Advanced Flower Capital Inc.
- Open
- 3.09
- Day high
- 3.19
- Day low
- 3.09
- Prev close
- 3.10
- Volume
- 18K
- Mkt cap
- $75M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 0.4
- P/S
- 3.4
- Yield
- 7.84%
- Per share
- $0.25
- ▲Insiders net buying $257K over the last 3 months (1 open-market buy, 0 sales)
- 🏛Institutions reducing (13F)
Advanced Flower Capital Inc. (AFCG) is a Real Estate company listed on NASDAQ. The stock is down 31% over the past year. Over the trailing 3 months, insiders filed 1 open-market buy and 0 sales (SEC Form 4).
Advanced Flower Capital Inc. (AFCG) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
AFCG earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $0.16 | $0.21 | +31.2% | $10M | +42.2% |
| Mar 4, 2026 | $-0.04 | $-0.12 | -200.0% | $7M | +27.7% |
| Nov 12, 2025 | $0.19 | $0.16 | -15.8% | $-841830 | -115.7% |
| Aug 14, 2025 | $0.24 | $0.15 | -37.5% | $5M | -35.8% |
| Mar 13, 2025 | $0.39 | $0.29 | -25.6% | $9M | -25.5% |
| Nov 13, 2024 | $0.34 | $0.35 | +2.9% | $9M | -33.8% |
| May 9, 2024 | $0.50 | $0.49 | -2.0% | $16M | +0.2% |
| Mar 7, 2024 | $0.50 | $0.49 | -2.0% | $17M | +11.3% |
| May 10, 2023 | $0.57 | $0.57 | +0.0% | $15M | -14.0% |
| Mar 7, 2023 | $0.57 | $0.62 | +8.8% | $18M | -2.9% |
| Mar 10, 2022 | $0.53 | $0.52 | -1.9% | $13M | -1.4% |
| Nov 4, 2021 | $0.43 | $0.44 | +2.3% | $12M | +2.4% |
AFCG insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 19, 2026 | TANNENBAUM LEONARD Mdirector, 10 percent owner: | Buy | 90,600 | $2.84 |
| Apr 1, 2026 | TANNENBAUM LEONARD Mdirector, 10 percent owner: | Buy | 29,040 | $2.76 |
| Apr 1, 2026 | Tannenbaum Robynofficer: President and CIO | Buy | 7,000 | $2.80 |
| Mar 30, 2026 | TANNENBAUM LEONARD Mdirector, 10 percent owner: | Buy | 19,729 | $2.60 |
| Mar 30, 2026 | TANNENBAUM LEONARD Mdirector, 10 percent owner: | Buy | 4,300 | $2.60 |
| Mar 24, 2026 | TANNENBAUM LEONARD Mdirector, 10 percent owner: | Buy | 115,237 | $2.55 |
| Mar 24, 2026 | TANNENBAUM LEONARD Mdirector, 10 percent owner: | Buy | 14,366 | $2.59 |
| Mar 24, 2026 | TANNENBAUM LEONARD Mdirector, 10 percent owner: | Buy | 44,914 | $2.59 |
| Mar 19, 2026 | TANNENBAUM LEONARD Mdirector, 10 percent owner: | Buy | 90,600 | $2.59 |
| Mar 19, 2026 | TANNENBAUM LEONARD Mdirector, 10 percent owner: | Buy | 60,600 | $2.59 |
| Mar 16, 2026 | TANNENBAUM LEONARD Mdirector, 10 percent owner: | Buy | 2,502 | $2.59 |
| Mar 16, 2026 | TANNENBAUM LEONARD Mdirector, 10 percent owner: | Buy | 15,018 | $2.60 |
| Mar 16, 2026 | TANNENBAUM LEONARD Mdirector, 10 percent owner: | Buy | 34,288 | $2.59 |
| Mar 11, 2026 | TANNENBAUM LEONARD Mdirector, 10 percent owner: | Buy | 102,213 | $2.54 |
| Mar 11, 2026 | TANNENBAUM LEONARD Mdirector, 10 percent owner: | Buy | 2,000 | $2.57 |
Source: AFCG SEC Form 4 filings, latest May 19, 2026. For informational purposes only — not investment advice.
See the full AFCG insider & 13F page →Advanced Flower Capital Inc. company profile
Overview
AFC Gamma, Inc. (NASDAQ:AFCG) is a specialized real estate investment trust (REIT) founded in 2020 and based in West Palm Beach, Florida. The company went public in March 2021, positioning itself as a pure-play cannabis lending specialist. AFC Gamma focuses exclusively on originating, structuring, and investing in senior secured loans and debt securities for established cannabis companies operating in states where medicinal and/or adult-use cannabis has been legalized. The company has elected to be taxed as a REIT under federal tax code, allowing it to avoid corporate-level taxation while distributing most of its earnings to shareholders as dividends.
Business
AFC Gamma operates as a specialty finance REIT in the cannabis lending sector, which represents a unique niche within the broader commercial lending industry. The cannabis industry faces significant capital constraints due to federal prohibition, which prevents most traditional banks and institutional lenders from providing financing to cannabis businesses, even in states where cannabis is legal. The company's core business involves cannabis debt financing, where it originates and holds senior secured loans primarily backed by real estate, equipment, licenses, and other assets of cannabis operators. These loans are structured as first-lien debt, meaning AFC Gamma has priority claim on collateral in case of default. The typical loan sizes range from $10 million to $40 million, targeting established cannabis operators rather than startups. AFC Gamma's portfolio consists entirely of cannabis-related investments following the spin-off of its commercial real estate portfolio in July 2024. As of Q1 2025, the company maintains a portfolio of approximately $372 million across 18 loans, with a weighted average yield to maturity of around 18%. The company focuses on lending in limited license states, where regulatory barriers create more stable market conditions and higher barriers to entry for cannabis operators. The cannabis lending market serves operators who need capital for various purposes including facility construction, equipment purchases, working capital, refinancing existing debt, and funding expansion into new markets as states transition from medical-only to adult-use cannabis programs.
