Advanced Flower Capital Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• GAAP net investment income (NII) was $3.5 million ($0.15 per weighted average share) for the quarter ended June 30, 2026, compared to $4.8 million ($0.21 per share) for the quarter ended March 31, 2026.
• Total investment income was $8.7 million, down from $9.8 million in the prior quarter.
• Net increase in net assets resulting from operations was $5.4 million ($0.23 per share), compared to $11.4 million ($0.49 per share) in the prior quarter.
• Net unrealized gain on investments, net of taxes, was $1.9 million, compared to $6.6 million in the prior quarter.
• Net asset value (NAV) per share increased to $8.25 as of June 30, 2026, from $7.90 as of March 31, 2026.
• Investment portfolio fair value was $289.8 million as of June 30, 2026, up from $279.2 million as of March 31, 2026.
• Total assets were $399.7 million as of June 30, 2026, compared to $394.9 million as of March 31, 2026.
• Total debt outstanding was $207.0 million as of June 30, 2026, compared to $203.0 million as of March 31, 2026.
• Net assets were $187.3 million as of June 30, 2026, compared to $185.8 million as of March 31, 2026.
• Weighted average yield on income-producing debt investments was 13.2% as of June 30, 2026.
• Debt-to-equity ratio was 1.10x as of June 30, 2026, compared to 1.09x as of March 31, 2026.
• Net debt-to-equity ratio was 0.53x as of June 30, 2026, compared to 0.48x as of March 31, 2026.
• Asset coverage was 190% as of June 30, 2026, compared to 191% as of March 31, 2026.
• Total operating expenses and income tax expense were $5.2 million for the quarter ended June 30, 2026, compared to $5.0 million for the quarter ended March 31, 2026.

Business Segments and Product Lines

• The investment portfolio consisted of 17 portfolio companies across 4 industries as of June 30, 2026, up from 15 portfolio companies as of March 31, 2026.
• Senior secured first lien debt investments represented 100% of the portfolio at fair value.
• Gross investment fundings were $17.2 million during the quarter, including $5.1 million to two new portfolio companies and $12.1 million to two existing portfolio companies.
• Net fundings were $8.0 million after $9.2 million in repayments, amortization, and sale proceeds.
• The company targets companies generating annual EBITDA of $5 to $50 million.

Liquidity and Capital Resources

• Total available liquidity was over $70 million as of June 30, 2026.
• Debt outstanding included $110.0 million under a secured revolving credit facility, $20.0 million under an unsecured revolving credit facility with an affiliate, and $77.0 million of senior unsecured notes.
• The weighted average interest rate on debt outstanding was 6.3% for the quarter.

Other Key Points

• The Company repurchased 839,406 shares at a weighted average price of $3.29, generating $0.17 per share of NAV accretion.
• The Board authorized a share repurchase program on May 4, 2026, to repurchase up to $5.0 million of common stock, expected to remain in place until May 4, 2027, or until the $5.0 million limit is reached.
• A regular cash distribution of $0.05 per common share was paid on July 15, 2026, to shareholders of record as of June 30, 2026.
• The Company filed its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, with the SEC on August 13, 2026.
• A conference call to discuss results was scheduled for August 13, 2026, at 10:00 a.m. Eastern Time.