Chicago Atlantic BDC (NASDAQ:LIEN) Announces Earnings Results, Misses Estimates By $0.03 EPS

Chicago Atlantic BDC (NASDAQ:LIEN) announced its quarterly earnings results 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. Chicago Atlantic BDC had a return on equity of 11.66% and a net margin of 52.82%. The business had revenue of $15.44 million during the quarter, compared to the consensus estimate of $15.42 million.

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

Shares of Chicago Atlantic BDC stock traded down $0.12 on Thursday, reaching $9.05. 55,585 shares of the stock were exchanged, compared to its average volume of 46,357. Chicago Atlantic BDC has a one year low of $8.92 and a one year high of $11.27. The firm has a market cap of $206.52 million, a PE ratio of 6.51 and a beta of 0.31. The firm’s 50 day moving average is $9.54 and its 200-day moving average is $9.73.

Chicago Atlantic BDC Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, January 15th. Investors of record on Thursday, December 31st will be given a $0.34 dividend. The ex-dividend date is Thursday, December 31st. This represents a $1.36 dividend on an annualized basis and a dividend yield of 15.0%. Chicago Atlantic BDC’s dividend payout ratio (DPR) is presently 97.84%.

Insiders Place Their Bets

In other Chicago Atlantic BDC news, major shareholder John Mazarakis acquired 60,000 shares of the company’s stock in a transaction that occurred on Monday, August 17th. The stock was acquired at an average price of $9.44 per share, for a total transaction of $566,400.00. Following the acquisition, the insider directly owned 60,000 shares in the company, valued at $566,400. This represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CIO Scott Gordon purchased 18,300 shares of the company’s stock in a transaction dated Monday, August 17th. The stock was purchased at an average price of $9.54 per share, for a total transaction of $174,582.00. Following the transaction, the executive directly owned 53,324 shares in the company, valued at approximately $508,710.96. This trade represents a 52.25% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have bought a total of 123,166 shares of company stock valued at $1,177,717 in the last three months. 12.90% of the stock is owned by insiders.

Key Headlines Impacting Chicago Atlantic BDC

Investors following LIEN have been watching these headlines:

• 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

About Chicago Atlantic BDC

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.