Revenue model
AFC Gamma generates revenue primarily through net interest income from its loan portfolio. The company earns the spread between its cost of capital (primarily from equity and some debt financing) and the interest rates charged on cannabis loans, which typically yield in the mid-to-high teens range. Most loans are structured as fixed-rate instruments or have interest rate floors, providing some protection against declining rates. The company's customers are established cannabis operators including multi-state operators (MSOs), single-state operators, and vertically integrated cannabis companies that grow, process, and retail cannabis products. These borrowers typically cannot access traditional bank financing due to federal cannabis prohibition, creating a captive market for specialized lenders like AFC Gamma. Several factors influence AFC Gamma's profitability and margins. Positive margin drivers include the limited supply of cannabis-focused capital, which allows for premium pricing; the company's expertise in cannabis industry underwriting; regulatory barriers that create stable, limited-license markets; and the ongoing expansion of adult-use cannabis markets in states like Ohio, Pennsylvania, and potentially Florida. Negative margin pressures include credit losses from borrower defaults, as evidenced by issues with companies like Justice Grown; competitive pricing pressure as more capital enters the cannabis space; potential federal legalization that could increase traditional banking competition; and economic downturns that could stress cannabis operators' cash flows. The company also faces refinancing risk on its own debt facilities and must maintain sufficient liquidity to fund new loan commitments.
Competitive moat
AFC Gamma's competitive moat is moderately strong but narrow, built primarily on regulatory arbitrage and specialized expertise. The company's primary moat stems from federal cannabis prohibition, which effectively bars most traditional banks and institutional lenders from the cannabis market, creating a captive customer base willing to pay premium rates for debt capital. This regulatory barrier has created a specialized lending niche with limited competition. The company has developed cannabis industry expertise in underwriting, structuring deals, and managing cannabis-specific risks including regulatory compliance, license transferability, and operational challenges unique to the industry. AFC Gamma's focus on limited-license states provides additional protection, as these markets have higher barriers to entry and more stable competitive dynamics than unlimited-license jurisdictions. However, this moat faces several potential threats. Federal legalization or banking reform could dramatically alter the competitive landscape by allowing traditional banks to enter cannabis lending, potentially compressing margins significantly. The company also faces competition from other specialty cannabis lenders, private credit funds, and potentially more aggressive pricing from existing competitors. Additionally, as the cannabis industry matures and consolidates, there may be fewer borrowers requiring external financing, potentially shrinking the addressable market. The moat is also vulnerable to adverse regulatory changes at the state level or economic downturns that could stress the cannabis sector broadly. While currently protected by regulatory barriers, AFC Gamma's moat is ultimately dependent on the continuation of federal cannabis prohibition and state-level cannabis programs.
Risks & safety
AFC Gamma presents a moderate margin of safety with manageable near-term risks but some structural vulnerabilities. • Liquidity and Solvency: Strong current ratio of 3.2x and minimal cash burn risk. The company maintains $3.3 million in cash plus access to a $100 million credit facility. No immediate solvency concerns. • Debt Level: Moderate debt-to-equity ratio of 0.44x, indicating reasonable leverage. The company has renewed its senior credit facility, providing adequate financing flexibility. • Valuation Metrics: Trading at attractive valuation with P/E ratio of 7.6x and price-to-book ratio of 0.61x, suggesting potential value. However, book value may be overstated if loan losses materialize. • Credit Quality Concerns: Portfolio concentration risk with ongoing issues at Justice Grown and other problem loans. Historical credit losses and current legal proceedings indicate elevated credit risk in the cannabis lending space. • Dividend Coverage: Current dividend appears sustainable at 85-100% payout ratio, though recently reduced from $0.48 to $0.23 per share due to credit issues. • Regulatory Risk: Business model heavily dependent on continued federal cannabis prohibition; significant downside risk if banking laws change.
Recent development
AFC Gamma has undergone significant strategic evolution over the past few years, transitioning from a diversified lending platform to a pure-play cannabis specialist. In July 2024, the company completed the spin-off of its commercial real estate portfolio, refocusing entirely on cannabis lending after previously considering diversification into commercial real estate to reduce cannabis concentration risk. The company has actively managed its portfolio quality, receiving $119 million in paydowns from five underperforming credits in 2024 and redeploying capital across nine new loans. This portfolio recycling strategy allowed AFC Gamma to move up the quality curve while maintaining its target yield profile. The company exceeded its $100 million origination target in 2024, closing $135 million in new commitments. Enhanced underwriting capabilities have been a key focus, with management adding operational expertise to the investment committee and implementing more rigorous due diligence processes. The company now targets "Cannabis 3.0" operators with clean capital structures and proven operational track records, moving away from earlier-stage or distressed situations. AFC Gamma has also adapted its dividend policy to be more conservative, reducing the quarterly dividend from $0.48 to $0.23 per share in early 2025 following credit issues with borrowers like Justice Grown. This reflects a shift toward sustainable dividend coverage based on the current performing asset base rather than aggressive payout ratios. The company maintains an active pipeline of over $380 million in potential deals and continues to see opportunities in state adult-use transitions, refinancing activity, and industry consolidation, while maintaining disciplined underwriting standards.
AFCG company profile · for informational purposes only — not investment advice.
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