Chicago Atlantic BDC Reports Q2 GAAP EPS of $0.38, Total Gross Investment Income of $13.1 Million.

Chicago Atlantic BDC reported Q2 GAAP EPS of $0.38, with total gross investment income of $13.1 million and net investment income of $7.7 million, or $0.34 per weighted average share outstanding. The total investment portfolio stood at $307.5 million at fair value.

Chicago Atlantic BDC (NASDAQ:LIEN) has reported its second quarter 2025 financial results, highlighting stable performance and continued focus on its niche cannabis lending strategy. The business development company (BDC) announced a gross investment income of $13.1 million and a net investment income of $7.7 million, translating to $0.34 per weighted average share outstanding. The company's total investment portfolio stood at $307.5 million at fair value, with a net asset value (NAV) per share of $13.23 as of June 30, 2025 [1].

Key highlights of the quarter include a gross investment income of $13.1 million, up from $11.9 million in the previous quarter, and a net investment income of $7.7 million, stable compared to the first quarter. The company funded nine portfolio companies with $39.1 million in aggregate par value during the second quarter and an additional $17.2 million across five borrowers subsequent to the quarter end. This demonstrates Chicago Atlantic's commitment to maintaining a diversified investment portfolio and providing liquidity to its borrowers [2].

The company's portfolio composition remains heavily weighted toward the cannabis sector, with 78% of investments in this sector. The remaining 22% is diversified across other industries, including real estate and rental/leasing, public administration, retail trade, and information sectors. This diversification strategy helps balance the company's cannabis-focused approach while maintaining its specialized lending expertise [2].

Chicago Atlantic's weighted average portfolio yield on debt investments stands at 16.1%, significantly outperforming the public BDC average of 11.8% and traditional leveraged finance instruments. The company's disciplined investment approach, focusing on senior-secured lending at the top of the capital structure, has contributed to its strong yield profile [2].

The cannabis market continues to present a robust opportunity for Chicago Atlantic, with the industry projected to reach $69 billion by 2031. The company's focus on limited license states, where competition is restricted, and license values remain high, positions it well to capitalize on this growth [2].

Peter Sack, CEO of Chicago Atlantic BDC, commented, "Through a consistent and measured approach, we deployed $56 million in gross fundings by principal value during the second quarter and to date in the third quarter. These investments were partially funded with borrowings on our new senior credit facility. With the originations pipeline of cannabis and non-cannabis opportunities growing to over $780 million across the Chicago Atlantic platform, we believe the credit facility will provide a distinct advantage in meeting the needs for borrowers’ upcoming debt maturities, growth capital and potential ESOP transactions” [3].

Chicago Atlantic BDC's strong performance in the second quarter underscores its ability to generate premium yields and maintain a disciplined investment approach. As the cannabis industry continues to grow, the company's specialized lending strategy appears well-positioned to capitalize on this opportunity [1].

References:
[1] https://seekingalpha.com/news/4485379-chicago-atlantic-bdc-gaap-eps-of-0_38
[2] https://www.investing.com/news/company-news/chicago-atlantic-bdc-q2-2025-presentation-cannabis-focus-drives-premium-yields-93CH-4191840
[3] https://www.manilatimes.net/2025/08/14/tmt-newswire/globenewswire/chicago-atlantic-bdc-inc-reports-second-quarter-2025-financial-results/2167877