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EarningsQ2 2026 Earnings Report
EFC Q2 2026 EPS Results
Actual EPS$0.60
Consensus EPS$0.46
Beat/MissBeat by +$0.14
One Year Ago EPS$0.47
EFC Q2 2026 Revenue Results
Actual Revenue$174.93M
Expected Revenue$114.59M
Beat/MissBeat by +$60.33M
YoY Revenue Growth+31.72%
Earnings Announcement Details
QuarterQ2 2026
Date08/06/2026
TimeAfter Close
Conference CallThursday, August 6, 2026
EFC Upcoming Earnings
Ellington Financial's next earnings date is estimated for November 9, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
EFC Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized multiple substantial positives: strong GAAP and ADE results with ADE notably above the dividend, robust growth and record volumes at Longbridge (38% YoY origination growth), excellent long-term credit performance (very low cumulative realized losses), healthy net interest margins (336 bps), extended repo term and improved funding durability, and a growing, high-throughput loan sourcing portal. Headwinds were present but manageable: higher interest rates create origination pressure (partially offset by hedges), some unrealized mark-to-market losses in corporate other, modestly higher overall leverage tied to securitizations, and rising delinquencies as portfolios scale that the company is addressing via a servicer acquisition and expanded special servicing capability. On balance the positives significantly outweighed the negatives.Company Guidance
Strong Earnings and Returns
GAAP net income of $0.43 per share and adjusted distributable earnings (ADE) of $0.60 per share in Q2 2026; ADE exceeded the $0.39 quarterly dividend by ~54%. Reported annualized economic return of 13.6% for the quarter.
Longbridge Growth and Profitability
Longbridge originated approximately $590 million of loans in Q2, a 38% year-over-year increase; proprietary reverse (prop) loans were ~54% of volume and prop submissions and originations reached record levels (July was Longbridge's highest-ever month). Longbridge contributed ~$0.21–$0.23 to ADE in recent quarters (avg 2025: $0.12).
Excellent Credit Performance
Inception-to-date cumulative realized credit losses of 17 basis points on ~$20.4 billion of residential mortgage fundings and 39 basis points on >$2.5 billion of commercial mortgage bridge originations, spanning multiple market cycles.
Robust Securitization and Loan Sourcing
Securitized roughly $2 billion of loans during the quarter and ~ $4 billion unpaid principal balance in H1 2026 (vs. $4.4 billion UPB in all of 2025). Proprietary residential loan portal is generating >$15 million of loan purchases per day (a pace of ~ $4 billion annually) and supplied a significant portion of Q2 securitizations.
Stable Net Interest Margin and Funding Metrics
Reported overall net interest margin of 336 basis points (roughly unchanged Q/Q). Weighted average borrowing rate on recourse borrowings was 5.5% (essentially unchanged). Approximately 29% of recourse borrowings were long-term non-mark-to-market and 17% were unsecured debt.
Improved Funding Durability
Weighted average remaining term of repo borrowings increased to 9.3 months (approximately double mid-2025), reducing near-term refinancing risk. Unsecured notes have recently traded at a premium, supporting the ability to diversify funding over time.
Book Value Accretion and Dividend Coverage
Book value per share increased by $0.05 to $13.61 after paying $0.39 per share in dividends. Ellington has covered its dividend for 8 consecutive quarters, and management highlighted the potential for dividend pressure upward but is prioritizing book value growth.
Enhanced Disclosures and Analytics Investment
Expanded Longbridge disclosures (separating HECM and prop origination and submissions) and separate roll-forwards for HMBS and prop reverse MSRs. Company continues to allocate ~20% of staff to research and technology and is applying AI to analytics.
EFC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed