Chicago Atlantic BDC (LIEN) Q2 2025 earnings summary

Executive summary

• Funded $39.1 million in new investments in Q2 2025, with a focus on senior secured debt in cannabis and underserved markets, and added three new borrowers.

• Net investment income for Q2 2025 was $7.7 million, or $0.34 per share, consistent with the prior quarter.

• Total investment income for Q2 2025 reached $13.1 million, reflecting portfolio growth and increased lending activity.

• Net asset value per share as of June 30, 2025 was $13.23, with total net assets of $301.8 million.

• No loans on non-accrual status and a $0.34 dividend declared for the fourth consecutive quarter.

Financial highlights

• Gross investment income was $13.1 million for Q2 2025, up from $11.9 million in Q1.

• Net investment income was $7.7 million, or $0.34 per share, with a net increase in net assets from operations of $8.6 million.

• Net assets totaled $301.8 million, with a net asset value per share of $13.23 at quarter end.

• Principal repayments during Q2 2025 totaled $22.3 million.

• Weighted average shares outstanding were 22,820,405 for Q2 2025.

Outlook and guidance

• Management expects continued active originations and net portfolio growth, supported by a robust $780 million pipeline and ample liquidity.

• Anticipates increased demand for cannabis loans, especially if rescheduling gains momentum.

• The new $100 million senior secured revolving credit facility is expected to support future growth.

• The company intends to maintain quarterly dividends and RIC status, distributing at least 90% of taxable income.