Liquidity has tightened significantly as cash reserves dropped from $34.0M in 2024Q2 to $3.3M in 2026Q1, while quarterly dividend outflows of $7.8M frequently exceed net operating cash flow.
| Cash from Operations | -13.76M | -20.48M | -5.03M | 5.75M | -50.15M | -509.11K | 0 |
| Operating CF Margin % | - | -37.71% | -28.01% | 57.31% | -1239.23% | -5054.2% | - |
| Operating CF Growth % | -1270.61% | -306.74% | -187.57% | 111.46% | -9750.49% | - | - |
| Net Income | 34.2M | 33.28M | 9.62M | 7.34M | 1.71M | -563.37K | -958.29K |
| Depreciation & Amortization | 748.81M | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -798.5M | -57.44M | -10.55M | -3.87M | -50.24M | 0 | 0 |
| Working Capital Changes | 7.48M | 3.68M | -4.11M | 2.27M | -1.61M | 54.26K | 958.29K |
| Change in Receivables | 4.48M | 5.09M | -8.31M | -196.28K | -1.56M | -9.21K | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 1.26M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 23.91B | 0 | 0 | 0 | 0 | 0 | 0 |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | 0% | - | - | - | - | - | - |
| Acquisitions | 0 | - | - | - | - | - | - |
| Investments | 363.97M | 0 | 275.24M | 54.12M | 50.25M | 0 | 0 |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 22.47M | -519.92K | -3.64M | -8.26M | 85.27M | 85.28M | 0 |
| Debt Issued (Net) | 0 | - | - | - | - | - | - |
| Equity Issued (Net) | 0 | 0 | 9.05M | 0 | 0 | 85.28M | 0 |
| Dividends Paid | -31.03M | -23.27M | -12.42M | -8.26M | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -22.5M | -2.25M | -274.73K | 0 | 85.27M | 0 | 0 |
| Net Change in Cash | -11.58M | -21M | -8.68M | -2.51M | 84.77M | 84.77M | 0 |
| Free Cash Flow | -13.76M | -20.48M | -5.03M | 5.75M | -50.15M | -509.11K | 0 |
| FCF Margin % | -28.26% | -37.71% | -28.01% | 57.31% | -1239.23% | -5054.2% | - |
| FCF Growth % | -259.22% | -306.74% | -187.57% | 111.46% | -9750.49% | - | - |
| FCF per Share | -0.60 | -0.90 | -0.49 | 0.93 | -9.04 | -0.58 | - |
| FCF Conversion (FCF/Net Income) | -0.40x | -0.62x | -0.52x | 0.78x | -29.36x | 0.90x | - |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Regulatory dependency on cannabis
As reported in financial statements, LIEN exhibits a significant disconnect between net income and operating cash flow, with the OCF/NI ratio fluctuating wildly from 4.05 in 2024Q1 to -2.44 in 2026Q1, suggesting that reported earnings may not be fully supported by actual cash inflows.
The extreme volatility in the conversion of net income to cash suggests that accruals or non-cash valuation adjustments are heavily influencing the bottom line. Investors should monitor whether this divergence stems from PIK interest or other non-cash income recognition that may not materialize into liquidity.
Based on the provided cash flow data, LIEN's free cash flow trajectory is highly erratic, swinging from a peak of $7.1M in 2023Q4 to a deficit of $20.8M in 2026Q1, which raises questions regarding the sustainability of dividend payments in periods of negative cash generation.
The inconsistency in FCF margins indicates that the company's cash-generating ability is not yet stabilized, potentially forcing reliance on external financing to maintain distributions. This trend warrants further investigation into whether the underlying loan portfolio is experiencing delayed interest receipts or credit stress.
According to recent SEC filings, LIEN's working capital movements have been substantial, including an $11.5M inflow in 2025Q2 followed by a $6.5M outflow in 2025Q3, indicating that timing differences in interest collections significantly impact the company's short-term liquidity position on a quarterly basis.
These large swings in working capital suggest that the timing of interest payments from borrowers is not perfectly synchronized with the company's own cash obligations. Such fluctuations may indicate that the portfolio companies are managing their own cash constraints, which could lead to future collection delays.
As evidenced by the cash flow statements, LIEN has consistently paid out $7.8M in dividends per quarter since 2025Q1, often exceeding the net operating cash flow generated in those same periods, which suggests a potential reliance on capital recycling or balance sheet cash to fund distributions.
The commitment to a steady dividend payout despite volatile operating cash flow may indicate management's desire to maintain yield attractiveness, but it appears to be straining the company's cash position. Investors should monitor whether this payout policy remains viable without further capital raises or increased portfolio yields.
Quick answers to the most common questions about buying LIEN stock.
Chicago Atlantic BDC, Inc. (LIEN) generated $-20.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Chicago Atlantic BDC, Inc. (LIEN) reported negative free cash flow of $20.5M in 2025, indicating capital requirements exceeded cash from operations.
Chicago Atlantic BDC, Inc. (LIEN) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Chicago Atlantic BDC, Inc. (LIEN) returned $23.3M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.