ARR

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Delivered a 4.8% total economic return as mortgage option-adjusted spreads tightened 7 basis points, offsetting a bear-flattening U.S. Treasury curve. Attributed sector resilience to favorable supply-demand technicals, specifically negative net issuance of Fannie Mae and Freddie Mac securities and strong bond fund inflows. Maintained a neutral interest rate view with net balance sheet duration near zero, reflecting a shift from prior quarters to protect against potential rate volatility. Prioritized specified pools with favorable prepayment characteristics, which now represent over 95% of the mortgage-backed securities portfolio. Leveraged the broker-dealer affiliate, BUCKLER, for attractive overnight and shorter-dated financing as term funding premiums increased. Viewed the GSEs' retained portfolios as a strategic backstop, noting over $100 billion in remaining capacity to support stable spreads if market valuations widen. Assumes the Federal Reserve will remain on hold through the fall, though management remains mindful of potential rate hikes if energy-driven inflation persists. Expects prepayment speeds to stabilize around 8.8 CPR in the current rate environment, down from the second quarter average of 11.4 CPR. Anticipates a range-bound market environment through the summer, supported by low supply and continued demand for Agency MBS as an alternative to corporate credit. Maintains a discipline-first approach to capital deployment until the Federal Reserve's new leadership framework and reaction function are better understood. Projects that midterm elections will likely prevent any disruptive balance sheet proposals regarding the repo or Agency MBS markets in the near term. Raised approximately $218.7 million in common equity during Q2, utilizing the ATM program to lower average costs by spreading fixed expenses over a larger capital base. Noted a fifth consecutive quarter of growth in both assets and the capital base, with over $1.3 billion in new mortgage assets added since April. Maintained a strong liquidity position of over $1.2 billion, representing nearly 50% of total equity, despite higher haircut requirements on longer-duration hedges. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management identified static returns in the mid-teens for 30-year 5% to 6% coupons, assuming 8 turns of leverage and neutral duration. Noted that a 10 basis point tightening in spreads could add an additional 4% to 5% to total return through book value gains. Specified pools are viewed as fully valued, leading the firm to increase tactical TBA positions where 'specialness' has returned to the market. Management continues to favor specified pools for long-term book value stability, focusing on liquid assets with lower loan balance stories. The firm is rotating out of 5-year CMBS pools into 10-year positions to capture better convexity and take advantage of negative swap spreads. CMBS serves as a substitute for more expensive specified pools while allowing for a more targeted approach to the long end of the yield curve. The firm favors OIS and SOFR pay-fixed swaps for shorter and intermediate maturities where spread volatility is lower. Management indicated they might increase duration and position for a 'bull steepener' if inflation begins to normalize, though they are not at that point yet.

This article first appeared on GuruFocus. Total Economic Return: 4.8% for the second quarter. GAAP Net Income: $111.5 million, or $0.86 per common share. Net Interest Income: $76.8 million. Distributable Earnings: $93.2 million, or $0.72 per common share. Capital Raised: $218.7 million from common stock and $4.1 million from preferred stock. Common Stock Dividends: $0.24 per share per month, totaling $0.72 for the quarter. Quarter-End Book Value: $17.53 per common share, up 0.6% from March 31, 2026. Portfolio Size: Over $22 billion, with $1.3 billion of new mortgage assets added. Aggregate Portfolio Prepayments: Averaged 11.4 CPR in Q2, declining to 8.8 CPR in July. Implied Leverage: Around 7.5 turns. Liquidity Position: Over $1.2 billion, nearly 50% of total equity. Warning! GuruFocus has detected 4 Warning Sign with ARR. Is ARR fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ARMOUR Residential REIT Inc (NYSE:ARR) delivered a strong total economic return of 4.8% for the second quarter of 2026. The company reported a GAAP net income of $111.5 million, or $0.86 per common share, indicating solid profitability. ARMOUR raised approximately $218.7 million of capital through common stock issuance, enhancing its capital base. The company maintained a stable dividend payout of $0.24 per common share per month, totaling $0.72 for the quarter. ARMOUR's asset portfolio grew for the fifth consecutive quarter, reaching over $22 billion, demonstrating consistent expansion. The macroeconomic environment, including geopolitical uncertainty and a flatter yield curve, poses potential challenges for ARMOUR's sector. ARMOUR's estimated book value as of July 20, 2026, was slightly lower at $17 per common share, reflecting the impact of dividend accruals. The company faces potential risks from firmer inflation and a more hawkish Federal Reserve, which could widen mortgage spreads. ARMOUR's liquidity as a percentage of total equity has been on a downtrend for the last couple of quarters, raising concerns about financial flexibility. The company remains cautious about raising preferred stock capital due to low trading volumes and unattractive pricing. Q: Scott, can you discuss your outlook for capital raising and how it ties to your expectations for range-bound spreads and associated risks? A: Scott Ulm, CEO: We approach capital by evaluating opportunities and the potential to lower costs by spreading them over a larger capital base. Our marginal fee is 75 basis points, so raising capital reduces our average costs. We consider these factors to determine market opportunities and execution strategies. Q: What are you seeing in terms of incremental returns as you raise and deploy capital in today's market? A: Desmond Macauley, Co-Chief Investment Officer: We see static returns in the mid-teens for certain investments, assuming about 8 turns of leverage and hedging with swaps. If spreads tighten by 10 basis points, it could add another 4% to 5% to our total return through book value. We expect spreads to stay range-bound near