AFC Gamma(AFCG) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter 2025 GAAP net income was $0.9 million, or $0.04 per basic weighted average common share, while Distributable Earnings were $(2.8) million, or $(0.12) per basic weighted average common share[1][2] - For the full year 2025, the company reported a GAAP net loss of $(20.7) million, or $(0.95) per basic weighted average common share, and Distributable Earnings of $8.7 million, or $0.39 per basic weighted average common share[1][2] - Distributable Earnings for the fourth quarter were $(2.81) million, with adjustments including stock-based compensation of $5.32 million and a reversal of expected credit losses of $(5.20) million[19] Income and Expenses - Interest income for the fourth quarter was $6.64 million, with net interest income of $5.19 million after interest expenses of $(1.45) million[18] - Total expenses for the fourth quarter amounted to $7.80 million, including management fees of $0.72 million and general administrative expenses of $0.98 million[18] Dividends - The company declared a regular cash dividend of $0.05 per common share for the first quarter of 2026, payable on April 15, 2026[4] Strategic Focus - The company focused on disciplined portfolio management and the successful completion of its BDC conversion in 2025, aiming to unlock value from underperforming loans[3] - The company aims to maximize risk-adjusted returns by targeting lower middle-market companies generating annual EBITDA of $5 to $50 million[10] - The company plans to leverage its robust pipeline to drive long-term value for shareholders while resolving legacy positions[3] Forward-Looking Statements - Forward-looking statements indicate that future growth and strategies are subject to uncertainties and may differ from projections[20]