The company's financial leverage has intensified, with the debt-to-equity ratio climbing from 0.41 in 2023Q4 to 1.09 in 2026Q1, signaling heightened reliance on debt amidst asset base contraction.
Advanced Flower Capital Inc. (AFCG) balance sheet — 6-year assets, liabilities & shareholders' equity history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Total Assets | 399.72M | 275.59M | 402.06M | 466.59M | 519.18M | 464.85M | 93.96M |
| Asset Growth % | 7.62% | -31.45% | -13.83% | -10.13% | 11.69% | 394.72% | - |
| Real Estate & Other Assets | 1.13M | 27.12M | 0 | 0 | 0 | -15.88M | 0 |
| PP&E (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investment Securities | 1000K | 1000K | 0 | 0 | 0 | 1000K | 0 |
| Total Current Assets | 108.23M | 39.5M | 402.06M | 466.59M | 146.09M | 130.49M | 93.96M |
| Cash & Equivalents | 106.51M | 38.61M | 103.61M | 90.38M | 140.37M | 109.25M | 9.62M |
| Receivables | 1000K | 899.38K | 1000K | 1000K | 1000K | 1000K | 1000K |
| Other Current Assets | 0 | 0 | 3.2M | 37.49M | -146.09M | -130.49M | 999.39K |
| Intangible Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Liabilities | 212.45M | 100.03M | 200.68M | 146.53M | 180.12M | 191.77M | 2.31M |
| Total Debt | 206.58M | 97.32M | 188.61M | 130.01M | 157.13M | 171.42M | 0 |
| Net Debt | 100.07M | 58.72M | 85M | 39.63M | 16.76M | 62.17M | -9.62M |
| Long-Term Debt | 206.58M | 76.32M | 88.61M | 88.01M | 97.13M | 96.57M | 0 |
| Short-Term Borrowings | 130M | 21M | 100M | 42M | 60M | 74.85M | 0 |
| Capital Lease Obligations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Liabilities | 0 | 22.85M | 112.07M | 58.51M | 81.39M | 92.99M | 2.31M |
| Accounts Payable | 1.04M | 763.18K | 501.33K | 704.68K | 4.24M | 5.77M | 154.9K |
| Deferred Revenue | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Liabilities | 5.87M | 850.05K | 0 | 10K | -97.13M | -96.57M | 0 |
| Total Equity | 187.27M | 175.57M | 201.38M | 320.05M | 339.06M | 273.08M | 91.65M |
| Equity Growth % | -36.72% | -12.82% | -37.08% | -5.61% | 24.16% | 197.96% | - |
| Shareholders Equity | 187.27M | 175.57M | 201.38M | 320.05M | 339.06M | 273.08M | 91.65M |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Common Stock | 26.23K | 235.29K | 223.33K | 204.58K | 203.64K | 163.87K | 61.79K |
| Additional Paid-in Capital | 255.93M | 258.69M | 251.87M | 349.81M | 348.82M | 274.17M | 91.07M |
| Retained Earnings | -68.89M | -83.36M | -50.71M | -29.96M | -9.96M | -1.09M | 517.72K |
| Preferred Stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Return on Assets (ROA) | 1.53% | -6.1% | 3.86% | 4.25% | 7.3% | 7.52% | 11.02% |
| Return on Equity (ROE) | 2.9% | -10.97% | 6.44% | 6.36% | 11.74% | 11.52% | 11.3% |
| Debt / Assets | 51.68% | 35.31% | 46.91% | 27.87% | 30.27% | 36.88% | - |
| Debt / Equity | 1.10x | 0.55x | 0.94x | 0.41x | 0.46x | 0.63x | - |
| Net Debt / EBITDA | 8.04x | - | 5.71x | 1.28x | 0.20x | 1.66x | -1.67x |
| Book Value per Share | 8.07 | 7.88 | 9.64 | 15.73 | 16.99 | 16.61 | 6.86 |
Quick answers to the most common questions about buying AFCG stock.
As of 2025, Advanced Flower Capital Inc. (AFCG) had total assets of $275.6M including $39.5M in current assets.
Advanced Flower Capital Inc. (AFCG) carries total debt of $97.3M. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Advanced Flower Capital Inc. (AFCG) has total shareholders' equity (book value) of $175.6M ($7.88 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Advanced Flower Capital Inc. (AFCG) reported a current ratio of 1.73x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.
Key Metrics
Top Statement Risk
Portfolio credit impairment risk
Metrics are mathematically derived from official filings.
Balance Sheet Contraction Amidst Uncertainty
As reported in recent financial statements, AFCG's total assets have declined from $476.4M in 2024Q1 to $394.9M in 2026Q1, reflecting a clear trend of balance sheet shrinkage as the company navigates a challenging environment for its specialized cannabis-focused loan portfolio and ongoing strategic restructuring efforts.
The reduction in total assets suggests a deliberate or forced contraction of the lending book, likely in response to heightened credit risks within the cannabis sector. Investors should monitor whether this trend represents a defensive capital preservation strategy or an inability to source viable new originations in a volatile regulatory climate.
Rising Leverage Ratios Signal Distress
Based on the provided quarterly data, the company's debt-to-equity ratio has climbed from 0.41 in 2023Q4 to 1.09 in 2026Q1, indicating that the firm is increasingly reliant on debt financing even as the underlying asset base experiences significant volatility and potential impairment.
This upward trajectory in leverage appears concerning given the negative net margins and the inherent difficulty of liquidating cannabis-related collateral. The shift suggests that the company may be utilizing debt to bridge liquidity gaps, which warrants further investigation into the sustainability of its current capital structure.
Liquidity Volatility Masks Operational Strain
According to historical balance sheet figures, cash reserves have fluctuated wildly, dropping from a peak of $170.3M in 2024Q2 to $38.6M by 2025Q4 before rebounding to $112.7M in 2026Q1, highlighting the erratic nature of the company's liquidity position in the face of portfolio turnover.
The significant swings in cash balances suggest that liquidity is heavily dependent on the timing of loan repayments and capital recycling rather than consistent operational cash flow. This instability may indicate that the company is struggling to maintain a predictable funding buffer for its development and lending pipeline.
Hidden Risks in Asset Valuation
Financial disclosures indicate that the company carries zero net property, plant, and equipment, which, as noted in recent filings, underscores the pure-play nature of its debt-focused model and the extreme sensitivity of its balance sheet to the creditworthiness of its underlying cannabis-operating borrowers.
Because the company lacks tangible real estate assets to fall back on, the entire balance sheet is effectively a proxy for the credit health of its borrowers. This structure implies that any systemic downturn in the cannabis wholesale market could lead to rapid, non-recoverable impairments that are not mitigated by traditional property value floors.