AFC Gamma (NASDAQ:AFCG) Announces Earnings Results

AFC Gamma (NASDAQ:AFCG) posted its quarterly earnings results on Wednesday. The company reported ($0.12) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.18), FiscalAI reports. AFC Gamma had a positive return on equity of 0.98% and a negative net margin of 70.17%.The company had revenue of $8.71 million during the quarter, compared to analysts’ expectations of $5.36 million.

Here are the key takeaways from AFC Gamma’s conference call:

• Conversion to a BDC: AFC completed its conversion from a REIT to a BDC on Jan 1, 2026, expanding its investable universe beyond real-estate-backed cannabis loans to broader lower‑middle‑market cash‑flow financings.
• Material portfolio liquidity: the company received approximately $117 million of paydowns during 2025 through today and has an active pipeline of roughly $1.4 billion, with $89.7 million of new commitments closed post‑year‑end.
• Early post‑conversion deployments: AFC closed a $60 million senior secured facility for the Stat/Moresby combination and committed $30 million (funded $20 million) to a healthcare benefits platform in Q1 2026, signalling initial execution in its expanded strategy.
• Legacy credit stress and earnings impact: realized losses from two underperforming credits drove a GAAP net loss of $20.7 million for 2025, three loans remain on non‑accrual, CECL reserves are $46.1 million (≈18.2% of loans), and 2025 dividends were treated as a return of capital.
• Funding and refinancing risk: AFC repurchased $13 million of unsecured bonds but still has $77 million of unsecured bonds maturing in May 2027 and stated it currently lacks capacity to sustain a ~$100 million/quarter deployment cadence without additional financing or proceeds from legacy recoveries.

AFC Gamma Price Performance

AFCG stock opened at $2.57 on Friday. The company has a market capitalization of $58.07 million, a P/E ratio of -2.71 and a beta of 1.02. The business has a 50 day simple moving average of $2.47 and a 200-day simple moving average of $3.19. The company has a current ratio of 3.04, a quick ratio of 3.04 and a debt-to-equity ratio of 0.13. AFC Gamma has a twelve month low of $2.06 and a twelve month high of $8.55.

Analysts Set New Price Targets

Several analysts recently commented on AFCG shares. Weiss Ratings restated a “sell (d)” rating on shares of AFC Gamma in a research report on Wednesday, January 21st. Zacks Research raised shares of AFC Gamma to a “hold” rating in a research note on Thursday, November 13th. Three investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Reduce” and a consensus target price of $5.75.

Insider Activity at AFC Gamma

In other news, Director Leonard M. Tannenbaum bought 25,000 shares of the stock in a transaction dated Thursday, December 11th. The shares were acquired at an average price of $3.05 per share, with a total value of $76,250.00. Following the completion of the acquisition, the director directly owned 5,861,098 shares in the company, valued at approximately $17,876,348.90. The trade was a 0.43% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders purchased a total of 69,000 shares of company stock worth $204,770 in the last three months. 25.10% of the stock is owned by corporate insiders.

AFC Gamma Company Profile

AFC Gamma, Inc is a specialty finance real estate investment trust that focuses on providing structured financing solutions to companies operating and developing digital infrastructure and life science real estate assets. As a REIT, AFC Gamma seeks to generate attractive risk-adjusted returns through a diversified portfolio of loans, preferred equity and other financing structures that are secured by tangible property collateral or contractual revenue streams.

The company’s primary business activities include originating, acquiring and managing secured loans and equity investments that support wireless and broadband network deployment, data center expansion, and life sciences facility development.