Semi-Annual Report by Investment Company (Form N-CSRS)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-22853

ArrowMark Financial Corp.

(Exact name of registrant as specified in charter)

100 Fillmore Street, Suite 325
Denver, CO 80206
(Address of principal executive offices) (Zip code)

Sanjai Bhonsle, CEO
ArrowMark Asset Management, LLC
100 Fillmore Street, Suite 325

Denver, CO 80206
(Name and address of agent for service)

Copies of Communications to:

John M. Ford, Esq.

Troutman Pepper Locke

3000 Two Logan Square / Eighteenth and Arch Streets

Philadelphia, PA 19103-2799

(215) 981-4659

Registrant's telephone number, including area code: (303) 398-2929

Date of fiscal year end: December 31

Date of reporting period: June 30, 2026

Item 1. Reports to Stockholders.

(a)

The Report to Shareholders is attached herewith.

Semi-Annual Report June 30, 2026 (unaudited)

ARROWMARK FINANCIAL CORP.

Table of Contents

	Page
Consolidated Schedule of Investments	1
Consolidated Statement of Assets and Liabilities	6
Consolidated Statement of Operations	7
Consolidated Statements of Changes In Net Assets	8
Consolidated Statement of Cash Flows	9
Consolidated Financial Highlights	10
Notes to Consolidated Financial Statements	12
Dividends and Distributions	27
Tax Information	29
Additional Information	29
Results of Meeting of Stockholders	30
Management	31
Shareholder Information	35
Privacy Notice	43

As of June 30, 2026

Company(1)		Investment		# of Shares/Par Amount(2)				Fair Value(3)
Term Loans - 3.8%
Banking - 3.8%
EverBank Financial Corp.		Subordinated Term Loan, 7.50%, 9/01/2035, 144A(4)(5)		$	2,000,000			$	2,045,000
F.N.B.C. of La Grange, Inc.		Subordinated Term Loan, 6.38%, 1/01/2030(5)(6)		$	700,000				640,500
TransPecos Financial Corp.		Senior Term Loan, 9.00%, 10/01/2028(5)		$	4,000,000				3,520,000
Tulsa Valley Bancshares		Subordinated Term Loan, 6.38%, 12/31/2028(5)(6)		$	1,700,000				1,576,750
		Total Term Loans (Cost $8,400,000)							7,782,250
Structured Debt Securities - 7.2%
Banking - 7.2%
Community Funding 2018, LLC.		Preferred Shares (Estimated effective yield 10.67%), 144A(4)(7)		$	14,860,000				11,757,975
TCW CLO 2025-1 LTD		Preferred Shares, 9.58%, 4/20/2038(5)(8)		$	3,000,000				2,913,912
		Total Structured Debt Securities (Cost $17,701,118)							14,671,887
Regulatory Capital Relief Securities - 102.6%
Banking - 102.6%
Absolute		Credit Linked Note, 16.84%, 10/10/2027(9)**		$	531,869				445,846
Algonquin		Credit Linked Note, 3.65%, 11/01/2027(5)(8)+		$	485,471				485,471
Algonquin		Credit Linked Note, 13.90%, 11/01/2028(8)+		$	1,965,343				1,929,395
Algonquin		Guarantee Linked Note, 3.65%, 05/01/2027(5)(8)+		$	481,081				457,027
AMF Ireland Finance 1 - Series 1		Profit Participating Note, 17.14%, 06/30/2031(5)(8)		$	6,962,108				7,272,653
AMF Ireland Finance 1 - Series 2		Profit Participating Note, 10.88%, 12/15/2029(5)(9)		$	387,763				390,261
AMF Ireland Finance 1 - Series 3		Profit Participating Note, 11.12%, 05/31/2033(5)(8)		$	3,000,000				2,986,692
AMF Ireland Finance 1 - Series 4		Profit Participating Note, 9.75%, 08/20/2029(5)(10)		€	1,700,000				1,945,396
AMF Ireland Finance 2 - Series 2		Profit Participating Note, 14.42%, 04/19/2032(5)(8)		$	3,000,000				3,166,619
AMF Ireland Finance 2 - Series 3		Profit Participating Note, 9.83%, 05/09/2033(5)(10)		€	5,000,000				5,778,368
AMF Ireland Finance 2 - Series 4		Profit Participating Note, 11.14%, 11/30/2031(5)(8)		$	4,000,000				4,005,608
AMF Ireland Finance 2 - Series 5		Profit Participating Note, 9.14%, 08/10/2034(5)(10)**		€	4,500,000				5,141,700
AMF Ireland Finance 3 - Series 1		Profit Participating Note, 10.13%, 06/30/2030(5)(9)**		$	1,348,708				1,349,912
AMF Ireland Finance 3 - Series 2		Profit Participating Note, 10.42%, 12/31/2034(5)(10)**		€	2,013,614				2,310,860
AMF Ireland Finance 3 - Series 3		Profit Participating Note, 13.29%, 07/08/2032(5)(8)		$	2,000,000				1,912,972
AMF Ireland Finance 3 - Series 4		Profit Participating Note, 8.15%, 09/30/2039(5)(10)		€	4,700,000				5,372,844
AMF Ireland Finance 4 - Series 1		Profit Participating Note, 12.14%, 10/10/2030(5)(8)**		$	2,500,000				2,468,750

Company(1)		Investment		# of Shares/Par Amount(2)				Fair Value(3)
Regulatory Capital Relief Securities (continued)
Banking (continued)
AMF Ireland Finance 4 - Series 2		Profit Participating Note, 9.14%, 12/12/2033(5)(10)		€	1,022,511			$	1,165,401
AMF Ireland Finance 4 - Series 3		Profit Participating Note, 10.93%, 06/30/2033(5)(11)		£	2,500,000				3,345,466
AMF Ireland Finance 4 - Series 4		Profit Participating Note, 8.82%, 11/28/2039(5)(10)**		€	1,078,002				1,238,136
AMF Ireland Finance 4 - Series 5		Profit Participating Note, 10.16%, 02/15/2030(5)(8)		$	3,000,000				2,979,576
AMF Ireland Finance 4 - Series 6		Profit Participating Note, 9.56%, 06/02/2034(5)(12)**		€	2,250,000				2,558,510
AMF Ireland Finance 5 - Series 1		Profit Participating Note, 11.17%, 10/21/2034(5)(8)		$	10,000,000				10,130,649
AMF Ireland Finance 5 - Series 2		Profit Participating Note, 9.73%, 12/15/2029(5)(9)		$	5,000,000				4,988,500
AMF Ireland Finance 5 - Series 3		Profit Participating Note, 11.09%, 05/28/2032(5)(8)		$	8,200,000				8,200,000
AMF Ireland Finance 6 - Series 1		Profit Participating Note, 11.41%, 8/15/2030(5)(8)		$	7,000,000				6,978,300
AMF Ireland Finance 6 - Series 2		Profit Participating Note, 10.68%, 4/21/2032(5)(8)		$	10,000,000				10,075,920
Auto ABS Synthetic French Loans		Credit Linked Note, 14.71%, 12/27/2030(12)**		€	642,582				736,900
Boa Vista		Credit Linked Note, 11.35%, 05/02/2043(10)**		€	827,610				947,991
Cedar		Credit Linked Note, 12.70%, 12/15/2027(10)**		€	2,079,484				2,402,877
Cedar		Credit Linked Note, 13.20%, 03/30/2030(5)(10)**		€	2,612,639				3,051,804
CHAKRA		Credit Linked Note, 13.06%, 11/21/2027(5)(8)+		$	1,724,148				1,596,477
Colonnade		Credit Linked Note, 15.81%, 04/30/2028(5)(8)		$	5,083,365				5,204,517
Colonnade		Credit Linked Note, 15.53%, 11/30/2029(5)(8)		$	6,900,719				7,259,639
Colonnade		Credit Linked Note, 16.33%, 12/15/2029(5)(8)		$	4,590,913				4,644,905
Colonnade		Credit Linked Note, 15.67%, 04/30/2030(5)(8)		$	9,154,241				9,525,601
CRAFT		Credit Linked Note, 0.00%, 04/30/2028, 144A(4)(5)(13)		$	270,544				257,016
CRAFT		Credit Linked Note, 15.39%, 11/28/2030, 144A(4)(5)(8)		$	3,774,211				4,294,574
CRAFT		Credit Linked Note, 12.40%, 02/21/2031, 144A(4)(5)(13)		$	2,478,103				2,860,671
CRAFT		Credit Linked Note, 12.90%, 11/21/2031, 144A(4)(5)(8)		$	10,000,000				10,476,870
CRAFT		Credit Linked Note, 10.92%, 1/21/2035, 144A(4)(5)(8)		$	5,000,000				5,049,780
CRAFT		Credit Linked Note, 10.92%, 1/21/2035, 144A(4)(5)(8)**		$	5,000,000				5,049,780
FCT Colisee		Credit Linked Note, 10.15%, 07/07/2033(10)+		€	925,466				1,053,499
Future Ready Chakra		Credit Linked Note, 11.64%, 12/15/2029(8)+		$	4,466,667				4,413,625
LOFT		Credit Linked Note, 11.14%, 02/28/2030, 144A(4)(5)(8)		$	2,726,486				2,865,133
LOFT		Credit Linked Note, 22.64%, 02/28/2030, 144A(4)(5)(8)		$	5,154,136				6,426,203
Mespil		Credit Linked Note, 13.67%, 12/08/2031(5)(8)**		$	1,483,809				507,908
Muskoka		Credit Linked Note, 3.66%, 11/01/2027(5)(8)+		$	15,438				14,666
Nansa		Credit Linked Note, 2.17%, 04/05/2026(5)(10)**		€	307,685				127,792
Nightingale LF		Credit Linked Note, 14.48%, 04/01/2028(5)(11)**		£	2,000,000				2,652,900
Pymes Magdalena		Credit Linked Note, 2.31%, 03/20/2050(10)**		€	828,161				933,341
Salisbury		Credit Linked Note, 14.23%, 06/16/2027(11)+		£	5,021,855				6,553,527
Salisbury		Credit Linked Note, 8.48%, 6/16/2027(5)(11)+		£	7,000,000				9,390,629
Salisbury		Credit Linked Note, 8.48%, 4/17/2028(5)(11)+		£	2,570,579				3,467,301

