What does Chicago Atlantic BDC do and what are its main business segments?

What is the revenue and EPS growth rate for Chicago Atlantic BDC year over year?

What is Chicago Atlantic BDC's gross profit margin?

Did Chicago Atlantic BDC beat or miss consensus estimates last quarter?

What factors drove the changes in Chicago Atlantic BDC's revenue and profit?

What were the key takeaways from Chicago Atlantic BDC's earnings call?

What is the market's earnings forecast for Chicago Atlantic BDC next quarter?

What guidance did Chicago Atlantic BDC's management provide for the next earnings period?

- **Record Origination**: $66.7M in new investments, 7 first-time borrowers, 100% senior secured. 
- **Financial Strength**: $0.42 NII, 76% dividend coverage, $97.8M liquidity. 
- **Cannabis Catalyst**: Post-hemp regulation, state markets poised for stabilization. 
- **Risk Management**: 0% non-accruals, 58% loans at rate floors, selective underwriting. 


**【CEO Opening Remarks】**
- Q3 2025 net investment income per share: $0.42 (12.5% yield-to-book value). 
- Record $66.7M in new investments across 13 deals, 7 first-time borrowers. 
- Differentiated BDC strategy: 99.5% senior secured loans vs. 19.5% industry average; 15.8% weighted average yield vs. 11.4% industry average. 
- No non-accruals; 31% fixed/69% floating rate portfolio with 17% rate sensitivity to 100bp drop. 
- $0.34 dividend declared, 76% coverage ratio. 

**【CFO Financial Commentary】**
- Gross investment income: $15.1M (vs. $13.1M Q2). 
- Net investment income: $9.5M ($0.42/share vs. $0.34 Q2). 
- Net assets: $302.9M ($13.27/share). 
- Liquidity: $97.8M (92.5% credit facility utilization). 
- 58% of floating loans at rate floors. 

**【President's Origination Update】**
- Q3 2025: $66.3M funded, $62.7M repayments (84% early payoffs). 
- $610M pipeline: $415M cannabis, $195M non-cannabis. 
- 84% internally agented loans; 100% senior secured new investments. 
- $27M unfunded commitments; $5M deployed in Q4 to date. 

**【Q&A Highlights】**
- **Repayment Impact**: Unexpected repayments did not slow deployment; pipeline is 12-24 months in development. 
- **Cannabis Outlook**: Post-hemp regulation, state markets may stabilize; price compression from hemp THC likely to reverse. 
- **Tax Liabilities**: Treat uncertain tax provisions as liabilities; negotiate repayment terms with borrowers. 
- **Smaller Borrowers**: Offset risk with strong covenants, lower leverage, and market focus. 


Chicago Atlantic BDC, Inc. (LIEN) Q3 2025 Earnings Call Transcript

- **Market-Beating Yields**: 16.1% weighted average yield on debt investments, vs. 11.8% BDC industry average.
- **Record Growth**: $39.1 million in Q2 originations, $780 million pipeline, and 100% senior secured investments.
- **Dividend Consistency**: $0.34 per share dividend maintained, supported by $125.4 million liquidity.
- **Cannabis Focus**: 89% of pipeline in cannabis, with operators pursuing growth despite regulatory uncertainty.
- **Risk Management**: 1.9x leverage, 3.2x interest coverage, and no non-accrual loans.

**【CEO Summary Section】**
- Highlighted Chicago Atlantic BDC's unique position as the only BDC focused on cannabis lending, with a pipeline of $780 million in potential debt transactions across 43 borrowers.
- Q2 2025 results included $39.1 million in new investments (100% senior secured, 88% floating rate) and a record quarter for originations.
- Weighted average yield on debt investments of 16.1%, compared to the BDC industry average of 11.8%.
- Dividend of $0.34 per share, consistent with prior quarter, and no non-accrual loans in the portfolio.
- Emphasized underwriting based on current regulatory environment, not dependent on rescheduling or federal legalization.

**【CFO Financial Commentary】**
- Gross investment income of $13.1 million, up 10% from Q1 2025, driven by portfolio growth.
- Net investment income of $7.7 million ($0.34 per share), supported by $125.4 million in liquidity (including $100 million credit facility).
- Weighted average secured net leverage of 1.9x and interest coverage ratio of 3.2x, well below industry averages.
- No exposure to second lien or equity investments, with 76% of loans floating rate and 46% at interest rate floors.

**【President's Origination Update】**
- Q2 originations of $39.1 million to 9 borrowers, with $24.7 million in Q3-to-date originations to 6 borrowers.
- Pipeline growth to $780 million, including $649 million in cannabis opportunities and $131 million in non-cannabis deals.
- 100% of new investments senior secured, with 81% floating rate in Q3-to-date originations.
- Monitoring potential impacts of tariffs, but minimal direct exposure to portfolio companies.

**【Q&A Highlights】**
- BDC sector insulated from broader market volatility due to floating rate loans and high interest rate floors.
- Cannabis operators not pausing capital deployment despite rescheduling discussions; instead, pursuing M&A and capex.
- Pipeline expansion driven by ESOP transactions and balance sheet restructurings in the cannabis sector.
- No material regulatory changes expected under the Trump administration affecting BDC operations.


