Cherry Hill Mortgage Investment Corporation (CHMI) reported its Q4 2025 earnings on February 25, 2026, delivering earnings per diluted share of $0.11—exactly in line with the consensus estimate of $0.11. The company’s total income for the quarter reached $11.76 million, driven by net interest income of $3.20 million and net servicing income of $8.10 million. These figures represent a significant increase over the $3.1 million revenue estimate that was originally cited in the draft article.
The higher-than‑expected revenue stemmed from a robust mix of mortgage‑related income. Net interest income rose as the firm benefited from tighter mortgage spreads and a steeper yield curve, while net servicing income grew as the portfolio of RMBS and MSRs expanded. The combined effect of these components pushed total income well above the $3.1 million estimate, aligning more closely with the $11.76 million figure reported by multiple sources.
Earnings per share met expectations largely because the firm maintained disciplined cost control while capitalizing on favorable interest‑rate dynamics. The GAAP net income per diluted share of $0.14 further underscored the company’s ability to translate higher income into shareholder value, even as revenue surpassed forecasts.
Book value per share climbed to $3.44 from $3.36 in the prior quarter, reflecting a steady increase in net asset value. CHMI also declared a dividend of $0.10 per share, maintaining its commitment to returning value to shareholders while preserving capital for portfolio growth.
Management highlighted the firm’s strategic partnership with Real Genius LLC, noting that a potential decline in mortgage rates could accelerate the platform’s adoption and enhance returns. CEO Jay Lown said, "We were pleased to close out 2025 with another solid quarter, marked once again by increasing book value and net asset value per share. Our diversified portfolio of RMBS and MSRs continued to perform well in a dynamic market environment and we remain committed to growing our portfolio and delivering attractive risk‑adjusted returns for our shareholders." Chief Investment Officer Julian Evans added, "Fourth quarter's performance was driven by a more stabilized interest rate environment and a steeper yield curve, which enabled most spread and equity markets to post gains."
The market reaction was mixed: some investors expressed concern over the revenue miss relative to the $3.1 million estimate, while others focused on the EPS beat and book‑value growth. No forward guidance was provided for Q1 2026, leaving analysts to weigh the firm’s current performance against the backdrop of tighter mortgage spreads and the potential upside from a lower‑rate environment.
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