Company(1)		Investment		# of Shares/Par Amount(2)				Fair Value(3)
Regulatory Capital Relief Securities (continued)
Banking (continued)
Salisbury		Credit Linked Note, 13.48%, 03/20/2028(5)(11)+		£	596,480			$	822,105
Salisbury		Credit Linked Note, 13.73%, 04/17/2028(5)(11)+		£	3,605,186				5,056,735
Salisbury		Credit Linked Note, 3.73%, 04/17/2028(5)(11)+		£	10,847				12,949
Terra		Credit Linked Note, 11.54%, 09/25/2029(8)**		$	2,019,149				2,001,279
		Total Regulatory Capital Relief Securities (Cost $204,252,672)							208,739,826
Trust Preferred and Preferred Securities - 0.9%
Banking - 0.9%
Fidelity Federal Bancorp		Fixed Rate Cumulative Perpetual Preferred Stock, Series A - 9%(5)(14)(15)		$	2,789,000				1,673,400
Fidelity Federal Bancorp		Fixed Rate Cumulative Perpetual Preferred Stock, Series B - 9%(5)(15)(16)		$	200,000				120,000
		Total Trust Preferred and Preferred Securities (Cost $3,004,203)							1,793,400
Common Stocks - 4.3%
Banking - 4.3%
U.S. Bancorp.		Common Stock		$	104,100				6,287,640
Wells Fargo & Co.		Common Stock		$	30,000				2,479,200
		Total Common Stocks (Cost $7,211,393)							8,766,840
		Total Long-Term Investments (Cost $240,569,386)							241,754,203
Money Market Fund - 0.3%
Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio		Institutional Share Class - Money Market Mutual Fund (MSUXX) 3.51%(17)		$	554,429				554,429
		Total Money Market Fund (Cost $554,429)							554,429
		Total Investments (Cost $241,123,815)(18)(19) - 119.1%							242,308,632
		Other Assets and Liabilities, Net - (19.1)%(20)							(38,814,406	)
		Total Net Assets - 100.0%*						$	203,494,226

Company(1)		Investment			# of Contracts(2)			Fair Value(3)
Call Options Written - (1.5%)
Banking - (1.5%)
U.S. Bancorp.		U.S. Bancorp., Notional amount $3,903,750, Expires 1/15/2027, Strike Price $37.50			1,041			$	(2,352,660)
Wells Fargo & Co.		Wells Fargo & Co., Notional amount $1,800,000, Expires 6/17/2027, Strike Price $60.00			300				(751,500)
		Total Call Options Written (Premiums received $1,813,197)						$	(3,104,160)

(1)	Except with respect to Community Funding 2018, LLC ("CF 2018"), we do not "control" and are not an "affiliate" of any of our investments, as such terms are defined under the Investment Company Act of 1940 (the "1940 Act"). We may be deemed to control and be an affiliate of CF 2018 because we are the sole member of such entity.
(2)	Par Value in USD, GBP, or EUR.
(3)	Fair Value is determined in good faith in accordance with the Company's valuation policy and is reviewed and accepted by the Company's Board of Directors. All amounts are in USD.
(4)	Securities are exempt from registration under Rule 144A of the Securities Act of 1933.
(5)	Investments determined using significant unobservable inputs (Level 3). The value of such securities is $ 199,811,108 or 98.19% of net assets.
(6)	The estimated effective yield including structuring fees paid annually through maturity of 2030 and 2028, respectively, is 9.60%.
(7)	The preferred shares are considered an equity position. Equity investments are entitled to recurring distributions which are generally equal to the remaining cash flow of the payments made by the underlying company's securities less contractual payments to debt holders and company expenses. The estimated effective yield indicated is based upon a current projection of the amount and timing of these recurring distributions and the estimated amount of repayment of principal upon termination. Such projections are periodically reviewed and adjusted as needed. The estimated effective yield may ultimately not be realized.
(8)	Floating rate note: 90 Day Average SOFR + minimum of 0.00%
(9)	Floating rate note: 30 Day Average SOFR + minimum of 6.10%
(10)	Floating rate note: 3M EURIBOR (Floored at 0%) + minimum of 0.00%
(11)	Floating rate note: SONIA + minimum of 0.00%
(12)	Floating rate note: 1M EURIBOR + minimum of 7.28%
(13)	Floating rate note: 3M SOFR + minimum of 0.00%
(14)	As of June 30, 2026, this investment has deferred, undeclared and compounding dividends of $759,219 that will be recognized by ArrowMark Financial Corp. once they are declared by Fidelity Federal Bancorp.
(15)	Non-income producing securities
(16)	As of June 30, 2026, this investment has deferred, undeclared and compounding dividends of $54,444 that will be recognized by ArrowMark Financial Corp. once they are declared by Fidelity Federal Bancorp.
(17)	Current annualized 7-day yield as of June 30, 2026.
(18)	As of June 30, 2026, the tax cost basis of investment securities was $241,123,815. The gross unrealized appreciation over tax cost was $8,507,716 and gross unrealized depreciation under tax cost was $7,322,899. Net unrealized appreciation of tax cost under value was $1,184,817.
(19)	Cost values reflect accretion of original issue discount or market discount, and amortization of premium.
(20)	Includes $40,800,000 in bank loans from Texas Capital Bank.
*	Substantially all of the Company's portfolio assets are pledged in respect of the credit facility (see note 7).
**	Held in Marshall Holdings Limited II.
+	Held in Marshall Holdings Limited III.

ABS	Asset-Backed Security
CLO	Collateralized Loan Obligation
EUR	Euro
EURIBOR	Euro London Interbank Offered Rate
GBP	British Pound
SOFR	Secured Overnight Financing Rate
SONIA	Sterling Overnight Interbank Average Rate
USD	United States Dollar

Affiliated Investments

Investments in and advances to Affiliates (as per 210.12-14) for Period Ended 06/30/2026	Shares/Principal Amount*	Net Realized Gain (Loss) for Period	Net Increase (Decrease) in Unrealized Appreciation (Depreciation)	Interest Received	06/30/2026 Value
Security Name
Community Funding 2018, LLC., Preferred Shares, 10.67%*	$14,860,000	$-	$147,265	$644,549	$11,757,975

* The balance at the beginning of the period was $14,860,000. During the period the Fund made no additions or sales of the position and received no paydowns.

Additional Information

The following is a listing of the underlying unsecured loans that were made by Community Funding 2018, LLC.

Bank Name		Principal Amount		State
Big Poppy Holdings, Inc.		$	9,000,000	California
Delmar Bancorp			4,500,000	Maryland
Fidelity Federal Bancorp			8,000,000	Indiana
First Bancshares, Inc.			10,000,000	Mississippi
Vintage Bancorp			1,150,000	Kansas
Total		$	32,650,000

Consolidated Statement of Assets and Liabilities As of June 30, 2026 (unaudited)

Assets
Unaffiliated investments in securities, at fair value (Cost $226,348,047)		$	230,550,657
Affiliated investments in securities, at fair value (Cost $14,775,768)			11,757,975
Cash			1,249,619
Foreign Cash (Cost $472,293)			472,372
Interest and dividends receivable			3,911,691
Prepaid assets			893,807
Total assets			248,836,121
Liabilities
Options written, at value (Premiums received $1,813,197)			3,104,160
Loan payable (Note 7)			40,800,000
Investment advisory fees payable			1,072,125
Loan interest payable			67,152
Taxes payable (Note 5)			39,780
Accrued expenses payable			258,678
Total liabilities			45,341,895
Net Assets		$	203,494,226
Net assets consist of:
Common stock, at par ($0.001 per share)		$	9,689
Paid-in capital			206,001,467
Total distributable earnings (loss)			(2,516,930	)
Net Assets		$	203,494,226
Net asset value per share
Common Stock Shares Outstanding			9,688,983
Net asset value per common share		$	21.00
Market price per share		$	19.55
Market price discount to net asset value per share			(6.90	)%

6

ArrowMark Financial Corp.| Semi-Annual Report

See Notes to financial statements.

