Chicago Atlantic BDC (NASDAQ:LIEN) Releases Earnings Results, Misses Expectations By $0.06 EPS

Chicago Atlantic BDC (NASDAQ:LIEN) announced its quarterly earnings results on Thursday. The company reported $0.34 earnings per share for the quarter, missing the consensus estimate of $0.40 by ($0.06), Zacks reports. The business had revenue of $13.97 million during the quarter, compared to analysts’ expectations of $16.23 million. Chicago Atlantic BDC had a net margin of 52.82% and a return on equity of 11.65%.

Here are the key takeaways from Chicago Atlantic BDC’s conference call:

• Net investment income was $7.7 million, or $0.34 per share, down from $10.0 million in the first quarter as portfolio paydowns and lower origination fees reduced income. The company maintained its quarterly dividend at $0.34 per share for the eighth consecutive quarter.
• Credit metrics remained strong, with no non-accruals, 100% of the debt portfolio senior secured, a 16% weighted-average debt yield, and stable internal risk ratings. Management said payoffs occurred at par with no realized losses, while liquidity and a 0.09x debt-to-equity ratio provide room for additional investments.
• Although second-quarter originations were modest at $2.7 million versus $32.2 million of repayments, management attributed the slowdown mainly to transaction timing. The pipeline totaled nearly $1.1 billion, and the company subsequently funded a $25 million senior-secured loan to a new borrower.
• Management continues to expect the all-stock, NAV-for-NAV merger with Chicago Atlantic Real Estate Finance to close in the fourth quarter of 2026, subject to SEC review, shareholder and regulatory approvals, and other closing conditions. The combined company is expected to have more than $600 million of book equity, potentially improving access to capital, investor interest, trading liquidity, and scale.
• Federal cannabis policy developments, including the proposed rescheduling of medical cannabis products to Schedule III, were characterized as supportive of borrower credit quality and broader capital-markets acceptance. However, management is not incorporating potential regulatory reforms into its projections and said underwriting remains based on current rules.

Chicago Atlantic BDC Trading Up 0.8%

LIEN stock traded up $0.08 during midday trading on Friday, reaching $9.52. The stock had a trading volume of 25,820 shares, compared to its average volume of 48,446. Chicago Atlantic BDC has a 52-week low of $8.92 and a 52-week high of $11.44. The company’s fifty day simple moving average is $9.77 and its 200 day simple moving average is $9.79. The company has a market cap of $217.26 million, a price-to-earnings ratio of 6.85 and a beta of 0.28.

Chicago Atlantic BDC Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Investors of record on Friday, September 25th will be paid a $0.34 dividend. This represents a $1.36 annualized dividend and a yield of 14.3%. The ex-dividend date of this dividend is Friday, September 25th. Chicago Atlantic BDC’s dividend payout ratio is currently 97.84%.

Hedge Funds Weigh In On Chicago Atlantic BDC

Hedge funds and other institutional investors have recently modified their holdings of the business. XTX Topco Ltd acquired a new stake in Chicago Atlantic BDC in the 2nd quarter valued at about $112,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new position in Chicago Atlantic BDC during the second quarter worth approximately $619,000. Northeast Financial Consultants Inc acquired a new position in Chicago Atlantic BDC during the second quarter worth $851,000. Corient Private Wealth LLC purchased a new stake in Chicago Atlantic BDC in the 2nd quarter valued at $2,784,000. Finally, Westwood Holdings Group Inc. acquired a new stake in shares of Chicago Atlantic BDC in the 2nd quarter worth $111,000. 4.36% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Separately, Zacks Research cut Chicago Atlantic BDC from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 13th. One analyst has rated the stock with a Hold rating, According to data from MarketBeat, the stock presently has a consensus rating of “Hold”.

About Chicago Atlantic BDC

Chicago Atlantic BDC (NASDAQ:LIEN) is a closed-end management investment company organized as a business development company (BDC). It focuses on providing debt and equity financing solutions to U.S. middle-market companies that demonstrate strong growth potential. Through its public listing, the company offers investors exposure to a diversified portfolio of private credit and equity investments aimed at delivering attractive risk-adjusted returns.

The company’s investment strategy centers on structuring customized credit facilities, including senior secured loans, unitranche loans, mezzanine debt and equity co-investments.