EarningsQ3 2026 Earnings Report
MX:ARR Q3 2026 EPS Results
Actual EPS$13.17
Consensus EPS$13.23
Beat/MissMissed by -$0.06
One Year Ago EPS$13.36
MX:ARR Q3 2026 Revenue Results
Actual Revenue-$16.87B
Expected Revenue$2.22B
Beat/MissMissed by -$19.09B
YoY Revenue Growth-331.03%
Earnings Announcement Details
QuarterQ3 2026
Date10/21/2026
TimeAfter Close
Conference CallWednesday, October 21, 2026
MX:ARR Upcoming Earnings
ARMOUR Residential REIT's next earnings date is estimated for February 17, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:ARR Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Neutral
The call was cautiously constructive on the medium-term Agency MBS outlook, supported by wide mortgage spreads, stable funding conditions, strong liquidity, maintained dividends and portfolio repositioning opportunities. However, those positives were balanced by a $327 million GAAP loss, a negative 12.9% total economic return, a 17% book-value decline and significant rate, spread and macroeconomic volatility during the quarter.Company Guidance
Positive Distributable Earnings Despite GAAP Loss
Q3 net interest income was $83.7 million, while distributable earnings available to common stockholders were $102.3 million, or $0.71 per common share.
Capital Raised Through Common and Preferred Offerings
ARMOUR raised approximately $205.7 million by issuing approximately 12.4 million common shares and $2.5 million by issuing approximately 123,000 preferred shares through its at-the-market offering programs.
Continued Common Share Repurchases
The company repurchased 363,700 common shares at the end of September and stated that it seeks to act on both sides of the market when issuing or repurchasing shares is attractive relative to book value.
Monthly Dividend Maintained
ARMOUR paid a monthly common dividend of $0.24 per share, totaling $0.72 for the quarter, and declared additional $0.24 per-share dividends payable on October 29 and November 27, 2026. Management said earnings available for distribution are expected to be in the range of the dividend for the coming quarter.
Mortgage Spreads Present Attractive Valuations
Management said mortgage spreads were near their widest levels of the year, offering more compelling valuations and supporting a constructive medium-term outlook for Agency MBS.
Supportive Agency MBS Supply-Demand Backdrop
Elevated mortgage rates continue to constrain origination and net Agency MBS supply, while limited financing activity and favorable repo conditions support portfolio carry. Management also said the GSEs have more than $100 billion of capacity remaining under their regulatory caps and could act as meaningful potential backstop buyers at wider spreads.
Low Starting Leverage and Limited Duration Helped During Volatility
ARMOUR entered the quarter with historically low leverage and limited net duration exposure, which management said helped the company navigate heightened market volatility.
Strong Liquidity Position
Available liquidity was $1.02 billion at the end of Q3 and was expected to remain near that level through the end of October. Management also said the company did not have to sell assets because of liquidity pressure.
Portfolio Repositioning Captured Relative Outperformance
ARMOUR net added approximately $1.4 billion of MBS assets during the quarter and sold approximately $900 million, primarily 5-year and 10-year DUS pools and deep-discount seasoned MBS. Management said the sales captured relative outperformance, supported liquidity and leverage objectives, and generated proceeds for reinvestment.
Reinvestment Opportunities Offer High Levered Returns
The company plans to reinvest proceeds and paydowns into moderate-discount-priced MBS, which widened the most in September and offered levered returns running from 15% to 18%, depending on the coupon.
Prepayment Speeds Improved
Portfolio prepayments averaged 8.5% CPR in Q3, down 25% from the prior quarter. With 30-year conforming mortgage rates nearing 7.5%, management expects prepayment speeds to remain broadly stable, providing greater predictability for portfolio earnings and improving the convexity profile of mortgage assets.
Concentrated Agency MBS Portfolio
The mortgage portfolio remains invested exclusively in Agency MBS and DUS securities, consistent with the strategy since the third quarter of 2020, and more than 96% of MBS holdings are concentrated in specified pools with favorable prepayment characteristics.
Robust Hedging and Funding Structure
The swap hedge-to-repo ratio was approximately 89%, its highest level since 2022. The company continues to target approximately an 80% swaps and 20% futures mix, and its hedges are designed to protect earnings against further increases in short-term rates.
Stable Repo Markets and Diversified Financing Access
Repo spreads to SOFR remained tight through September and early Q4. Approximately 50% of the portfolio was financed through affiliated broker-dealer Buckler Securities, while the company maintained access to roughly 20 counterparties across the global market and could use overnight or term financing.
Dry Powder and Robust Liquidity Stress Testing
Leverage was 7.9 turns as of October 19, excluding Treasury loans and with adjustments for expected paydowns. Management said it had dry powder to add leverage when there was greater clarity on the macroeconomic and inflation outlook, while its existing liquidity stress testing used extreme, COVID-like scenarios and had not required modification.
MX:ARR 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