Consolidated Statement of Operations For the Six Months Ended June 30, 2026 (unaudited)

This Statement of Operations summarizes the Company's investment income earned and expenses incurred in operating the Company. It also shows net gains (losses) for the period stated.

Investment Income
Interest from unaffiliated investments		$	12,426,578
Interest from affiliated investments			644,549
Dividends			128,994
Origination fee income (Note 9)			64,104
Other income (Note 9)			54,077
Total investment income			13,318,302
Expenses
Investment advisory fee			2,024,934
Interest expense			1,182,849
Professional fees			654,254
Delaware franchise tax			297,338
Transfer agent, custodian fees and administrator fees			151,102
Bank fees			129,736
Directors' fees			126,762
Investor relations fees			104,351
Valuation service fees			93,970
Insurance expense			26,049
Miscellaneous fees (proxy, etc.)			162,838
Total expenses			4,954,183
Waivers and/or reimbursements			(455,669	)
Net expenses			4,498,514
Net investment income			8,819,788
Realized and Unrealized Gain/(Loss) on Investments, Written Options and Foreign Currency Translations
Net realized loss on investments			(1,624,669	)
Net realized gain from forward foreign currency contracts			58
Net realized gain from foreign currency translations			13,032
Net change in unrealized depreciation on unaffiliated investments			(810,060	)
Net change in unrealized appreciation on affiliated investments			147,265
Net change in unrealized depreciation on written options			(678,848	)
Net change in unrealized depreciation on foreign currency translations			(21,631	)
Net realized and unrealized gain/(loss) on investments, written options and forward foreign translations			(2,974,853	)
Net Increase in Net Assets Resulting From Operations		$	5,844,935

See Notes to financial statements.

Semi-Annual Report | ArrowMark Financial Corp.

7

Consolidated Statements of Changes In Net Assets

These statements of changes in net assets show how the value of the Company's net assets has changed during the last two periods stated. The difference reflects earnings less expenses, any investment gains and losses, distributions, if any, paid to shareholders and the net of Company share transactions.

		For the Six months Ended June 30, 2026 (unaudited)				For the Year Ended December 31, 2025
Increase (Decrease) in Net Assets
From Operations
Net investment income		$	8,819,788			$	16,335,779
Net realized gain/(loss) on investments, forward foreign currency contracts and foreign currency translations			(1,611,579	)			(9,350,964	)
Net change in unrealized appreciation/(depreciation) on investments, forward foreign currency contracts and foreign currency translations			(1,363,274	)			10,903,283
Net increase in net assets resulting from operations			5,844,935				17,888,098
Distributions to shareholders
From total distributable earnings			(8,936,954	)			(16,700,279	)
Total distributions			(8,936,954	)			(16,700,279	)
From Company share transactions
Proceeds from sales			34,877,336				15,012,896
Reinvestment of distributions			166,514				241,887
Increase in net assets resulting from Company share transactions			35,043,850				15,254,783
Total increase			31,951,831				16,442,602
Net assets
Beginning of period			171,542,395				155,099,793
End of period		$	203,494,226			$	171,542,395
Shares outstanding
Beginning of period			7,810,362				7,120,782
Proceeds from sales			1,870,317				677,880
Reinvestment of distributions			8,304				11,700
End of period			9,688,983				7,810,362

8

ArrowMark Financial Corp.| Semi-Annual Report

See Notes to financial statements.

Consolidated Statement of Cash Flow

This Statement of Cash Flows shows cash flow from operating and financing activities for the year stated.

		For the Six Months Ended June 30, 2026 (unaudited)
Cash flows from operating activities
Net increase in net assets from operations		$	5,844,935
Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities:
Purchase of investments securities			(66,755,236	)
Proceeds from sales and redemptions of investment securities			18,089,157
Net sales of short-term investments			478,077
Proceeds from written options, net			594,361
Net realized loss on investments			1,624,669
Net change in net unrealized depreciation on investments			662,795
Net change in unrealized depreciation on written options			678,848
Net accretion of discount			11,197
Increase in prepaid expenses			(25,417	)
Decrease in receivable for investments sold			846,747
Increase in interest receivable and dividends receivable			(483,359	)
Increase in advisory fees payable			181,188
Decrease in loan interest payable			(102,031	)
Decrease in directors' fees payable			(53,965	)
Decrease in excise tax payable			(194,701	)
Decrease in accrued fees payable			(118,400	)
Net cash used for operating activities			(38,721,135	)
Cash flows from financing activities
Cash contributions by shareholders, net of issuance costs ($748,229)			34,877,336
Increase in loan payable			15,600,000
Cash distributions to shareholders			(12,285,116	)
Net cash provided by financing activities			38,192,220
Net decrease in cash			(528,915	)
Cash and Foreign Cash:
Beginning of period			2,250,906
End of period		$	1,721,991
Supplemental disclosure of cash flow information
Cash paid for interest		$	1,284,880
Distributions reinvested		$	166,514

See Notes to financial statements.

Semi-Annual Report | ArrowMark Financial Corp.

9

The financial highlights show how the Company's net asset value for a common stock share has changed during the period.

		For the Six Months Ended June 30, 2026 (unaudited)				For the Year Ended December 31, 2025				For the Year Ended December 31, 2024				For the Year Ended December 31, 2023				For the Year Ended December 31, 2022				For the Year Ended December 31, 2021
Per share operating performance
Net Asset value, beginning of period		$	21.96			$	21.78			$	21.43			$	20.79			$	21.70			$	21.44
Net investment income1			0.97				2.29				2.65				2.63				1.84				1.60
Net realized and unrealized gain/(loss) on investments1			(0.93	)			0.18				(0.30	)			0.21				(1.09	)			0.28
Total from investment operations			0.04				2.47				2.35				2.84				0.75				1.88
Less distributions to shareholders
From net investment income			(1.00	)			(2.30	)			(2.00	)			(1.78	)			(1.66	)			(1.62	)
From net realized capital gains			-				-				-				(0.42	)			-				-
Total distributions			(1.00	)			(2.30	)			(2.00	)			(2.20	)			(1.66	)			(1.62	)
Anti-dilutive effect of registered direct offering		$	-			$	0.01			$	-			$	-			$	-			$	-
Net asset value, end of period		$	21.00			$	21.96			$	21.78			$	21.43			$	20.79			$	21.70
Per share market value, end of period		$	19.55			$	21.82			$	20.98			$	18.16			$	17.04			$	21.97
Total investment return based on market value2			(5.73	)%*			15.93	%			27.89	%			20.89	%			(15.16	)%			23.19	%
Total investment return based on net asset value2			0.61	%*			12.39	%			12.51	%			16.93	%			4.80	%			9.25	%
Ratios and supplemental data
Net assets end of period (in millions)		$	203.5			$	171.5			$	155.1			$	152.4			$	147.7			$	153.5
Ratios (as a percentage of average net assets):
Expenses before waivers and/or recoupment, if any3			5.16	%**			6.53	%			6.96	%			6.72	%			5.64	%			4.47	%
Expenses after waivers and/or recoupment, if any4,5			4.69	%**			6.43	%			6.90	%			6.67	%			5.64	%			4.41	%
Net investment income6			9.19	%**			10.30	%			12.33	%			12.43	%			8.72	%			7.46	%
Portfolio turnover rate			8	%*			24	%			17	%			16	%			29	%			20	%
Revolving credit agreement
Total revolving credit agreement outstanding (000s)		$	40,800			$	25,200			$	46,800			$	45,000			$	55,600			$	60,000
Asset Coverage per $1,000 for revolving credit agreement			5,988				7,807				4,314				4,387				3,656				3,558

1	The net investment income and unrealized gain/(loss) on investments per share were calculated using the average shares outstanding method.
2	Investment return based on net asset value includes management fee and all other expenses paid by the Fund. Dividends are reinvested in accordance with Fund's Dividend Reinvestment Plan. Investment return based on market value is based on share market price and reinvestment of distributions at the price obtained under the Dividend Reinvestment Plan. Total return does not include sales load and offering expenses.
3	Ratio of expenses before waivers or recoupment, if any, to managed assets equals 4.46%, 4.93%, 5.16%, 5.13%, 4.08%, 3.34%, 3.49%, 3.55%, 3.83%, 3.67% and 3.58% for the period ended June 30, 2026 and for the years ended December 31, 2025, 2024, 2023, 2022, 2021, 2020, 2019, 2018, 2017 and 2016, respectively.
4	Excluding interest expense, net operating expenses would have been 3.45%, 4.21%, 4.29%, 4.31%, 4.09%, 3.53%, 3.61%, 3.40%, 3.61%, 3.75% and 3.74% for the period ended June 30, 2026 and for the years ended December 31, 2025, 2024, 2023, 2022, 2021, 2020, 2019, 2018, 2017 and 2016, respectively.
5	Ratio of expenses after waivers or recoupment, if any, to managed assets equals 4.05%, 4.86%, 5.12%, 5.09%, 4.08%, 3.38%, 3.49%, 3.55%, 3.78%, 3.73% and 3.52% for the period ended June 30, 2026 and for the years ended December 31, 2025, 2024, 2023, 2022, 2021, 2020, 2019, 2018, 2017 and 2016, respectively.
6	Ratio of net investment income to managed assets equals 7.94%, 7.78%, 9.15%, 9.48%, 6.31%, 5.65%, 6.77%, 5.75%, 5.74%, 5.51% and 5.23% for the period ended June 30, 2026 and for the years ended December 31, 2025, 2024, 2023, 2022, 2021, 2020, 2019, 2018, 2017 and 2016, respectively.
*	Not-annualized.
**	Annualized.

