Andalusian Credit Swings to Profit on Soaring Investment Income

TL;DR

**Andalusian Credit is back in the black, making it a strong buy as investment income skyrockets.**

AI Summary

Andalusian Credit Company, LLC reported a significant turnaround for the nine months ended September 30, 2025, with net investment income reaching $4,591,666, a substantial improvement from a net investment loss of $4,924,276 in the prior year. Total investment income more than tripled to $13,067,396 from $3,525,760, primarily driven by a surge in interest income from non-controlled/non-affiliated investments to $11,011,827. The company's total assets nearly doubled to $326,483,756 as of September 30, 2025, from $151,920,751 at December 31, 2024, largely due to increased investments and cash. Debt also increased significantly to $58,000,000 from zero, reflecting new borrowings. Net assets grew to $265,592,434 from $149,749,277, supported by $112,629,433 in proceeds from share issuances. Despite a net change in unrealized depreciation of $324,961, the company achieved a net increase in net assets from operations of $4,266,705, reversing a $4,486,313 decrease in the prior year. Net asset value per share rose to $15.37 from $15.18.

Why It Matters

This strong performance signals a positive shift for Andalusian Credit Company, LLC, demonstrating effective capital deployment and robust interest income generation. For investors, the significant increase in net investment income and NAV per share suggests improved profitability and potential for future returns, especially given the substantial capital raised through share issuances. The competitive landscape for credit companies is intense, and Andalusian's ability to grow its asset base and investment income indicates a strengthening market position. Employees and customers benefit from a more stable and growing company, while the broader market sees a healthy participant in the credit sector.

Risk Assessment

Risk Level: medium — The company's total liabilities increased dramatically to $60,891,322 as of September 30, 2025, from $2,171,474 at December 31, 2024, primarily due to $58,000,000 in new debt. This significant increase in leverage, coupled with a net change in unrealized depreciation of $324,961 on investments, introduces a medium risk profile, as higher debt levels can amplify losses if investments underperform.

Analyst Insight

Investors should consider Andalusian Credit Company, LLC for its strong growth in investment income and net assets. Monitor the company's debt management strategies and the performance of its investment portfolio, particularly given the increase in leverage and unrealized depreciation, to ensure continued positive momentum.

Financial Highlights

debt To Equity

0.22

revenue

$13,067,396

operating Margin

N/A

total Assets

$326,483,756

total Debt

$58,000,000

net Income

$4,591,666

eps

$0.27

gross Margin

N/A

cash Position

N/A

revenue Growth

+271%

Revenue Breakdown

Key Numbers

• $4.59M — Net Investment Income (Increased from a $4.92M loss year-over-year for the nine months ended September 30, 2025.)
• $13.07M — Total Investment Income (More than tripled from $3.53M year-over-year for the nine months ended September 30, 2025.)
• $326.48M — Total Assets (Nearly doubled from $151.92M since December 31, 2024.)
• $58.00M — Total Debt (Increased from zero since December 31, 2024.)
• $265.59M — Total Net Assets (Increased from $149.75M since December 31, 2024.)
• $15.37 — Net Asset Value per Share (Increased from $15.18 since December 31, 2024.)
• $112.63M — Proceeds from Share Issuance (Significant capital raised for the nine months ended September 30, 2025.)
• $4.27M — Net Increase in Net Assets from Operations (Reversed a $4.49M decrease year-over-year for the nine months ended September 30, 2025.)
• 17,275,299 — Shares Outstanding (Increased from 9,863,357 shares since December 31, 2024.)
• $60.89M — Total Liabilities (Increased from $2.17M since December 31, 2024.)

Key Players & Entities

• Andalusian Credit Company, LLC (company) — Registrant
• $4,591,666 (dollar_amount) — Net investment income for nine months ended September 30, 2025
• $4,924,276 (dollar_amount) — Net investment loss for nine months ended September 30, 2024
• $13,067,396 (dollar_amount) — Total investment income for nine months ended September 30, 2025
• $3,525,760 (dollar_amount) — Total investment income for nine months ended September 30, 2024
• $326,483,756 (dollar_amount) — Total assets as of September 30, 2025
• $151,920,751 (dollar_amount) — Total assets as of December 31, 2024
• $58,000,000 (dollar_amount) — Debt as of September 30, 2025
• $265,592,434 (dollar_amount) — Total net assets as of September 30, 2025
• $149,749,277 (dollar_amount) — Total net assets as of December 31, 2024

FAQ

Risk Factors

• Increased Leverage [medium — financial]: The company has taken on $58,000,000 in debt, a significant increase from zero at the end of the prior fiscal year. This increased leverage amplifies both potential returns and potential losses.
• Investment Portfolio Volatility [medium — market]: The company experienced a net change in unrealized depreciation of $324,961. This indicates that the market value of its investments has decreased, highlighting the inherent volatility in its investment portfolio.
• Dependence on Investment Performance [high — operational]: The company's financial performance is heavily reliant on the income generated from its investments, particularly interest income from non-controlled/non-affiliated investments. Any downturn in the performance of these assets could significantly impact profitability.
• Compliance with Investment Regulations [medium — regulatory]: As a credit company, Andalusian Credit Company, LLC is subject to various financial regulations. Non-compliance could lead to fines, sanctions, and reputational damage.

Industry Context

The credit and investment company landscape is characterized by intense competition and sensitivity to interest rate environments. Companies like Andalusian Credit Company, LLC often rely on specialized lending or investment strategies to generate returns. The current environment may favor companies with diversified income streams and robust risk management practices.