term but are constructive on the market long-term. Q: How are you thinking about specified pools versus TBAs today, and has the relative value of prepayment protection changed? A: Sergey Losyev, Co-Chief Investment Officer: Specified pools are fully valued versus TBAs, which have seen some specialness return but remain volatile. We focus on finding good convexity collateral for long-term portfolio value, concentrating on specified pools with favorable prepayment characteristics. Q: Can you discuss your approach to rate hedging given the flattening yield curve and potential Fed hikes? A: Desmond Macauley, Co-Chief Investment Officer: We maintain a flat duration profile and favor adding swaps in the front end of the curve due to less spread volatility. For longer durations, we use a balanced mix of swaps, treasury futures, and treasuries. We may increase duration positioning if inflation normalizes. Q: Could you provide insight into your leverage position and whether you might increase it if inflation normalizes? A: Desmond Macauley, Co-Chief Investment Officer: Our leverage targets consider spreads, macroeconomic environment, and liquidity stress tests. If spreads widen temporarily, we might increase leverage, expecting volatility to decline and spreads to tighten. Currently, we are comfortable with our leverage, considering market risks and the Fed's reaction function. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in ARMOUR Residential REIT, Inc.? Here are five stocks we like better. ARMOUR Residential REIT posted a solid Q2 2026, with GAAP net income of $111.5 million ($0.86/share) and distributable earnings of $93.2 million ($0.72/share). The company also reported a 4.8% total economic return and a slight increase in book value to $17.53 per share. Management said agency MBS spreads tightened despite a challenging macro backdrop, helping support book value and portfolio performance. ARMOUR noted that supply-demand dynamics are currently outweighing broader rate and inflation concerns, though it warned that higher volatility or a more hawkish Fed could pressure spreads. The company continued to raise capital through ATM programs, bringing in $218.7 million in Q2 and another $88.3 million through mid-July. ARMOUR said the capital will be deployed opportunistically, while it maintains a fairly neutral duration profile, moderate leverage, and a large liquidity cushion. 6 Mortgage REITS: How Badly Could Rising Rates Hurt Them? ARMOUR Residential REIT (NYSE:ARR) reported a positive second quarter of 2026, with management saying tighter agency mortgage-backed securities spreads helped offset a macroeconomic backdrop that would typically pressure the sector. Chief Financial Officer Gordon Harper said the mortgage REIT generated a total economic return of 4.8% for the quarter. GAAP net income available to common stockholders was $111.5 million, or $0.86 per common share, while net interest income was $76.8 million. → 3 Photonics Companies Making Quantum Tech Possible Distributable earnings available to common stockholders, a non-GAAP measure, totaled $93.2 million, or $0.72 per common share. Harper said the measure includes net interest income plus TBA drop income, adjusted for income or expense on interest rate swaps and futures contracts, minus operating expenses. GAAP net income available to common stockholders: $111.5 million, or $0.86 per common share Net interest income: $76.8 million Distributable earnings available to common stockholders: $93.2 million, or $0.72 per common share Total economic return: 4.8% Quarter-end book value: $17.53 per common share, up 0.6% from March 31, 2026 Harper said ARMOUR paid monthly common stock dividends of $0.24 per share, totaling $0.72 for the quarter. The company also said a $0.24 dividend would be paid July 30 to holders of record on July 15, and declared another $0.24 dividend payable Aug. 28 to holders of record on Aug. 17. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? ARMOUR’s estimated book value as of July 20 was $17 per common share, reflecting the accrual of the July common dividend of $0.24 per share, Harper said. ARMOUR raised approximately $218.7 million during the second quarter by issuing about 12.7 million common shares through its at-the-market offering programs, Harper said. The company also raised $4.1 million through the issuance of approximately 198,000 preferred shares. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off Through July 14, ARMOUR raised an additional $88.3 million by issuing 5.2 million common shares through its common stock ATM program. Asked by Doug Harter of BTIG about the company’s capital-raising outlook, Chief Executive Officer Scott Ulm said ARMOUR evaluates capital raising based on what opportunities are available for deployment. “The way we’ve always approached capital is to look at what we can do with it and what the opportunities are,” Ulm said. He added that raising capital can lower average costs by spreading expenses over a larger capital base. In response to a question from Timothy D’Agostino of B. Riley Securities about why common stock issuance was much larger than preferred issuance, Ulm said the decision was tied to pricing and liquidity. He said preferred shares have traded at an attractive strip yield, but volumes have been relatively low, and the company would need to see prices it likes before issuing more preferred stock in meaningful size. Ulm said agency mortgage-backed securities performed well in the second quarter even as the U.S. Treasury curve continued to bear flatten. He said the two-year Treasury yield rose 38 basis points, compared with a 15-basis-point increase in the 10-year yield. Ulm cited elevated geopolitical uncertainty in the Middle East, strong economic data and an energy-driven rise in headline inflation as factors that led markets to move from pricing year-end rate cuts to rate hikes. He also said a less predictable Federal Reserve under Chairman Walsh’s leadership could push interest rate volatility higher. “Historically, this combination of elevated uncertainty and a flatter yield curve has produced a meaningful headwind for mortgages,” Ulm said. Still, he said mortgage option-adjusted spreads tightened seven basis points across ARMOUR’s asset classes, contributing to a positive book value gain. Ulm said the quarter reinforced that supply-demand dynamics are currently having more influence on agency MBS valuations