” or the “Company”) today announced its financial results for the third quarter ended September 30, 2026.
Third Quarter 2026 Highlights
- Total investment income of
$8.6 million and GAAP NII of$3.5 million , or$0.16 per weighted average share - Net asset value (“NAV”) per share of
$8.55 as of September 30, 2026, compared to$8.25 as of June 30, 2026 - GAAP net increase in net assets resulting from operations of
$6.4 million , or$0.28 per weighted average share - Gross and net investment fundings of
$4.6 million and$(3.5) million , respectively - Investment portfolio of
$289.6 million at fair value across 18 investments, compared with$289.8 million as of June 30, 2026 - Weighted average yield on income producing debt investments of
13.3% as of September 30, 2026 - Debt-to-equity of 1.03x and net debt-to-equity of 0.49x
- Repurchased 285,656 shares at a weighted average price of
$3.46 , generating$0.06 per share of NAV accretion in connection with our recently adopted Share Repurchase Program (as defined below)
“AFC earned net investment income of
Common Stock Distribution
On October 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 285,656 shares at a weighted average price of
As of and during the nine months ended September 30, 2026, AFC repurchased and extinguished 1,125,062 shares at a weighted average price of
Operating Results
| As of | |||||
| (in millions, except per share data and ratios) | September 30, 2026 | June 30, 2026 | |||
| Investment portfolio, at fair value | $ | 289.6 | $ | 289.8 | |
| Total assets | $ | 395.1 | $ | 399.7 | |
| Total debt outstanding | $ | 197.0 | $ | 207.0 | |
| Net assets | $ | 191.6 | $ | 187.3 | |
| Net asset value per share | $ | 8.55 | $ | 8.25 | |
| Debt-to-equity | 1.03 x | 1.10 x | |||
| Net debt-to-equity | 0.49 x | 0.53 x | |||
| Three months ended | |||||
| (in millions, except share and per share data) | September 30, 2026 | June 30, 2026 | |||
| Total investment income | $ | 8.6 | $ | 8.7 | |
| Total operating expenses and income tax expense(1) | $ | 5.0 | $ | 5.2 | |
| Net investment income after taxes | $ | 3.5 | $ | 3.5 | |
| Net unrealized gain on investments, net of taxes | $ | 2.9 | $ | 1.9 | |
| Net increase in net assets resulting from operations | $ | 6.4 | $ | 5.4 | |
| Net investment income per share | $ | 0.16 | $ | 0.15 | |
| Net unrealized gain on investments, net of taxes per share | $ | 0.13 | $ | 0.08 | |
| Net increase in net assets per share | $ | 0.28 | $ | 0.23 | |
| Weighted average shares outstanding | 22,582,809 | 23,198,863 | |||
| 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 September 30, 2026, AFC’s investment portfolio had a fair value of
During the third quarter, AFC gross funded
Liquidity and Capital Resources
As of September 30, 2026, AFC had
Debt-to-equity was 1.03x as of September 30, 2026, compared with 1.10x as of June 30, 2026. Net debt-to-equity was 0.49x, compared with 0.53x. Asset coverage was
Additional Information
AFC issued a presentation of its third quarter 2026 results, titled “Third 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 September 30, 2026, with the Securities and Exchange Commission (the “SEC”) on November 5, 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, November 5, 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 | |||||||
| September 30, 2026 | June 30, 2026 | ||||||
| Assets | |||||||
| Non-controlled, non-affiliated investments at fair value (cost of | $ | 289,566,636 | $ | 289,763,599 | |||
| Cash and cash equivalents | 102,117,304 | 106,508,623 | |||||
| Interest receivable | 1,866,810 | 1,717,513 | |||||
| Prepaid expenses and other assets | 1,549,265 | 1,728,446 | |||||
| Total assets | $ | 395,100,015 | $ | 399,718,181 | |||
| Liabilities | |||||||
| Accrued interest | $ | 2,080,541 | $ | 975,398 | |||
| Distribution payable | 1,120,189 | 1,134,883 | |||||
| Management fee payable | 922,690 | 902,372 | |||||
| Income-based incentive fee payable | 750,152 | 738,455 | |||||
| Accrued direct administrative expenses | 1,002,368 | 995,450 | |||||
| Director fees payable | 63,750 | 63,750 | |||||
| Accounts payable and other liabilities | 893,965 | 1,036,803 | |||||
