AFC Gamma, Inc. (AFCG) AI Stock Analysis

Headquartered in West Palm Beach, Florida, AFC Gamma, Inc. originates, structures, underwrites, and invests in senior secured loans and debt securities for established companies in the legalized cannabis industry. Founded in 2020, the firm targets states where medicinal or adult-use cannabis has been legalized. It predominantly structures loans as senior secured credit facilities collateralized by real estate, equipment, licenses, and other permissible assets. Operating as a real estate investment trust under the Internal Revenue Code of 1986, AFC Gamma distributes a substantial portion of taxable income to shareholders to minimize federal corporate income taxes while maintaining disciplined underwriting standards.

AFC Gamma experienced rapid early expansion, growing annual revenue from $38.1M in FY2021 to a peak of $71.5M in FY2022 before contracting to $51.8M in FY2023, $51.9M in FY2024, and $31.3M in FY2025. In FY2025, revenue fell 39.6% year-over-year, resulting in an operating margin of -43.6% and net income of -$20.7M, compared to net income of $16.8M in FY2024. For the trailing twelve months, revenue totaled $19.1M with an operating margin of 54.5% and diluted EPS of $0.19. In the latest quarter ended June 30, 2026, revenue increased 10.1% year-over-year while quarterly earnings grew 171.5%.

As of June 30, 2026, AFC Gamma held $106.5M in cash and short-term investments alongside total debt of $206.6M, resulting in net debt of $100.1M. Shareholders' equity stood at $187.3M against total assets of $399.7M, representing a debt-to-equity ratio of 1.10 and a current ratio of 1.41. For FY2025, operating cash flow and free cash flow each reached $11.2M. Cash usage included $19.3M paid in dividends during FY2025, while the company's share count increased 68.0% over the trailing five-year period.

At a share price of $3.09, AFC Gamma has a market cap of $69.4M and an enterprise value of $170.1M. The stock trades at a trailing P/E of 16.3x, above the 12.1x median of its US-listed Financial Services peers. However, its forward P/E of 4.6x and price-to-book ratio of 0.4x compare to the peer median forward P/E of 10.8x. AFC Gamma's price-to-sales ratio is 3.6x, versus 3.2x for peers. Over the trailing 1-year period, AFCG returned -5.4%, lagging the 16.8% return of the S&P 500 (SPY). Over 5 years, AFCG fell 62.8% against an 83.0% gain for the benchmark.

AFC Gamma pays an annual forward dividend of $0.20 per share, distributed quarterly, yielding 6.45%. The company has paid dividends for 6 consecutive years, with its most recent ex-dividend date on September 30, 2026. However, its payout ratio stands at 131.6%, and FY2025 total dividends paid were $19.3M, exceeding that year's free cash flow of $11.2M.

Wall Street coverage consists of 3 analysts, with 1 Strong Buy and 2 Hold ratings. The mean price target is $8.00, representing 158.9% upside from the last close of $3.09. Analysts estimate full-year FY2026 revenue of $29.3M and EPS of $1.04, reflecting expected EPS growth of 209.5%. For FY2027, 3 analysts project revenue of $29.7M and EPS of $0.74. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 11, 2026.

This page is an AI-written research summary of AFC Gamma, Inc. (AFCG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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