Ellington Financial (EFC) Q3 2026 Earnings Report

The call was predominantly positive. Ellington reported strong earnings, a 9.4% annualized economic return, ADE above its dividend, improved credit metrics, portfolio growth, successful funding activity, and strong origination-partner performance. These positives outweighed challenges from rate and spread volatility, compressed Longbridge margins, higher leverage and borrowing costs, real-estate headwinds, and uncertainty around future delinquencies and taxable income.

Management’s quarterly ADE outlook is approximately $0.45 per share, with results remaining sensitive to Longbridge’s contribution, particularly origination margins and securitization timing, assuming approximately 1 PropReverse securitization per quarter; Longbridge’s origination margins are improving so far in the fourth quarter, and management is hoping for and expecting continued growth into next year, although massive percentage increases, 40% year-over-year, are “Obviously, not forever.” The current monthly dividend of $0.13 per share remains appropriate, management intends to issue additional unsecured notes over time as market conditions permit, continues to evaluate opportunities to return to the preferred equity market provided that the pricing makes sense, and, subject to REIT requirements, favors retaining excess earnings to build book value per share.