The massive unrealized loss and book value decline from rising rates are the headline, but EAD coverage of the dividend and the post-quarter TBA short reduction suggest management sees the worst of the spread widening behind it. Watch the Q4 earnings for book value stabilization and whether the activist investor (Amster) pushes for strategic changes. The 1-year cumulative stockholder return of 26.6% versus the REM index at -9% shows the stock has outperformed peers despite the quarterly hit.
Price Chart
Executive Summary
Adamas Trust reported a GAAP net loss of $1.89 per share for Q3 2026, driven by a $471.9 million unrealized loss on investment securities due to rising interest rates. Book value per share fell 21.9% quarter-over-quarter to $7.93, while adjusted book value declined 19.6% to $8.88. However, core earnings (EAD) of $0.30 per share matched consensus and grew 25% year-over-year, fully covering the increased $0.30 dividend. The company reduced its net TBA short position by 76% after quarter-end, signaling a more constructive view on Agency spreads.
Key Financial Metrics
Key Facts
- GAAP basic loss per share of $1.89 for Q3 2026, compared to GAAP EPS of $0.36 in Q3 2025
- Earnings available for distribution (EAD) per share of $0.30, up 25% year-over-year and in line with consensus of $0.29
- Book value per share fell 21.9% quarter-over-quarter to $7.93; adjusted book value fell 19.6% to $8.88
- Unrealized losses on investment securities of $471.9 million driven by rising interest rates
- Total net interest income of $48.8 million, down 2.8% quarter-over-quarter
- Quarterly economic return of (19.00)% and economic return on adjusted book value of (16.92)%
- Dividend raised to $0.30 per share, an 11.1% increase quarter-over-quarter, representing a 15.4% annualized yield
- Company reduced TBA short positions by 76% after quarter-end, from $2.9 billion to approximately $680 million
- Activist investor Howard Amster filed a 13D/A on August 25, 2026, adding scrutiny to earnings
- Company Economic Recourse Leverage Ratio decreased to 4.8x from 5.5x in Q2 2026
Financial Impact
GAAP net loss attributable to common stockholders of $171.0 million for Q3 2026; book value decline of $2.23 per share quarter-over-quarter; EAD of $27.0 million fully covered the $28.1 million in dividends declared
Risk Factors
- Further interest rate increases could drive additional unrealized losses on the Agency RMBS portfolio and further erode book value
- Activist investor Howard Amster (13D/A filed August 2026) may push for changes, creating uncertainty
- Net interest spread compressed to 1.40% from 1.48% in Q2 2026, reducing earnings power
- BPL-Bridge portfolio continues to run off, reducing higher-yielding assets
- Constructive segment reported a pre-tax loss of $1.9 million for the quarter
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001273685-26-000075 |
| Document: adamastrustq32026supplem.htm | 0001273685-26-000075 |
| Document: nymt-20261028.htm | 0001273685-26-000075 |
| Document: 0001273685-26-000075-index-headers.html | 0001273685-26-000075 |
| Document: 0001273685-26-000075-index.html | 0001273685-26-000075 |
| Document: 0001273685-26-000075.txt | 0001273685-26-000075 |
| 8-K Data (Synthetic) | 0001273685-26-000075 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 2d ago | 8-K | No price | awaiting T+1 | awaiting T+1 | No price |
Oct 28, 2026 2d ago | Press Release | $7.18 $6.54 | ▲ +8.91% | ▲ +7.14% | $6.54 (+8.91%) |
Oct 19, 2026 11d ago | Press Release | $7.53 | awaiting T+1 | awaiting T+1 | $6.54 (−13.15%) |
Aug 12, 2026 11w ago | 424B5 | $10.16 $10.09 | ▲ +0.69% | ▲ +1.39% | $6.54 (+35.63%) |
Aug 12, 2026 11w ago | 8-K | $10.16 $10.09 | ▲ +0.69% | ▲ +1.39% | $6.54 (+35.63%) |
Aug 11, 2026 11w ago | Institutional Cluster | $10.16 $10.09 | ▼ −0.69% | ▼ −1.39% | $6.54 (−35.63%) |
Aug 11, 2026 11w ago | 424B5 | $10.23 $10.16 | ▼ −0.68% | ▼ −0.93% | $6.54 (−36.07%) |
Aug 11, 2026 11w ago | 8-K | $10.23 $10.16 | ▼ −0.68% | ▼ −0.93% | $6.54 (−36.07%) |
Jun 12, 2026 20w ago | 8-K | $9.31 $9.28 | ▼ −0.32% | ▼ −2.09% | $6.54 (−29.75%) |
Jun 11, 2026 20w ago | 8-K | $9.31 $9.28 | ▼ −0.32% | ▼ −2.09% | $6.54 (−29.75%) |
US Market Status
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