Advanced Flower Capital Inc. filed its Form 10-Q for the quarterly period ended September 30, 2026, with the SEC on November 5, 2026, reporting a net increase in net assets from operations of $6,400,248 for the third quarter.

Key Highlights

  • Net asset value per share: $8.55 as of September 30, 2026, with 22,403,782 shares issued and outstanding.
  • Total net assets: $191,562,507 at quarter end, up from total shareholders' equity of $175,567,987 at December 31, 2025.
  • Q3 net investment income: $3,536,431, or $0.16 per basic and diluted share, for the three months ended September 30, 2026.
  • Nine-month net investment income: $11,843,850, or $0.51 per basic and diluted share, for the nine months ended September 30, 2026.
  • Total investment income: $8,565,440 for Q3 2026, compared with net interest income of $6,530,948 in Q3 2025.
  • Total assets: $395,100,015, including $289,566,636 in non-controlled, non-affiliated investments at fair value and $102,117,304 in cash and cash equivalents.
  • Total liabilities: $203,537,508, including $115,000,000 on a line of credit and $76,703,853 in senior notes payable, net.

Advanced Flower Capital Reports Swing to Profitability in Q3 2026 After BDC Conversion

According to the filing, Advanced Flower Capital Inc. (NASDAQ:AFCG), a Maryland corporation headquartered in West Palm Beach, Florida, reported a net increase in net assets resulting from operations of $6,400,248 for the three months ended September 30, 2026, and $23,187,643 for the nine months ended September 30, 2026. This compares with net losses of $12,490,506 and $21,587,472 for the corresponding periods in 2025, which the prior-year statements attributed in part to provisions for current expected credit losses and changes in unrealized losses on loans at fair value.

The company disclosed total investment income of $8,565,440 for Q3 2026, composed of $7,616,438 in interest income, $949,002 in payment-in-kind interest income, and no other income for the quarter. Net expenses for the quarter were $4,834,394, after a management fee rebate of $176,420. For the nine months ended September 30, 2026, total investment income reached $27,070,463, while net expenses were $14,711,934 after a rebate of $586,828. The filing also reported net unrealized gain on investments, net of taxes, of $2,863,817 for Q3 2026 and $11,343,793 for the nine-month period.

As of September 30, 2026, the company reported total assets of $395,100,015. Liabilities included a line of credit payable of $115,000,000, a line of credit payable to an affiliate of $5,000,000, and senior notes payable, net, of $76,703,853. The distributable loss in net assets stood at $(63,605,781). The balance sheet reflects the company's status as a business development company, a structure it adopted following a conversion referenced in prior-year financials that included a line item for "BDC conversion expenses." As of November 2, 2026, 22,403,782 shares of common stock were outstanding, according to the filing.

What Was Disclosed

Advanced Flower Capital filed its unaudited quarterly report covering the period ended September 30, 2026, disclosing a net increase in net assets from operations, investment income details, balance sheet figures including a net asset value per share of $8.55, and comparative prior-year results.