Angel Oak Mortgage REIT, Inc. Reports Fourth Quarter and Fiscal Year 2025 Financial Results

Key Terms

non-qm loans financial

Non-QM loans are mortgage loans that do not meet the government-backed “qualified mortgage” rules — for example because the borrower has irregular income, uses alternative income proof, or the loan has unusual features. Think of them as custom-fit mortgages versus off‑the‑rack loans; they open credit to more borrowers but carry higher underwriting uncertainty. Investors care because these loans typically offer higher yields to compensate for greater risk and can affect a lender’s loan portfolio quality and resale value.

distributable earnings financial

Distributable earnings are the portion of a company’s reported profits that management determines is safe to pay out to shareholders after accounting for cash needs, required reserves, and non-cash bookkeeping items. Think of it like the money left in your household budget after paying bills and putting aside savings — it shows what can realistically be handed out as dividends or distributions and helps investors judge how sustainable and reliable future payouts may be.

gaap financial

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

home equity revolving lines of credit ("helocs") financial

A home equity revolving line of credit ("HELOC") is a flexible loan that lets a homeowner borrow against the portion of their house they own, similar to a credit card with a set borrowing limit based on home value; borrowers can draw, repay, and redraw up to that limit during an initial period and usually pay variable interest. Investors watch HELOCs because they link household spending and bank lending to housing prices and interest rates, so rising rates or falling home values can quickly affect borrowers’ ability to repay and lenders’ losses.

combined loan-to-value ratio financial

Combined loan-to-value ratio (CLTV) measures the total debt secured by a property — adding all mortgages and liens — as a percentage of the property's appraised value. Think of it as how much of a home's price is covered by borrowed money; a higher CLTV means less owner equity and greater vulnerability if prices fall. Investors use it to gauge credit risk, expected recovery in defaults, and likely borrowing costs tied to a property or mortgage-backed asset.

term sofr financial

Term SOFR is a benchmark interest rate that reflects the cost of borrowing money over a specific period, based on actual transactions in the financial markets. It is used by lenders and borrowers to set the interest rates on loans and financial contracts, helping to ensure rates are fair and transparent. For investors, understanding term SOFR helps gauge borrowing costs and the overall direction of interest rates in the economy.

master repurchase agreement financial

A master repurchase agreement is a standardized legal contract that governs repurchase (repo) transactions, where one party sells a security to another with a promise to buy it back later at a set price. Think of it like a short-term, collateralized loan or pawning an item: the security reduces the lender’s risk and the agreement sets the rules, including margin and default procedures. Investors care because these deals affect market liquidity, short-term funding costs and counterparty risk, which can influence asset prices and a firm’s ability to borrow.

economic book value financial

Economic book value is a company's accounting book value adjusted to reflect the real economic worth of its assets and liabilities, including fair market values, hidden assets or liabilities, and long-term earning potential. Investors use it as a more realistic snapshot of what the business would be worth if its balance sheet were translated into current market terms; think of it as the difference between a house’s outdated tax-assessed value and what it would sell for today, which helps judge whether a stock is under- or over-priced.

ATLANTA--(BUSINESS WIRE)-- Angel Oak Mortgage REIT, Inc. (NYSE: AOMR) (the “Company,” “we,” and “our”), a leading real estate finance company focused on acquiring and investing in non-QM loans and other mortgage-related assets in the U.S. mortgage market, today reported financial results for the year ended December 31, 2025.

Fourth Quarter 2025 Highlights

• Q4 2025 net interest income of $10.9 million demonstrates an increase of 10% versus Q4 2024 net interest income of $9.9 million.
• Q4 2025 GAAP net income of $11.3 million, or $0.45 per diluted share of common stock.
• Q4 2025 Distributable Earnings of $7.3 million, or $0.29 per diluted share of common stock.
• Declared dividend of $0.32 per share of common stock, to be paid on February 27, 2026 to common stockholders of record as of February 20, 2026.

Fiscal Year 2025 Highlights

• FY 2025 net interest income of $41.1 million demonstrates an increase of 11% versus FY 2024 net interest income of $36.9 million.
• FY 2025 GAAP net income of $44.0 million, or $1.80 per diluted share of common stock.
• FY 2025 Distributable Earnings of $14.6 million, or $0.59 per diluted share of common stock.
• GAAP book value of $10.74 per share of common stock as of December 31, 2025, an increase of 5.6% compared to December 31, 2024.
• Economic book value of $12.70 per share of common stock as of December 31, 2025, a decrease of 3.1% compared to December 31, 2024.

Sreeni Prabhu, Chief Executive Officer and President of Angel Oak Mortgage REIT, Inc., said, "2025 was a year in which disciplined execution drove performance for AOMR. We delivered our second consecutive year of double digit percentage net interest income expansion, which, combined with sustained operating expense reductions and valuation tailwinds, drove growth in net income and book value, demonstrating the benefits of our methodical growth strategy amid a shifting rate environment. Additionally, we were active capital market participants, executing four securitizations in addition to exercising the call and subsequent re-securitization of two of our legacy securitizations, issuing senior unsecured notes in May of this year, and adding a new loan financing facility. Moving forward, we expect to continue to perform well across evolving credit and rate environments by selectively deploying capital, executing accretive securitizations, and focusing on the strongest risk‑reward opportunities to drive long-term income growth and shareholder value."

