Ellington Financial (EFC) investor relations material

Executive summary

• Net income for Q2 2025 was $42.9 million, or $0.45 per share, with adjusted distributable earnings of $45.0 million ($0.47 per share), both up sequentially, and book value per share rising to $13.49.

• Annualized economic return for Q2 2025 was 13.8%, with a 3.3% non-annualized return and a 12.3% dividend yield based on the August 6, 2025 closing price.

• Six securitizations were completed in Q2 2025, maintaining portfolio size and enhancing liquidity, with four more priced in Q3 to date.

• Broad-based contributions from diversified investment and loan origination platforms, notably Longbridge, LendSure, and American Heritage.

• Strategic equity investment in a new non-QM and RTL originator, expanding origination partnerships and forward flow agreements.

Financial highlights

• Net interest income for Q2 2025 was $43.3 million, with net interest margin on the credit portfolio rising to 3.11% from 2.90% sequentially.

• Book value per share increased to $13.49; total economic return for Q2 was 3.3% (non-annualized).

• Cash and unencumbered assets totaled $920 million, over 50% of total equity.

• Recourse debt-to-equity ratio was 1.7:1; total debt-to-equity ratio was 8.7:1 as of June 30, 2025.

• Weighted average yield on the total portfolio was 7.27% for Q2 2025.

Outlook and guidance

• Management expects continued strong earnings through portfolio expansion, increased securitization, and robust contributions from Longbridge, including the new HELOC for Seniors program.

• Q3 off to a strong start with four securitizations priced, totaling 15 year-to-date.

• Confident in ability to cover and potentially increase dividends, with a stable policy since 2018.

• Dynamic hedging and flexible asset allocation strategies are expected to support returns and defend book value.

• Focus on capital allocation to sectors with best relative value as market conditions evolve.