AFC Gamma Posts Q2 Loss and 73% EPS Drop

AFC Gamma (NASDAQ:AFCG), a specialty lender focused on the cannabis sector, reported its earnings for the second quarter of fiscal 2025 on August 14, 2025. The company recorded distributable earnings per share of $0.15 (non-GAAP), missing the analyst consensus estimate of $0.20 (non-GAAP) by 24.5%. Distributable earnings (non-GAAP) fell to $3.4 million, compared with $11.4 million in Q2 2024—Net income (GAAP) flipped from a profit of $16.4 million in Q2 2024 to a net loss of $13.2 million. These results fell short of external expectations, as the company faced intensified credit challenges and muted loan origination activity. In this context, AFC Gamma also announced its intent to convert from a mortgage real estate investment trust (REIT) to a business development company (BDC) as disclosed in its earnings release, signaling a significant strategic pivot following persistent headwinds in its core lending business. Source: Analyst estimates for the quarter provided by FactSet. AFC Gamma specializes in providing senior secured loans to cannabis operators—primarily in states with legalized cannabis. The company’s lending is typically backed by real estate, equipment, or certain business assets. This core focus arose because many cannabis businesses remain underserved by traditional banks; federal restrictions limit access to conventional financial services for companies in the industry.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool