Orchid Island Capital, Inc. has recently released its 10-Q report, providing detailed insights into its financial performance and operations. Orchid Island Capital, Inc. is a specialty finance company that primarily invests in residential mortgage-backed securities (RMBS) in the United States. The company's investment strategy focuses on two categories of Agency RMBS: traditional pass-through Agency RMBS and structured Agency RMBS. Orchid Island Capital, Inc. was formed in 2010 and operates as a real estate investment trust (REIT) for U.S. federal income tax purposes.
In the latest 10-Q report, Orchid Island Capital, Inc. discussed various factors that may impact its results of operations and financial condition. These factors include interest rate trends, changes in funding costs, 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 detailed the company's capital raising activities. Orchid Island Capital, Inc. entered into several equity distribution agreements, raising significant amounts of capital through the issuance of common stock. For instance, under the February 2025 Equity Distribution Agreement, the company issued a total of 34,355,086 shares for aggregate gross proceeds of approximately $265.4 million.
Furthermore, the 10-Q report highlighted Orchid Island Capital, Inc.'s stock repurchase program. The company's Board of Directors authorized the repurchase of up to 6,183,601 shares of its common stock, representing approximately 18% of the then outstanding shares of common stock. From the inception of the stock repurchase program through June 30, 2025, the company repurchased a total of 6,257,826 shares at an aggregate cost of approximately $84.8 million.
In terms of financial performance, the report provided a summary of net (loss) income for the six and three months ended June 30, 2025, compared to the same periods in 2024. Orchid Island Capital, Inc. reported a net loss of $16.5 million for the six months ended June 30, 2025, compared to a net income of $14.8 million for the same period in 2024. For the three months ended June 30, 2025, the company reported a net loss of $33.6 million, in contrast to a net loss of $5.0 million for the same period in 2024.
The report also included GAAP and non-GAAP reconciliations, providing additional financial information such as "Net Earnings Excluding Realized and Unrealized Gains and Losses," "Economic Interest Expense," "Economic Net Interest Income," "Interest Income – Inclusive of Premium Amortization/Discount Accretion," and "Yield on Average RMBS – Inclusive of Premium Amortization/Discount Accretion."
The 10-Q report offers a comprehensive view of Orchid Island Capital, Inc.'s financial condition, capital activities, and performance, providing investors and stakeholders with valuable insights into the company's operations and strategic initiatives. The market has reacted to these announcements by moving the company's shares 1.51% to a price of $7.41. If you want to know more, read the company's complete 10-Q report here.
