Chicago Atlantic BDC, Inc. reported its financial results for the second quarter of 2026, revealing a total investment income of approximately $14.0 million, a 6.8% increase from $13.1 million in the same period last year. For the six months ended June 30, 2026, total investment income reached $30.7 million, compared to $25.0 million for the same period in 2025. The increase in revenue was primarily driven by higher interest income, which rose to $13.3 million in Q2 2026 from $11.9 million in Q2 2025, and a notable rise in payment-in-kind (PIK) interest, which increased to $1.1 million from $596,295 year-over-year.
The company’s net investment income for the second quarter was $7.7 million, slightly down from $7.8 million in the prior year, resulting in a net investment income per share of $0.34, consistent with the previous year. However, the net change in unrealized appreciation on investments showed a significant decline, with a loss of $1.6 million in Q2 2026 compared to a gain of $919,658 in Q2 2025. This contributed to a net increase in net assets resulting from operations of $6.1 million for the quarter, down from $8.6 million a year earlier.
In terms of operational developments, Chicago Atlantic BDC's total assets increased to $344.0 million as of June 30, 2026, up from $342.0 million at the end of 2025. The company’s investment portfolio, primarily focused on the cannabis sector, included approximately $299.3 million in first lien, senior secured loans, representing 89.5% of the total fair value of its investments. The company also reported a total of 37 portfolio companies, with a significant concentration in the cannabis industry, which accounted for 73.6% of the portfolio's fair value.
Strategically, Chicago Atlantic BDC is preparing for a merger with Chicago Atlantic Real Estate Finance, Inc. (REFI), which was announced on June 17, 2026. The merger is expected to close in the fourth quarter of 2026, subject to various approvals. The merger aims to enhance the company’s investment capabilities and expand its market presence. As part of the merger agreement, the company is considering a share repurchase program of up to $25 million, which could be implemented following the merger's completion.
Looking ahead, Chicago Atlantic BDC anticipates continued growth in its investment portfolio, driven by its focus on the cannabis sector and other high-growth industries. The company remains committed to maximizing risk-adjusted returns for its shareholders while navigating the complexities of the regulatory landscape surrounding its investments. The management team is optimistic about the potential benefits of the upcoming merger and the opportunities it may create for future growth.
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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