Advanced Flower Capital (AFCG) grows NAV and repurchases stock in Q2 2026
Rhea-AI Filing Summary
Advanced Flower Capital Inc. reported second quarter 2026 results for the period ended June 30, 2026. Total investment income was $8.7 million, with GAAP net investment income of $3.5 million, or $0.15 per weighted average share. Net unrealized gains on investments were $1.9 million, leading to a total net increase in net assets from operations of $5.4 million, or $0.23 per share.
Net asset value per share rose to $8.25 as of June 30, 2026, from $7.90 as of March 31, 2026. The investment portfolio stood at $289.8 million at fair value across 17 portfolio companies, entirely in senior secured first lien debt. During the quarter, the company funded $17.2 million of investments and had net fundings of $8.0 million.
Debt outstanding totaled $207.0 million, resulting in a debt-to-equity ratio of 1.10x and net debt-to-equity of 0.53x, with asset coverage of 190% and total available liquidity of over $70 million. The company repurchased 839,406 shares at a weighted average price of $3.29, generating $0.17 per share of NAV accretion, and paid a regular cash distribution of $0.05 per share for the quarter.
Positive
- None.
Negative
- None.
Filing Explained
At June 30, 2026, AFC held $106,508,623 in cash and had 22,689,438 shares outstanding after repurchases.
This 8-K furnishes AFC’s second-quarter results under Item 2.02; at
Form 8-K reports specified material events; this filing says its Item 2.02 release is furnished and is not deemed filed for Section 18 purposes.
The June 30 cash balance equals 328.9 days of the last reported operating cash use, a backward-looking comparison based on the first quarter’s
The share repurchase authorization remains available through the earlier of repurchasing
Sources and calculations
- Advanced Flower Capital Inc. Form 8-K and second-quarter 2026 earnings release (2026-08-13)
- Form 8-K purpose (current)
- AFCG latest quarterly fundamentals (2026Q1)
- Cash and equivalents vs quarterly operating cash outflow, in days of cash use $112,730,935 / ($30,844,148 / 90) = [object Object]
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: $8.7 million
Net investment income: $3.5 million
Net investment income per share: $0.15
+5 more
8 metrics
Total investment income
$8.7 million
For the three months ended June 30, 2026
Net investment income
$3.5 million
GAAP net investment income for Q2 2026
Net investment income per share
$0.15
Basic and diluted, quarter ended June 30, 2026
NAV per share
$8.25
As of June 30, 2026; $7.90 as of March 31, 2026
Investment portfolio fair value
$289.8 million
Portfolio across 17 portfolio companies as of June 30, 2026
Debt outstanding
$207.0 million
Includes credit facilities and senior notes as of June 30, 2026
Debt-to-equity ratio
1.10x
As of June 30, 2026
Shares repurchased
839,406 shares at $3.29
Q2 2026 repurchases totaling approximately $2.8 million
Key Terms
net investment income, net asset value, senior secured first lien debt, payment-in-kind interest, +1 more
5 terms
net investment income financial
"Second quarter 2026 GAAP net investment income (“NII”) of $3.5 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 (“NAV”) per share of $8.25 as of June 30, 2026"
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.
senior secured first lien debt financial
"Senior secured first lien debt investments represented 100% of the portfolio at fair value"
Debt that has the highest repayment priority and is backed by specific company assets, meaning lenders holding this claim get paid before other creditors if the company can’t meet obligations. Think of it like a first mortgage on a house: the first-mortgage lender has the strongest right to the property, so this type of loan is less risky for lenders and often carries lower interest, which matters to investors because it affects a company’s borrowing cost, creditor risk and how likely shareholders are to recover value in distress.
payment-in-kind interest financial
"Payment-in-kind interest income 783,060"
Payment-in-kind interest is interest that a borrower pays not with cash but by increasing the loan balance or issuing additional securities, like receiving more IOUs instead of money. For investors this matters because it reduces immediate cash receipts, can dilute ownership or increase a company’s debt load over time, and signals how comfortably a borrower can meet cash obligations — all factors that affect valuation and credit risk.
asset coverage financial
"Asset coverage was 190%, compared with 191%"
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.
