Orchid Island Capital, Inc. has recently released its 10-Q report, detailing its operations as a specialty finance company that invests in residential mortgage-backed securities (RMBS) in the United States. The company's portfolio comprises traditional pass-through Agency RMBS, such as mortgage pass through certificates and collateralized mortgage obligations, as well as structured Agency RMBS, including interest-only securities, inverse interest-only securities, and principal-only securities. Orchid Island Capital, Inc. operates as a real estate investment trust (REIT) and aims to provide attractive risk-adjusted total returns over the long term through a combination of capital appreciation and the payment of regular monthly distributions.
In ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, Orchid Island Capital, Inc. discusses various factors that may impact its results of operations and financial condition. These factors include interest rate trends, changes in cost of funds, competition for investments in Agency RMBS, actions taken by the U.S. government, prepayment rates on mortgages underlying Agency RMBS, and other market developments.
The report also highlights the company's capital raising activities, including the issuance of shares of common stock under equity distribution agreements, with aggregate gross proceeds of approximately $228.8 million in March 2023, $250.0 million in June 2024, and approximately $265.4 million through June 30, 2025, under the February 2025 Equity Distribution Agreement.
Orchid Island Capital, Inc. also outlines its stock repurchase program, which has seen the repurchase of a total of 6,257,826 shares at an aggregate cost of approximately $84.8 million through June 30, 2025, with a remaining authorization of 2,719,137 shares as of July 24, 2025.
The report further provides a detailed analysis of the company's results of operations for the six and three months ended June 30, 2025, compared to the same periods in 2024. Notably, the net loss for the six months ended June 30, 2025, was $16.5 million, or $0.16 per share, compared to a net income of $14.8 million, or $0.27 per share, for the same period in 2024. Similarly, the net loss for the three months ended June 30, 2025, was $33.6 million, or $0.29 per share, compared to a net loss of $5.0 million, or $0.09 per share, for the same period in 2024.
Additionally, the report includes GAAP and Non-GAAP reconciliations, presenting non-GAAP financial information such as "Net Earnings Excluding Realized and Unrealized Gains and Losses" and "Economic Interest Expense," providing further insights into the company's financial performance. Today the company's shares have moved 0.34% to a price of $7.325. If you want to know more, read the company's complete 10-Q report here.
