Revenue volatility remains extreme, evidenced by a -109.7% growth swing in 2025Q3 and operating margins that plummeted to -180.0% in 2025Q2 due to credit-related provisions.
Advanced Flower Capital Inc. (AFCG) annual income statement — 6-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Revenue | 24.3M | 31.32M | 51.9M | 51.8M | 71.54M | 38.08M | 11.48M |
| Revenue Growth % | -0.02% | -39.65% | 0.19% | -27.59% | 87.85% | 231.64% | - |
| Property Operating Expenses | 4.12M | 2.93M | 10.36M | 0 | 11.18M | 2.65M | 0 |
| Net Operating Income (NOI) | 28.03M | 28.39M | 41.54M | 51.8M | 60.36M | 35.43M | 11.48M |
| NOI Margin % | 115.35% | 90.65% | 80.03% | 100% | 84.38% | 93.04% | 100% |
| Operating Expenses | -985.4K | 42.05M | 17.28M | 20.86M | 6.3M | -17.05M | 5.71M |
| G&A Expenses | 11.22M | 4.68M | 5.53M | 20.86M | 6.04M | 4.96M | 5.71M |
| EBITDA | 12.44M | -14.53M | 14.89M | 30.94M | 81.95M | 37.46M | 5.77M |
| EBITDA Margin % | 51.18% | -46.38% | 28.69% | 59.74% | 114.55% | 98.37% | 50.27% |
| Depreciation & Amortization | 0 | 0 | 1.03M | 0 | 38.18M | 16.43M | 0 |
| D&A / Revenue % | 0% | 0% | 1.98% | 0% | 53.36% | 43.14% | 0% |
| Operating Income | 21.17M | -13.65M | 13.86M | 30.94M | 43.77M | 21.04M | 5.77M |
| Operating Margin % | 87.1% | -43.59% | 26.71% | 59.74% | 61.19% | 55.24% | 50.27% |
| Interest Expense | 4M | 6.76M | 6.34M | 6.36M | 6.81M | 1.13M | 0 |
| Interest Coverage | - | -2.15x | 3.26x | 4.87x | 6.42x | 19.67x | - |
| Non-Operating Income | 8.73M | 874.75K | -6.78M | 30.94M | -3.67M | -29.14M | 5.77M |
| Pretax Income | 5.71M | -21.29M | 14.31M | 22.38M | 36.96M | 21.04M | 10.35M |
| Pretax Margin % | 23.48% | -67.96% | 27.57% | 43.2% | 51.66% | 55.24% | 90.15% |
| Income Tax | 495.21K | -613.38K | 447.59K | 1.66M | 1.03M | 35.17K | 0 |
| Effective Tax Rate % | 8.68% | 2.88% | 3.13% | 7.42% | 2.78% | 0.17% | 0% |
| Net Income | 5.21M | -20.67M | 16.78M | 20.95M | 35.93M | 21M | 10.35M |
| Net Margin % | 21.44% | -66% | 32.34% | 40.45% | 50.23% | 55.14% | 90.15% |
| Net Income Growth % | 159.86% | -223.17% | -19.89% | -41.69% | 71.1% | 102.85% | - |
| Funds From Operations (FFO) | -7.61M | -20.67M | 17.81M | 20.95M | 74.11M | 37.43M | 10.35M |
| FFO Margin % | -31.3% | -66% | 34.32% | 40.45% | 103.59% | 98.28% | 90.15% |
| FFO Growth % | -611.27% | - | - | - | 98% | - | - |
| FFO per Share | -0.33 | -0.93 | 0.85 | 1.03 | 3.71 | 2.28 | 0.77 |
| FFO Payout Ratio % | -104.57% | -93.58% | 224.54% | 203% | 56.16% | 38.45% | 0% |
| EPS (Diluted) | 0.22 | -0.95 | 0.80 | 1.02 | 1.80 | 1.28 | 0.32 |
| EPS Growth % | 147.16% | -218.75% | -21.57% | -43.33% | 40.63% | 300% | - |
| EPS (Basic) | - | -0.95 | 0.78 | 1.02 | 1.81 | 1.28 | 0.32 |
| Diluted Shares Outstanding | 23.2M | 22.28M | 20.89M | 20.35M | 19.96M | 16.44M | 13.37M |
Quick answers to the most common questions about buying AFCG stock.
For fiscal year 2025, Advanced Flower Capital Inc. (AFCG) reported total revenue of $31.3M. This represents a 172.8% increase compared to $11.5M in 2020.
Advanced Flower Capital Inc. (AFCG) reported a net loss of $20.7M for the fiscal year ending 2025.
Advanced Flower Capital Inc. (AFCG) reported an operating income of $-13.7M, resulting in an operating profit margin of -43.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Advanced Flower Capital Inc. (AFCG) generated $28.4M in gross profit for the year, representing a gross profit margin of 90.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Credit impairment and liquidity
Metrics are mathematically derived from official filings.
Revenue Volatility Reflects Portfolio Instability
As reported in recent financial filings, AFCG experienced a highly erratic revenue trajectory, highlighted by a -109.7% growth swing in 2025Q3, suggesting that the company's interest-income-driven model is struggling to maintain a consistent performing loan book amidst significant borrower-level credit distress.
The extreme fluctuations in top-line performance indicate that the company's revenue is highly sensitive to non-accrual events and potential loan restructurings. Investors should monitor whether the recent revenue contraction represents a permanent reduction in the scale of the portfolio or merely temporary timing issues related to loan originations.
Operating Margins Strained by Impairments
Based on the provided income statement data, the company's operating margin plummeted to -180.0% in 2025Q2, indicating that credit-related provisions and professional fees are currently overwhelming the interest income generated by the underlying cannabis-focused loan portfolio.
The massive disparity between gross margins and operating margins suggests that the cost of managing troubled assets is significantly higher than anticipated. This trend warrants further investigation into whether the company is incurring recurring legal and administrative costs that may permanently impair its ability to achieve positive operating leverage.
FFO Quality Obscured by Volatility
According to historical data, the company's FFO per share has shown significant instability, with a reported -0.03 in 2024Q4, which suggests that the dividend payout may be increasingly disconnected from the actual cash-generating capacity of the underlying loan book.
The lack of consistent FFO reporting makes it difficult to assess the true sustainability of the dividend yield. Investors should be cautious, as the reliance on non-cash interest recognition or potential principal write-downs may be masking a deterioration in the quality of earnings.
Distressed Debt Profile Masks Risks
Financial statements indicate that the company's net income has swung from a $16.4M profit in 2024Q2 to a $12.5M loss in 2025Q3, suggesting that the market may be mispricing AFCG as a traditional REIT rather than a distressed debt fund.
The volatility in net income appears to be driven by subjective credit loss provisions and the inherent difficulty of liquidating specialized cannabis collateral. This implies that the company's book value may be subject to significant downward revisions if the underlying borrowers continue to face liquidity constraints.