Earnings Snapshot
Total investment income: $8.7 million
Quarter ended June 30, 2026
Total investment income
$8.7 million
Compared with $9.8 million in the prior quarter
Net investment income
$3.5 million
Compared with $4.8 million in the prior quarter
NAV per share
$8.25
Up from $7.90 as of March 31, 2026
Net increase in net assets from operations
$5.4 million
Compared with $11.4 million in the prior quarter
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Advanced Flower Capital (AFCG)'s key financial results for Q2 2026?
Advanced Flower Capital reported total investment income of $8.7 million and GAAP net investment income of $3.5 million, or $0.15 per share, for the quarter ended June 30, 2026. Net assets increased by $5.4 million from operations.
What is the size and composition of AFCG's investment portfolio as of June 30, 2026?
As of June 30, 2026, AFCG’s investment portfolio had a fair value of $289.8 million across 17 portfolio companies in four industries. 100% of the portfolio consisted of senior secured first lien debt investments, reflecting a focus on secured lending.
What is Advanced Flower Capital (AFCG)'s leverage and liquidity position after Q2 2026?
AFCG had $207.0 million of debt outstanding with a 1.10x debt-to-equity ratio and 0.53x net debt-to-equity as of June 30, 2026. Asset coverage stood at 190%, and total available liquidity was reported at over $70 million.
Did Advanced Flower Capital (AFCG) repurchase stock in Q2 2026 and under what program?
Yes. Under a Board-authorized $5.0 million share repurchase program, AFCG repurchased 839,406 shares in Q2 2026 at a weighted average price of $3.29, totaling about $2.8 million and generating $0.17 per share of NAV accretion.
What dividend did Advanced Flower Capital (AFCG) pay for Q2 2026?
AFCG paid a regular cash distribution of $0.05 per common share for the second quarter of 2026. The distribution was paid on July 15, 2026 to shareholders of record as of June 30, 2026.
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): August 13, 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 August 13, 2026, Advanced Flower Capital Inc. (the “Company”) issued a press release announcing its financial and operational results for the quarter ended June 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 August 13, 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: August 13, 2026 | ||||||||
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AFC Announces Financial Results for the Second Quarter 2026
Second quarter 2026 GAAP net investment income (“NII”) of $3.5 million,
or $0.15 per weighted average share
WEST PALM BEACH, FL, August 13, 2026 – 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 $0.15 per weighted average share in the second quarter. NAV per share increased to $8.25, including $0.17 of accretion from repurchasing shares at a substantial discount to NAV. We remained selective in the attractive lower middle-market and will continue to prioritize credit quality and risk-adjusted returns,” said Dan Neville, Chief Executive Officer.
Common Stock Distribution
On July 15, 2026, the Company paid a regular cash distribution of $0.05 per common share for the second quarter of 2026 to shareholders of record as of June 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 839,406 shares at a weighted average price of $3.29, or approximately $2.8 million in the aggregate, generating $0.17 per share of NAV accretion.
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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 $176,420 and $233,988 for the three months ended June 30, 2026 and March 31, 2026, respectively.
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 $289.8 million across 17 portfolio companies in 4 industries, compared with $279.2 million across 15 portfolio companies as of March 31, 2026. Senior secured first lien debt investments represented 100% of the portfolio at fair value.
During the second quarter, AFC funded $17.2 million, including $5.1 million to two new portfolio companies and $12.1 million to two existing portfolio companies. Net fundings were $8.0 million after $9.2 million of repayments, amortization, and sale proceeds.
Liquidity and Capital Resources
As of June 30, 2026, AFC had $207.0 million of debt outstanding, including $110.0 million under its secured revolving credit facility, $20.0 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 6.3% for the quarter.
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 190%, compared with 191%.
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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 $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 | |||||||||||
| June 30, 2026 | March 31, 2026 | ||||||||||
| Assets | |||||||||||
| Non-controlled, non-affiliated investments at fair value (cost of $354,320,536 and $345,918,978, respectively) | $ | 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 $0.01 per share, 50,000,000 shares authorized; 22,689,438 and 23,528,844 shares issued and outstanding at June 30, 2026 and March 31, 2026, respectively | 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 | |||||||
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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 | |||||||||
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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 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
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