| Amounts payable for common stock repurchased | — | 26,234 | |||||
| Senior notes payable, net | 76,703,853 | 76,575,336 | |||||
| Line of credit payable | 115,000,000 | 110,000,000 | |||||
| Line of credit payable to affiliate | 5,000,000 | 20,000,000 | |||||
| Total liabilities | 203,537,508 | 212,448,681 | |||||
| Commitments and contingencies | |||||||
| Net assets | |||||||
| Common stock, par value | 224,038 | 226,894 | |||||
| Additional paid-in capital | 254,944,250 | 255,928,446 | |||||
| Distributable (loss) earnings | (63,605,781 | ) | (68,885,840 | ) | |||
| Total net assets | 191,562,507 | 187,269,500 | |||||
| Total liabilities and net assets | $ | 395,100,015 | $ | 399,718,181 | |||
| Net asset value per share | $ | 8.55 | $ | 8.25 | |||
| ADVANCED FLOWER CAPITAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | |||||||
| Three months ended September 30, 2026 | Three months ended June 30, 2026 | ||||||
| Investment income: | |||||||
| From non-controlled/non-affiliated investments: | |||||||
| Interest income | $ | 7,616,438 | $ | 7,908,745 | |||
| Payment-in-kind interest income | 949,002 | 783,060 | |||||
| Total investment income | 8,565,440 | 8,691,805 | |||||
| Expenses: | |||||||
| Interest expense | 1,868,647 | 1,921,879 | |||||
| Management fee | 1,099,110 | 1,078,792 | |||||
| Incentive fee on net investment income | 750,152 | 738,455 | |||||
| General and administrative expenses | 931,792 | 1,017,310 | |||||
| Director fees | 63,750 | 63,750 | |||||
| Professional fees | 297,363 | 356,055 | |||||
| Total expenses | 5,010,814 | 5,176,241 | |||||
| Management fee rebate | (176,420 | ) | (176,420 | ) | |||
| Net expenses | 4,834,394 | 4,999,821 | |||||
| Net investment income before taxes | 3,731,046 | 3,691,984 | |||||
| Income tax expense | 194,615 | 210,696 | |||||
| Net investment income | 3,536,431 | 3,481,288 | |||||
| Net change in unrealized appreciation on investments | 3,081,851 | 2,124,417 | |||||
| Provision for taxes on unrealized appreciation on investments | (218,034 | ) | (245,657 | ) | |||
| Net unrealized gain on investments, net of taxes | 2,863,817 | 1,878,760 | |||||
| Net increase in net assets resulting from operations | $ | 6,400,248 | $ | 5,360,048 | |||
| Per share data: | |||||||
| Basic and diluted net investment income per share | $ | 0.16 | $ | 0.15 | |||
| Basic and diluted net increase in net assets resulting from operations per share | $ | 0.28 | $ | 0.23 | |||
| Basic and diluted weighted average shares of common stock outstanding | 22,582,809 | 23,198,863 | |||||
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 Contacts
Robyn Tannenbaum // Will Rotatori
561-510-2293 // 561-510-6109
Media Contact
Jim Velgot
561-510-1416
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were AFCG's third-quarter 2026 earnings and net asset value?
AFC reported $3.5 million of GAAP net investment income, or $0.16 per share, and net asset value of $8.55 per share at September 30, 2026. Second-quarter net investment income was $3.5 million, or $0.15 per share, and June 30 net asset value was $8.25 per share.
How much stock did AFCG repurchase in the third quarter of 2026?
AFC repurchased and extinguished 285,656 shares at a weighted average price of $3.46, totaling approximately $1.0 million and adding $0.06 per share to net asset value.
How much stock had AFCG repurchased through September 2026, and when does its program end?
During the nine months ended September 30, 2026, AFC repurchased 1,125,062 shares at a weighted average $3.34, totaling approximately $3.8 million and adding $0.24 per share to net asset value. Unless amended or extended, the company expects the program to end when $5.0 million has been repurchased or on May 4, 2027, whichever comes first.
What types of debt did AFCG have outstanding at September 30, 2026?
AFC's $197.0 million of outstanding debt comprised $115.0 million under its secured revolving credit facility, $5.0 million under an unsecured revolving facility with an affiliate, and $77.0 million of senior unsecured notes. The weighted average interest rate on outstanding debt was 6.2% for the quarter.