Advanced Flower Capital Q3 net investment income $3.5M
The quarter's repurchases covered 285,656 shares and generated $0.06 per share of NAV accretion.
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.
Form Type
8-K
Rhea-AI Filing Summary
Advanced Flower Capital Inc. (AFCG) reported third-quarter 2026 total investment income of $8.6 million and GAAP net investment income of $3.5 million, or $0.16 per weighted average share. Net increase in net assets resulting from operations was $6.4 million, versus $5.4 million in the quarter ended June 30, 2026. NAV per share was $8.55 as of September 30, 2026, compared with $8.25 as of June 30, 2026.
The investment portfolio was $289.6 million at fair value across 18 investments, with senior secured first lien debt investments representing 100% of portfolio fair value. Debt outstanding was $197.0 million; debt-to-equity was 1.03x and net debt-to-equity was 0.49x. AFC repurchased and extinguished 285,656 shares at a weighted average $3.46 per share, approximately $1.0 million in total, and reported $0.06 per share of NAV accretion. The board-authorized program permits repurchases of up to $5.0 million; unless amended or extended, AFC expects it to remain in place until $5.0 million of shares have been repurchased or May 4, 2027, whichever comes first. AFC paid a regular cash distribution of $0.05 per share on October 15, 2026, to shareholders of record as of September 30, 2026.
1 point · 0 major0 major · 0 points
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 pointNet assets from operations: $6.4 million versus $5.4 million in June.
Negative
- None.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Total investment income: $8.6 million
GAAP net investment income: $3.5 million
Net increase in net assets resulting from operations: $6.4 million
+5 more
8 metrics
Total investment income
$8.6 million
Three months ended September 30, 2026
GAAP net investment income
$3.5 million
Three months ended September 30, 2026
Net increase in net assets resulting from operations
$6.4 million
Three months ended September 30, 2026; $5.4 million for the quarter ended June 30, 2026
Net investment income per weighted average share
$0.16 per share
Three months ended September 30, 2026
Net asset value per share
$8.55 per share
As of September 30, 2026; $8.25 per share as of June 30, 2026
Shares repurchased and extinguished
285,656 shares
Third quarter 2026
Weighted average repurchase price
$3.46 per share
Third quarter 2026
Debt outstanding
$197.0 million
As of September 30, 2026
Key Terms
Net asset value, Payment-in-kind interest income, Debt-to-equity, Asset coverage, +1 more
5 terms
Net asset value financial
"Net asset value per share"
Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.
Payment-in-kind interest income financial
"Payment-in-kind interest income"
Payment-in-kind (PIK) interest income is interest a lender or investor earns when the borrower pays by increasing the loan balance or issuing more debt instead of sending cash. It matters because it boosts reported income without improving immediate cash flow, can hide rising borrower stress or leverage, and affects valuation and risk assessment much like interest that gets added to a credit-card balance instead of being paid down.
Debt-to-equity financial
"Debt-to-equity was 1.03x"
Debt-to-equity is a simple ratio that compares how much a company owes to lenders (debt) with how much shareholders have invested (equity). Think of it like a household with a mortgage versus savings: a higher ratio means more borrowing and potentially higher risk if income falls, while a lower ratio signals more owner funding and often greater financial stability—information investors use to judge risk and resilience.
Asset coverage financial
"Asset coverage was 197%"
Asset coverage is a quick check of how much of a company's debt or preferred claims could be paid off using its tangible assets if the company had to be broken up or liquidated. Think of it like measuring whether the contents of a house would raise enough money to settle outstanding loans on the property; higher coverage means creditors and investors are safer, while lower coverage signals more risk of loss.
Senior secured first lien debt investments financial
"Senior secured first lien debt investments represented 100%"
Earnings Snapshot
Total investment income: $8.6 million
Third quarter 2026
Total investment income
$8.6 million
$8.7 million for the quarter ended June 30, 2026
GAAP net investment income
$3.5 million
$3.5 million for the quarter ended June 30, 2026
Net investment income per share
$0.16 per share
$0.15 per share for the quarter ended June 30, 2026
Net increase in net assets resulting from operations
$6.4 million
$5.4 million for the quarter ended June 30, 2026
Net asset value per share
$8.55 per share as of September 30, 2026
$8.25 per share as of June 30, 2026
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were AFCG's third-quarter 2026 earnings?
