AOMR earnings analysis
What we found in AOMR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Angel Oak Mortgage REIT produced improved Q2 operating income: net interest income rose 8.1% year over year to $10.742 million, GAAP net income was $3.353 million, and Distributable Earnings reached $0.37 per diluted share. The improvement was tempered by $3.740 million of quarterly realized and unrealized losses, a 5.7% decline in book value per share to $10.13, and higher delinquencies in both direct and securitized loan portfolios. The company expanded its portfolio and maintained $48.629 million of cash plus $885.401 million of available warehouse capacity, but provided no quantitative forward guidance.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Net interest income increased 8%
- Net interest income rose 8.1% year over year to $10.742 million from $9.940 million, as interest income increased $6.304 million to $41.398 million, more than offsetting a $5.502 million increase in interest expense.
- Earnings and distributable return improved
- GAAP net income allocable to common stockholders improved to $3.353 million in Q2 2026 from $0.767 million a year earlier. Distributable Earnings increased to $8.993 million from $2.639 million, and annualized Distributable Earnings return on average equity rose to 14.6% from 4.2%.
- New loan purchases supported portfolio growth
- The company purchased $204 million of newly originated non-QM loans and HELOCs during Q2, with a 7.34% weighted-average coupon, 70.5% weighted-average CLTV and 759 weighted-average credit score.
- Liquidity increased with significant capacity
- Cash and cash equivalents increased to $48.629 million at June 30, 2026 from $41.619 million at December 31, 2025. Available warehouse financing was $885.401 million against total capacity of $1.250 billion.
- Securitizations recycled capital
- AOMT 2026-2 securitized $272.3 million of residential loans in March, repaid approximately $234.1 million of debt and released $23.9 million of cash. A subsequent July deal securitized $279.6 million and released another $22.3 million of cash.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Book value and equity declined
- Book value per common share declined 5.7% to $10.13 at June 30, 2026 from $10.74 at year-end 2025; economic book value per share fell to $12.24 from $12.70. Common equity declined $32.658 million to $234.865 million.
- Valuation losses remain material
- Q2 realized and unrealized losses totaled $3.740 million, including a $4.146 million loss on securitization assets net of related non-recourse obligations. For the first six months, net realized and unrealized losses were $18.052 million versus a $9.368 million gain a year earlier.
- Mortgage delinquencies increased
- Portfolio credit indicators weakened: 90+ day delinquencies in securitization trusts rose to 2.1% of UPB from 1.7% at year-end, while directly owned residential-loan delinquencies increased to 0.7% from 0.4%.
- Cash usage and leverage remain elevated
- Operating cash flow used $225.643 million in the first half, versus $181.103 million used a year earlier, reflecting loan-purchase activity. The company relies on financing and securitizations, with $364.599 million drawn on warehouse lines and $2.404 billion of total collateralized debt at June 30.
- No risk-factor update; rate volatility persists
- The filing states there were no material changes to risk factors from the 2025 Form 10-K. Nonetheless, management identifies rate and spread volatility as a valuation headwind; Q2 market volatility produced generally negative valuation impacts, while the Fed target range remained 3.50% to 3.75%.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.14
What they said about what is next.
The 10-Q provides no quantitative revenue or EPS outlook. Management expects to continue acquiring newly originated loans through 2026 and describes expectations for a relatively stable but cautious rate environment through the balance of 2026, assuming moderating inflation and resilient growth.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 5, 2026
- Angel Oak Mortgage REIT reported a substantial net loss of $(7.4) million, resulting in an EPS of $(0.30), missing consensus estimates of $0.30. Revenue decreased significantly to $12.1 million, down by 50% from the…
- 10-K · March 3, 2026
- Angel Oak Mortgage REIT positions itself as a credit‑sensitive, non‑QM mortgage investor that leverages a vertically integrated relationship with Angel Oak for proprietary loan flow and financing. The 2025 filing…
- 10-Q · November 6, 2025
- Angel Oak Mortgage REIT reported net interest income of $10,180 (thousands) for Q3 2025, up from $9,020 (thousands) in Q3 2024, but net income and EPS declined materially year-over-year. Diluted EPS was $0.46 in Q3 2025…
- 10-Q · May 6, 2025
- Q1 2025 results show materially higher profitability and balance-sheet growth versus Q1 2024: net income rose to $20,531 (from $12,874) and diluted EPS to $0.87 (from $0.51). The company expanded on-balance assets…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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