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Chicago Atlantic BDC
(NASDAQ:LIEN)
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Rating:71Outperform
Price Target:
$10.50
â–²(11.70% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by solid reported profitability and conservative leverage, supported by favorable valuation (low P/E and high yield). Offsetting these are data quality/consistency concerns and cash-flow volatility, plus neutral-to-soft technical momentum; the latest earnings commentary and merger plans are generally constructive but carry execution and spread/expense risks.
Positive Factors
Credit Quality and Portfolio Protection
Senior-secured, largely rate-protected lending prioritizes recovery and preserves income when benchmarks fall. Zero nonaccruals indicate current credit performance is strong, while limited junior exposure reduces structural loss severity if borrowers weaken.
Negative Factors
Volatile Cash Generation
Historical negative operating cash flow makes reported cash generation less dependable than current TTM results suggest. For a lender, timing of repayments, originations and portfolio transactions can create volatility that complicates dividend coverage and reinvestment planning.
Read all positive and negative factors
Positive Factors
Negative Factors
Credit Quality and Portfolio Protection
Senior-secured, largely rate-protected lending prioritizes recovery and preserves income when benchmarks fall. Zero nonaccruals indicate current credit performance is strong, while limited junior exposure reduces structural loss severity if borrowers weaken.
Read all positive factors
Chicago Atlantic BDC (LIEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$228.43M
Dividend Yield13.59%
Average Volume (3M)76.16K
Price to Earnings (P/E)7.2
Beta (1Y)0.31
Revenue Growth47.16%
EPS Growth34.42%
CountryUS
Employees1,200
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)1.39
Shares Outstanding22,820,590
10 Day Avg. Volume45,033
30 Day Avg. Volume76,158
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)0.78
Price to Sales (P/S)4.34
P/FCF Ratio-11.51
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.57
Revenue Forecast (FY)$62.62M
Chicago Atlantic BDC Business Overview & Revenue Model
Company Description
Silver Spike Investment Corp. functions as a specialized business development company (BDC) dedicated to investing across the cannabis industry. It channels capital into privately held cannabis enterprises through both direct lending and equity ow...
How the Company Makes Money
Chicago Atlantic BDC primarily makes money from investment income generated by its debt portfolio. The core revenue stream is interest income earned on loans it originates or acquires, which can include contractual cash interest and, where applica...
Chicago Atlantic BDC Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call emphasized record financial performance, strong portfolio yields, conservative leverage, and meaningful origination momentum—particularly notable given regulatory tailwinds for the cannabis market. Key positives include record NII and funding activity, high senior-secured yields, zero nonaccruals, and a large $810M pipeline. Offsetting items include a $1.4M net unrealized loss from spread widening, higher interest expense and operating costs, modest cash on hand, and some execution uncertainty around accessing additional capital under the shelf. On balance, the highlights are more numerous and material than the lowlights, indicating solid operational execution and a favorable positioning to benefit from improving industry dynamics.Positive Updates
Record Net Investment Income and EPS
Net investment income reached a record $10.0 million, or $0.44 per share, up from $8.3 million or $0.36 per share in Q4 2025 (NII increase ~20.5%; EPS increase ~22.2%).
Negative Updates
Net Unrealized Loss from Spread Widening
Recognized a net unrealized loss of $1.4 million for the quarter attributed to widening credit spreads rather than underlying borrower credit deterioration.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Net Investment Income and EPS
Net investment income reached a record $10.0 million, or $0.44 per share, up from $8.3 million or $0.36 per share in Q4 2025 (NII increase ~20.5%; EPS increase ~22.2%).
