Q4 2025 Results
GAAP net income available to common stockholders of $208.7 million or $1.86 per common share.
Net interest income of $50.4 million.
Distributable Earnings available to common stockholders of $79.8 million, which represents $0.71 per common share (see explanation of this non-GAAP measure on page 5).
Average interest income on interest earning assets of 4.97% and interest cost on average interest bearing liabilities of 4.27%.
Economic interest income was 4.97% less economic interest expense of 3.20% for an economic net interest spread of 1.77% (see explanation of this non-GAAP measure on page 7).
Raised $3.8 million of capital by issuing 183,490 shares of preferred stock through an at the market offering program.
Paid common stock dividends of $0.24 per share per month, or $0.72 per share for Q4.
December 31, 2025 Financial Position
Book value per common share of $18.63, up 6.5% compared to $17.49 at September 30, 2025.
Q4 2025 total economic return was 10.63%, which is change in book value for the period plus common dividends paid for the quarter. For the year ended December 31, 2025, total economic return was 12.79%.
Liquidity, including cash and unencumbered securities, of $1.2 billion.
Portfolio totaled $20.0 billion, comprised of 97.0% Agency mortgage-backed securities ("MBS") and 3.0% U.S. Treasury Securities.
Repurchase agreements, net totaled $17.9 billion; 47.0% were with ARMOUR affiliate BUCKLER Securities LLC.
Debt to equity ratio of 7.94:1 (based on repurchase agreements divided by total stockholders' equity). Implied leverage, including To Be Announced ("TBA") Securities and forward settling sales and unsettled purchases was 8.07:1.
Interest Rate swap contracts totaled $12.3 billion of notional amount.
Management's Commentary
"2025 was a good year for ARMOUR with total economic return of 12.79% and our Q4 2025 total economic return was 10.63%," said Scott Ulm, the Company's Chief Executive Officer. "In 2025 we grew our investment portfolio by approximately 60%, as we deployed $878 million of capital raised during the year by acquiring MBS. In 2025 and Q4 we benefited from MBS spreads tightening, lower MBS volatility and a lower interest rate environment. Our approach remains to grow and deploy capital thoughtfully when we see opportunities, maintain robust liquidity, and dynamically adjust hedges for disciplined risk management. We are confident in our positioning, strategy, and ability to deliver value for shareholders."
Company Update, February 17, 2026
Common stock outstanding of 119,384,920 shares.
Preferred stock outstanding of 7,277,929 shares.
Liquidity, including cash and unencumbered securities, exceeded $1.0 billion, this excludes MBS principal and interest receivable due in February 2026 which totaled $300.0 million.
Securities portfolio included approximately $21.1 billion of MBS (including TBA Securities) and U.S. Treasury Securities.
Through February 11, 2026 we raised approximately $138.0 million of capital by issuing 7,469,482 shares of common stock and $4.8 million of capital by issuing 230,097 shares of preferred stock through at the market offering programs.
Debt to equity ratio (based on repurchase agreements divided by total stockholders' equity) was 8.03 to 1; Implied leverage, including TBA Securities and forward settling sales and unsettled purchases was 8.20 to 1.
Book value per common share consisted of:
December 31, 2025
December 31, 2024
Stockholders' Equity
(in millions except per share)
Common stock, at par value - 111,915,020 and 62,412,116 shares outstanding, respectively
$
0.1
$
0.1
Additional paid-in capital
5,446.2
4,585.7
Cumulative distributions to stockholders
(2,667.1
)
(2,383.5
)
Accumulated net loss
(518.2
)
(840.9
)
Total Stockholders' Equity
$
2,261.0
$
1,361.4
Less: liquidation preference - 7.00% Cumulative Redeemable Preferred C Stock - 7,047,832 and 6,846,978 shares outstanding
(176.2
)
(171.2
)
Equity Attributable to Common Stockholders
$
2,084.8
$
1,190.2
Book value per common share
$
18.63
$
19.07
The major drivers of the change in the Company's financial position were:
Q4 2025
Q3 2025
(in millions)
Total Stockholders' Equity, Beginning
$
2,128.8
$
1,659.9
Income
Investment in securities:
Gain on MBS
$
112.9
$
177.1
Gain (Loss) on U.S. Treasury Securities
(0.4
)
6.2
Gain on TBA Securities
0.2
0.6
Gain (Loss) on interest rate swaps
48.5
(17.2
)
Gain (Loss) on futures contracts
14.1
(32.6
)
Net Interest Income
50.4
38.5
Total Expenses after fees waived(1)
(14.0
)
(13.3
)
Net Income
$
211.7
$
159.3
Preferred stock dividends
(3.0
)
(3.0
)
Common stock dividends
(80.8
)
(76.2
)
Capital Activities
Issuance of Preferred stock
3.8
—
Issuance of common stock
0.5
398.7
Common shares repurchased
—
(9.9
)
Total Stockholders' Equity, Ending
$
2,261.0
$
2,128.8
__________________________________
(1) The Company's external manager waived a portion of its contractual management fee at the rate of $1.65 million per quarter for each of Q4 2025 and Q3 2025.
Condensed Balance Sheet (unaudited)
December 31, 2025
December 31, 2024
(in millions)
Assets
Cash and cash equivalents
$
63.3
$
68.0
Cash collateral posted to counterparties
226.7
78.2
Agency Securities, at fair value
19,417.6
12,439.4
U.S. Treasury Securities, at fair value
598.1
—
Derivatives, at fair value
611.5
908.1
Accrued interest receivable
86.2
52.8
Prepaid and other
1.7
1.4
Total Assets
$
21,005.1
$
13,547.9
Liabilities
Repurchase agreements, net
$
17,941.8
$
