AFC Gamma (NASDAQ:AFCG) Announces Quarterly Earnings Results

Key Points

• EPS beat: AFC Gamma reported EPS of $0.49 versus a $0.16 consensus and net investment income of $4.8M, while NAV rose to $7.90 (+$0.44 QoQ); the board paid a $0.05 quarterly dividend and authorized a $5M share buyback.
• Conversion to a BDC broadens the firm's mandate into lower‑middle‑market private credit — AFC closed two non‑cannabis loans of ~ $90M in Q1 (plus $5M post‑quarter), has a pipeline > $1.5B, and expanded its revolving facility to $80M to support deployments.
• Cannabis loan stress remains: AFC received $41.2M of cannabis loan repayments but faces a maturity default from Justice Grown (will pursue legal remedies) and has recovered $20.8M to date in the Debbie Holt receivership.

AFC Gamma (NASDAQ:AFCG - Get Free Report) issued its quarterly earnings data on Thursday. The company reported $0.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.16 by $0.33, FiscalAI reports. AFC Gamma had a negative net margin of 70.17% and a positive return on equity of 0.99%.

Here are the key takeaways from AFC Gamma's conference call:

• Conversion to a BDC expands AFC's investment flexibility beyond real‑estate‑backed cannabis loans, enabling diversification into lower middle market private credit.
• AFC closed two non‑cannabis loans of approximately $90M in Q1 (plus $5M post‑quarter) and reports a pipeline of over $1.5B, targeting lower middle market deals with expected overall yields in the low double‑digit range.
• Q1 results: net investment income of $4.8M ( $0.21 per share), NAV per share rose to $7.90 (+$0.44 QoQ), the board paid a $0.05 quarterly dividend and authorized a $5M share buyback program.
• Cannabis credit stress remains: AFC received $41.2M of cannabis loan repayments but Justice Grown is in maturity default and AFC will pursue legal remedies, while Debbie Holt remains in receivership with $20.8M recovered to date.
• Balance sheet and liquidity: principal outstanding rose to $370M across 17 loans as of May 1, and AFC expanded its senior secured revolving facility to $80M (expandable to $100M) to support deployments.

AFC Gamma Stock Performance

AFCG traded up $0.32 during trading hours on Thursday, hitting $3.09. 975,709 shares of the stock were exchanged, compared to its average volume of 175,062. The stock has a 50-day simple moving average of $2.69 and a 200-day simple moving average of $2.76. AFC Gamma has a 12 month low of $2.06 and a 12 month high of $5.87. The stock has a market cap of $72.71 million, a price-to-earnings ratio of -3.25 and a beta of 0.77. The company has a debt-to-equity ratio of 0.12, a current ratio of 3.45 and a quick ratio of 3.45.

AFC Gamma Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st were paid a dividend of $0.05 per share. The ex-dividend date was Tuesday, March 31st. This represents a $0.20 annualized dividend and a yield of 6.5%. AFC Gamma's dividend payout ratio (DPR) is -21.05%.

Analysts Set New Price Targets

Several analysts have issued reports on AFCG shares. Zacks Research raised shares of AFC Gamma from a "strong sell" rating to a "hold" rating in a research report on Monday, April 20th. Weiss Ratings reissued a "sell (d)" rating on shares of AFC Gamma in a research report on Monday, April 20th. Two analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Reduce" and a consensus target price of $4.50.

Insider Transactions at AFC Gamma

In other news, Director Leonard M. Tannenbaum acquired 115,237 shares of AFC Gamma stock in a transaction that occurred on Friday, March 20th. The shares were purchased at an average cost of $2.55 per share, for a total transaction of $293,854.35. Following the completion of the purchase, the director directly owned 6,313,826 shares of the company's stock, valued at $16,100,256.30. This trade represents a 1.86% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders acquired 519,008 shares of company stock worth $1,331,588 in the last quarter. Company insiders own 30.70% of the company's stock.

About AFC Gamma

AFC Gamma, Inc is a specialty finance real estate investment trust that focuses on providing structured financing solutions to companies operating and developing digital infrastructure and life science real estate assets. As a REIT, AFC Gamma seeks to generate attractive risk-adjusted returns through a diversified portfolio of loans, preferred equity and other financing structures that are secured by tangible property collateral or contractual revenue streams.

The company's primary business activities include originating, acquiring and managing secured loans and equity investments that support wireless and broadband network deployment, data center expansion, and life sciences facility development.

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