Read all positive updates
Company Guidance
The company guided to a disciplined, low‑leverage growth plan—maintaining its $0.34 quarterly dividend, staying well below the BDC average 1.3x debt/equity (currently 0.18x with $54.5M drawn), and aiming to opportunistically use available financing (May 13 liquidity ~$51.5M: $50M revolver capacity + $1.5M cash; shelf registration for up to $500M) and, possibly, full revolver utilization by year‑end—while preserving strict underwriting. Key portfolio metrics underpinning that guidance include a gross weighted average debt yield of ~15.8% (vs. 10.8% public BDC avg), 100% of debt senior secured, ~94% fixed‑rate or floored, only 1.3% exposure to sub‑debt/equity (vs. 25.5% peer avg), no nonaccruals (industry avg 3.4%), and minimal software exposure (2.6%). Recent activity and expectations driving growth: Q1 funded $93.9M across 7 companies (3 new), net investment income of $10.0M or $0.44/share, net deployments $32M, $63.4M in repayments/refis (including a $38.3M refinancing), $13.7M unfunded commitments, and an $810M origination pipeline (≈$482M cannabis, $328M non‑cannabis). They also noted limited rate sensitivity (a 100 bp benchmark drop would cut interest income by <15 bps) and expect regulatory tailwinds and increased M&A to lift originations, but will remain conservative and focused on downside protection.Chicago Atlantic BDC Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
78
Positive
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 52.16M | 54.30M | 17.97M | 10.03M | 4.05M | 10.07K |
| Gross Profit | 44.27M | 41.95M | 17.97M | 10.03M | 4.05M | 10.07K |
| EBITDA | 782.51M | 34.53M | 9.62M | 7.34M | 1.98M | -563.37K |
| Net Income | 31.68M | 33.28M | 9.62M | 7.34M | 1.71M | -563.37K |
Balance Sheet | ||||||
| Total Assets | 343.96B | 342.00M | 309.56M | 88.58M | 86.97M | 85.03M |
| Cash, Cash Equivalents and Short-Term Investments | 925.53M | 2.93M | 23.93M | 32.61M | 35.13M | 84.77M |
| Total Debt | 27.00B | 25.00M | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 41.47B | 38.59M | 8.40M | 3.02M | 495.55K | 479.70K |
| Stockholders Equity | 302.49B | 303.41M | 301.16M | 85.55M | 86.48M | 84.55M |
Cash Flow | ||||||
| Free Cash Flow | 12.15B | -20.48M | -5.03M | 5.75M | -50.15M | -509.11K |
| Operating Cash Flow | 12.15B | -20.48M | -5.03M | 5.75M | -50.15M | -509.11K |
| Investing Cash Flow | 24.06B | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | -9.88M | -519.92K | -3.64M | -8.26M | 85.27M | 85.28M |
Chicago Atlantic BDC Risk Analysis
Chicago Atlantic BDC disclosed 1 risk factors in its most recent earnings report. Chicago Atlantic BDC reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Chicago Atlantic BDC Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $228.43M | 7.20 | 0.04% | 14.47% | 47.16% | 34.42% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $216.58M | 5.37 | 10.97% | 20.94% | 12.61% | -3.62% | |
60 Neutral | $246.35M | 8.42 | 8.05% | 21.11% | 0.37% | -28.29% | |
59 Neutral | $361.93M | 5.29 | 17.20% | 5.27% | 8.04% | 10.59% |
* Financial Sector Average
LIEN
Chicago Atlantic BDC
10.01
0.46
4.79%
NEWT
Newtek Business
12.53
0.99
8.62%
SCM
Stellus Capital
8.65
-4.01
-31.70%
TPVG
TriplePoint Venture Growth
5.32
-0.15
-2.83%
Chicago Atlantic BDC Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Chicago Atlantic BDC Reports Q2 2026 Results, Maintains Dividend
Positive
Aug 13, 2026
Chicago Atlantic BDC, Inc. reported second-quarter 2026 results on August 13, 2026, with total investment income of $14.0 million and net investment income of $7.7 million, down from the prior quarter due mainly to lower deployment. The portfolio ...
Executive/Board ChangesShareholder Meetings
Chicago Atlantic BDC Shareholders Back Directors, Auditor at Meeting
Positive
Jun 25, 2026
On June 24, 2026, Chicago Atlantic BDC, Inc. held its 2026 annual meeting of stockholders, where shareholders re-elected Americo Da Corte and Tracey Brophy Warson as Class 2 directors to serve until the 2029 annual meeting, reinforcing continuity ...
Business Operations and StrategyStock BuybackM&A TransactionsRegulatory Filings and Compliance
Chicago Atlantic BDC Announces All-Stock Merger with REFI
Positive
Jun 18, 2026
On June 17, 2026, Chicago Atlantic BDC, Inc. and Chicago Atlantic Real Estate Finance, Inc. signed a definitive all-stock merger agreement under which REFI will convert from a REIT to a BDC and then merge into LIEN, which will remain the surviving...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.