Two Harbors Investment (TWO) Q2 2026 earnings summary

Executive summary

• Net income attributable to common stockholders was $49.4 million for Q2 2026, reversing a loss of $272.3 million in Q2 2025; comprehensive income attributable to common stockholders was $47.9 million for Q2 2026, compared to a loss of $221.8 million in Q2 2025.

• Book value per common share increased to $10.68 at June 30, 2026, up from $10.57 at March 31, 2026, but down from $11.13 at December 31, 2025.

• The company entered into a definitive agreement to be acquired by CrossCountry Intermediate Holdco, LLC (CCM) for $12.00 per share in cash, with the merger expected to close in August 2026.

• Preferred shares to be redeemed at $25.00 plus accrued dividends upon merger completion.

• Declared a stub period dividend of $0.12196 per share for Q3 2026, contingent on merger completion.

Financial highlights

• Interest income for Q2 2026 was $83.5 million, down from $117.1 million in Q2 2025; interest expense was $89.6 million, down from $136.7 million.

• Net servicing income was $125.9 million for Q2 2026, compared to $156.0 million in Q2 2025.

• Comprehensive income was $47.9 million, or $0.45 per share; GAAP net income was $49.4 million, or $0.47 per share.

• Earnings available for distribution (EAD) were $29.6 million, or $0.28 per share.

• Economic return on book value was 4.3% for the quarter.

Outlook and guidance

• The CCM merger is expected to close in August 2026, with each common share to be converted into $12.00 in cash.

• A pro-rated dividend of $0.12196 per share was declared for Q3 2026, contingent on merger completion.

• Management expects continued stable performance from the paired MSR and Agency RMBS strategy, with a focus on risk management amid market volatility.

• Forward-looking statements highlight risks related to merger completion, market conditions, and regulatory changes.