Regulatory Implications

As a financial entity, Andalusian Credit Company, LLC is subject to stringent regulatory oversight. Changes in accounting standards, capital requirements, or lending regulations could impact its operations and profitability. The company's increased leverage may also attract closer scrutiny from regulators.

What Investors Should Do

1. Monitor Debt Levels
2. Analyze Investment Income Drivers
3. Evaluate Shareholder Dilution
4. Assess Unrealized Losses

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reported a significant turnaround with net investment income of $4,591,666, a substantial improvement from a net investment loss in the prior year. Total assets nearly doubled.
• 2024-12-31: As of December 31, 2024 — Total assets were $151,920,751 and total debt was $0, providing a baseline for the significant growth and leverage increase observed by September 30, 2025.

Glossary

Net Investment Income

The income generated from a company's investments after deducting investment-related expenses. (Key profitability metric for Andalusian Credit Company, LLC, showing a strong positive turnaround.)

Non-controlled/Non-affiliated Investments

Investments in entities where the investor does not have control or significant influence, and is not related to the investee. (The primary source of increased interest income for Andalusian Credit Company, LLC.)

Net Assets

The value of a company's assets minus its liabilities. For investment companies, this is often referred to as net asset value (NAV). (Shows the overall equity value of the company, which has grown significantly due to share issuances and operational performance.)

Net Change in Unrealized Depreciation

The decrease in the market value of investments that have not yet been sold. (Indicates a reduction in the value of the company's investment portfolio, impacting overall net asset value.)

Net Asset Value per Share

The net asset value of a company divided by the number of outstanding shares. (A key metric for shareholders, indicating the per-share value of their investment, which has slightly increased.)

Year-Over-Year Comparison

Andalusian Credit Company, LLC has demonstrated a dramatic financial turnaround compared to the prior year's nine-month period. Total investment income more than tripled to $13.07M, primarily driven by a surge in interest income. This led to a positive net investment income of $4.59M, reversing a significant loss. Total assets have nearly doubled to $326.48M, supported by substantial share issuances and new debt financing of $58.00M. While net assets have grown to $265.59M, the company has introduced significant leverage and experienced some unrealized depreciation in its investment portfolio.

Key Financial Figures

• $0.001 — Liability Company Interests, par value $0.001 per share . Indicate by check mark wh

Filing Documents

• tmb-20250930x10q.htm (10-Q) — 3269KB
• tmb-20250930xex31d1.htm (EX-31.1) — 11KB
• tmb-20250930xex31d2.htm (EX-31.2) — 11KB
• tmb-20250930xex32d1.htm (EX-32.1) — 5KB
• tmb-20250930xex32d2.htm (EX-32.2) — 5KB
• 0001104659-25-110161.txt ( ) — 10471KB
• tmb-20250930.xsd (EX-101.SCH) — 55KB
• tmb-20250930_cal.xml (EX-101.CAL) — 60KB
• tmb-20250930_def.xml (EX-101.DEF) — 218KB
• tmb-20250930_lab.xml (EX-101.LAB) — 468KB
• tmb-20250930_pre.xml (EX-101.PRE) — 339KB
• tmb-20250930x10q_htm.xml (XML) — 1944KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1. Consolidated Financial Statements Consolidated Statements of Assets and Liabilities as of September 30, 2025 (Unaudited) and December 31, 2024 1 Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 2 Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 3 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 (Unaudited) 5 Consolidated Schedule of Investments as of September 30, 2025 (Unaudited) and December 31, 2024 7

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations . 28 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk . 39 Item 4.

Controls and Procedures

Controls and Procedures 39

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 40 Item 1A .

Risk Factors

Risk Factors 40 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 40 Item 3. Defaults Upon Senior Securities 40 Item 4. Mine Safety Disclosures 40 Item 5. Other Information 40 Item 6. Exhibits 41

Signatures

Signatures 42 Table of Contents Andalusian Credit Company, LLC Consolidated Statements of Assets and Liabilities September 30, 2025 (unaudited) December 31, 2024 (1) Assets: Investments in non-controlled non-affiliated investments, at fair value (cost $ 254,294,953 and $ 91,004,288 , respectively) $ 254,153,906 $ 91,188,202 Cash 6,408,991 551,559 Cash equivalents 64,069,594 58,868,006 Interest receivable 1,439,906 913,083 Prepaid expenses and other assets 411,359 399,901 Total assets $ 326,483,756 $ 151,920,751 Liabilities: Debt (net of deferred financing costs of $- and $-, respectively) (Note 6) $ 58,000,000 $ — Management fees payable 1,856,789 1,520,781 Professional fees payable 360,333 151,000 Administration fees payable 318,004 316,040 Interest and credit facility fees payable (Note 6) 162,065 62,708 Legal fees payable 83,420 73,755 Due to affiliate 27,749 32,166 Accounts payable and accrued expenses 82,962 15,024 Total liabilities $ 60,891,322 $ 2,171,474 Commitments and contingencies (Note 7) Net assets: Shares, par value $ 0.001 ( 17,275,299 and 9,863,357 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively) $ 17,275 $ 9,863 Paid-in-capital in excess of par value 268,312,122 155,066,351 Distributable earnings (loss) ( 2,736,963 ) ( 5,326,937 ) Total net assets $ 265,592,434 $ 149,749,277 Total liabilities and net assets $ 326,483,756 $ 151,920,751 Net asset value per share $ 15.37 $ 15.18 (1) Certain items have been reclassified in prior quarters to conform with the current quarter presentation. The accompanying notes are an integral part of these consolidated financial statements. 1 Table of Contents Andalusian Credit Company, LLC Consolidated Statements of Operations (unaudited) Three months Three months Nine months Nine months ended ended ended end

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