Advanced Flower Capital Inc. AFCG
The following description of the business of Advanced Flower Capital Inc. should be read in conjunction with the information included elsewhere in this Annual Report on Form 10-K for the year ended December 31, 2025.
Advanced Flower Capital Inc. is an institutional lender that was founded in July 2020 by a veteran team of investment professionals. We are a Maryland corporation and externally managed by AFC Management, LLC. Effective January 1, 2026, we elected to be regulated as a BDC under the Investment Company Act of 1940, as amended (the "1940 Act").
During the year ended December 31, 2025, we primarily originated, structured, underwrote, invested in and managed senior secured loans and other types of mortgage loans and debt securities, with a specialization in loans to cannabis industry operators in states that have legalized medical and/or adult-use cannabis. During that period, our investment guidelines primarily related to deploying capital in attractive lending opportunities, typically secured by real estate, equipment, cash flows and license value, to (i) state law-compliant cannabis operators and ancillary cannabis companies and (ii) other public and privately held middle-market companies.
Valuation FY2025 figures against the last close
Annual financial statements
Income statement
| Fiscal year | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Revenue | $24.6M | $45.7M | $63.9M | $74.7M | — | — |
| SG&A | $3.2M | $4.0M | $5.0M | $4.7M | $3.2M | — |
| Total operating expenses | $15.7M | $17.3M | $21.6M | $23.4M | $14.4M | — |
| Interest expense | $6.8M | $6.3M | $6.4M | $6.8M | $1.1M | — |
| Pre-tax income | -$21.3M | $14.3M | $22.4M | $37.0M | $21.0M | — |
| Income tax | $613.4K | $447.6K | $1.7M | $1.0M | $35.2K | — |
| Net income | -$20.7M | $16.8M | $21.0M | $35.9M | $21.0M | — |
| EPS, basic | -0.95 | 0.78 | 1.02 | 1.80 | 1.57 | — |
| EPS, diluted | -0.95 | 0.78 | 1.02 | 1.79 | 1.52 | — |
| Shares, diluted (wtd. avg.) | $22.3M | $20.9M | $20.3M | $20.0M | $13.8M | — |
Balance sheet
| Fiscal year | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Cash and equivalents | $38.6M | $103.6M | $121.6M | $140.4M | $109.2M | $9.6M |
| Total assets | $275.6M | $402.1M | $466.6M | $519.2M | $464.8M | $94.0M |
| Total liabilities | $100.0M | $200.7M | $146.5M | $180.1M | $191.8M | $2.3M |
| Retained earnings | -$83.4M | -$50.7M | -$30.0M | -$10.0M | -$1.1M | $517.7K |
| Total equity | $175.6M | $201.4M | $320.1M | $339.1M | $273.1M | $91.6M |
Cash flow
| Fiscal year | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Operating cash flow | $11.2M | $21.6M | $21.2M | $31.3M | $9.5M | — |
| Stock-based compensation | $6.8M | $1.4M | $988.9K | $1.3M | $1.7M | — |
| Investing cash flow | $34.9M | -$4.8M | $28.5M | -$16.3M | -$248.5M | — |
| Financing cash flow | -$111.1M | -$34.7M | -$68.5M | $16.1M | $338.5M | — |
| Dividends paid | — | — | — | $41.6M | $14.4M | — |
Figures as tagged in each year's own filing, in US dollars. A year restated by a later filing shows the restated figure. Capital expenditure, dividends and buybacks are cash out, shown positive. A line the filer does not report is not listed. Latest from accession 0001628280-26-014392.