10-Q · May 7, 2026
In its Q1 2026 10-Q, Chicago Atlantic Real Estate Finance (REFI) reported a slight increase in revenues and a notable decrease in net income year-over-year. Revenue was $15,164,688, reflecting a modest uptick from…
Earnings analysis · 10-Q
REFI earnings analysis
Filed August 11, 2026 · Our reading of the company's report
The latest report
The provided extract is concentrated on market risk, controls, and updated risk factors and does not include the consolidated income statement, balance sheet, cash-flow statement, or MD&A operating results; therefore,…
Read full summary
The provided extract is concentrated on market risk, controls, and updated risk factors and does not include the consolidated income statement, balance sheet, cash-flow statement, or MD&A operating results; therefore, revenue, margins, EPS, free cash flow, and segment trends cannot be quantified from the supplied text. The loan portfolio expanded to $453.1 million from $411.1 million, while real-estate-secured exposure increased to 55.5% from 47.6% year over year. The newly disclosed merger and planned BDC conversion introduce substantial transaction and regulatory uncertainty, keeping the overall assessment neutral despite portfolio growth.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Loan Portfolio Expanded
Total loan-portfolio principal increased to $453.1 million at June 30, 2026 from $411.1 million at December 31, 2025, an increase of approximately 10.2%.
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Improved Real Estate Collateral Mix
Real-estate-secured loans represented 55.5% of the portfolio at June 30, 2026, versus 47.6% at June 30, 2025. Average real-estate collateral coverage remained 1.2x.
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Warrant Asset Exposure
The company held $0.9 million of warrants at fair value as of June 30, 2026, providing an additional source of potential valuation upside, although subject to fair-value volatility.
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Controls Remained Effective
Disclosure controls and procedures were assessed as effective at June 30, 2026, and management reported no material changes in internal control over financial reporting during the quarter.
What to watch
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Merger Completion Uncertainty
The proposed merger with LIEN is subject to multiple closing conditions, including REFI and LIEN stockholder approvals, a majority-of-the-minority vote of REFI's unaffiliated stockholders, regulatory approvals, and an effective Form N-14. Failure to satisfy any condition could delay or terminate the transaction.
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Exchange Ratio May Dilute Value
The merger Exchange Ratio will be based on the relative net asset values of REFI and LIEN no earlier than 48 hours before closing. Changes in loan values, credit losses, and share issuances—including the July 2026 Koach issuance of 4,306,754 shares at $14.53 per share—could cause REFI holders to receive fewer LIEN shares than anticipated.
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Planned BDC Conversion Risk
REFI's planned election to become a business development company would replace its current REIT framework with materially different limits on leverage, affiliate transactions, and portfolio composition. The filing states this would fundamentally change the company's regulatory regime.
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Borrower Concentration Increased
The top three borrowers represented 31.5% of outstanding loan principal at June 30, 2026, up from 25.6% at December 31, 2025, increasing borrower-concentration risk.
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Higher Financing Rate Sensitivity
The Revolving Loan had $91.1 million outstanding and $19.0 million of remaining availability at June 30, 2026. A 100-basis-point increase in benchmark rates was estimated to raise annualized interest expense by $910,500 and increase net investment income by $1,512,120, versus a $380,000 expense increase and $1,999,707 net-investment-income increase in the comparable prior-year sensitivity.
Management's outlook
The provided 10-Q extract does not include quantitative revenue or EPS guidance. No revised forward outlook is disclosed; prior analysis also noted no revised guidance.
Earlier filings 4
10-K · March 12, 2026
Chicago Atlantic Real Estate Finance (REFI) remains a specialist commercial mortgage REIT focused primarily on senior loans to state-licensed cannabis operators. The 10-K emphasizes a credit-first underwriting approach,…
10-Q · November 4, 2025
REFI reported quarterly interest income of $15,250,866 and net income of $8,934,539 for the three months ended September 30, 2025. Revenue and profitability contracted versus the prior-year quarter (interest income down…
10-Q · May 7, 2025
Chicago Atlantic Real Estate Finance reported Q1 2025 net income of $10,041,312 (diluted EPS $0.47), up versus $8,730,003 a year ago while interest income edged down to $15,107,315 from $15,343,667. Operating cash flow…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.