Chicago Atlantic BDC, Inc. reported significant financial performance for the first quarter of 2026, with total investment income reaching $16.7 million, a substantial increase from $11.9 million in the same period last year. This growth was primarily driven by a rise in interest income, which amounted to $14.6 million, compared to $11.3 million in the previous year. The company also recorded fee income of $2.1 million, up from $0.6 million, reflecting increased activity in commitment and structuring fees. Net investment income for the quarter was $10 million, resulting in a net investment income per share of $0.44, compared to $0.34 in the prior year.
The company's total assets increased to approximately $373.1 million as of March 31, 2026, up from $342.0 million at the end of 2025. This growth was attributed to a rise in investments at fair value, which reached $364.0 million, compared to $333.3 million at the end of the previous fiscal year. The increase in assets was also supported by a rise in cash reserves, which grew to $3.3 million from $2.9 million. The company’s net asset value per share increased slightly to $13.33 from $13.30, reflecting a stable valuation amidst operational growth.
Strategically, Chicago Atlantic BDC has focused on expanding its investment portfolio, particularly in the cannabis sector, which remains a core area of interest. The company completed a significant acquisition of a loan portfolio valued at $219.6 million in October 2024, which has contributed to its current asset base. As of March 31, 2026, the company had approximately $278.6 million invested in cannabis-related businesses, representing 76.5% of its total investments. The company continues to explore opportunities in other sectors, including finance, information technology, and manufacturing, to diversify its portfolio.
Operationally, Chicago Atlantic BDC reported a total of 40 portfolio companies as of March 31, 2026, up from 39 at the end of 2025. The company’s investment strategy includes a mix of first lien senior secured loans, senior secured notes, and equity investments, with a focus on companies that demonstrate strong cash flow and growth potential. The company’s leverage ratio remains healthy, with an asset coverage ratio of 658% as of March 31, 2026, allowing for further investment opportunities.
Looking ahead, Chicago Atlantic BDC expressed optimism about its growth trajectory, particularly in light of the evolving regulatory landscape for the cannabis industry. The company is closely monitoring potential changes in federal cannabis regulations, which could enhance the financial profiles of its portfolio companies. However, it also acknowledged the inherent risks associated with its concentrated investments in the cannabis sector and the broader economic conditions that could impact its operations. The company plans to continue leveraging its existing investment management platform to maximize returns for its shareholders while maintaining a focus on risk management and compliance.
About Chicago Atlantic BDC, Inc.
Chicago Atlantic BDC, Inc. is a specialty finance company investing primarily in debt and equity in highly regulated, complex industries, notably the cannabis sector. It provides secured and unsecured loans, equity, and warrants to private companies, focusing on lower middle-market businesses needing growth, refinancing, or strategic liquidity solutions. The firm leverages industry expertise, strong origination networks, and conservative capital structures to generate risk-adjusted returns.
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