Chicago Atlantic BDC lends to businesses that conventional capital providers often underserve, with cannabis operators a particular focus. Borrowers pay interest for that financing, while equity investments and warrants offer a separate opportunity to benefit when a business gains value. The company can also pursue technology investments and asset-backed lending, so its opportunities extend beyond cannabis. Its specialist focus brings exposure to complex businesses and regulation, making reliable borrower payments more important than an attractive loan rate alone.
Business
BDC
Listing
LIEN · NASDAQ
Reporting period
2026-06-30
Dividend schedule
Quarterly
How the business works
The company’s distribution engine begins with interest collected on its loans and other income-producing investments. Net investment income is available for distributions after interest expense, management fees, incentive fees, and other operating costs. Portfolio growth can expand income if new investments are made at attractive yields and funded prudently. Conversely, non-accrual loans, restructurings, lower market yields, higher borrowing costs, repayment of higher-yielding loans, or realized losses can reduce the cash-generating capacity of the portfolio.
Financial snapshot: 2026-06-30. Research reviewed 2026-10-24. The annual earnings comparison is from 2026-10-24. The business and balance-sheet figures below relate to the reporting period shown.
The assets it owns
$343.961 million total assetsReported by Chicago Atlantic BDC, Inc.
Chicago Atlantic's total assets describe the resources held in the business, not its stock-market value. The figure gives a sense of scale, while the quality of those assets is a separate question about how reliably they can support income.
Share of consolidated total assets at 2026-06-30; other assets are the arithmetic residual. This is not a loan-seniority or sector allocation.
Annual earnings of $1.60 per share compare with $1.36 in annual dividends. Coverage is 117.65%. Earnings cover the payment in this update. Keep watching whether that support holds up.
Chicago Atlantic pays its adviser a management fee calculated on gross assets excluding cash, as well as a performance-based incentive fee. Investments bought with borrowed money count in that management-fee calculation, so expanding the portfolio also expands the assets on which the adviser earns its fee.
Growth can strengthen income, but only if the additional loan earnings more than cover the costs that come with them. The useful result is more earnings for each share, rather than a larger portfolio accompanied by a larger fee bill.
At 2026-06-30, Chicago Atlantic BDC, Inc. reported $343.961 million of total assets and $41.472 million of total liabilities.
Liabilities represented 12.1% of reported assets. This broad balance-sheet measure includes more than borrowing and must not be read as a debt-to-equity ratio. Funding costs and asset losses can both reduce the earnings available to shareholders.
Annual earnings of $1.60 per share compare with $1.36 in annual dividends. Coverage is 117.65%. Earnings cover the payment in this update. Keep watching whether that support holds up.
We like the earnings support here. A steady or growing cushion would make the income case more comfortable.
At June 30, 2026, three borrowers represented 35.1% of portfolio fair value, up from 31.8% at year-end. The largest exposure accounted for 19.2%, so individual borrower outcomes carry considerable weight despite the wider portfolio.
That concentration deserves attention because trouble at a large borrower could affect both interest income and investment value. It does not establish a default, but dependable collections from the largest exposures matter more here than a simple count of portfolio companies might suggest.
The investment schedule includes a cannabis loan to FLUENT whose stated interest is entirely payment-in-kind. For that loan, the contractual interest builds up in the investment rather than providing a current cash payment.
This makes the timing of borrower payments particularly relevant to the dividend. The useful question is whether accrued interest can ultimately be collected, although payment-in-kind terms alone are not evidence that a borrower has defaulted.
More investments are performing below expectations
Chicago Atlantic BDC reported no non-accrual loans at June 30, 2026 or year-end. However, grade 3 investments increased from 1.7% to 4.6% of loan fair value. The company defines this grade as performance below expectations with increased risk, while stating that capital impairment or payment delinquency is not anticipated. There were no grade 4 or 5 investments.
Fly High assessment: Cash-payment performance remains intact in the disclosed non-accrual measure, but the larger below-expectation group warrants monitoring. A grade 3 classification is not proof of default or an expected principal loss; later borrower results should determine whether the deterioration reverses.
NAV per share was $13.26 at June 30, 2026 versus $13.30 at December 31, 2025. First-half highlights report $0.77 of net investment income, $0.13 of net investment losses and $0.68 of distributions per share.
Fly High assessment: Capital per share declined by less than 0.4%, while reported first-half net investment income exceeded distributions. That supports a broadly stable capital base for this period, subject to the separate increase in below-expectation loans.
Borrower collections remain the key test, particularly where interest is being added to the loan balance. If full recovery becomes doubtful, Chicago Atlantic generally stops recognizing interest and reverses outstanding interest receivables. That can weaken dividend support before the final outcome of the loan is settled.
Net asset value
Latest recorded asset value per share$13.26Share price compared with recorded asset value31.45% discount
Financial data through October 24, 2026.
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U.S. federal · Tax year 2025
Dividend tax treatment
The company reports ordinary income, with no capital gains or return of capital, for the tax periods surrounding 2025. This supports an ordinary-income indication, but does not establish the final 2025 qualified versus nonqualified split.
Total ordinary dividends
Not confirmed
Qualified dividends
Not confirmed
Capital-gain distributions
Not confirmed
Return of capital
Not confirmed
The company calls this breakdown an estimate. Disclaimer: the source uses tax years ending March 31, 2025 and March 31, 2026, not calendar 2025, and calls the allocations estimates. Calendar-year percentages are therefore unconfirmed. Use your final broker Form 1099-DIV for filing. Your Form 1099-DIV may show a different final mix. See the company's estimate.
Tax year: 2025.
Tax details and source
Total ordinary dividends (includes qualified)
Not confirmed
Section 199A portion (within ordinary dividends)
Not confirmed
Exempt-interest distributions
Not confirmed
Reporting form
Form 1099-DIV
Source date
2026-05-14
Qualified dividends are included in total ordinary dividends. Section 199A is a separate designation within ordinary dividends, not extra income or qualified dividend income.
Your account type, holding period and circumstances affect treatment. Use your broker’s tax statement for filing. Return of capital generally reduces cost basis; amounts beyond basis can be taxable. IRS dividend guidance.