Chicago Atlantic BDC, Inc. (LIEN) Q2 2025 Earnings Call Transcript

- **Market-Leading Yields**: 16.6% weighted average yield vs. BDC average of 12.1%, with 100% senior secured loans.
- **Stable Growth**: $52.8M in originations since Q4 2024, including $20.8M funded in Q1 2025, targeting low-leverage borrowers.
- **Liquidity Flexibility**: $100M credit facility available, underleverage at 1.4x secured net leverage (vs. BDC average 1.1x).
- **Dividend Consistency**: $0.34 quarterly dividend maintained for three consecutive quarters, total $1.27 over four quarters.
- **Risk Management**: No non-accrual loans, 76% floating-rate portfolio with rate floors to mitigate rate risk.
- **Pipeline Expansion**: $590M pipeline across 35 companies, 21% diversified outside cannabis.


**【CEO Overview】**
- **High-Yield Portfolio Focus**: Weighted average yield on debt investments at 16.6% (vs. BDC average of 12.1%), with 100% senior secured loans and no non-accruals.
- **Strategic Deployment**: $52.8M in originations since Q4 2024, including $20.8M funded in Q1 2025. Targeting low-leverage (1.4x secured net leverage), high-amortization borrowers.
- **Dividend Consistency**: $0.34 quarterly dividend maintained for three consecutive quarters, totaling $1.27 over four quarters.

**【CFO Financial Highlights】**
- **Gross Investment Income (GII)**: $11.9M in Q1 2025, down 6% YoY due to timing of deployments. Net investment income of $7.6M ($0.34/share).
- **NAV Stability**: NAV per share at $13.19, with $301M in net assets. 21% of portfolio diversified outside cannabis.
- **Liquidity**: $100M credit facility fully available, underleverage relative to BDC peers (1.1x average leverage).

**【President’s Origination Update】**
- **Pipeline Growth**: $590M in potential debt transactions across 35 companies ($462M cannabis, $128M non-cannabis). Q1 2025 commitments of $32.3M, with $12.8M unfunded.
- **Execution Momentum**: $7.2M funded in early Q2, targeting stabilization in tariff-affected markets. 76% of portfolio floating-rate with rate floors to mitigate rate risk.

**【Q&A Key Takeaways】**
- **Regulatory Outlook**: No federal cannabis reforms expected in 2025, but stable underwriting based on cash flow and collateral.
- **Leverage Strategy**: Intend to stay well below industry average (1.1x), with potential for modest unsecured debt issuance.
- **Dividend Policy**: No guidance on dividend increases, but mandatory distribution of nearly all annual income.
- **Competitive Position**: Dominant in cannabis lending with 31 portfolio companies, 99% loans senior secured, and no non-accruals.


Chicago Atlantic BDC Inc. (LIEN) Q1 2025 Earnings Call Transcript

- **Dividend Growth Leader**: 36% Q4 dividend increase to $0.34/share, highest among BDCs.
- **$100M Credit Facility**: New capital to accelerate $644M pipeline deployment.
- **High Yield Portfolio**: 16.5% weighted average yield with 0% non-accruals.
- **Cannabis Differentiation**: Only BDC focused on cannabis, with 23% non-cannabis diversification.
- **Leverage Discipline**: 0% debt at year-end, targeting <1x leverage with credit facility.
- **Interest Rate Resilience**: 99% loans with rate floors, 79.5% floating rate exposure.


**【CEO Summary Section】**
- Achieved 36% dividend increase to $0.34 per share in Q4 2024, up from $0.25 in Q3 2024.
- Closed $100M senior secured credit facility at 300bps over SOFR, with $45.5M in gross fundings from Q4 2024 to Q1 2025.
- Maintained disciplined underwriting with 1.5x average secured leverage and 99% loans with rate floors.
- Differentiated as only BDC focused on cannabis lending, with 23% non-cannabis portfolio exposure.
- Pipeline of $644M across 39 companies, including 3 sub-strategies: tech growth, esoteric lending, and liquidity solutions.

**【CFO Financial Commentary】**
- Q4 2024 gross investment income: $12.7M vs. $3.7M in Q4 2023.
- Excluding transaction costs, investment income: $8.3M ($0.56/share) vs. $1.7M ($0.28/share) in Q4 2023.
- NAV per share: $13.20 as of December 31, 2024.
- 16.5% weighted average yield on debt portfolio, 79.5% floating rate loans with rate floors.
- No non-accrual loans and 0% leverage at year-end, vs. BDC average of 1.1x leverage and 3.9% non-accruals.

**【Origination & Pipeline Update】**
- Q4 2024 funded $24.8M in 7 investments: $18.9M to existing borrowers, $5.9M to new borrowers.
- Post-Q4 2024, committed $32.3M in new debt, funded $20.8M across 4 new borrowers.
- $644M pipeline across 39 companies, 23% non-cannabis opportunities.
- 3 sub-strategies: tech growth (e.g., SaaS), asset-based lending, and liquidity solutions for underserved markets.

**【Q&A Key Takeaways】**
- Borrower advantages: flexible capital solutions, strategic partnership, and no public company restrictions.
- Leverage strategy: <1x target, with credit facility for selective deployment.
- Interest rate risk: 99% loans have rate floors (SOFR/Prime), mitigating downside.
- Portfolio quality: 0% non-accruals, 1.5x leverage, 23% non-cannabis diversification.
- Federal cannabis policy: Underwriting assumes no reform, focusing on debt capital needs.


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