10-Q · July 22, 2026
ARR delivered a substantial Q2 earnings recovery, reporting $114.816 million of net income and $0.86 EPS after a $75.608 million loss in the prior-year quarter. Core net interest income rose to $76.819 million from…
Earnings analysis · 10-Q
ARR earnings analysis
Filed October 21, 2026 · Our reading of the company's report
The latest report
ARMOUR's core net interest income improved sharply, rising 117.4% year over year to $83.7 million, and operating cash flow increased to $420.7 million for the first nine months. However, a $1.165 billion Agency…
Read full summary
ARMOUR's core net interest income improved sharply, rising 117.4% year over year to $83.7 million, and operating cash flow increased to $420.7 million for the first nine months. However, a $1.165 billion Agency Securities loss drove a $323.7 million quarterly net loss and $(2.26) diluted EPS, while gross unrealized MBS losses expanded to $1.198 billion. Liquidity was $1.019 billion, but 8.24:1 leverage, 49.8% borrowing concentration with BUCKLER, and substantial spread sensitivity keep the risk profile elevated.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-2.26
- Segment
- Single operating and reportable segment: Agency Securities and U.S. Treasury investment portfolio; no separate segment revenue disclosed. Portfolio fair value was $20.466 billion at September 30, 2026 versus $20.016 billion at December 31, 2025.
What stood out
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Net interest income more than doubled
Interest income, used as the closest disclosed revenue measure, rose to $274.3 million from $210.2 million year over year, a 30.5% increase. Net interest income increased 117.4% to $83.7 million from $38.5 million, driven by a larger average securities portfolio and higher financing balances.
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Derivative gains offset part of MBS losses
Derivative gains were $792.4 million versus a $49.3 million loss in the prior-year quarter, partially offsetting a $1.165 billion Agency Securities trading loss versus a $177.1 million gain a year earlier.
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GAAP EPS materially deteriorated
GAAP diluted EPS was $(2.26), down from $1.49 in the prior-year quarter and below the $0.73 consensus estimate. Net loss available to common stockholders was $327.1 million versus net income of $156.3 million a year earlier.
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Operating cash flow improved
Operating cash flow for the first nine months was $420.7 million, up from $88.6 million year over year. Cash flow was supported by $1.390 billion of Agency Securities losses and $983.7 million of derivative gains; free cash flow was not disclosed.
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Liquidity remains substantial
Liquidity totaled $1.019 billion at September 30, 2026, comprising $99.7 million of cash and $919.7 million of unencumbered securities. Management said this was sufficient for anticipated short-term liquidity requirements of one year or less.
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Portfolio expanded despite volatility
Agency Securities fair value increased to $19.992 billion from $19.418 billion at December 31, 2025, while the investment portfolio's average balance rose to $20.930 billion from $15.089 billion in the first nine months of 2025.
What to watch
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Large MBS mark-to-market exposure
The filing states there were no material changes to the risk factors from the 2025 Form 10-K, but current market losses remain severe: Agency Securities carried $1.198 billion of gross unrealized losses at September 30, 2026 versus $87.8 million at December 31, 2025.
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High leverage and funding concentration
Repurchase agreement borrowings increased to $19.379 billion from $17.942 billion at December 31, 2025, with debt-to-equity leverage at 8.24:1. BUCKLER represented 49.8% of aggregate borrowings, creating significant funding concentration.
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Spread and interest-rate sensitivity
A 25-basis-point widening in MBS spreads was estimated to reduce projected shareholder equity by 12.43% at September 30, 2026. Management also reported the Federal Reserve raised the federal funds target range to 3.75%-4.00% on September 16, 2026, increasing rate and funding-cost uncertainty.
Management's outlook
No numeric revenue or EPS guidance was provided. Management stated it expects elevated volatility to persist until the Middle East conflict is more definitively resolved and intends to prioritize risk management and liquidity. Management believes current liquidity and capital resources are sufficient for anticipated short-term requirements of one year or less.
Earlier filings 4
10-Q · April 22, 2026
ARMOUR reported a Q1 2026 net loss of $(54,851) (versus net income $27,332 in Q1 2025), producing diluted EPS of $(0.49) compared with $0.32 a year earlier. Interest income rose to $249,201 (from $172,881) and net…
10-K · February 18, 2026
ARMOUR’s 2025 10-K emphasizes a leveraged, actively managed Agency MBS strategy supported by repurchase financing, hedging and experienced external management, while disclosing a recent shift in asset mix to include…
10-Q · October 22, 2025
ARMOUR’s 10-Q shows a strong quarter driven by higher interest income and trading gains: Net income rose to $159,259 (thousands) in Q3 2025 from $65,880 in Q3 2024, and diluted EPS increased to $1.49 from $1.21. The…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.