ARMOUR Residential REIT (ARR) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 reached $114.8 million, reversing a prior-year loss, with distributable earnings per share at $0.72 and total economic return of 4.8%.

• Book value per common share increased to $17.53 as of June 30, 2026, with stable monthly dividends of $0.24 per share.

• Portfolio grew for the fifth consecutive quarter, totaling over $22 billion, with 94.5% in Agency MBS and the remainder in U.S. Treasury and TBA Agency Securities.

• Management emphasized disciplined portfolio management, risk controls, and maintaining stable dividends amid market volatility.

• Focus remains on risk management and liquidity in response to geopolitical and macroeconomic uncertainty.

Financial highlights

• Net interest income for Q2 2026 was $76.8 million, with interest income rising to $263.9 million and economic net interest spread at 1.82%.

• Book value per share rose to $17.53, and total assets reached $22.7 billion at quarter-end.

• Common equity increased to $2.39 billion, and total stockholders' equity was $2.58 billion.

• Raised $218.7 million via common stock and $4.1 million via preferred stock through at-the-market offerings.

• Paid $0.72 per common share in dividends for the quarter.

Outlook and guidance

• Management expects continued volatility in interest rates and mortgage spreads due to geopolitical tensions and Fed policy uncertainty.

• Dividend policy remains focused on intermediate-term stability.

• Technicals for Agency MBS remain supportive, with low net issuance and strong investor inflows.

• Risks include firmer inflation, a more hawkish Fed, and increased volatility.

• Prepayment speeds expected to persist at current low levels.