The 15.6% Distributable EPS beat and 14.6% annualized ROE are strong credit signals for the mREIT, but the 1.7% GAAP book value decline and elevated 2.3x recourse leverage (since reduced) cap the upside. Monitor the Q3 2026 earnings for evidence that the post-quarter securitizations stabilize book value and that the 90+ day delinquency uptick (2.77%) does not accelerate.
Price Chart
Executive Summary
Angel Oak Mortgage REIT reported Q2 2026 Distributable Earnings of $0.37 per share, beating the $0.32 consensus by 15.6%, driven by a 14.6% annualized Distributable Earnings ROE. However, GAAP book value declined 1.7% QoQ to $10.13 due to unrealized mark-to-market losses, and the recourse debt-to-equity ratio spiked to 2.3x before being reduced to 1.0x post-quarter via two securitizations. The core earnings beat is a credit-positive signal for the mREIT, but the persistent book value erosion tempers the bullish read-through.
Key Financial Metrics
Key Facts
- Q2 2026 Distributable Earnings of $9.0M, or $0.37 per diluted share, vs consensus of $0.32 (15.6% beat).
- GAAP net income of $3.4M ($0.14/diluted share) vs a net loss of $(7.4M) in Q1 2026.
- Net interest income of $10.7M, up 8% YoY from $9.9M.
- GAAP book value fell 1.7% QoQ to $10.13; economic book value fell 0.3% to $12.24.
- Recourse debt-to-equity was 2.3x at quarter-end, reduced to 1.0x post-quarter via AOMT 2026-3 and AOMT 2026-HB1 securitizations.
- Repurchased ~$15M of common stock from a pre-IPO investor at accretive levels.
- Declared a $0.32/share dividend, payable Aug 28, 2026.
Financial Impact
Distributable EPS beat consensus by $0.05 (15.6%), annualized Distributable Earnings ROE of 14.6% vs 4.2% in Q2 2025.
Risk Factors
- GAAP book value continues to erode due to unrealized mark-to-market losses on the loan and securitization portfolios.
- 90+ day delinquency rate increased 9 bps QoQ to 2.77%, signaling potential credit deterioration.
- Recourse debt-to-equity spiked to 2.3x intra-quarter, requiring post-period securitizations to de-lever.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-052154 |
| Document: aomr2q26earningssuppleme.htm | 0001628280-26-052154 |
| Document: aomr-20260804.htm | 0001628280-26-052154 |
| Document: 0001628280-26-052154-index-headers.html | 0001628280-26-052154 |
| Document: 0001628280-26-052154-index.html | 0001628280-26-052154 |
| Document: 0001628280-26-052154.txt | 0001628280-26-052154 |
| 8-K Data (Synthetic) | 0001628280-26-052154 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 28, 2026 29d ago | Insider Cluster | $7.53 $7.38 | ▲ +1.99% | ▲ +3.94% | $7.38 (+1.99%) |
Sep 10, 2026 6w ago | Insider Buy | $8.10 $7.90 | ▼ −2.47% | ▼ −2.13% | $7.38 (−8.89%) |
Aug 4, 2026 12w ago | 8-K | $9.12 $8.98 | ▼ −1.54% | ▼ −1.44% | $7.38 (−19.08%) |
Jul 14, 2026 15w ago | 144 | $8.97 $8.87 | ▲ +1.11% | ▲ +0.13% | $7.38 (+17.73%) |
Jun 29, 2026 17w ago | 8-K | $9.08 $9.02 | ▼ −0.66% | ▼ −1.26% | $7.38 (−18.72%) |
Feb 25, 2026 34w ago | 8-K | $8.32 $8.64 | ▲ +3.85% | ▲ +4.95% | $7.38 (−11.30%) |
US Market Status
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