Advanced Flower Capital Inc. — Third Quarter 2026 Earnings Summary

Financial Performance

• GAAP net investment income (NII) was $3.5 million ($0.16 per weighted average share), compared to $3.5 million ($0.15 per share) in the second quarter of 2026.
• Total investment income was $8.6 million, down from $8.7 million in the prior quarter.
• Net increase in net assets resulting from operations was $6.4 million ($0.28 per share), up from $5.4 million ($0.23 per share) in the prior quarter.
• Net unrealized gain on investments, net of taxes, was $2.9 million ($0.13 per share), compared to $1.9 million ($0.08 per share) in the prior quarter.
• Net asset value (NAV) per share increased to $8.55 as of September 30, 2026, from $8.25 as of June 30, 2026.
• Total operating expenses and income tax expense were $5.0 million, down from $5.2 million in the prior quarter.
• Weighted average yield on income-producing debt investments was 13.3% as of September 30, 2026.
• Debt-to-equity ratio was 1.03x as of September 30, 2026, compared to 1.10x as of June 30, 2026.
• Net debt-to-equity ratio was 0.49x as of September 30, 2026, compared to 0.53x as of June 30, 2026.
• Asset coverage was 197% as of September 30, 2026, compared to 190% as of June 30, 2026.
• Weighted average interest rate on debt outstanding was 6.2% for the quarter.
• Total debt outstanding was $197.0 million as of September 30, 2026, down from $207.0 million as of June 30, 2026.
• Investment portfolio fair value was $289.6 million as of September 30, 2026, compared to $289.8 million as of June 30, 2026.

Business Segments and Product Lines

• The investment portfolio consisted of 18 investments across 5 industries as of September 30, 2026, compared to 17 investments in the prior quarter.
• Senior secured first lien debt investments represented 100% of the portfolio at fair value.
• Gross investment fundings were $4.6 million, with $3.1 million funded to one new portfolio company and $1.5 million to four existing portfolio companies.
• Net investment fundings were $(3.5) million, driven by $8.1 million in repayments and amortization.

Other Key Points

• The Company repurchased 285,656 shares during the quarter at a weighted average price of $3.46, totaling approximately $1.0 million, generating $0.06 per share of NAV accretion.
• Year-to-date share repurchases totaled 1,125,062 shares at a weighted average price of $3.34, totaling approximately $3.8 million, generating $0.24 per share of NAV accretion.
• A regular cash distribution of $0.05 per common share was paid on October 15, 2026, for the third quarter of 2026.
• The Share Repurchase Program, authorized on May 4, 2026, allows for the repurchase of up to $5.0 million of common stock and is expected to remain in place until the earlier of $5.0 million repurchased or May 4, 2027.
• The Company's debt portfolio includes $115.0 million under a secured revolving credit facility, $5.0 million under an unsecured revolving credit facility with an affiliate, and $77.0 million of senior unsecured notes.
• Management fee rebates of $176,420 were recorded for each of the three months ended September 30, 2026, and June 30, 2026.