Advanced Flower Capital (NASDAQ: AFCG) Q1 2026 earnings snapshot
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Advanced Flower Capital Inc. reported first quarter 2026 results, highlighting GAAP net investment income of $4.8 million, or $0.21 per basic share. Net asset value per share rose to $7.90 as of March 31, 2026, compared with $7.46 as of December 31, 2025.
GAAP net increase in net assets resulting from operations was $11.4 million, or $0.49 per basic share. Gross and net investment fundings were $80.9 million and $39.1 million, respectively, and net debt-to-equity stood at 0.48x.
The company paid a first quarter 2026 cash distribution of $0.05 per common share on April 15, 2026, and its board authorized a share repurchase program of up to $5.0 million of common stock, expected to remain in place until the later of full utilization or May 4, 2027.
Positive
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Negative
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Insights
AFC shows solid Q1 profitability, modest leverage, and adds a $5M buyback.
Advanced Flower Capital generated GAAP net investment income of $4.8 million, or $0.21 per share, on total investment income of $9.8 million. Net unrealized gains lifted the net increase in net assets from operations to $11.4 million, or $0.49 per share.
Balance sheet figures show portfolio investments at fair value of $279.2 million and net assets of $185.8 million as of March 31, 2026. Gross and net debt/equity ratios were 1.09x and 0.48x, indicating moderate use of leverage for a business development company.
The board approved a common stock repurchase authorization of up to $5.0 million, alongside a quarterly cash distribution of $0.05 per share paid on April 15, 2026. Management highlighted that net investment income exceeded the quarterly dividend in this first quarter as a BDC, while investment fundings were supported by a lower-middle market pipeline.
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, and exhibit attachments filed with this report.
Key Figures
Total investment income: $9.81M
Net investment income: $4.83M
NII per share: $0.21/share
+5 more
8 metrics
Total investment income
$9.81M
Three months ended March 31, 2026
Net investment income
$4.83M
Three months ended March 31, 2026
NII per share
$0.21/share
Basic and diluted, Q1 2026
Net increase in net assets
$11.43M
Resulting from operations, Q1 2026
NAV per share
$7.90/share
As of March 31, 2026
Portfolio investments
$279.2M
Fair value as of March 31, 2026
Debt/equity ratio (net of cash)
0.48x
As of March 31, 2026
Share repurchase authorization
$5.0M
Common stock repurchase program approved May 4, 2026
Key Terms
net investment income, net asset value, business development company, payment-in-kind interest income, +1 more
5 terms
net investment income financial
"GAAP net investment income (“NII”) for the quarter ended March 31, 2026, was $4.8 million"
Net investment income is the money an investor or fund actually keeps from its investments after subtracting the costs of running those investments (like management fees, interest, and losses). Think of it as your paycheck from owning assets: gross returns minus the bills needed to earn them. Investors watch it because it shows how profitable the investment activities are, influences dividend payouts and cash available for growth, and helps compare true performance across funds or companies.
net asset value financial
"Net asset value per share as of March 31, 2026, was $7.90"
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.
business development company financial
"AFC is a publicly-traded business development company that provides flexible credit solutions"
A business development company is a publicly traded investment vehicle that lends to and buys stakes in smaller or privately held companies, acting like a combination of a lender, investor, and business partner. It matters to investors because BDCs offer the potential for higher regular income through dividends and diversified exposure to growing businesses, but they can also carry greater credit and liquidity risk than typical stocks or bonds—think higher-yielding but riskier income instruments.
payment-in-kind interest income financial
"Payment-in-kind interest income | 332,640"
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.
Rule 10b-18 regulatory
"the guidelines specified in Rule 10b-18 under the Securities Exchange Act of 1934"
Rule 10b-18 is a regulation that sets strict rules for how a company's executives and employees can buy back their own company's stock from the market. It helps ensure that these buybacks happen in a fair and transparent way, reducing the chance of market manipulation. This is important for investors because it offers protection against unfair practices and promotes confidence in the integrity of the stock market.
Earnings Snapshot
Total investment income: $9,813,218
Q1 2026
Total investment income
$9,813,218
Net investment income
$4,826,131
NAV per share
$7.90
Net increase in net assets from operations
$11,427,347
Quarterly distribution per share
$0.05
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): May 7, 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 May 7, 2026, Advanced Flower Capital Inc. (the “Company”) issued a press release announcing its financial and operational results for the quarter ended March 31, 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 May 7, 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: May 7, 2026 | ||||||||
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Advanced Flower Capital Inc. Announces Financial Results for the First Quarter 2026
WEST PALM BEACH, FL, May 7, 2026 – 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 $0.05 per common share for the first quarter of 2026 to shareholders of record as of March 31, 2026.
Share Repurchase Authorization
On May 4, 2026, the Company’s 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, provided that the Company complies with the prohibitions under its compliance policies and procedures adopted in accordance with the Investment Company Act of 1940, as amended, and the guidelines specified in Rule 10b-18 under the Securities Exchange Act of 1934, as amended, including certain price, market, volume, and timing constraints. Unless amended or extended by the Company's Board of Directors, the Company expects the Repurchase Program to be in place until the later of such time that $5.0 million of the Company's outstanding shares of common stock have been repurchased, or May 4, 2027.
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 | |||||||
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| 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 $5 to $50 million. The company seeks to maximize risk-adjusted returns for its shareholders with an opportunistic approach across all industries. AFC is headquartered in West Palm Beach, Florida. For additional information regarding the company, please visit the AFC website here.
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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 | ||||
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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
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FAQ
What were Advanced Flower Capital (AFCG) key Q1 2026 financial results?
Advanced Flower Capital reported GAAP net investment income of $4.8 million, or $0.21 per share, on total investment income of $9.8 million. Net increase in net assets from operations reached $11.4 million, or $0.49 per share, supported by net unrealized gains on investments.
How did Advanced Flower Capital’s net asset value change in Q1 2026?
Net asset value per share increased to $7.90 as of March 31, 2026, compared with $7.46 as of December 31, 2025. Total net assets were $185.8 million, reflecting both net investment income and net unrealized gains recorded during the first quarter of 2026.
What dividend did Advanced Flower Capital (AFCG) pay for Q1 2026?
For the first quarter of 2026, Advanced Flower Capital paid a regular cash distribution of $0.05 per common share. The dividend was paid on April 15, 2026, to shareholders of record as of March 31, 2026, funded from the company’s ongoing investment income and operations.
What are Advanced Flower Capital’s leverage metrics as of March 31, 2026?
As of March 31, 2026, Advanced Flower Capital reported a debt-to-equity ratio of 1.09x and a debt-to-equity ratio net of cash of 0.48x. These figures show the extent of borrowing used to finance its $279.2 million portfolio of investments at fair value.
What type of company is Advanced Flower Capital and what market does it target?
Advanced Flower Capital is a publicly traded business development company providing flexible credit solutions to lower middle-market companies. It primarily originates and manages senior debt investments in businesses generating annual EBITDA of $5 million to $50 million across diverse industries.