Advanced Flower Capital Inc. Reports Q4 2025 Revenue of $142.3 Million, Meets Analyst Expectations

Advanced Flower Capital Inc. delivered consistent financial results in the fourth quarter of 2025, reporting revenue of $142.3 million, a 6.2% increase year-over-year. The company attributed the growth primarily to expanded contracts with U.S. defense agencies, including a $38 million award for advanced drone systems integration. Adjusted EBITDA reached $47.1 million, up 8.5% from the same period in 2024, reflecting improved operational efficiency. The company’s energy division, which accounts for approximately 32% of total revenue, generated $45.5 million in Q4, showing a modest 1.8% decline due to lower natural gas prices. However, the segment remains a stable contributor, with margins held steady at 28.4%. Management emphasized that strategic divestitures in underperforming oil exploration assets helped preserve capital and support reinvestment in defense technology. Advanced Flower Capital Inc. maintained its full-year 2026 revenue guidance between $580 million and $610 million. The company also announced a quarterly dividend of $0.22 per share, reflecting confidence in its free cash flow generation. As of March 2026, the company held $189 million in cash and equivalents, with net debt-to-EBITDA at 2.1x, within its targeted range. Market reaction was muted, with the company’s stock trading flat in after-hours trading. Analysts noted that while results were in line, the lack of upside surprise limited momentum. The broader energy sector, represented by CL=F, saw a 1.2% decline in the session, while the VIX remained elevated at 18.6, indicating cautious sentiment amid geopolitical tensions and inflationary pressures.