Invesco Mortgage Capital (IVR) Q4 2025 earnings summary

Executive summary

• Book value per common share increased 3.7% to $8.72, with an 8.0% economic return and a dividend raised to $0.36 per share in Q4 2025.

• Net income per common share was $0.68, down from $0.74 in Q3 2025, and earnings available for distribution per share were $0.56.

• Leverage increased to 7.0x, reflecting a constructive investment environment.

• Agency mortgages outperformed Treasuries, supported by Fed rate cuts, strong economic growth, and GSE purchases.

• The company announced a shift from quarterly to monthly dividends, with the first monthly dividend of $0.12 per share declared in January 2026.

Financial highlights

• The investment portfolio totaled $6.3 billion at year-end, with $5.4 billion in Agency RMBS and $900 million in Agency CMBS.

• Liquidity position remained strong with $453.3 million in unrestricted cash and unencumbered assets.

• Total interest income was $77.9 million, and net interest income rose to $21.3 million.

• Raised $7.2 million through at-the-market common stock program and repurchased $1.8 million of Series C Preferred Stock.

• Repurchase agreements outstanding totaled $5.6 billion, in line with asset growth.

Outlook and guidance

• Management remains constructive on Agency RMBS due to lower volatility and broadening demand, but sees near-term risks as balanced after strong performance.

• Market expects an additional 50 basis points of Fed cuts through 2026.

• Agency CMBS is expected to continue offering attractive risk-adjusted yields and diversification benefits.

• Forward-looking statements caution about risks related to market conditions, interest rates, spreads, and prepayment trends.