AFCG reported $3.5 million of GAAP net investment income, or $0.16 per weighted average share, on $8.6 million of total investment income for the quarter ended September 30, 2026. Net increase in net assets resulting from operations was $6.4 million.
What investments made up AFCG's portfolio at September 30, 2026?
The portfolio had a fair value of $289.6 million across 18 investments in 5 industries. Senior secured first lien debt investments represented 100% of the portfolio at fair value.
What distribution did AFCG pay for the third quarter of 2026?
AFCG paid a $0.05 regular cash distribution per common share on October 15, 2026, to shareholders of record as of September 30, 2026.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 5, 2026
(Exact name of Registrant as Specified in Its Charter)
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices, including zip code)
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Item 2.02 Results of Operations and Financial Condition.
On November 5, 2026, Advanced Flower Capital Inc. (the “Company”) issued a press release announcing its financial and operational results for the quarter ended September 30, 2026. A copy of the press release is furnished as Exhibit 99.1 hereto.
The information contained in Item 2.02 of this Current Report, including Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits
| Exhibit No. | Description | |||||||
99.1 | Press Release issued by Advanced Flower Capital Inc. on November 5, 2026. | |||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ADVANCED FLOWER CAPITAL INC. | ||||||||
| By: | /s/ Brandon Hetzel | |||||||
| Brandon Hetzel | ||||||||
| Chief Financial Officer and Treasurer | ||||||||
Date: November 5, 2026 | ||||||||
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AFC Announces Financial Results for the Third Quarter 2026
Third quarter 2026 GAAP net investment income (“NII”) of $3.5 million,
or $0.16 per weighted average share
WEST PALM BEACH, FL, November 5, 2026 – 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 $0.16 per share and grew NAV per share by $0.30 to $8.55. During the quarter, we repurchased approximately $1.0 million of our shares at roughly a 58% discount to NAV, adding $0.06 per share to NAV and bringing year-to-date accretion to $0.24. We will continue to allocate capital where it earns the best risk-adjusted return,” said Dan Neville, Chief Executive Officer.
Common Stock Distribution
On October 15, 2026, the Company paid a regular cash distribution of $0.05 per common share for the third quarter of 2026 to shareholders of record as of September 30, 2026.
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 $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, subject to certain limitations and applicable law. Unless amended or extended by the Company's Board, the Company expects the Repurchase Program to be in place until the earlier of such time that $5.0 million of the Company's outstanding shares of common stock have been repurchased, or May 4, 2027.
During the quarter, AFC repurchased and extinguished 285,656 shares at a weighted average price of $3.46 per share, or approximately $1.0 million in the aggregate, generating $0.06 per share of NAV accretion.
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 $3.34 per share, or approximately $3.8 million in the aggregate, generating $0.24 per share of NAV accretion.
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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 $176,420 for each of the three months ended September 30, 2026 and June 30, 2026.
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 $289.6 million across 18 investments in 5 industries, compared with $289.8 million across 17 investments as of June 30, 2026. Senior secured first lien debt investments represented 100% of the portfolio at fair value.
During the third quarter, AFC gross funded $4.6 million with $3.1 million to one new portfolio company and $1.5 million to four existing portfolio companies. Net fundings were $(3.5) million after $8.1 million of repayments and amortization.
Liquidity and Capital Resources
As of September 30, 2026, AFC had $197.0 million of debt outstanding, including $115.0 million under its secured revolving credit facility, $5.0 million under its unsecured revolving credit facility with an affiliate, and $77.0 million of senior unsecured notes. The weighted average interest rate on debt outstanding was 6.2% for the quarter.
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 197%, compared with 190%.
2
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 $5 to $50 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 www.afcbdc.com.
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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 $351,041,722 and $354,320,536, respectively) | $ | 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 $0.01 per share, 50,000,000 shares authorized; 22,403,782 and 22,689,438 shares issued and outstanding at September 30, 2026 and June 30, 2026, respectively | 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 | |||||||
4
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 | |||||||||
5
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
ir@afcbdc.com
Media Contact
Jim Velgot
561-510-1416
ir@afcbdc.com
6