than the broader macroeconomic narrative. Looking ahead, Ulm said the technical backdrop remains supportive into the third quarter. Elevated mortgage rates are constraining new loan production, and net issuance of Fannie Mae and Freddie Mac securities continues to run negative this year, he said. On the demand side, inflows into bond funds from domestic and international investors continue to support agency MBS, which he said remain attractive relative to tightly valued corporate credit. However, Ulm cautioned that firmer inflation, a more hawkish Fed and a sustained rise in volatility could lead investors to demand more compensation for mortgage risk, potentially pushing spreads and yields wider. Co-Chief Investment Officer Desmond Macauley said ARMOUR’s portfolio stood at more than $22 billion at quarter-end, marking a fifth consecutive quarter of growth in both assets and the capital base. The company’s assets remained 100% agency MBS, agency CMBS and U.S. Treasuries. Macauley said ARMOUR added nearly $1.3 billion of new mortgage assets since its previous conference call in April. Purchases were concentrated in par and slight premium coupons, as well as five-year and 10-year DUS bonds, which he said benefit from slower prepayments and provide positive convexity and a near bullet-like structure. The portfolio remained concentrated in specified pools with favorable prepayment characteristics, representing more than 95% of ARMOUR’s MBS holdings. Aggregate portfolio prepayments averaged 11.4 CPR in the second quarter, compared with 11.2 CPR in the first quarter. Macauley said prepayment speeds declined to 8.8 CPR in the July report and are expected to remain around those levels in the current rate environment. Sergey Losyev, ARMOUR’s other co-chief investment officer, said in response to a question from UBS analyst Marissa Lobo that specified pools appear “fully valued” relative to TBAs, though ARMOUR still views good convexity collateral as additive over the long term. He said TBAs remain a tactical position rather than an alternative to specified pools. Macauley said ARMOUR ended the quarter with net balance sheet duration near zero, reflecting a more neutral view on interest rates and the yield curve than in prior quarters. He said implied leverage, excluding Treasury holdings, was about 7.5 turns, a modestly lighter level intended to reflect caution while allowing the portfolio to benefit from carry while volatility remains subdued. Expected July month-end liquidity, including monthly paydowns, was more than $1.2 billion, or nearly 50% of total equity, Macauley said. ARMOUR’s hedging strategy uses both long and short hedge instruments to reduce duration risk across the yield curve. Macauley said about 86% of hedges are OIS and SOFR pay-fixed swaps. The company favors swaps in shorter and intermediate maturities, where spread volatility is lower, while using a more balanced mix of swaps, Treasury futures and Treasury shorts at longer maturities. Asked by Citizens JMP analyst Trevor Cranston about hedging strategy amid a flatter yield curve and possible Fed hikes, Macauley said ARMOUR aims to keep a flat profile in both duration and curve exposure. He said if inflation normalizes, the company may consider increasing duration and positioning more for yield-curve steepness, though it is not there yet. In response to a leverage question from Dave Storms of Stonegate Capital, Macauley said the company is comfortable with current leverage levels. He said ARMOUR considers spreads, macroeconomic conditions, geopolitics and liquidity stress tests when setting leverage targets. Ulm said ARMOUR remains focused on maintaining common dividends at levels appropriate for the intermediate term, rather than reacting to short-term market fluctuations. “Our approach remains unchanged,” Ulm said. “We stress test our liquidity, apply systematic hedging, and deploy capital appropriately.” He said the company is positioned to reduce downside risks while taking advantage of opportunities as they arise. ARMOUR Residential REIT (NYSE:ARR) is a mortgage real estate investment trust that was formed in 2008 to acquire and manage a portfolio of residential mortgage-backed securities (RMBS). The company's investments are primarily agency-sponsored and agency-guaranteed RMBS issued by U.S. government-sponsored enterprises, along with credit risk transfer securities and select non-agency residential and multifamily RMBS. By focusing on high-quality mortgage assets, ARMOUR Residential REIT seeks to generate stable income and preserve capital through diversified exposure to the U.S. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "ARMOUR Residential REIT Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Armour Residential REIT (ARR) came out with quarterly earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.69 per share. This compares to earnings of $0.77 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.35%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.73 per share when it actually produced earnings of $0.76, delivering a surprise of +4.11%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Armour Residential REIT, which belongs to the Zacks REIT and Equity Trust industry, posted revenues of $76.82 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 29.76%. This compares to year-ago revenues of $33.1 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Armour Residential REIT shares have lost about 7.1% since the beginning of the year versus the S&P 500's gain of 9.7%. While Armour Residential REIT has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Armour Residential REIT was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.70 on $62.6 million in revenues for the coming quarter and $2.82 on $258.2 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust is currently in the bottom 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Franklin BSP (FBRT), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 29. This real estate investment trust is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of -14.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Franklin BSP's revenues are expected to be $73.4 million, up 48.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ARMOUR Residential REIT, Inc. (ARR) : Free Stock Analysis Report Franklin BSP Realty Trust, Inc. (FBRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

VERO BEACH, Florida, July 22, 2026 (GLOBE NEWSWIRE) -- ARMOUR Residential REIT, Inc. (NYSE: ARR and ARR PRC) (“ARMOUR” or the “Company”) today announced the Company's unaudited Q2 results and June 30, 2026 financial position. Q2 2026 Results GAAP net income related to common stockholders of $111.5 million or $0.86 per common share. Q2 2026 total economic return was 4.8%, which is change in book value for the period plus common dividends paid for the quarter. Net interest income of $76.8 million. Distributable Earnings available to common stockholders of $93.2 million, which represents $0.72 per common share (see explanation of this non-GAAP measure on page 5). Average interest income on interest earning assets of 4.93% and interest cost on average interest bearing liabilities of 3.83%. Economic interest income was 4.86% less economic interest expense of 3.04% for an economic net interest spread of 1.82% (see explanation of this non-GAAP measure on page 7). Raised $218.7 million of capital by issuing 12,714,990 shares of common stock through an at the market offering program. Raised $4.1 million of capital by issuing 197,939 shares of preferred stock through an at the market offering program. Paid common stock dividends of $0.24 per share per month, or $0.72 per share for Q2. June 30, 2026 Financial Position Book value per common share of $17.53, up 0.6% compared to $17.42 at March 31, 2026. Liquidity, including cash and unencumbered securities, of $1.2 billion. Portfolio totaled $21.8 billion, comprised of 94.5% Agency mortgage-backed securities ("MBS") and 2.7% U.S. Treasury Securities and 2.8% of To Be Announced ("TBA") Agency Securities. Repurchase agreements, net totaled $19.4 billion; 46.8% were with ARMOUR affiliate BUCKLER Securities LLC. Debt to equity ratio of 7.54:1 (based on repurchase agreements divided by total stockholders’ equity). Implied leverage, including TBA Agency Securities and forward settling sales and unsettled purchases was 7.73:1. Interest Rate swap contracts totaled $15.9 billion of notional amount. Management's Remarks "The Company delivered strong results for the second quarter of 2026, with total economic return of 4.8%, despite a macroeconomic backdrop that would normally weigh on our sector." said Scott Ulm, the Company's Chief Executive Officer. "We continue to prioritize maintaining common share dividends appropriate for the intermediate term rather than focusing on short-term market fluctuations. Our approach remains unchanged. We stress test our liquidity, apply systematic hedging and deploy capital appropriately. We are well positioned to attenuate downside risks while taking advantage of opportunities that present themselves.“ Company Update, July 20, 2026 Common stock outstanding of 141,553,046 shares. Liquidity, including cash and unencumbered securities, exceeded $1.1 billion, this excludes MBS principal and interest receivable due in July 2026 which totaled $277.1 million. Securities portfolio included approximately $22.1 billion of Agency MBS (including TBA Agency Securities) and U.S. Treasury Securities. Through July 14, 2026 we raised approximately $88.3 million of capital by issuing 5,182,253 shares of common stock and $0.1 million of capital by issuing 3,983 shares of preferred stock through at the market offering programs. Debt to equity ratio (based on repurchase agreements divided by total stockholders' equity) was 7.52 to 1; Implied leverage, including TBA Agency Securities and forward settling sales and unsettled purchases was 7.86 to 1. Book value per common share consisted of: The major drivers of the change in the Company's financial position were: Condensed Balance Sheet (unaudited) Non-GAAP Financial Measures Distributable Earnings Distributable Earnings is a non-GAAP measure defined as net interest income plus TBA Drop Income adjusted for the net coupon effect of interest rate swaps and futures contracts minus net operating expenses. Distributable Earnings is based on the historical cost basis of our Agency Securities, interest rate swaps and futures contracts. Distributable Earnings differs, potentially significantly, from net interest income and from net income (loss) (which includes realized gains and losses and market value adjustments). For a portion of its Agency Securities the Company may enter into TBA forward contracts for the purchase or sale of Agency Securities at a predetermined price, face amount, issuer, coupon and stated maturity on an agreed-upon future date, but the particular Agency Securities to be delivered are not identified until shortly before the TBA settlement date. The Company accounts for TBA Agency Securities as derivative instruments if it is reasonably possible that it will not take or make physical delivery of the Agency Securities upon settlement of the contract. The Company may choose, prior to settlement, to move the settlement of these securities out to a later date by entering into an offsetting short or long position (referred to as a “pair off”), net settling the paired off positions for cash, and simultaneously purchasing or selling a similar TBA Agency Security for a later settlement date. This transaction is commonly referred to as a “dollar roll.” The Company accounts for TBA dollar roll transactions as a series of derivative transactions. Forward settling TBA contracts typically trade at a discount, or “Drop,” to the regular settled TBA contract to reflect the expected interest income on the underlying deliverable Agency Securities, net of an implied financing cost, which would have been earned by the buyer if the contract settled on the next regular settlement date. When the Company enters into TBA contracts to buy Agency Securities for forward settlement, it earns this “TBA Drop Income,” because the TBA contract is essentially equivalent to a leveraged investment in the underlying Agency Securities. The amount of TBA Drop Income is calculated as the difference between the spot price of similar TBA contracts for regular settlement and the forward settlement price on the trade date. The Company generally accounts for TBA contracts as derivatives and TBA Drop Income is included as part of the periodic changes in fair value of the TBA contracts that the Company recognizes currently in the Other Income (Loss) section of its Consolidated Statement of Operations. Distributable Earnings and Distributable Earnings per common share The Company believes that Distributable Earnings and Distributable Earnings per common share may be useful to investors because our Board of Directors may consider Distributable Earnings and Distributable Earnings per common share as part of its deliberations when determining the level of dividends on our common stock. Distributable Earnings and Distributable Earnings per common share tend to be more stable over time and this practice is designed to increase the stability of our common stock dividend from month to month. However, because Distributable Earnings is an incomplete measure of the Company’s financial performance and involves significant differences from net interest income and net income (loss) computed in accordance with GAAP, Distributable Earnings should be considered as supplementary to, and not as a substitute for, the Company’s net interest income and net income (loss) computed in accordance with GAAP as a measure of certain aspects of the Company’s financial performance. The below table shows the reconciliation of the elements of Distributable Earnings and Distributable Earnings per common share to the Company’s Net Interest Income, Net Income and Net Income per common share. Economic Interest Income, Economic Interest Expense, Economic Net Interest Income/Net Interest Spread and Economic Net Yield on Interest Earning Assets The Company believes that these non-GAAP measures, which include the effects of TBA drop income and net interest income (expense) on interest rate swaps and futures contracts, may be useful to investors because they reflect items that we consider in the management of the Company’s investment portfolio and related funding. The Company believes that the inclusion in economic net interest income of interest rate swaps and futures contracts, which are recognized under GAAP in gain/loss on derivative instruments, is meaningful as interest rate swaps are the primary instrument the Company uses to economically hedge against fluctuations in the Company’s borrowing costs and their inclusion is more indicative of the Company’s total cost of funds than interest expense alone. It does not include all interest earning assets and interest bearing liabilities, such as cash collateral posted by counterparties. Accordingly, it is not a substitute for net interest income or net income (loss) determined in accordance with GAAP and should be considered as supplementary to such GAAP measures as a measure of certain aspects of the Company’s financial performance. Conference Call As previously announced, the Company will provide an online, real-time webcast of its conference call with equity analysts covering Q2 2026 operating results on Thursday, July 23, 2026, at 8:00 a.m. (Eastern Time). The live broadcast will be available online and can be accessed at https://event.choruscall.com/mediaframe/webcast.html?webcastid=wQ5O4Se4. To monitor the live webcast, please visit the website at least 15 minutes prior to the start of the call to register, download, and install any necessary audio software. An online replay of the event will be available on the Company’s website at www.armourreit.com and continue for one year. Dividends ARMOUR paid monthly cash dividends of $0.24 per share of the Company’s common stock for each month in Q2 2026. On July 30, 2026, a cash dividend of $0.24 per outstanding common share will be paid to holders of record on July 15, 2026. We have also declared a cash dividend of $0.24 per outstanding common share payable August 28, 2026 to holders of record on August 17, 2026. ARMOUR’s Board of Directors will determine future common dividend rates based on an evaluation of the Company’s results, financial position, real estate investment trust (“REIT”) tax requirements, and overall market conditions as the quarter progresses. In order to maintain ARMOUR’s tax status as a REIT, the Company is required to timely distribute substantially all of its ordinary REIT taxable income for the tax year. ARMOUR paid monthly cash dividends of $0.14583 per share of the Company’s Series C Preferred Stock for each month in Q2 2026. On July 27, 2026, a cash dividend of $0.14583 per outstanding share of Series C Preferred Stock will be paid to holders of record on July 15, 2026. We have also declared cash dividends of $0.14583 per outstanding share of Series C Preferred Stock payable August 27, 2026 and September 28, 2026, to holders of record on August 15, 2026 and September 15, 2026, respectively. ARMOUR Residential REIT, Inc. ARMOUR invests primarily in fixed rate residential, adjustable rate and hybrid adjustable rate residential mortgage-backed securities issued or guaranteed by U.S. Government-sponsored enterprises or guaranteed by the Government National Mortgage Association. ARMOUR is externally managed and advised by ARMOUR Capital Management LP, an investment advisor registered with the Securities and Exchange Commission (“SEC”). Safe Harbor This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Additional information concerning these and other risk factors are contained in the Company’s most recent filings with the SEC. All subsequent written and oral forward-looking statements concerning the Company are expressly qualified in their entirety by the cautionary statements above. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law. Additional Information Investors, security holders and other interested persons may find ARMOUR's most recent Company Update and additional information regarding the Company at the SEC’s internet site at www.sec.gov, or the Company website at www.armourreit.com or by directing requests to: ARMOUR Residential REIT, Inc., 3001 Ocean Drive, Suite 201, Vero Beach, Florida 32963, Attention: Investor Relations. Contact Gordon M. Harper, Chief Financial Officer, ARR, (772) 617-4340, [email protected]

AGNC Investment (AGNC) came out with quarterly earnings of $0.4 per share, beating the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.26%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.36 per share when it actually produced earnings of $0.42, delivering a surprise of +16.67%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. AGNC Investment, which belongs to the Zacks REIT and Equity Trust industry, posted revenues of $305 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 16.31%. This compares to year-ago revenues of $162 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. AGNC Investment shares have added about 4.7% since the beginning of the year versus the S&P 500's gain of 8.9%. While AGNC Investment has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for AGNC Investment was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.39 on $385.84 million in revenues for the coming quarter and $1.57 on $1.47 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust is currently in the bottom 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Armour Residential REIT (ARR), has yet to report results for the quarter ended June 2026. This real estate investment trust is expected to post quarterly earnings of $0.69 per share in its upcoming report, which represents a year-over-year change of -10.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Armour Residential REIT's revenues are expected to be $59.2 million, up 78.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report ARMOUR Residential REIT, Inc. (ARR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. ARMOUR Residential REIT (ARR) reported mixed Q1 2026 results, with a GAAP net loss and lower book value. Distributable earnings covered the monthly dividend, and management continued to highlight opportunities in agency mortgage backed securities. See our latest analysis for ARMOUR Residential REIT. At a share price of US$17.62, ARMOUR Residential REIT has a 1 month share price return of 7.5% but a year to date share price decline of 2.6%. The 1 year total shareholder return of 31% contrasts with a 5 year total shareholder return decline of 35%, suggesting recent momentum has improved even though longer term returns remain weak. If this kind of mixed performance has you comparing income ideas, it can help to broaden your search and uncover 19 top founder-led companies With a GAAP net loss and pressured book value, but with dividend coverage and a 31% one-year total return, is ARMOUR Residential REIT still trading below its intrinsic value, or is the recent rebound already fully pricing in future growth? The most followed narrative puts ARMOUR Residential REIT's fair value at $17, slightly below the last close of $17.62, so the current price sits a bit ahead of those assumptions. Read the complete narrative. Want to see what is baked into that fair value? The narrative leans on rapid revenue expansion, sharply higher profitability and a much lower future earnings multiple to make the numbers work. Result: Fair Value of $17 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this narrative can unravel if Federal Reserve easing stalls and higher funding costs, or renewed Agency MBS spread widening, begin to pressure earnings and book value. Find out about the key risks to this ARMOUR Residential REIT narrative. The first narrative argues ARR looks about 4% overvalued around $17 based on aggressive growth assumptions. Yet on a simple P/E, ARR trades at 9.6x compared with a peer average of 10.9x and a fair ratio of 15.4x. This points to a valuation gap investors need to explain and raises the question: is this a cushion or a warning sign? See what the numbers say about this price — find out in our valuation breakdown. With sentiment in this article pulling in both directions, it makes sense to check the underlying data yourself and decide quickly where you stand by weighing the 4 key rewards and 3 important warning signs. If ARR has you rethinking where your next dollar goes, do not stop here. Broaden your watchlist with focused ideas built from hard numbers. Target quality at a discount by scanning 56 high quality undervalued stocks that combine stronger fundamentals with prices that sit below their assessed worth. Lock in cash flow potential by reviewing 13 dividend fortresses designed for investors who want income strength backed by quantifiable metrics. Prioritize resilience by checking 72 resilient stocks with low risk scores that score well on financial health and risk factors so you are not caught off guard. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ARR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

ARMOUR reported a total economic return of -2.6% in Q1 with a GAAP net loss of $58 million ($0.49 per share), while non‑GAAP distributed earnings were $90.5 million ($0.76 per share). Book value fell 6.5% to $17.42 at quarter end but was estimated at $18.05 early in Q2; the company paid monthly dividends of $0.24 and raised capital via ~$215 million of common and ~$6.4 million of preferred issuance while repurchasing 125,000 shares. ARMOUR’s portfolio is >$21 billion and 100% agency MBS/CMBS and U.S. Treasuries, with ~$1.2 billion liquidity (~50% of equity) and implied leverage ~7.85x; management sees mid‑to‑high‑teens ROE on new purchases and views agency MBS as an attractive, opportunistic hold. Interested in ARMOUR Residential REIT, Inc.? Here are five stocks we like better. 6 Mortgage REITS: How Badly Could Rising Rates Hurt Them? ARMOUR Residential REIT (NYSE:ARR) reported first-quarter 2026 results against a backdrop of heightened market volatility, as management pointed to geopolitical tensions and a sharp rise in oil prices that widened mortgage-backed securities (MBS) spreads and lifted implied volatility during the quarter. Chief Financial Officer Gordon Harper said the company posted a total economic return of -2.6% for the first quarter. ARMOUR recorded a GAAP net loss attributable to common stockholders of $58 million, or $0.49 per common share. Net interest income was $70.7 million. → Credo Stock Flashes Strong Bullish Signal—Upswing Just Starting Harper also highlighted ARMOUR’s non-GAAP “distributed earnings,” which he defined as net interest income plus TBA drop income, adjusted for interest income or expense on interest rate swaps and futures contracts, minus operating expenses. Distributed earnings available to common stockholders were $90.5 million, or $0.76 per common share. ARMOUR ended the quarter with book value of $17.42 per common share, down 6.5% from December 31, 2025. However, Harper said that as of Monday, April 20, the company’s estimated book value was $18.05 per common share, reflecting the accrual of the April common dividend. → Allbirds Exits Shoes, Pivots to AI With NewBird Rebrand Chief Executive Officer Scott Ulm attributed the first-quarter disruption to macro and geopolitical events, describing a bear-flattening yield curve amid a “shallower path of Fed cuts,” while “implied volatility more than doubled” and nominal mortgage spreads widened during the