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Dec 31, 2024

AFC Gamma Q4 2024 Earnings Report

AFC Gamma reported a net loss in Q4 2024 but maintained strong loan commitments and interest income.

Key Takeaways

AFC Gamma reported a net loss of $1.0 million for Q4 2024, with an EPS of ($0.05). Despite the loss, the company generated $9.2 million in interest income. Loan commitments remained stable, and AFC maintained a disciplined lending approach in the cannabis sector, focusing on capital preservation and risk-adjusted returns.

Total revenue for Q4 2024 was $9.2 million from interest income.

Net loss for the quarter was $1.0 million, with an EPS of ($0.05).

Loan commitments remained stable, with a focus on risk-adjusted returns.

A dividend of $0.23 per share was declared for Q1 2025.

Total Revenue
$9.22M
Previous year: $16M
-42.3%
EPS
$0.29
Previous year: $0.49
-40.8%

AFC Gamma

AFC Gamma

AFC Gamma Revenue by Segment

Forward Guidance

AFC Gamma remains focused on disciplined lending and capital preservation while managing risks in the cannabis sector.

Positive Outlook

  • Stable loan commitments with a focus on risk-adjusted returns.
  • Continued demand for cannabis-related loans despite regulatory uncertainty.
  • Dividend of $0.23 per share declared for Q1 2025.
  • Maintained disciplined approach in capital deployment.
  • Well-positioned to benefit from long-term industry trends.

Challenges Ahead

  • Net loss reported for Q4 2024.
  • Regulatory uncertainty in the cannabis industry remains a challenge.
  • Interest income declined due to market conditions.
  • Higher provision for credit losses impacted profitability.
  • Market volatility may continue affecting lending activity.