Chicago Atlantic BDC (NASDAQ:LIEN) Posts Quarterly Earnings Results

Key Points

• Quarterly EPS missed estimates: Chicago Atlantic BDC reported $0.35 per share versus the $0.38 consensus, while revenue of $15.44 million narrowly topped expectations.
• Net investment income increased to $0.36 per share, covering the $0.34 dividend. The company reported no non-accrual loans, and its debt portfolio is entirely senior secured.
• Liquidity could constrain growth: Management said available funds were limited and originations could slow. The proposed merger remains under SEC review, with a possible closing in the first quarter of 2027.

Chicago Atlantic BDC (NASDAQ:LIEN - Get Free Report) issued its quarterly earnings data on Thursday. The company reported $0.35 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.38 by ($0.03), FiscalAI reports. The business had revenue of $15.44 million during the quarter, compared to the consensus estimate of $15.42 million. Chicago Atlantic BDC had a return on equity of 11.66% and a net margin of 52.82%.

Here are the key takeaways from Chicago Atlantic BDC's conference call:

• Net investment income rose to $0.36 per share from $0.34 in the prior quarter, covering the $0.34 dividend, which the company has maintained for nine consecutive quarters. Management reported no non-accrual loans; the debt portfolio is 100% senior secured and yields about 15.5%.
• The company funded a record $72 million in new investments during the quarter, bringing the portfolio to approximately $400 million; year-to-date originations also reached a record $167 million. Management said the pipeline is rebuilding, with demand for customized lending remaining healthy.
• Liquidity may limit near-term growth: as of November 11, the company had about $6.7 million available, and management said it was approaching its revolver’s capacity and that originations could slow in the fourth quarter. It is exploring additional funding and said it can use its $500 million shelf before the merger closes.
• The proposed all-stock merger with Chicago Atlantic Real Estate Finance remains under SEC review, and the company now expects the process to extend into 2027. A first-quarter 2027 closing is possible, but depends on regulatory review and a shareholder vote.

Chicago Atlantic BDC Stock Performance

Shares of NASDAQ LIEN traded down $0.12 during trading hours on Thursday, hitting $9.05. The stock had a trading volume of 55,585 shares, compared to its average volume of 46,357. The company has a market capitalization of $206.52 million, a P/E ratio of 6.51 and a beta of 0.31. Chicago Atlantic BDC has a 52 week low of $8.92 and a 52 week high of $11.27. The firm's 50-day moving average price is $9.54 and its two-hundred day moving average price is $9.73.

Chicago Atlantic BDC Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 15th. Investors of record on Thursday, December 31st will be given a dividend of $0.34 per share. The ex-dividend date of this dividend is Thursday, December 31st. This represents a $1.36 dividend on an annualized basis and a yield of 15.0%. Chicago Atlantic BDC's dividend payout ratio (DPR) is presently 97.84%.

Latest Chicago Atlantic BDC News

Investors following LIEN have been watching these news items:

• Positive Sentiment: Chicago Atlantic BDC declared a quarterly cash dividend of $0.34 per share, or $1.36 annualized. At the price cited in the reports, that equates to an approximately 15% yield. The dividend is payable January 15, 2027, to shareholders of record December 31, 2026. Dividend announcement
• Neutral Sentiment: Third-quarter revenue was $15.44 million, just above analyst estimates of $15.42 million, providing a modest counterpoint to the earnings shortfall. Third-quarter results
• Negative Sentiment: Third-quarter EPS was reported at $0.35–$0.36, below analyst estimates of $0.38–$0.40 and down from $0.42 a year earlier. The miss, alongside declining year-over-year earnings, is the clearest near-term negative for the shares. Q3 earnings coverage

Insider Buying and Selling at Chicago Atlantic BDC

In related news, CIO Scott Gordon purchased 18,300 shares of the firm's stock in a transaction dated Monday, August 17th. The stock was bought at an average price of $9.54 per share, for a total transaction of $174,582.00. Following the purchase, the executive owned 53,324 shares in the company, valued at $508,710.96. The trade was a 52.25% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, major shareholder John Mazarakis acquired 60,000 shares of the business's stock in a transaction that occurred on Monday, August 17th. The stock was bought at an average cost of $9.44 per share, for a total transaction of $566,400.00. Following the completion of the purchase, the insider directly owned 60,000 shares in the company, valued at $566,400. This represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired 123,166 shares of company stock worth $1,177,717 over the last three months. Company insiders own 12.90% of the company's stock.

About Chicago Atlantic BDC

Chicago Atlantic BDC, Inc. is a business development company that provides financing to middle-market businesses. It is externally managed by an affiliate of Chicago Atlantic, an alternative investment manager focused on private credit. The company primarily invests in debt issued by U.S. cannabis businesses and companies that support the cannabis industry. Its financing can include secured loans and other credit investments tailored to borrowers' business needs. Chicago Atlantic BDC operates in a sector where many businesses have limited access to traditional banking services.

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