quarter. Ulm said that wider spreads and elevated volatility “ultimately proved to be a buying opportunity for ARMOUR,” and he added that as spreads retraced tighter and interest rates stabilized, ARMOUR saw “a recovery in our book value of 3.5% quarter-to-date net of dividend.” ARMOUR paid monthly common dividends of $0.24 per share during the quarter, totaling $0.72 for the first quarter. Harper said the company aims to pay “an attractive dividend that is appropriate in context and stable over the medium term.” → Amazon Stock Up 30%: Is AMZN Still a Buy Before Earnings? The company also disclosed additional dividend declarations: A $0.24 per share cash dividend paid April 29, 2026, to holders of record on April 15, 2026. A declared $0.24 per share cash dividend payable May 28, 2026, to holders of record on May 15, 2026. On the capital front, Harper said ARMOUR raised approximately $215 million by issuing about 11.8 million shares of common stock and $6.4 million by issuing about 306,000 shares of preferred stock through its at-the-market programs during the quarter. Through April 15, 2026, the company raised an additional $7.2 million via 416,000 common shares and $179,000 via 8,600 preferred shares through the same programs. Harper added that in March 2026, ARMOUR repurchased 125,000 shares under its stock repurchase program. In response to a question about how the company weighs issuance versus repurchases, Ulm said the decision is “all about price” and “opportunity,” including considerations around investment horizons and per-share operating efficiency as the shareholder base changes. He added that ARMOUR is “very committed to being on both sides of the market,” but characterized decisions to issue or repurchase as “very carefully calibrated.” Ulm also told analysts that volatility plays a role in activity levels, saying it is “not a positive for share price” and that higher volatility generally makes ARMOUR “less active on the issuance side, but maybe a little more active on the repurchase side.” Co-Chief Investment Officer Sergey Losyev said ARMOUR’s net balance sheet duration was approximately 0.4 years. He put implied leverage (excluding Treasury shorts) at 7.85x, describing it as a “balanced posture” that reflected purchases made when spreads widened in March. Losyev said expected month-end liquidity, including April paydowns, was $1.2 billion, or “nearly 50% of Monday’s total equity.” ARMOUR’s asset portfolio remained “100% agency MBS, agency CMBS, and U.S. Treasuries,” and he said it stood at “over $21 billion,” marking a fourth consecutive quarter of growth in assets and capital base. He said ARMOUR net added nearly $900 million of MBS since the company’s last conference call and that the firm took advantage of March spread widening in new production coupons. The company also added “seasoned, deeper discount MBS” and “15-year agency MBS TBA rolls.” Losyev said specified pools with favorable prepayment characteristics represented 95% of ARMOUR’s MBS holdings. In agency CMBS, Losyev said ARMOUR rotated a large portion of its DUS portfolio out of the 5-year sector and into 10-year DUS paper, citing positive convexity and the ability to earn an additional 30-40 basis points of spread with longer SOFR hedges. During the Q&A, Co-Chief Investment Officer and Head of Risk Management Desmond Macauley said that for par and premium securities, ARMOUR was seeing return on equity “in the mid to high-teens,” assuming about eight times leverage and hedging to “half duration.” Macauley added that in scenario analysis, a 10-basis-point tightening in option-adjusted spreads (OAS) could add roughly 3% to 5% in total return through book value, which he said could lift returns from around 16% toward the 19% to 20% range in that example. On longer-term spreads, Macauley compared current conditions to 2019 and said current spreads to swaps were around 150 basis points versus about 120 basis points then, suggesting spreads are “wider by 30 basis points.” He added that versus Treasuries, spreads were roughly 20 basis points wider than that period. “We think conservatively, we can see another 20 basis points of tightening here over the medium term,” he said. Asked about dollar-roll opportunities, Losyev said the TBA market “has certainly returned to some level this year,” but remains “fairly volatile and unstable.” He said ARMOUR uses TBAs “opportunistically for total return opportunities,” but continues to prefer specified pools for the “certainty of cash flows” and protection from “tail risk if mortgage rates turn lower in the future.” On leverage, Macauley told JMP Securities that the company was comfortable with its current level and noted that ARMOUR increased leverage after spreads widened in March, which benefited book value. He said the company prioritizes risk management and liquidity stress testing, and would consider adding leverage if spreads widen further, provided volatility is not systemic. Losyev described funding markets as “refreshingly uneventful” in the first quarter, saying repo remained liquid and stable. He said repo spreads traded inside 15 basis points above SOFR and the fed funds rate, and that approximately 80% of ARMOUR’s repo principal was financed at a 3% haircut or lower, with a weighted average haircut of about 2.75%. He also stated that Buckler Securities accounted for roughly 45% of ARMOUR’s repo financing book. Looking ahead, Ulm reiterated a constructive stance on agency MBS, arguing the “case to own MBS remains strong” and could strengthen if the Federal Reserve resumes easing later in the year. He said the company’s approach remains unchanged: “Stress test our liquidity, apply systematic hedging, and deploy capital when opportunities present themselves.” ARMOUR Residential REIT (NYSE:ARR) is a mortgage real estate investment trust that was formed in 2008 to acquire and manage a portfolio of residential mortgage-backed securities (RMBS). The company's investments are primarily agency-sponsored and agency-guaranteed RMBS issued by U.S. government-sponsored enterprises, along with credit risk transfer securities and select non-agency residential and multifamily RMBS. By focusing on high-quality mortgage assets, ARMOUR Residential REIT seeks to generate stable income and preserve capital through diversified exposure to the U.S. The article "ARMOUR Residential REIT Q1 Earnings Call Highlights" was originally published by MarketBeat.