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See Notes to financial statements.

The financial highlights show how the Company's net asset value for a common stock share has changed during the period.

		For the Year Ended December 31, 2020				For the Year Ended December 31, 2019				For the Year Ended December 31, 2018				For the Year Ended December 31, 2017				For the Year Ended December 31, 2016
Per share operating performance
Net Asset value, beginning of year		$	21.83			$	21.43			$	21.56			$	21.22			$	21.62
Net investment income			1.68				1.54				1.63				1.58				1.56
Net realized and unrealized gain/(loss) on investments			(0.50	)			0.38				(0.10	)			0.26				(0.50	)
Total from investment operations			1.18				1.92				1.53				1.84				1.06
Less distributions to shareholders
From net investment income			(1.57	)			(1.52	)			(1.66	)			(1.50	)			(1.46	)
Total distributions			(1.57	)			(1.52	)			(1.66	)			(1.50	)			(1.46	)
Net asset value, end of year		$	21.44			$	21.83			$	21.43			$	21.56			$	21.22
Per share market value, end of period/year		$	19.25			$	22.30			$	19.30			$	20.13			$	18.69
Total investment return based on market value			(5.76	)%			24.00	%			3.84	%			16.21	%			24.45	%
Total investment return based on net asset value			7.22	%			9.32	%			7.65	%			9.62	%			6.53	%
Ratios and supplemental data
Net assets end of period (in millions)		$	140.8			$	143.2			$	140.4			$	141.0			$	138.6
Ratios (as a percentage of average net assets):
Expenses before waivers and/or recoupment, if any			4.17	%			4.39	%			5.01	%			4.93	%			5.02	%
Expenses after waivers and/or recoupment, if any			4.17	%			4.39	%			4.95	%			5.01	%			4.94	%
Net investment income			8.10	%			7.11	%			7.52	%			7.39	%			7.33	%
Portfolio turnover rate			60	%			13	%			30	%			16	%			34	%
Revolving credit agreement
Total revolving credit agreement outstanding (000s)		$	43,000			$	17,700			$	51,000			$	25,750			$	61,500
Asset Coverage per $1,000 for revolving credit agreement			4,274				9,090				3,753				6,478				3,253

See Notes to financial statements.

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Note 1 - Organization

ArrowMark Financial Corp. ("AMFC" or the "Company") is a Delaware corporation registered as a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended, (the "Investment Company Act") which commenced investment operations on November 13, 2013. In addition, AMFC has elected to be treated for tax purposes as a regulated investment company (''RIC'') under Subchapter M of the Internal Revenue Code of 1986, as amended (the ''Code'').As an investment company, the Company follows the accounting and reporting guidance of the Financial Accounting Standards Board and the Accounting Standards Codification Topic 946 "Financial Services - Investment Companies."

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Consolidation of Disregarded Entities - The Company makes certain investments in securities through Marshall Holdings II, Limited and Marshall Holdings III, Limited, both organized under the laws of the Cayman Islands (the "Disregarded Entities"). The consolidated financial statements of the Company include all assets and liabilities of the Disregarded Entities. All inter-company accounts and transactions have been eliminated. As of June 30, 2026, the net assets of the Disregarded Entities were $69,179,692, which represented 34.00% of the Fund's net assets.

Note 2 - Significant accounting policies

The following is a summary of significant accounting policies consistently followed by AMFC in the preparation of its financial statements. The preparation of the financial statements is in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") and requires the Board of Directors, inclusive of the sub-committees, and ArrowMark Asset Management, LLC (the "Advisor") to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents - AMFC considers domestic and foreign highly liquid debt instruments with a maturity of three months or less at the time of purchase to be cash equivalents.

Investment Valuation- The most significant estimates made in the preparation of the financial statements of ArrowMark Financial Corp ("AMFC" or the "Company"). are the valuation of equity and debt investments and the effective yield calculation with respect to certain debt securities, as well as the related amounts of unrealized appreciation and depreciation of investments recorded. The Company believes that there is no single definitive method for determining fair value in good faith. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistently applied valuation process for the types of investments that AMFC makes. The Company is required to specifically fair value each individual investment on a quarterly basis.

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The Company complies with ASC 820-10, Fair Value Measurements and Disclosure, which establishes a three-level valuation hierarchy for disclosure of fair value measurements. ASC 820-10 clarified the definition of fair value and requires companies to expand their disclosure about the use of fair value to measure assets and liabilities in interim and annual periods subsequent to initial recognition. ASC 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability (i.e. the "exit price") in an orderly transaction between market participants at the measurement date. ASC 820-10 also establishes the following three-tier fair value hierarchy:

•

Level 1- Quoted prices in active markets for identical securities;

•

Level 2 - Other significant observable inputs. These inputs may include quoted prices for the identical instrument on an active market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data; and

•

Level 3 - Significant unobservable inputs, including the Company's own determinations about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.

To the extent securities owned by the Company are actively traded and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy. Securities traded on inactive markets or valued by reference to similar instruments are generally categorized in Level 2 of the fair value hierarchy.

The availability of valuation techniques and observable inputs can vary from security to security and is affected by a wide variety of factors including the type of security, whether the security is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgement. Those estimated values do not necessarily represent the amounts that may be ultimately realized due to the occurrence of future circumstances that cannot be reasonably determined. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the securities existed. Accordingly, the degree of judgment exercised by AMFC in determining fair value is greatest for securities categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls, is determined based on the lowest level input that is significant to the fair value measurement. The valuation levels are not necessarily an indication of the risk associated with investing in those securities.

Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, AMFC's own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. AMFC uses prices and inputs that are current as of the measurement date, including periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many securities. This condition could cause a security to be reclassified to a lower level within the fair value hierarchy.

AMFC will determine fair value of its assets and liabilities in accordance with valuation procedures adopted by its Board of Directors. The Company may utilize the services of one or more regionally or nationally recognized independent valuation firms to help it determine the value of each investment for which a market price is not available. AMFC's Board of Directors will also review valuations of such investments provided by the Advisor. To the extent AMFC invests in securities for which market quotations are readily available, such market value will be used to value those securities. If a market

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value cannot be obtained or if the Advisor determines that the value of a security as so obtained does not represent a fair value as of the measurement date (due to a significant development subsequent to the time its price is determined or otherwise), fair value shall be determined pursuant to the methodologies established by the Board of Directors. In making these determinations, the Company may engage an independent valuation firm from time to time to assist in determining the fair value of our investments. The methods for valuing these investments may include fundamental analysis, discounts from market prices of similar securities, purchase price of securities, subsequent private transactions in the security or related securities, or discounts applied to the nature and duration of restrictions on the disposition of the securities, as well as a combination of these and other factors.

Structured Debt Securities- AMFC may acquire equity or preferred equity in structured debt securities or other structured financings. In valuing such investments, AMFC attempts to obtain a minimum of two marks provided by recognized industry brokers as a primary source, supplemented by actual trades executed in the market at or around period-end, as well as the marks provided by the broker who arranges transactions in such investment vehicles. Any event adversely affecting the value of such structured debt securities and other structured financings, including events that impact the value of the underlying collateral held by such vehicles, would be magnified to the extent leverage is utilized. AMFC's investment in structured debt securities and other structured financings that utilize leverage may make it more likely that substantial changes in the Company's net asset value ("NAV") will occur.

The fair value of the structured debt securities is determined using market price quotations (where observable) and other observable market inputs. When using market price quotations from brokers, fair value is calculated using the average of two or more indicative broker quotes obtained as of the valuation date. When quotations are unobservable, internal valuation models (typically including discounted cash flow analysis and comparable analysis) are employed. Structured debt securities are generally categorized as Level 2 or 3 in the fair value hierarchy, depending on the availability of broker quotes and observable inputs. At June 30, 2026, AMFC's investment in Community Funding 2018, LLC was valued on the basis of the average of two broker quotes.

