Angel Oak Mortgage REIT, Inc. (NYSE: AOMR) reported fiscal 2025 results that included a net income of $44.0 million and a full‑year net interest income of $41.1 million, up 11% from $36.9 million in 2024. Distributable earnings for the year totaled $14.6 million, or $0.59 per diluted share, while the fourth‑quarter figure was $7.3 million, a 28% increase over the loss recorded in Q4 2024.
The company’s net interest income rose 11% year‑over‑year, driven by higher loan yields and lower funding costs. In the fourth quarter, net interest income was $10.9 million, a 13% increase from the $9.6 million reported in Q4 2024, reflecting the continued benefit of the company’s securitization strategy and disciplined capital allocation.
Distributable earnings per share for Q4 2025 were $0.29, slightly below the consensus estimate of $0.2938, indicating a modest miss on earnings. Revenue, however, beat expectations sharply, with $39.0 million in interest income versus an estimate of $11.4 million, a beat of $27.6 million. The full‑year distributable earnings of $14.6 million represent a significant turnaround from the loss recorded in 2024.
The company declared a quarterly dividend of $0.32 per share, payable on February 27, 2026 to shareholders of record as of February 20. The dividend was announced on February 5 and is supported by the company’s improving earnings profile and ongoing capital recycling strategy, which has moved capital from lower‑yielding legacy securitizations to higher‑yielding loan assets.
Angel Oak completed four securitization transactions during the year, totaling $704 million in unpaid principal balance, and called and re‑securitized two legacy deals. In addition, the company added a new $200 million repurchase facility and gained access to four loan financing lines with up to $1.3 billion in borrowings, further strengthening its balance sheet and cash‑flow generation.
Chief Executive Officer Sreeni Prabhu said, "2025 was a year in which disciplined execution drove performance for AOMR. We delivered our second consecutive year of double‑digit percentage net interest income expansion, which, combined with sustained operating expense reductions and valuation tailwinds, drove growth in net income and book value, demonstrating the benefits of our methodical growth strategy amid a shifting rate environment."
Market reaction to the results was positive, with the company’s shares rising about 3% in pre‑market trading. Investors highlighted the strong revenue beat and the company’s continued fundamental progress, while noting the modest miss on distributable earnings per share.
The earnings release underscores Angel Oak’s ability to generate higher income through a disciplined securitization strategy, cost control, and capital recycling. The company’s net interest income growth, margin expansion, and dividend sustainability position it well for continued shareholder value creation in a dynamic rate environment.
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