The core business generated positive net interest income, but massive MTM losses on the RMBS portfolio from rising rates overwhelmed earnings. The stock trades at a deep discount to book value ($6.02), and the company is actively repurchasing shares. The key catalyst is whether interest rates stabilize or decline; further rate increases will continue to pressure book value and earnings.
Price Chart
Executive Summary
Orchid Island Capital reported a GAAP net loss of $0.90 per share for Q3 2026, a sharp reversal from net income of $0.53 per share in Q3 2025, driven by $231.7 million in net realized and unrealized losses on RMBS and derivatives. The company missed the Street EPS consensus of $0.27 vs consensus of $0.29, a -6.1% surprise, driven by mark-to-market losses that overwhelmed net interest income. Book value fell to $6.02, down from $1.20 from the prior quarter, and the total return was negative 12.47%.
Key Financial Metrics
Key Facts
- GAAP net loss of $178.9 million, or $0.90 per share, vs net income of $72.1 million in Q3 2025.
- Net interest income of $59.1 million was offset by $231.7 million in net realized and unrealized losses on RMBS and derivative losses.
- Book value per share decreased to $6.02 from $7.54 at December 31, 2025.
- Adjusted leverage ratio increased to 8.8:1 from 7.4:1.
- Repurchased approximately 4.95 million shares in Q3 at a weighted average price of $6.30 per share.
- Dividend declared $0.10 per share for October 2026, consistent with the prior monthly rate.
Financial Impact
Net loss of $178.9 million loss, a $250 million swing from net income of $72.1 million in the prior year quarter.
Risk Factors
- Further interest rate increases will cause additional MTM losses on the RMBS portfolio and reduce book value.
- Leverage ratio of 8.8x is elevated, increasing vulnerability to margin calls from counterparty margin calls.
- Prepayment speeds (8.4% CPR) could accelerate if rates fall, reducing portfolio yield.
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-033285 |
| Document: orc20260727_8k.htm | 0001437749-26-033285 |
| Document: 0001437749-26-033285-index-headers.html | 0001437749-26-033285 |
| Document: 0001437749-26-033285-index.html | 0001437749-26-033285 |
| Document: 0001437749-26-033285.txt | 0001437749-26-033285 |
| 8-K Data (Synthetic) | 0001437749-26-033285 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 5d ago | 8-K | $5.05 | awaiting T+20 | — | $5.07 (−0.40%) |
Oct 22, 2026 5d ago | Press Release | $5.05 | awaiting T+20 | — | $5.07 (−0.40%) |
Oct 14, 2026 13d ago | 8-K | $5.18 | awaiting T+20 | — | $5.07 (+2.12%) |
Oct 14, 2026 13d ago | Press Release | $5.18 | awaiting T+20 | — | $5.07 (+2.12%) |
Aug 12, 2026 10w ago | 8-K | $6.63 $6.33 | ▼ −4.52% | ▼ −2.78% | $5.07 (−23.53%) |
Jul 23, 2026 13w ago | Press Release | $6.54 $6.70 | ▲ +2.45% | ▼ −1.18% | $5.07 (−22.48%) |
Jun 22, 2026 18w ago | 8-K | $6.77 $6.71 | ▼ −0.89% | ▼ −2.05% | $5.07 (−25.11%) |
May 13, 2026 23w ago | 8-K | $6.82 $6.52 | ▼ −4.40% | ▼ −3.55% | $5.07 (−25.66%) |
Apr 27, 2026 26w ago | DEFA14A | $7.05 $6.85 | ▼ −2.81% | ▼ −7.77% | $5.07 (−28.07%) |
Apr 23, 2026 26w ago | Press Release | $6.95 $6.83 | ▲ +1.72% | ▲ +5.75% | $5.07 (+27.05%) |
US Market Status
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