Service fees are paid to StoneCastle Investment Management, LLC, ("The Servicer"). The Servicer rebates the entire service fee to AMFC quarterly. For the six months ended June 30, 2026 this amounted to $54,077 relating to Community Funding 2018, LLC.

Regulatory Capital Relief Securities. Regulatory capital relief securities are senior unsecured debt obligations that are credit linked to the performance of a reference portfolio of certain loan related claims on corporate and similar entities. The fair value of regulatory capital relief securities is generally based on broker quotes. Regulatory capital relief securities are generally categorized as Level 2 or 3 in the fair value hierarchy, depending on the availability of broker quotes.

Preferred and Trust Preferred Securities. The fair value of preferred securities and trust preferred securities is generally determined using market price quotations (where observable) and other observable market inputs (including recently executed transactions). When using market price quotations from brokers, fair value is calculated using the average of two or more indicative broker quotes obtained as of the valuation date. When quotations are unobservable, internal valuation models (typically including discounted cash flow analysis and comparable analysis) are employed. Perpetual preferred and trust preferred securities are generally categorized as Level 2 or 3 in the fair value hierarchy, depending on the availability of observable inputs.

Debt Securities. Under procedures established by the Board of Directors, we value secured debt, unsecured debt, senior term loans, subordinated term loans and other debt securities, for which market quotations are readily available, at such market quotations (unless they are deemed not to represent fair value). We attempt to obtain market quotations from at least two brokers if available. If not available

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15

or when market quotations are deemed not to represent fair value, we typically utilize independent third party valuation firms to assist us in determining fair value. Our independent valuation firms consider observable market inputs together with significant unobservable inputs in arriving at their valuation recommendations for such Level 2 and Level 3 categorized assets. Investments that are not publicly traded or whose market quotations are not readily available are valued at fair value as determined in good faith by or under the direction of the Board of Directors. Such determination of fair value may involve subjective judgments and estimates.

Equity Securities. AMFC may invest in equity securities (including exchange traded funds) for which bid and ask prices can be observed in the marketplace. Bid prices reflect the highest price that the marketplace participants are willing to pay for an asset. Ask prices represent the lowest price that the marketplace participants are willing to accept for an asset. The Company's policy for listed securities for which no sale was reported on that date is generally to value the security using the last reported "bid" price if held long, and last reported "ask" price if sold short. Equity securities are generally categorized as Level 1 or 2 in the fair value hierarchy, depending on trading volume levels.

The Company's assets measured at fair value subject to the disclosure requirements of ASC 820-10-35 at June 30, 2026, were as follows:

		TOTAL FAIR VALUE AT 6-30-26				LEVEL 1 QUOTED PRICE				LEVEL 2 SIGNIFICANT OBSERVABLE INPUTS				LEVEL 3 SIGNIFICANT UNOBSERVABLE INPUTS
Assets
Term Loans		$	7,782,250			$	-			$	-			$	7,782,250
Structured Debt Securities			14,671,887				-				11,757,975				2,913,912
Regulatory Capital Relief Securities			208,739,826				-				21,418,280				187,321,546
Trust Preferred and Preferred Securities			1,793,400				-				-				1,793,400
Common Stocks			8,766,840				8,766,840				-				-
Money Market Fund			554,429				554,429				-				-
Total Assets		$	242,308,632			$	9,321,269			$	33,176,255			$	199,811,108
Liabilities
Derivatives:
Equity Risk Contracts
Written Options			(3,104,160	)			(3,104,160	)			-				-
Total Liabilities		$	(3,104,160	)		$	(3,104,160	)		$	-			$	-

The Level 3 categorized assets listed above have been valued via the use of a) independent third party valuation firms, or, b) fair valued as determined in good faith by the Board of Directors, in accordance with procedures established by the Board of Directors.

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For fair valuations using significant unobservable inputs, U.S. GAAP requires AMFC to present a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to total realized and unrealized gains or losses, purchase and sales, and transfers in and out of Level 3 during the period. Transfers in and out between levels are based on values at the end of a period. U.S. GAAP also requires AMFC to disclose amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. A reconciliation of Level 3 investments is presented below:

		TERM LOANS				STRUCTURED DEBT SECURITIES				REGULATORY CAPITAL RELIEF SECURITIES				TRUST PREFERRED AND PREFERRED SECURITIES				TOTAL
Balance at December 31, 2025		$	7,842,500			$	-			$	140,980,800			$	1,793,400			$	150,616,700
Realized loss including earnings			-				-				(1,390,834	)			-				(1,390,834	)
Unrealized depreciation on investments			(60,250	)			(11,437	)			(1,082,064	)			-				(1,153,751	)
Purchases			-				2,921,250				61,420,137				-				64,341,387
Sales			-				-				(15,200,896	)			-				(15,200,896	)
Transfers in			-				-				2,649,872				-				2,649,872
Transfers out			-				-				-				-				-
Amortization			-				4,099				(55,469	)			-				(51,370	)
Balance at June 30, 2026		$	7,782,250			$	2,913,912			$	187,321,546			$	1,793,400			$	199,811,108

The change in unrealized depreciation on Level 3 securities held as of June 30, 2026 was $(1,153,751).

		FAIR VALUE AT 6-30-26				VALUATION TECHNIQUES		UNOBSERVABLE INPUTS			ASSUMPTIONS			IMPACT TO VALUATION FROM AN INCREASE TO INPUT
Term Loans		$	7,782,250			Broker Quote		-			-			-
Structured Debt Securities		$	2,913,912			Broker Quote		-			-			-
Regulatory Capital Relief Securities		$	159,990,495			Broker Quote		-			-			-
Regulatory Capital Relief Securities		$	25,976,130			Cost		-			-			-
Regulatory Capital Relief Securities		$	1,354,921			Residual		-			-			-
Trust Preferred and Preferred Stock		$	1,793,400			Broker Quote		-			-			-
		$	199,811,108

In accordance with Regulation S-X Rules 3-09 and 4-08(g), the Company evaluates its unconsolidated subsidiary-Community Funding 2018, LLC (CF 2018) as a significant subsidiary under the respective rules. However, as of December 31, 2025, CF 2018 was not considered a significant subsidiary under Regulation S-X Rule 1-02(w).

Securities Transactions, Investment Income and Expenses - Securities transactions are recorded on trade date for accounting and financial statement preparation purposes. Realized gains and losses on investments sold are recorded on the identified cost basis. Interest income is recorded on the accrual basis. Accretion of discounts and amortization of premiums are recorded on a daily basis using the effective yield method except for short term securities, which records discounts and premiums on a straight-line basis. Dividends are recorded on the ex-dividend date.

Dividends and Distributions to Shareholders - Dividends from net investment income, if any, are declared and paid quarterly. Distributions, if any, of net short-term capital gain and net capital gain (the excess of net long-term capital gain over the short-term capital loss) realized by AMFC, after

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deducting any available capital loss carryovers are declared and paid to shareholders at least annually. Income dividends and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S.GAAP. These differences include the treatment of non-taxable dividends, losses deferred due to wash sales and excise tax regulations. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications within the components of net assets.

Written Options - The Fund is subject to equity and other risk exposure in the normal course of pursuing its investment objectives and may enter into options written to hedge against changes in interest rates, foreign exchange rates and values of equities. Such options may relate to particular securities or domestic stock indices, and may or may not be listed on a domestic securities exchange or issued by the Options Clearing Corporation. An option contract is a commitment that gives the purchaser of the contract the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a specified future date. On the other hand, the writer of an option contract is obligated, upon the exercise of the option, to buy or sell an underlying asset at a specific price on or before a specified future date. The maximum risk of loss associated with writing put options is limited to the exercised fair value of the option contract. The maximum risk of loss associated with writing call options is potentially unlimited. The Fund also has the additional risk of being unable to enter into a closing transaction at an acceptable price if a liquid secondary market does not exist. The Fund also may write over-the-counter options where completing the obligation depends upon the credit standing of the other party. Option contracts also involve the risk that they may result in loss due to unanticipated developments in market conditions or other causes. Written options are initially recorded as liabilities to the extent of premiums received and subsequently marked to market to reflect the current value of the option written. Gains or losses are realized when the option transaction expires or closes. When an option is exercised, the proceeds on sales for a written call option or the purchase cost for a written put option is adjusted by the amount of the premium received. Listed option contracts present minimal counterparty credit risk since they are exchange traded and the exchange's clearinghouse, as counterparty to all exchange-traded options, guarantees the options against default. The Fund's maximum risk of loss from counterparty credit risk related to OTC option contracts is limited to the premium paid.

