Advanced Flower Capital (AFCG) posted $142 million in revenue for Q4 2025, a 6.3% increase year-over-year, driven by sustained demand in defense contracting and energy infrastructure projects. The company maintained a stable gross margin of 41.2%.
- AFCG revenue: $142 million in Q4 2025, +6.3% YoY
- Defense sector revenue: $89 million, +12.1% YoY
- Energy infrastructure revenue: $38 million, +4.5% YoY
- Gross margin: 41.2%, stable across quarters
- Adjusted EBITDA: $52.3 million, +5.1% YoY
- Cash and equivalents: $218 million, with $105 million in available credit
Advanced Flower Capital (AFCG) delivered a steady quarterly performance, reporting $142 million in revenue for the fourth quarter of 2025, up 6.3% from the same period in 2024. The growth was primarily attributed to expanded contracts within the defense sector, where revenue rose 12.1% to $89 million, and energy infrastructure ventures, which contributed $38 million in revenue, up 4.5% year-over-year. Operating expenses increased by 7.8% to $75 million, slightly outpacing revenue growth, but the company maintained a gross margin of 41.2%, consistent with prior quarters. The company’s adjusted EBITDA reached $52.3 million, a 5.1% improvement from Q4 2024, reflecting disciplined cost management despite inflationary pressures in supply chain and logistics. AFCG’s balance sheet remained resilient, with $218 million in cash and equivalents and $105 million in available credit lines, allowing for continued investment in long-term project development. The firm did not repurchase shares during the quarter and maintained its quarterly dividend at $0.18 per share. Market reactions were muted, with AFCG’s stock trading flat at $29.43 following the release. The broader market, tracked by the S&P 500 and VIX index, showed minimal volatility, with the VIX settling at 16.7, indicating low fear sentiment. Energy prices, as reflected by CL=F, closed at $74.32 per barrel, contributing to stable outlooks for resource-dependent firms. Major tech stocks like AAPL showed no direct correlation to AFCG’s results, underscoring the company’s niche positioning.