Afc Gamma, Inc. ( (AFCG) ) has released its Q3 earnings. Here is a breakdown of the information Afc Gamma, Inc. presented to its investors.
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Afc Gamma, Inc., operating as Advanced Flower Capital Inc., is an institutional lender specializing in senior secured mortgage loans and other debt securities, primarily serving the cannabis industry in legalized states. The company recently expanded its investment strategy to include ancillary and non-cannabis sectors.
In its latest earnings report for the quarter ending September 30, 2025, Afc Gamma, Inc. reported a net loss of $12.5 million, a significant decline from a net income of $1.4 million in the same quarter of the previous year. The company’s revenue from interest income also decreased, reflecting a challenging financial period.
Key financial metrics showed a decrease in net interest income to $6.5 million from $8.9 million year-over-year. The company’s total assets fell to $288.7 million from $402.1 million at the end of 2024, while liabilities also decreased. The company experienced a substantial increase in its current expected credit loss reserve, indicating heightened credit risk.
Despite the current financial challenges, Afc Gamma, Inc. is looking to the future with strategic expansions and a potential conversion to a business development company. The management remains focused on diversifying its investment portfolio and exploring new opportunities to enhance its financial performance.
Looking ahead, Afc Gamma, Inc. aims to leverage its expanded investment strategy to navigate the evolving market landscape, with a focus on maintaining its REIT status and exploring new lending opportunities beyond the cannabis sector.