For the six-months ended June 30, 2026, the Fund's quarterly average volume of derivatives is as follows:

	Written Options (Proceeds)
	$1,374,393

Forward Foreign Currency Transactions/Contracts - The Fund may enter into forward foreign currency contracts to hedge against foreign currency exchange rate risk on their non-U.S. dollar denominated securities or to facilitate settlement of foreign currency denominated portfolio transactions. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The contract is marked-to-market daily and the change in value is recorded by the Fund as an unrealized gain or loss. When a forward foreign currency contract is extinguished, through either delivery or offset by entering into another forward foreign currency contract, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it was extinguished.

Forward foreign currency contracts involve elements of market risk in excess of the amounts reflected in the Statements of Assets and Liabilities. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract. Risks may also arise upon

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entering into these contracts from the potential inability of the counter parties to meet the terms of their contracts. For the six months ended June 30, 2026, the Fund's average monthly volume of forward foreign currency contracts was as follows:

	Forward Foreign Currency Contracts - Purchased	Forward Foreign Currency Contracts - Sold
	$25,789	$25,888

Foreign Currency Translation - The books and records of the Fund are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the prevailing exchange rates at period end. The effect of changes in foreign currency exchange rates on investments is included within net realized and unrealized gain (loss) on investments. Changes in the value of other assets and liabilities as a result of fluctuations in foreign exchange rates are included in the Statement of Operations within net change in unrealized gain (loss) on foreign currency translations. Transactions denominated in foreign currencies are translated into U.S. dollars on the date the transaction occurred, the effects of which are included within net realized gain (loss) on foreign currency.

Currency Risk - The Fund invests in securities of foreign issuers, including American Depositary Receipts. These markets are subject to special risks associated with foreign investments not typically associated with investing in U.S. markets. Because the foreign securities in which the Fund may invest generally trade in currencies other than the U.S. dollar, changes in currency exchange rates will affect the Fund's NAV, the value of dividends and interest earned and gains and losses realized on the sale of securities. Because the NAV for the Fund is determined on the basis of U.S. dollars, the Fund may lose money by investing in a foreign security if the local currency of a foreign market depreciates against the U.S. dollar, even if the local currency value of the Fund's holdings goes up. Generally, a strong U.S. dollar relative to these other currencies will adversely affect the value of the Fund's holdings in foreign securities.

Foreign Securities Market Risk - Securities of many non-U.S. companies may be less liquid and their prices more volatile than securities of comparable U.S. companies. Securities of companies traded in many countries outside the U.S., particularly emerging markets countries, may be subject to further risks due to the inexperience of local investment professionals and financial institutions, the possibility of permanent or temporary termination of trading and greater spreads between bid and asked prices of securities. In addition, non-U.S. stock exchanges and investment professionals are subject to less governmental regulation, and commissions may be higher than in the United States. Also, there may be delays in the settlement of non-U.S. stock exchange transactions.

Disclosure About Derivative Instruments and Hedging Activities - The following tables provide quantitative disclosures about fair value amounts of, gains and losses on, the Fund's derivative instruments as of June 30, 2026.

The following table lists the fair values of the Fund's derivative holdings as of June 30, 2026 grouped by contract type and risk exposure category.

Derivative Type		Balance Sheet Location		Equity Contracts			Foreign Currency Contracts			Total
Liabilities Derivatives
Written options		Options written, at value		$(3,104,160)		$	-		$	(3,104,160)
Total Value - Liabilities				$(3,104,160)		$	-		$	(3,104,160)

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The following table lists the amounts of realized gains or losses included in net increase in net assets resulting from operations for the six months ended June 30, 2026, grouped by contract type and risk exposure.

Derivative Type		Income Statement Location		Equity Contracts			Foreign Currency Contracts			Total
Realized Gain (Loss)
Forward Foreign Currency Contracts		Net realized gain from forward foreign currency contracts		$-			$58		$	58
Total Realized Gain (Loss)				$-			$58		$	58

The following table lists the amounts of change in unrealized appreciation (depreciation) included in net increase in net assets resulting from operations for the six months ended June 30, 2026, grouped by contract type and risk exposure.

Derivative Type		Income Statement Location		Equity Contracts			Foreign Currency Contracts			Total
Change in appreciation (depreciation)
Written Options		Net change in unrealized depreciation of written options		$(678,848)			$-		$	(678,848)
Total change in depreciation				$(678,848)			$-		$	(678,848)

Note 3 - Investment Advisory Fee and Other Fee Arrangements

ArrowMark Asset Management, LLC, serves as investment advisor to AMFC pursuant to a management agreement with AMFC (the "Management Agreement"). For its services as the investment advisor, AMFC pays the Advisor a fee at the annual rate of 1.75% of managed assets. AMFC will pay the management fee quarterly in arrears, and it will be equal to 0.4375% (1.75% annualized) of our managed assets at the end of such quarter, including cash and cash equivalents and assets purchased with borrowings.

In addition, for the period ended June 30, 2026, the Advisor reimbursed the Fund $455,669 for expenses related to Investor Relations Fees, representing approximately 0.22% of net assets.

AMFC currently pays each Director who is not an officer or employee of the Advisor a fee of $55,000 per annum, plus $1,500 for each in-person meeting of the Board of Directors or committee meeting. The chairman of AMFC's audit committee, nominating committee and the Lead Independent Director are each paid an additional $10,000 per year. Directors do not receive any pension or retirement plan benefits and are not part of any profit sharing plan. Interested Directors do not receive any compensation from AMFC. AMFC has incurred $126,762 of Directors fees for the six months ended June 30, 2026.

Note 4 - Purchases and Sales and Redemptions of Securities

For the six months ended June 30, 2026, (i) the cost of purchases was $66,755,236 (ii) the sales and redemptions of securities was $18,089,157.

Note 5 - Federal Tax Information

The Company intends to operate so as to qualify to be taxed as a RIC under Subchapter M of the Internal Revenue Code and, as such, to not be subject to federal income tax on the portion of its taxable income and gains distributed to stockholders. To qualify for RIC tax treatment, AMFC is required to distribute at least 90% of its investment company taxable income, as defined by the Code.

However, due to the timing of when distributions are made by the Fund, the Fund may be subject to an excise tax of 4% of the amount by which 98% of the Fund's annual taxable income and 98.2%

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of net realized gains exceed the distributions from such taxable income and realized gains for the calendar year. The Fund has accrued an excise tax of $234,481 for the calendar year 2025.

Because federal income tax regulations differ from accounting principles generally accepted in the United States, distributions in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statement to reflect their tax character. Temporary differences arise when certain items of income, expense, gain or loss are recognized at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.

AMFC has followed the authoritative guidance on accounting for and disclosure of uncertainty in tax positions, which requires AMFC to determine whether a tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. AMFC has determined that there was no effect on the financial statements from following this authoritative guidance. In the normal course of business, AMFC is subject to examination by federal, state and local jurisdictions, where applicable, for tax years for which applicable statutes of limitations have not expired.

As of December 31, 2025, the components of distributable earnings on a tax basis were as follows:

Capital Loss Carryforwards		$	(13,433,446	)
Unrealized Appreciation*			1,247,536
Undistributed Ordinary Income			13,311,491
Other			(550,492	)
Total		$	575,089

* Includes unrealized appreciation on foreign currency translations.

For the year ended December 31, 2025, the tax character of distributions paid by the Company was $16,700,279 of ordinary income dividends and $0 of long-term capital gains. For the year ended December 31, 2024, the tax character of distributions paid by the Company was $14,236,215 of ordinary income dividends. Distributions from net investment income and short-term capital gains are treated as ordinary income for federal tax purposes.

The Company declared a $0.10 per share dividend on December 15, 2025 and a $0.15 per share dividend on January 9, 2026, both of which were paid on January 30, 2026. The Company also declared $0.15 per share dividends on January 23, 2026, March 10, 2026, April 13, 2026, May 12, 2026 and June 12, 2026, which were paid on February 27, 2026, March 31, 2026, April 30, 2026, May 29, 2026 and June 30, 2026, respectively.

At June 30, 2026, the federal tax cost, aggregate gross unrealized appreciation and depreciation of securities held by AMFC were as follows:

Federal tax cost		$	241,123,815
Gross unrealized appreciation			8,507,716
Gross unrealized depreciation			(7,322,899	)
Net unrealized appreciation		$	1,184,817

Pursuant to federal income tax rules applicable to regulated investment companies, AMFC may elect to treat certain capital losses up to and including December 31 as occurring on the first day of the following tax year. For the period after October 31, 2025 and ending December 31, 2025, any amount

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of losses elected within the tax year will not be recognized for federal income tax purposes until 2026. For the year ended December 31, 2025, AMFC had no ordinary income or long-term capital loss deferrals.

Accumulated capital losses represent net capital loss carry forwards as of December 31, 2025 that may be available to offset future realized capital gains and thereby reduce future capital gains distributions. AMFC is permitted to carry forward capital losses incurred for an unlimited period. Additionally, capital losses that are carried forward will retain their character as either short-term or long-term capital losses. For the year ended December 31, 2025, AMFC had capital loss carryforwards of $13,433,446, of which $2,763,820 are short-term losses and $10,669,626 are long-term losses.

