Chicago Atlantic BDC (NASDAQ:LIEN) Posts Earnings Results

Chicago Atlantic BDC (NASDAQ:LIEN) posted its quarterly earnings data on Thursday. The company reported $0.35 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.38 by ($0.03), FiscalAI reports. The business had revenue of $15.44 million for the quarter, compared to analyst estimates of $15.42 million. Chicago Atlantic BDC had a return on equity of 11.66% and a net margin of 52.82%.

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

• Net investment income rose to $0.36 per share from $0.34 in the prior quarter, covering the $0.34 dividend, which the company has maintained for nine consecutive quarters. Management reported no non-accrual loans; the debt portfolio is 100% senior secured and yields about 15.5%.
• The company funded a record $72 million in new investments during the quarter, bringing the portfolio to approximately $400 million; year-to-date originations also reached a record $167 million. Management said the pipeline is rebuilding, with demand for customized lending remaining healthy.
• Liquidity may limit near-term growth: as of November 11, the company had about $6.7 million available, and management said it was approaching its revolver’s capacity and that originations could slow in the fourth quarter. It is exploring additional funding and said it can use its $500 million shelf before the merger closes.
• The proposed all-stock merger with Chicago Atlantic Real Estate Finance remains under SEC review, and the company now expects the process to extend into 2027. A first-quarter 2027 closing is possible, but depends on regulatory review and a shareholder vote.

Chicago Atlantic BDC Stock Performance

NASDAQ LIEN traded down $0.12 during trading hours on Thursday, hitting $9.05. 55,585 shares of the company’s stock were exchanged, compared to its average volume of 46,357. The business’s 50 day moving average is $9.54 and its 200-day moving average is $9.73. Chicago Atlantic BDC has a 12-month low of $8.92 and a 12-month high of $11.27. The firm has a market capitalization of $206.52 million, a P/E ratio of 6.51 and a beta of 0.31.

Chicago Atlantic BDC Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Investors of record on Thursday, December 31st will be given a dividend of $0.34 per share. The ex-dividend date is Thursday, December 31st. This represents a $1.36 annualized dividend and a yield of 15.0%. Chicago Atlantic BDC’s dividend payout ratio is 97.84%.

Insider Transactions at Chicago Atlantic BDC

In related news, CIO Scott Gordon acquired 5,000 shares of the business’s stock in a transaction dated Thursday, August 27th. The shares were acquired at an average cost of $10.19 per share, for a total transaction of $50,950.00. Following the acquisition, the executive directly owned 96,056 shares in the company, valued at approximately $978,810.64. The trade was a 5.49% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, major shareholder John Mazarakis acquired 60,000 shares of the business’s stock in a transaction dated Monday, August 17th. The shares were bought at an average price of $9.44 per share, for a total transaction of $566,400.00. Following the completion of the acquisition, the insider owned 60,000 shares in the company, valued at approximately $566,400. This trade represents a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders acquired 123,166 shares of company stock worth $1,177,717. 12.90% of the stock is owned by corporate insiders.

Top Chicago Atlantic BDC Stories

Investors following LIEN have been watching these stories:

• Positive Sentiment: Chicago Atlantic BDC declared a quarterly cash dividend of $0.34 per share, or $1.36 annualized. At the price cited in the reports, that equates to an approximately 15% yield. The dividend is payable January 15, 2027, to shareholders of record December 31, 2026. Dividend announcement
• Neutral Sentiment: Third-quarter revenue was $15.44 million, just above analyst estimates of $15.42 million, providing a modest counterpoint to the earnings shortfall. Third-quarter results
• Negative Sentiment: Third-quarter EPS was reported at $0.35–$0.36, below analyst estimates of $0.38–$0.40 and down from $0.42 a year earlier. The miss, alongside declining year-over-year earnings, is the clearest near-term negative for the shares. Q3 earnings coverage

Chicago Atlantic BDC Company Profile

Chicago Atlantic BDC, Inc. is a business development company that provides financing to middle-market businesses. It is externally managed by an affiliate of Chicago Atlantic, an alternative investment manager focused on private credit. The company primarily invests in debt issued by U.S. cannabis businesses and companies that support the cannabis industry. Its financing can include secured loans and other credit investments tailored to borrowers’ business needs. Chicago Atlantic BDC operates in a sector where many businesses have limited access to traditional banking services.