Invesco Mortgage Capital Reports Q2 Net Loss

By Bobby Samwell • Friday, July 25 10:25 • Permanent Link

Invesco Mortgage Capital Inc. (NYSE: IVR) has reported its financial results for the second quarter ending June 30, 2025. The company's net loss per common share was $0.40, a decrease from the net income of $0.26 in the first quarter of 2025. Earnings available for distribution per common share decreased to $0.58 from $0.64 in the first quarter of 2025. The common stock dividend remained unchanged at $0.34 per common share.

The book value per common share decreased to $8.05 from $8.81 as of March 31, 2025, resulting in an economic return of (4.8)% compared to 2.6% in the first quarter of 2025. The debt-to-equity ratio decreased to 6.5x from 7.1x as of March 31, 2025.

The company's average earning assets at amortized cost decreased to $5,078.9 million from $5,422.6 million in the first quarter of 2025. Similarly, average borrowings decreased to $4,577.6 million from $4,930.2 million in the first quarter of 2025.

Total interest income decreased to $70.6 million from $73.8 million, and total interest expense decreased to $52.9 million from $55.0 million in the first quarter of 2025. Net interest income also decreased to $17.7 million from $18.8 million.

The company's average earning asset yields increased to 5.56% from 5.45%, while the average cost of funds increased to 4.62% from 4.46%. The average net interest rate margin decreased to 0.94% from 0.99%.

In terms of portfolio composition, the company's MBS portfolio decreased to $5,185,559 thousand from $5,945,789 thousand as of March 31, 2025. The fair value of agency RMBS decreased to $4,222,203 thousand from $4,974,663 thousand, and the fair value of agency CMBS decreased to $891,521 thousand from $890,372 thousand.

In the same period, the company repurchased and retired 96,803 shares of series C preferred stock for a total cost of $2.3 million.

The company's earnings call is scheduled for Friday, July 25, 2025, at 9:00 a.m. ET, and an audio replay will be available until 5:00 pm ET on August 8, 2025.

This report provides a detailed snapshot of Invesco Mortgage Capital Inc.'s financial performance and key metrics for the second quarter of 2025, reflecting both positive and negative changes compared to the first quarter of 2025. Today the company's shares have moved 0.26% to a price of $7.63. For more information, read the company's full 8-K submission here.

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