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MFA Financial (MFA)
NYSE:MFA
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EarningsQ2 2026 Earnings Report

MFA Financial (MFA) Q2 2026 Earnings Report

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MFA Q2 2026 EPS Results

Actual EPS$0.12
Consensus EPS$0.24
Beat/MissMissed by -$0.13
One Year Ago EPS$0.24

MFA Q2 2026 Revenue Results

Actual Revenue$252.02M
Expected Revenue$65.84M
Beat/MissBeat by +$186.18M
YoY Revenue Growth+47.94%

Earnings Announcement Details

QuarterQ2 2026
Date08/05/2026
TimeBefore Open
Conference CallWednesday, August 5, 2026
MFA Upcoming Earnings
MFA Financial's next earnings date is estimated for November 11, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MFA Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Aug 05, 2026|
% Change Since:
|
Earnings Call Sentiment|Neutral
The call presented a mix of meaningful operational progress (portfolio growth to ~$13B, a ~20% YoY portfolio increase, ~80 bps reduction in 60+ day delinquencies, Lima One origination up ~44%, securitization activity unlocking cash and improved financing) alongside near‑term financial headwinds driven by realized credit losses that materially reduced distributable earnings (DE $0.12 vs. $0.36 dividend) and an expected continued elevation of credit losses into Q3. Management emphasized strategic gains—asset redeployment into mid‑teen ROE assets, expense run‑rate reductions, and active capital recycling—while acknowledging short‑term earnings volatility from legacy credit resolutions and a modest post‑quarter economic book value decline (~2%). Overall the company shows constructive operational momentum but faces tangible near‑term credit and earnings pressure.
Company Guidance
Guidance from the call emphasized a path to normalized earnings and expense discipline: run‑rate G&A is expected to average about $26–$27 million per quarter (down >$6M/quarter from the 2024 quarterly average of $33M), MFA paid a $0.36 common dividend and expects distributable earnings (DE) to begin reconverging with that dividend as realized credit losses subside; they expect realized credit losses to remain elevated in Q3 (but below Q2’s level of $24.5 million) before moderating toward year‑end and into H1 2027. Key portfolio and capital metrics tied to that guidance include GAAP book value $12.71 and economic book value $13.20 at June 30 (estimated to be ~2% lower since quarter end), Q2 GAAP net income ~$46.8M ($0.35/share) and total economic return +2.6% for the quarter, an investment portfolio of ~ $13B (up from $12.5B on 3/31 and ~20% YoY), resolution of ~$200M of delinquent loans in Q2 with 60+ day delinquencies down from 7.8% to 7.0%, addition of $1.6B of target assets at expected mid‑teens ROEs, non‑QM balances of $5.7B (acquired $462M this quarter at a 6.9% average coupon, LTV 67%, default ~4%), agency bonds grown to $4.1B (purchases >$700M and TBA position increased ~$500M), Lima One originations +44% to $316M ( $220M transitional, $96M rental), and share repurchases of over 500,000 shares (funded largely via preferred issuance through the ATM); management highlighted that redeploying remaining equity (≈$84M) into mid‑teen ROE assets could add roughly $14–$15M of annual earnings.
Stable Book Value and Dividend
GAAP book value of $12.71 and economic book value of $13.20 at June 30, effectively unchanged from Q1; declared common dividend of $0.36 and delivered a quarterly total economic return of +2.6%.
Portfolio Growth
Investment portfolio grew to approximately $13.0 billion from $12.5 billion at March 31 and is roughly +20% larger year-over-year, with growth concentrated in Agency MBS.
Delinquency Reduction and Asset Resolutions
Resolved ~ $200 million of previously delinquent loans during the quarter; 60+ day delinquency rate declined from 7.8% to 7.0% (an 80 bps reduction).
Lima One Origination Momentum
Lima One origination volume rose ~44% sequentially to $316 million (comprised of $220M short-term transitional loans and $96M 30-year rental loans); Lima One mortgage banking income increased to $8.4 million.
Non‑QM and Securitization Activity
Non-QM remained the largest asset class at $5.7 billion; acquired $462 million of non-QM loans at a 6.9% average coupon and 67% average LTV; issued 24th non-QM securitization (~$300M bonds at ~5.5% cost) and resecuritized >$500M of SFR loans, unlocking $48M of cash and financing capacity.
Agency Positioning and Liquidity Flexibility
Purchased >$700 million of agency bonds during the quarter, growing the agency book to $4.1 billion (now ~1/3 of the investment portfolio); increased TBA exposure by nearly $500 million to generate drop income and maintain liquidity flexibility.
Earnings and Capital Deployment
GAAP net income of ~$46.8 million ($0.35 per basic common share); net interest income $59.6 million (slight increase from $59.2M); repurchased >500,000 shares during the quarter funded largely by preferred issuance via ATM program.
Expense Run‑Rate Improvement
Reported G&A of $31.2 million in Q2 (including ~$5 million accelerated noncash depreciation); expect run-rate G&A of ~$26–27 million per quarter for the remainder of the year, >$6M quarterly reduction versus 2024 quarterly average.
Improving Underwriting and Reinvestment
Redeployed capital into assets targeting mid‑teen ROEs and added ~$1.6 billion of target assets; DE prior to realized credit losses rose to $36.7 million ($0.35 per share), up from $0.34 per share prior quarter (excluding a prior one‑time item, an ~14% sequential improvement).

MFA Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 11, 2026
2026 (Q3)
0.28 / -
0.2―
2026 (Q2)
0.24 / 0.12
0.24-50.00% (-0.12)
2026 (Q1)
0.31 / 0.30
0.293.45% (+0.01)
2025 (Q4)
0.27 / 0.27
0.39-30.77% (-0.12)
2025 (Q3)
0.28 / 0.20
0.37-45.95% (-0.17)
2025 (Q2)
0.29 / 0.24
0.44-45.45% (-0.20)
2025 (Q1)
0.32 / 0.29
0.35-17.14% (-0.06)
2024 (Q4)
0.40 / 0.39
0.49-20.41% (-0.10)
2024 (Q3)
0.41 / 0.37
-0.64157.81% (+1.01)
2024 (Q2)
0.38 / 0.44
-0.34229.41% (+0.78)
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