Advanced Flower Capital | 10-Q: FY2025 Q3 Revenue: USD 8.162 M

Revenue: As of FY2025 Q3, the actual value is USD 8.162 M.

EPS: As of FY2025 Q3, the actual value is USD -0.57, missing the estimate of USD 0.1533.

EBIT: As of FY2025 Q3, the actual value is USD -2.811 M.

Segment Revenue

• Interest Income: $8,162,075 for the three months ended September 30, 2025, compared to $10,455,021 for the same period in 2024. For the nine months ended September 30, 2025, interest income was $24,681,832, compared to $42,767,720 in 2024.

Operational Metrics

• Net (Loss) Income from Continuing Operations: - $12,490,506 for the three months ended September 30, 2025, compared to $1,217,790 in 2024. For the nine months ended September 30, 2025, net loss was - $21,587,472, compared to $14,853,671 in 2024.
• Total Expenses: $2,810,911 for the three months ended September 30, 2025, compared to $2,475,198 in 2024. For the nine months ended September 30, 2025, total expenses were $7,886,237, compared to $13,734,631 in 2024.

Cash Flow

• Net Cash Provided by Operating Activities: $11,796,234 for the nine months ended September 30, 2025, compared to $16,064,202 in 2024.
• Net Cash Provided by Investing Activities: $23,846,844 for the nine months ended September 30, 2025, compared to $99,298,100 in 2024.
• Net Cash Used in Financing Activities: - $94,133,149 for the nine months ended September 30, 2025, compared to - $70,885,129 in 2024.

Unique Metrics

• Loans on Nonaccrual Status: As of September 30, 2025, four loans were on nonaccrual status, with a carrying value of $104.2 million and a fair value of $16.9 million.

Future Outlook and Strategy

• Core Business Focus: The company plans to expand its investment strategy to include senior secured mortgage loans and other types of loans and debt securities to companies ancillary to the cannabis industry as well as companies outside of the cannabis industry. This expansion is expected to diversify exposure across industries and credit risk profiles while maintaining deal selectivity.
• Non-Core Business: The company is pursuing a conversion from a REIT to a business development company (BDC) to invest in a broader universe of assets, including non-real estate related assets, which is expected to enhance portfolio diversification and increase investment flexibility.