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Note 7 - Revolving Credit Agreement

The Company has utilized a revolving credit agreement with Texas Capital Bank, located in Dallas, Texas. (the "Credit Agreement" or "Credit Facility") since June 9, 2014. The Credit Agreement has been modified since then to reflect changes in borrowing amounts and lending terms.

The most recent modifications are as follows:

On May 25, 2017, the Company amended its Credit Agreement to the following terms:

•

The cost of the Facility has decreased to a significantly lower credit spread of LIBOR +2.35%, down from LIBOR +2.85%.

•

The maturity date of the Credit Facility has been extended for five years to May 16, 2022.

•

The size of the Credit Facility has been adjusted from $70 million to $62 million.

•

The Company is charged a fee of 0.50% on any undrawn commitment balance.

•

The Company was no longer required to maintain a deposit account of $3.5 million.

On May 25, 2022, the Company amended the following terms of its Credit Agreement:

•

The maturity date of the Facility was extended to May 27, 2025 (which may be extended until May 27, 2026 at the option of the Company).

•

The maximum size of the Facility was increased from $62 million to $70 million and the cost of the Facility was priced at Secured Overnight Funding Rate ("SOFR") + 2.61%.

•

At closing, two additional lenders joined Texas Capital Bank as the lending group.

On March 19, 2025, the Company amended the following terms of the credit agreement:

•

The maturity date of the Facility was extended to May 27, 2028.

The Credit Agreement contains customary covenants, negative covenants, and default provisions, including covenants that limit the Company's ability to incur additional debt or consolidate or merge into or with any person, other than as permitted, or sell, lease, or otherwise transfer, directly or indirectly, all or substantially all of its assets. The covenants also impose on the Company asset coverage requirements, which are more stringent than those imposed on the Company by the Investment Company Act, as well as the Company's policies.

The Facility was rated "A3" by Moody's Investor Services as of December 31, 2021. As of January 12, 2022, the rating was Baa1. The Facility remains secured by substantially all of the assets of the Company.

As of June 30, 2026, $40,800,000 has been committed and drawn and is at fair value. Such borrowings constitute financial leverage. For the six months ended June 30, 2026, the average daily loan balance was $34,475,691, a weighted average interest rate of 6.31% with respect to these borrowings, interest expense of $1,182,849 is included in the Statement of Operations.

Note 8 - Indemnification

In the normal course of business, AMFC may enter into contracts that provide general indemnifications. AMFC's maximum exposure under these arrangements is dependent on claims that may be made against

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ArrowMark Financial Corp.| Semi-Annual Report

AMFC in the future, and therefore, cannot be estimated; however, based on experience, the risk of material loss from such claims is considered remote.

Under the AMFC's organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to AMFC.

Note 9 - Origination Fees and Other Income

Includes closing fees (or origination fees or structuring fees) associated with investments in portfolio companies. Such fees are normally paid at closing of the Company's investments, are fully earned and non-refundable, and are generally non-recurring. Other Income includes service fees earned from the Community Funding 2018, LLC. AMFC had closing fee income of $64,104 and other income of $54,077 for the six months ended June 30, 2026.

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Note 12 - Subsequent Events

Management has evaluated the impact of all subsequent events on the company and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.

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Dividends and Distributions

Dividends from net investment income are declared and paid on a quarterly basis. Distributions of net realized capital gains, if any, will be made at least annually. It is the Company's policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to "regulated investment companies" or "RICs" and to distribute substantially all of its taxable income to its shareholders. In order to provide shareholders with a more stable level of dividend distributions, the Company may at times pay out more or less than distributable income earned in any particular quarter. The Company's current accumulated but undistributed net investment income, if any, is disclosed in the Statement of Assets and Liabilities, which comprises part of the financial information included in this report. The character and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.

Summary of Dividends Declared in 2026

Period	Amount Declared
1st Quarter 2026	$0.45
2nd Quarter 2026	$0.45
	$0.90

Dividend Reinvestment Plan

We have a common stock dividend reinvestment plan for our stockholders. Our plan is implemented as an "opt out" dividend reinvestment plan. As a result, if a stockholder participates in our Automatic Dividend Reinvestment Plan (the "Plan") all distributions will automatically be reinvested in additional common stock (unless a stockholder is ineligible or elects otherwise). If a stockholder opts out of the Plan, such stockholder will receive distributions in cash. If a stockholder holds shares with a brokerage firm that does not participate in the Plan, the stockholder may not be able to participate in the Plan and any dividend reinvestment may be effected on different terms than those of the Plan.

In the case that newly issued shares of our common stock are used to implement the Plan, the number of shares of common stock to be delivered to a participating stockholder shall be determined by (i) dividing the total dollar amount of the dividends payable to such stockholder by (ii) 97% of the average market prices per share of common stock at the close of regular trading on the NASDAQ Global Select Market for the five trading days immediately prior to the valuation date to be fixed by the Board of Directors.

In the case that shares repurchased on the open market are used to implement the Plan, the number of shares of common stock to be delivered to a participating stockholder shall be determined by dividing (i) the total dollar amount of the dividends payable to such stockholder by (ii) the weighted average purchase price of such shares.

We intend to use primarily newly issued shares to implement the dividend reinvestment plan (so long as we are trading at a premium to net asset value). If our shares are trading at a significant enough discount to net asset value and we are otherwise permitted under applicable law to purchase such shares, we intend to purchase shares in the open market in connection with our obligations under our dividend reinvestment plan. However, we reserve the right to issue new shares of our common stock in connection with our obligations under the dividend reinvestment plan even if our shares are trading below net asset value. Automatically reinvesting dividends and distributions does not mean that a stockholder does not have to pay income taxes due upon receiving dividends and distributions. Capital gains and income are realized although cash is not received by the stockholder.

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For further information or to opt-out of or withdraw from the Plan, contact the Plan Agent, Computershare Trust Company, N.A. by writing to 250 Royall Street, Canton, Massachusetts 02021.

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For federal income tax purposes, the following information is furnished with respect to the distributions of the Company, if any, paid during its taxable year ended December 31, 2025.

None of the ordinary income dividends paid qualify for the corporate dividends-received deduction.

Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (the "Act"), none of the ordinary dividends paid during the fiscal year ended December 31, 2025 are designated as "qualified dividend income," as defined in the Act, and are subject to reduced tax rates.

Eligible shareholders were mailed a 2025 Form 1099-DIV in early 2026. This reflected the tax character of all distributions paid in calendar year 2025.

Availability of Quarterly Schedule of Investments

The Company files their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Company's Form N-PORT is available on the SEC's website at http://www.sec.gov. The Company's Form N-PORT may also be obtained upon request and without charge by calling Investor Relations (877) 855-3434 or on the Company's website at ir.arrowmarkfinancialcorp.com.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Company uses to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling Investor Relations (877) 855-3434; (2) at ir.arrowmarkfinancialcorp.com; and (3) on the SEC's website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Company voted proxies relating to securities held in the Company's portfolio during the Annual period ended June 30 is available upon request and without charge (1) at ir.arrowmarkfinancialcorp.com or by calling Investor Relations (877) 855-3434 and (2) on the SEC's website at http://www.sec.gov.

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The Annual Meeting of Stockholders of ArrowMark Financial Corp. was held on June 15, 2026, for the purpose of considering and voting upon the proposal presented at the Meeting. The following table provides information concerning the matter voted upon at the Meeting:

Proposal 1:

To elect two Class I Directors of the Company, to serve for a term ending at the 2028 Annual Meeting of Stockholders of ArrowMark Financial Corp. and when his successor is duly elected and qualified.

	Voted For	Votes Withheld
Karen Reidy	6,401,187.288	1,074,641.000
Emil Henry	6,401,187.288	1,074,641.000

Board of Directors and Executive Officers

Our business and affairs are managed under the direction of the board of directors. Accordingly, the board of directors provides broad supervision over our affairs, including supervision of the duties performed by the Advisor. The Advisor is responsible for our day-to-day operations. The names, ages and addresses of our directors and officers and specified employees of the Advisor,together with their principal occupations and other affiliations during the past five years, are set forth below. Each director and officer will hold office for the term to which he or she is elected and until his or her successor is duly elected and qualifies, or until he or she resigns or is removed in the manner provided by law. Unless otherwise indicated, the address of each director is c/o ArrowMark Financial Corp., 100 Fillmore Street, Suite 325, Denver, CO 80206. The board of directors will initially consist of three directors who are not "interested persons" (as defined in the Investment Company Act) of the Advisor or its affiliates and two directors who are "interested persons" as further discussed below. The directors who are not interested persons are also independent pursuant to the NASDAQ stock exchange listing standards, and we refer to them as "independent directors."We refer to the directors who are "interested persons" (as defined in the Investment Company Act) are referred to below as "interested directors." Under our certificate of incorporation, the board is divided into three classes. Each class of directors will hold office for a three-year term. However, the initial members of the three classes have initial terms of one, two and three years, respectively. At each annual meeting of our stockholders, the successors to the class of directors whose terms expire at such meeting will be elected to hold office for a term expiring at the annual meeting of stockholders held in the third year following the year of their election and until their successors are duly elected and qualified.