This article first appeared on GuruFocus. Total Economic Return: -2.6% for Q1 2026. GAAP Net Loss: $58 million, or $0.49 per common share. Net Interest Income: $70.7 million. Distributed Earnings: $90.5 million, or $0.76 per common share. Capital Raised: $215 million from common stock and $6.4 million from preferred stock in Q1 2026. Common Stock Dividends: $0.24 per share per month, totaling $0.72 for the quarter. Book Value: $17.42 per common share at quarter end, down 6.5% from December 31, 2025. Estimated Book Value (April 20, 2026): $18.05 per common share. Net Balance Sheet Duration: Approximately 0.4 years. Implied Leverage: 7.85 times. Asset Portfolio: Over $21 billion, 100% agency MBS, agency CMBS, and US Treasuries. Portfolio Prepayments: Averaged 12.1 CPR year to date through April. Repo Financing: Approximately 80% financed at 3% haircut or lower, with a weighted average haircut of 2.75%. Warning! GuruFocus has detected 5 Warning Sign with ARR. Is ARR fairly valued? Test your thesis with our free DCF calculator. Release Date: April 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ARMOUR Residential REIT Inc (NYSE:ARR) delivered solid results for the first quarter of 2026 despite market turbulence and MBS volatility. The company raised approximately $215 million of capital by issuing common stock and $6.4 million by issuing preferred stock through at-the-market offering programs. ARMOUR paid monthly common stock dividends of $0.24 per share, totaling $0.72 for the quarter, and declared future dividends, indicating a commitment to shareholder returns. The company's portfolio remains 100% agency MBS, agency CMBS, and US Treasuries, with a fourth consecutive quarter of growth in both assets and capital base. ARMOUR's balance sheet management allowed them to take advantage of lower MBS prices and buy back some of their own stock, demonstrating strategic capital allocation. ARMOUR reported a GAAP net loss related to common stockholders of $58 million, or $0.49 per common share, for Q1 2026. The company's total economic return was -2.6% for the first quarter, reflecting challenges in the market environment. Quarter-end book value per common share decreased by 6.5% from December 31, 2025, indicating a decline in asset value. Heightened market uncertainty due to geopolitical tensions and rising oil prices impacted ARMOUR's operations and strategy. The company's leverage remains high at 7.85 times, which could pose risks in volatile market conditions. Q: You noted the tightening of spreads in Q2 to date. What does the current ROE on new agency purchases look like, and where do you see the long-term equilibrium of spreads settling versus swaps? A: Desmond Macauley, Co-Chief Investment Officer, explained that the return on equity for par and premium securities is in the mid to high-teens, assuming about 8 times leverage and hedged to half duration. He noted that spreads are still attractive, with potential for another 20 basis points of tightening over the medium term. Q: Can you share your view on the opportunity for dollar rolls in agencies and how does that inform your current preference for TBAs versus specified pools? A: Sergey Losyev, Co-Chief Investment Officer, stated that while TBA market spreads have returned to some level, they remain volatile. ARMOUR prefers specified pool cash flow yields for their certainty, despite not having a significant OAS pickup versus TBAs. Q: Given the positive backdrop in terms of the technical environment and the GSE acting as a backstop buyer, does that change how you view the appropriate leverage level? A: Desmond Macauley mentioned that ARMOUR is comfortable with its current leverage level, which was increased after spreads widened in March. The company prioritizes risk management and stress tests liquidity to ensure it can sustain volatility. Q: Could you provide more color on the widening of the economic interest spread from about 188 basis points to 194? A: Gordon Harper, Chief Financial Officer, explained that the main drivers were a decrease in the rate on repos and the rate on swaps. Q: How do you approach capital formation, particularly in times of increased volatility like in Q1? A: Scott Ulm, Chief Executive Officer, stated that volatility generally leads to less activity on the issuance side and more on the repurchase side. Decisions on issuing or repurchasing shares depend on price, opportunity, and the impact on overall operations. For the complete transcript of the earnings call, please refer to the full earnings call transcript.