The massive GAAP loss and 19.6% adjusted book value decline are the headline, but the EAD coverage and dividend increase suggest management sees the portfolio losses as temporary mark-to-market. Watch the Q4 2026 supplemental for TBA position reduction progress and whether adjusted book value stabilizes as interest rate volatility subsides.
Price Chart
Executive Summary
Adamas Trust reported Q3 2026 GAAP net loss of $170.98M ($1.89 per share) versus a $32.7M profit a year ago, driven by large unrealized losses on its investment portfolio. However, the key Street metric, earnings available for distribution (EAD) per share, was $0.30, up 25% YoY and in line with the $0.29 consensus, while the dividend was raised 11.1% QoQ to $0.30. The massive GAAP loss reflects a 19.6% QoQ decline in adjusted book value to $8.88, primarily from falling Agency mortgage security valuations, but the EAD coverage and dividend increase signal management's confidence in underlying cash flows.
Key Financial Metrics
Key Facts
- GAAP diluted EPS of -$1.89 vs $0.36 a year ago, a GAAP net loss of $170.98M attributable to common stockholders
- EAD per share of $0.30, up 25% YoY from $0.24, in line with the $0.29 consensus estimate
- Adjusted book value per share fell 19.6% QoQ to $8.88 from $11.05, driven by lower Agency RMBS valuations
- Quarterly economic return of -19.00% and economic return on adjusted book value of -16.92%
- Dividend raised 11.1% QoQ to $0.30 per share, fully covered by EAD of $0.30
- Total net interest income of $48.8M, down 2.8% QoQ; adjusted net interest income of $51.5M, up 2.4% QoQ
- Company Economic Recourse Leverage Ratio reduced to 4.8x from 5.5x QoQ, reflecting reduced net TBA short positions
- Book value per share dropped to $7.93 from $10.16 QoQ, a 21.9% decline
Financial Impact
GAAP net loss of $170.98M; adjusted book value decline of $1.17 per share (19.6% QoQ); EAD of $26.97M ($0.30/share) covers the $0.30 dividend
Segment Breakdown
| Segment | Revenue |
|---|---|
| Investment Portfolio | $58.5M |
| Constructive | $469.0K |
Risk Factors
- Further interest rate increases could drive additional mark-to-market losses on Agency RMBS and further erode book value
- The 4.8x recourse leverage ratio, while reduced, still exposes the company to margin calls if asset values continue to decline
- GAAP net loss of $1.89/share versus a $0.30 dividend creates a large GAAP dividend coverage gap, though EAD covers it
- TBA short positions, while reduced 76% post-quarter, could still generate losses if rates move unexpectedly
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3390748 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 2d ago | 8-K | No price | awaiting T+20 | awaiting T+20 | No price |
Oct 28, 2026 2d ago | Press Release | $7.77 | awaiting T+20 | awaiting T+20 | $6.54 (+15.83%) |
Oct 19, 2026 11d ago | Press Release | $7.53 | awaiting T+20 | awaiting T+20 | $6.54 (−13.15%) |
Aug 12, 2026 11w ago | 424B5 | $10.16 $9.15 | ▲ +9.94% | ▲ +8.04% | $6.54 (+35.63%) |
Aug 12, 2026 11w ago | 8-K | $10.16 $9.15 | ▲ +9.94% | ▲ +8.04% | $6.54 (+35.63%) |
Aug 11, 2026 11w ago | Institutional Cluster | $10.16 $9.15 | ▼ −9.94% | ▼ −8.04% | $6.54 (−35.63%) |
Aug 11, 2026 11w ago | 424B5 | $10.23 $9.56 | ▼ −6.55% | ▼ −5.49% | $6.54 (−36.07%) |
Aug 11, 2026 11w ago | 8-K | $10.23 $9.56 | ▼ −6.55% | ▼ −5.49% | $6.54 (−36.07%) |
Jun 12, 2026 20w ago | 8-K | $9.31 $9.19 | ▼ −1.29% | ▼ −3.07% | $6.54 (−29.75%) |
Jun 11, 2026 20w ago | 8-K | $9.31 $9.19 | ▼ −1.29% | ▼ −3.07% | $6.54 (−29.75%) |
US Market Status
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