Interested Directors

Name

Age

Position(s) Held with Company

Term Served

Term End

Principal Occupation(s) Last 5 Years

Other Directorships Last 5 Years

Sanjai Bhonsle

56

Chief Executive Officer and Chairman, Class III Director

Since February 2020

2028

Partner and Portfolio Manager of ArrowMark Partners, 2012 to Present

None

Karen Reidy, CFA

59

Class I Director

Since February 2020

2026

Partner and Portfolio Manager at ArrowMark Partners from 2008-Present

None

Independent Directors

Name

Age

Position(s) Held with Company

Term Served

Term End

Principal Occupation(s) Last 5 Years

Other Directorships Last 5 Years

Emil Henry

64

Class I Director, Lead Independent Director

Since November 2013

2026

CEO and Founder of Tiger Infrastructure Partners

Director of Easterly Government Properties, Director of numerous private companies that are Tiger Infrastructure portfolio companies

John S. Emrich

58

Class III Director, Chairman of Audit Committee

Since February 2020

2028

Director of Meridian Funds from 2010-Present; Director of Destra Funds from 2015-Present

Director of Meridian Funds from 2010-Present; Director of Destra Funds from 2015-Present

Melissa Marano Thompson

57

Class II Director

Since September 2025

2027

Financial Consultant

None

Executive Officers Who are not Directors

Name		Age		Position(s) Held with Company		Term Served		Principal Occupation(s) Last 5 Years
Katie Jones		42		Chief Financial Officer		Since March 2025		Director of ArrowMark Partners; Chief Financial Officer of Meridian Fund Inc. from March 2018 to present.
Rick Grove		58		Chief Compliance Officer		Since February 2020		Chief Compliance Officer of ArrowMark Colorado Holdings, LLC.; Chief Compliance Officer of ArrowMark Asset Management, LLC.
Blake Rice		49		Secretary		Since September 2021		ArrowMark Partners General Counsel; former Managing Director and Associate General Counsel at Neuberger Berman.

Biographical Information

Interested Directors

The following sets forth certain biographical information for our Interested Directors. An Interested Director is an "interested person" as defined in Section 2(a)(19) of the Investment Company Act:

Sanjai Bhonsle. Sanjai joined ArrowMark Partners in October 2012 and serves as Chief Executive Officer and as Partner and Portfolio Manager for ArrowMark's leveraged loan investments and CLO funds. Prior to joining ArrowMark, he founded MB Consulting Partners in 2009, where he specialized in financial and operational restructuring advisory to stressed and distressed middle-market companies. With more than 10 years of restructuring experience, he has led several assignments across various industries. Sanjai was a Senior Portfolio Manager at GSO Capital Partners, a subsidiary of The Blackstone Group, and member of the Investment and Management Committee (2005-2009). Prior to joining GSO Capital Partners, Sanjai was an Assistant Portfolio Manager for RBC Capital Partners' debt investment group

and was a member of the Investment Committee (2001-2005). He also led the group's restructuring efforts related to distressed investments and represented the firm's interests on creditor committees. From 1999-2001, Sanjai was a Senior Investment Analyst at lndosuez Capital Partners. Sanjai received a bachelor's degree in Mechanical Engineering from the University of Wisconsin -Madison and an MBA from the Eli Broad Graduate School of Management at Michigan State University.

Karen Reidy. Ms. Reidy is a founding Partner and co-manages ArrowMark Partners' collateralized loan obligation and specialty finance investments and research analyst team. Prior to founding ArrowMark, Ms. Reidy served as Executive Vice President and Portfolio Manager at Janus Capital, managing $10 billion for two strategies: Janus Balanced Fund and Janus Core Equity Fund, as well as institutional separate accounts (2000-2005). Ms. Reidy was also the Assistant Portfolio Manager of the Janus Fund (1998-2000). She joined Janus Capital as an equity analyst in 1995. Prior to Janus Capital Group, she worked at PricewaterhouseCoopers LLC in the audit and mergers and acquisitions departments. Ms. Reidy graduated from the University of Colorado with a bachelor's degree and holds the Chartered Financial Analyst designation.

Independent Directors

The following sets forth certain biographical information for our Independent Directors. Independent Directors are not "interested persons" of ArrowMark Financial Corp., as defined by the 1940 Act:

Emil W. Henry, Jr. Mr. Henry is the CEO and Founder of Tiger Infrastructure Partners, a private equity firm focused on infrastructure investment opportunities. Prior to founding Tiger Infrastructure Partners, he was Global Head of the Lehman Brothers Private Equity Infrastructure businesses, where he oversaw global infrastructure investments. In 2005, Mr. Henry was appointed Assistant Secretary of the Treasury for Financial Institutions by the President of the United States. Until his departure in 2007, he was a key advisor to two Treasury Secretaries on economic,legislative and regulatory matters affecting U.S. financial institutions and markets. Before joining the Treasury, Mr. Henry was a partner of Gleacher Partners LLC, an investment banking and investment management firm, where he served as Chairman of Asset Management, and Managing Director, and where he oversaw the firm's investment activities. Mr. Henry began the formative part of his career at Morgan Stanley in the mid-1980s in that firm's merchant banking arm where he executed management buyouts for Morgan Stanley's flagship private equity fund. He holds an M.B.A. from Harvard Business School and a B.A. in Economics from Yale University.

John S. Emrich. Mr. Emrich has significant experience in the investment management and financial services industry. Mr. Emrich served as a financial analyst or portfolio manager for over 13 years for various investment advisory firms. Prior to such positions he also performed business valuations and appraisal analyses at KPMG Peat Marwick, an accounting firm.

Melissa Marano Thompson. Ms. Marano Thompson is a seasoned credit investor and risk manager with a background in leveraged finance, private credit and private equity. Ms. Marano Thompson founded Lower Field Holdings in 2013, a financial consulting firm specializing in debt investing and management. Ms. Marano Thompson currently works with L Catterton, a global private equity firm, as a credit consultant and member of the risk management group. Prior to her consulting work, Ms. Marano Thompson worked in the private debt group of Ares Capital and served as a Senior Vice President and Chief Risk Officer at Firstlight Financial Corporation, a related middle market finance company. Previously, Ms. Marano Thompson was a Managing Director at Oaktree Capital Management, Mezzanine Fund, focusing on bank debt investments. Prior to joining Oaktree Capital Management, Ms. Marano Thompson was a Managing Director and senior portfolio manager at GSO Capital Partners. There she managed approximately $4.5 billion in loan assets across their CLO platform. Ms. Marano Thompson also had prior roles at RBC Capital, Credit Agricole Indosuez (Indosuez Capital) and was credit trained at Chemical Bank.

Executive Officers Who Are Not Directors

Rick Grove. Rick is a Principal and Chief Compliance Officer at ArrowMark Partners. He was previously Vice President and Chief Compliance Officer for Black Creek Global Advisors (2007-2008). Prior to that position, Rick served as Vice President and Chief Compliance Officer for Madison Capital Management (2005- 2007),Assistant Vice President and Director of Compliance at Janus Capital Group (1993-2005), and Fund Accountant for Oppenheimer Funds (1992-1993). Rick graduated from the University of Wyoming with a bachelor's degree in Accounting.

Blake Rice. Blake serves as ArrowMark Partners General Counsel. In his role, Blake leads and manages legal and compliance efforts at ArrowMark and ensures the firm is well-positioned for the continued growth of its business and investment strategies while thoughtfully managing risk. Prior to ArrowMark, Blake worked at Neuberger Berman where he spent the last 13 years as Managing Director and Associate General Counsel for the alternatives business. In his role, Blake managed a team that oversaw legal matters for the alternatives business which consists of private credit,private equity,real estate,infrastructure, and several other alternative strategies. Blake received his B.A. from Trinity University and his J.D. from the University of Chicago.

Katie Jones. Katie serves as Fund Chief Financial Officer and Treasurer for ArrowMark Partners and Meridian Fund, Inc. Prior to joining ArrowMark, she was a Supervisor in the Alternative Investment Accounting group at ALPS Fund Services, a third-party fund administrator and distributor (2008-2014). Katie graduated from Gonzaga University with a Bachelor's degree in Finance and Master's degree in Business Administration.

Additional information regarding the Directors of ArrowMark Financial Corp. can be found in the Statement of Additional Information, which is available, without charge, upon request, by calling 1-877-373-6374 and is also available on the Company's website at ir.arrowmarkfinancialcorp.com