Chicago Atlantic BDC, Inc. (LIEN) reported third‑quarter 2025 earnings that surpassed consensus estimates, delivering earnings per share of $0.39 versus the $0.355 forecast and revenue of $15.07 million against a $14.33 million expectation. The company also announced a quarterly cash dividend of $0.34 per share for the period ending December 31, 2025, maintaining its long‑standing dividend policy.
The results represent a 9.9% earnings beat and a 5.2% revenue beat. Compared with the prior quarter, revenue grew from $13.1 million in Q2 2025 to $15.07 million, a 15.3% increase, while earnings per share rose from $0.34 to $0.39, a 14.7% gain. Year‑over‑year, the company’s revenue jumped from $3.2 million in Q3 2024 to $15.07 million, and EPS climbed from $0.00 to $0.39, underscoring a sharp turnaround in investment income and portfolio performance.
The earnings beat is largely attributable to a robust portfolio of direct loans, with a weighted average yield of 15.8%—well above the 11.4% average for public BDCs—combined with disciplined cost management. The company’s portfolio remains highly diversified, with 24% invested in non‑cannabis businesses, and it reported no loans on non‑accrual status, indicating strong credit quality and limited downside exposure to interest‑rate declines.
CEO Peter Sack emphasized the company’s differentiated position, noting that “our portfolio, strategy, platform, and credit quality continue to stand out from the rest of the industry.” He added that the firm’s underwriting acumen and focus on high‑quality borrowers have enabled it to maintain a strong portfolio with no non‑accrual loans and limited exposure to third‑party originators.
Management did not issue new guidance for the next quarter or the full year, but the earnings beat and high yield suggest confidence in sustaining profitability and portfolio growth. The company’s record gross originations of $66.7 million during the quarter further demonstrate active capital deployment and portfolio expansion.
Analysts highlighted the earnings beat and the company’s high yield as positive signals, noting that the results reinforce Chicago Atlantic BDC’s reputation for strong credit quality and attractive returns.
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