Orchid Island Capital, Inc. has recently released its 10-Q report, providing insights into its financial condition and operations. The company, a specialty finance firm, primarily invests in residential mortgage-backed securities (RMBS) backed by single-family residential mortgage loans. Orchid Island Capital's portfolio includes traditional pass-through Agency RMBS, collateralized mortgage obligations, and structured Agency RMBS. The company, headquartered in Vero Beach, Florida, has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes.
In ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, Orchid Island Capital addresses various factors that may impact its results, including interest rate trends, competition for investments in Agency RMBS, and actions taken by the U.S. government. The company's business objective is to provide attractive risk-adjusted total returns over the long term through a combination of capital appreciation and the payment of regular monthly distributions.
Orchid Island Capital's capital raising activities have been significant, with the company entering into multiple equity distribution agreements, resulting in aggregate gross proceeds of approximately $228.8 million, $250.0 million, and $420.2 million in March 2023, June 2024, and February 2025, respectively.
The company has also been active in its stock repurchase program, authorizing the repurchase of up to 6,183,601 shares as of October 23, 2025, representing approximately 18% of its then outstanding shares of common stock. Orchid Island Capital has repurchased a total of 6,257,826 shares at an aggregate cost of approximately $84.8 million since the inception of the program.
In terms of its financial performance, Orchid Island Capital reported net income of $55.6 million for the nine months ended September 30, 2025, compared to $32.1 million for the same period in 2024. For the three months ended September 30, 2025, the company reported net income of $72.1 million, up from $17.3 million in the same period in 2024. Notably, the company's net income for the nine months ended September 30, 2025, was $0.48 per share, while for the nine months ended September 30, 2024, it was $0.53 per share. Similarly, for the three months ended September 30, 2025, net income was $0.53 per share, compared to $0.24 per share for the three months ended September 30, 2024.
In addition to the results presented in accordance with GAAP, Orchid Island Capital's results of operations include certain non-GAAP financial information, including "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 market has reacted to these announcements by moving the company's shares -0.4% to a price of $7.44. Check out the company's full 10-Q submission here.
