Angel Oak Mortgage REIT (AOMR) reported third‑quarter 2025 results on November 6, 2025. GAAP net income fell to $11.4 million from $0.8 million in Q2, while diluted earnings per share rose to $0.46, beating the consensus estimate of $0.30 by $0.16 or 53%. Revenue for the quarter was $36.7 million, slightly below the $37.3 million estimate, and net interest income was $10.2 million, up from $9.9 million in the prior quarter but still modest compared with the $36.7 million total interest income reported earlier in the year.
The diluted EPS beat was largely driven by disciplined cost management and a favorable loan‑portfolio mix. Management highlighted that the company maintained operating expenses at a level comparable to the prior quarter, even as interest expense rose due to higher borrowing costs. The stronger loan‑originating activity, reflected in the $36.7 million revenue, offset the impact of the higher interest expense, allowing the company to deliver a solid earnings surprise.
Net income declined because of a combination of higher interest expense and other non‑recurring items. The company’s new credit facility, while providing lower borrowing costs in the long run, added short‑term interest expense for the quarter. Additionally, one‑time charges related to the retirement of legacy securitizations and the restructuring of certain loan portfolios contributed to the lower net income figure.
Capital recycling remained a key focus. Angel Oak called and retired two legacy securitizations—AOMT 2019‑2 and AOMT 2019‑4—freeing up capital that was redeployed into higher‑yielding loan purchases. The company also executed the AOMT 2025‑10 securitization, a $274.3 million transaction that further reduced debt and lowered overall interest expense. These actions demonstrate the company’s commitment to maintaining a strong balance sheet while pursuing growth opportunities.
The company declared a dividend of $0.32 per share, payable on November 26 to shareholders of record as of November 18. CEO Sreeni Prabhu emphasized that the dividend reflects confidence in the firm’s cash‑flow generation and its ability to sustain shareholder returns. He noted that the company’s “business is not a trade” and that the focus remains on disciplined risk management and strategic capital deployment.
While revenue missed consensus estimates by a narrow margin, the EPS beat and the company’s proactive capital‑recycling strategy suggest resilience in a competitive non‑QM market. Analysts noted the company’s ability to maintain profitability amid rising interest costs, and the modest revenue miss is attributed to a slight slowdown in loan origination volume relative to the prior year. Overall, the results reinforce Angel Oak’s strategy of balancing growth with prudent balance‑sheet management.
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