10-Q · July 24, 2026
ORC delivered a major year-over-year and sequential earnings recovery: Q2 GAAP EPS was $0.44 versus $(0.29) in Q2 2025 and $(0.11) in Q1 2026, helped by $60.0 million of net interest income and $36.0 million of…
Earnings analysis · 10-Q
ORC earnings analysis
Filed October 23, 2026 · Our reading of the company's report
The latest report
Orchid Island reported $59.134 million of revenue and $0.27 of EPS, with EPS down from $0.44 in the prior quarter and $0.53 a year earlier. Liquidity remained meaningful at $462.4 million of unrestricted cash plus…
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Orchid Island reported $59.134 million of revenue and $0.27 of EPS, with EPS down from $0.44 in the prior quarter and $0.53 a year earlier. Liquidity remained meaningful at $462.4 million of unrestricted cash plus approximately $53.3 million of unpledged securities, and the company repurchased 4,946,878 shares at a weighted-average price of $6.30. However, the earnings trend weakened and the filing continues to show substantial exposure to interest-rate, spread, prepayment and repo-margin risks, including modeled book-value declines of 17.95% to 18.41% under 200-basis-point rate shocks.
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
- $0.27
What stood out
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Revenue near consensus; EPS declined
Reported EPS was $0.27, down from $0.44 in 2026 Q2 and $0.53 in 2025 Q3; revenue was $59.134 million, approximately 0.9% below the $59.673 million estimate.
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Liquidity resources remained substantial
As of September 30, 2026, unrestricted cash and cash equivalents were $462.4 million, supplemented by approximately $53.3 million of unpledged securities available for margin calls and other corporate purposes.
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Aggressive share repurchases continued
The company repurchased 4,946,878 shares during the quarter at a weighted-average price of $6.30, leaving 21,666,457 shares authorized for future repurchases.
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Portfolio duration remains actively managed
Management states that it seeks to maintain a hedged PT RMBS portfolio with an effective duration of less than 2.0, indicating an ongoing focus on limiting interest-rate exposure.
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No control deficiencies reported
Disclosure controls and procedures were concluded to be effective as of the evaluation date, and the company reported no changes in internal control that materially affected or were reasonably likely to materially affect reporting.
What to watch
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Large two-sided interest-rate sensitivity
The modeled book-value impact of a 200-basis-point rate increase was negative 18.41% as of September 30, 2026, while a 200-basis-point decrease implied a negative 17.95% impact; the filing notes that actual results could differ materially.
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Repo funding and margin-call exposure
The company finances long-term assets with shorter-term repurchase borrowings. A decline in pledged Agency RMBS or derivative values could trigger margin calls, while the approximately $53.3 million of unpledged securities and $462.4 million of unrestricted cash may be insufficient in a severe stress scenario.
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Spread, prepayment and hedge mismatch risk
The filing identifies spread risk as a source of book-value loss that is not generally hedged by interest-rate derivatives; the company also notes that hedging effectiveness depends on prepayment assumptions and that its portfolio has an effective-duration target of less than 2.0.
Management's outlook
No quantitative revenue or EPS guidance was provided in the 10-Q. The filing states that, as of September 30, 2026, there were no material changes to the risk factors in the December 31, 2025 Form 10-K.
Earlier filings 4
10-Q · April 24, 2026
Orchid Island’s Q1 2026 results show materially stronger core earning power but a GAAP loss from portfolio marks. Economic/net interest metrics improved meaningfully — net interest income rose to $57,063 (thousands) and…
10-K · February 20, 2026
Orchid Island Capital is a specialty finance REIT that invests in Agency RMBS (pass-through and structured) and funds primarily with repurchase agreements. The 10-K emphasizes interest-rate and funding risks (including…
10-Q · April 25, 2025
Orchid Island reported net income of $17,122,000 ($0.18 per share) for Q1 2025 versus $19,776,000 ($0.38) in Q1 2024, reflecting per‑share dilution from a materially larger share count. The company materially expanded…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.