AFC Gamma (NASDAQ:AFCG) Announces Earnings Results, Misses Estimates By $0.18 EPS

AFC Gamma (NASDAQ:AFCG) announced its quarterly earnings data on Wednesday. The company reported ($0.12) 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 8.45% and a negative net margin of 70.46%.The firm had revenue of $8.71 million for 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

Shares of AFCG opened at $2.41 on Thursday. AFC Gamma has a fifty-two week low of $2.06 and a fifty-two week high of $8.59. The company’s fifty day moving average is $2.48 and its two-hundred day moving average is $3.20. The firm has a market cap of $54.44 million, a PE ratio of -2.32 and a beta of 1.02. The company has a quick ratio of 3.04, a current ratio of 3.04 and a debt-to-equity ratio of 0.13.

Analysts Set New Price Targets

Several research firms have issued reports on AFCG. Weiss Ratings reiterated a “sell (d)” rating on shares of AFC Gamma in a research report on Wednesday, January 21st. Zacks Research upgraded AFC Gamma to a “hold” rating in a research note on Thursday, November 13th. Three research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus target price of $5.75.

Insider Buying and Selling

In other AFC Gamma news, Director Leonard M. Tannenbaum acquired 25,000 shares of the stock in a transaction on Thursday, December 11th. The stock was purchased at an average price of $3.05 per share, for a total transaction of $76,250.00. Following the purchase, the director directly owned 5,861,098 shares in the company, valued at $17,876,348.90. This trade represents a 0.43% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders bought 69,000 shares of company stock worth $204,770 in the last ninety days. Corporate insiders own 25.10% of the company’s stock.

About AFC Gamma

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.