Invesco Mortgage Capital Inc. reported its third‑quarter 2025 results, showing net income attributable to common stockholders of $50.2 million, or $0.74 per share, up from a net loss of $0.40 per share in the second quarter.
Book value per common share increased 4.5% to $8.41 from $8.05 at the end of June 2025. Economic return for the quarter was 8.7%, compared with a negative 4.8% in the prior quarter.
The company’s portfolio remained 100% agency‑backed, totaling $5.7 billion, with $4.8 billion in Agency RMBS and $0.9 billion in Agency CMBS. Unrestricted cash and unencumbered investments were $423 million.
Interest income for the quarter was $72.9 million, net interest income $17.6 million, and total expenses $4.5 million, giving a net income margin of 68.9% of interest income. Net interest income margin was 24.1%.
Debt‑to‑equity ratio increased to 6.7× from 6.5× as the company reduced preferred equity. Management cited declining interest‑rate volatility and a partial reversal in swap spreads as key drivers of the stronger performance.
The company reiterated its outlook for continued agency‑RMBS demand, citing lower credit risk and favorable yield‑curve dynamics. The dividend per share was $0.34, supporting the company’s dividend policy.
For comparison, the third quarter of 2024 net income per common share was $0.63 and earnings available for distribution per share was $0.68. Analysts had projected earnings per share of $0.53 and revenue of $45.396 million for the quarter.
In the broader mortgage REIT sector, Invesco’s focus on a pure‑play agency mortgage REIT strategy positions it to benefit from the perceived lower credit risk of agency‑backed securities and the improving market conditions for agency mortgage‑backed securities.
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