Cherry Hill Mortgage Investment Corporation (CHMI) Q2 2025 earnings summary

Executive summary

• Book value per common share was $3.34 at June 30, 2025, a 6.7% decrease from the previous quarter, after accounting for a $0.15 dividend per share.

• GAAP net loss was $0.9 million, or $0.03 per diluted share, for Q2 2025; EAD was $3.2 million, or $0.10 per share.

• Entered a strategic partnership and investment with Real Genius LLC, a digital mortgage technology company, expected to be profitable within 6-7 months.

• Raised $8.9 million through the ATM program and ended with $58 million in unrestricted cash, maintaining strong liquidity.

• Transitioned to a fully integrated, internally managed company as of November 14, 2024, eliminating external management fees.

Financial highlights

• Net loss applicable to common stockholders was $0.9 million ($0.03 per share); comprehensive loss was $0.6 million ($0.02 per share).

• Earnings available for distribution (EAD) were $3.2 million ($0.10 per share), down due to the maturity of a large hedge.

• Declared a $0.15 per common share dividend for Q2, paid July 31, 2025.

• Servicing fee income for Q2 2025 was $10.9 million, with servicing costs of $2.0 million.

• Interest income for Q2 2025 was $14.8 million, up from $13.7 million in Q2 2024; interest expense was $12.2 million.

Outlook and guidance

• Monitoring for potential Fed rate cuts in September, which could increase prepayment speeds and refinancing incentives.

• Expect leverage to creep higher in the second half of 2025 as the Fed potentially becomes more accommodative.

• Management expects sufficient liquidity to meet all short-term liabilities and covenants over the next twelve months.

• Sensitivity analysis shows a 25 bps widening in RMBS/MSR spreads could reduce NAV by 6.5%.

• Interest rate sensitivity analysis indicates a 25 bps parallel shift in rates would impact book value per share by less than 1%.