Portfolio and Investment Activity

• In 2025, the Company participated in four securitization transactions, contributing a total of $704 million of unpaid principal balance of residential mortgage loans. In the fourth quarter of 2025, the Company issued AOMT 2025-10, an approximately $274.3 million unpaid principal balance securitization backed by a pool of residential mortgage loans, to which we contributed the entire balance as the sole participant. Additionally in the fourth quarter of 2025, the Company contributed loans with an unpaid principal balance of $58.6 million to AOMT 2025-HB2, an approximately $281.4 million unpaid principal balance securitization backed by home equity revolving lines of credit ("HELOCs") on one‑to‑four family residential properties.
• The Company purchased $861.8 million of newly-originated, current market coupon non-QM residential mortgage loans, second lien mortgage loans, and HELOCs, with a weighted average coupon of 7.79%, weighted average combined loan-to-value ratio (“CLTV”) of 65.4% and weighted average credit score of 756.
• As of December 31, 2025, the weighted average interest rate of our residential whole loans portfolio was 7.38%.

Capital Markets Activity

• As of December 31, 2025, the Company was a party to four loan financing lines which permit borrowings in an aggregate amount of up to $1.3 billion, of which approximately $219 million is drawn, leaving capacity of approximately $1.0 billion for new loan purchases.
• In the fourth quarter of 2025, the Company and one of its subsidiaries entered into a $200.0 million repurchase facility with a global investment bank (“Global Investment Bank 4”) through the execution of a Master Repurchase Agreement and Securities Contract. The amount expected to be advanced by Global Investment Bank 4 is generally in line with other similar agreements that the Company has entered into. The interest rate is equal to the sum of (1) a spread of 1.60%, and (2) Term SOFR.

Balance Sheet

• Target assets totaled $2.7 billion as of December 31, 2025, an increase of 22% compared to December 31, 2024.
• The Company held residential mortgage whole loans with fair value of $294.1 million as of December 31, 2025.
• As of December 31, 2025, the Company's recourse debt to equity ratio was approximately 1.4x.

Dividend

On February 5, 2026, the Company declared a dividend of $0.32 per share of common stock, which will be paid on February 27, 2026, to common stockholders of record as of February 20, 2026.

Conference Call and Webcast Information

The Company will host a live conference call and webcast today, February 25, 2026 at 8:30 a.m. Eastern time. To listen to the live webcast, go to the Investors section of the Company’s website at www.angeloakreit.com at least 15 minutes prior to the scheduled start time in order to register and install any necessary audio software.

To Participate in the Telephone Conference Call:

Dial in at least 15 minutes prior to start time.
Domestic: 1-844-826-3033
International: 1-412-317-5185

For the conference call playback (which can be accessed through March 11, 2026), dial one of the following numbers:

Domestic: 1-844-512-2921
International: 1-412-317-6671
Pass code: 10205856

Non-GAAP Metrics

Distributable Earnings is a non‑GAAP measure and is defined as net income (loss) allocable to common stockholders as calculated in accordance with generally accepted accounting principles in the United States of America (“GAAP”), excluding (1) unrealized gains and losses on our aggregate portfolio, (2) impairment losses, (3) extinguishment of debt, (4) non-cash equity compensation expense, (5) the incentive fee earned by Falcons I, LLC, our external manager (our “Manager”), (6) realized gains or losses on swap terminations and (7) certain other nonrecurring gains or losses. We believe that the presentation of Distributable Earnings provides investors with a useful measure to facilitate comparisons of financial performance among our real estate investment trust (“REIT”) peers, but has important limitations. We believe Distributable Earnings as described above helps evaluate our financial performance without the impact of certain transactions but is of limited usefulness as an analytical tool. Therefore, Distributable Earnings should not be viewed in isolation and is not a substitute for net income computed in accordance with GAAP. Our methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our Distributable Earnings may not be comparable to similar measures presented by other REITs.

Distributable Earnings Return on Average Equity is a non-GAAP measure and is defined as annual or annualized Distributable Earnings divided by average total stockholders’ equity. We believe that the presentation of Distributable Earnings Return on Average Equity provides investors with a useful measure to facilitate comparisons of financial performance among our REIT peers, but has important limitations. Additionally, we believe Distributable Earnings Return on Average Equity provides investors with additional detail on the Distributable Earnings generated by our invested equity capital. We believe Distributable Earnings Return on Average Equity as described above helps evaluate our financial performance without the impact of certain transactions but is of limited usefulness as an analytical tool. Therefore, Distributable Earnings Return on Average Equity should not be viewed in isolation and is not a substitute for net income computed in accordance with GAAP. Our methodology for calculating Distributable Earnings Return on Average Equity may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our Distributable Earnings Return on Average Equity may not be comparable to similar measures presented by other REITs.

Economic book value is a non-GAAP financial measure of our financial position. To calculate our economic book value, the portions of our non-recourse financing obligation held at amortized cost are adjusted to fair value. These adjustments are also reflected in our end of period total stockholders’ equity. Management considers economic book value to provide investors with a useful supplemental measure to evaluate our financial position as it reflects the impact of fair value changes for our legally held retained bonds, irrespective of the accounting model applied for GAAP reporting purposes. Economic book value does not represent and should not be considered as a substitute for book value per share of common stock or stockholders’ equity, as determined in accordance with GAAP, and our calculation of this measure may not be comparable to similarly titled measures reported by other companies.

Forward-Looking Statements

This press release contains certain forward-looking statements that are subject to various risks and uncertainties, including, without limitation, statements relating to the performance of the Company’s investments. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “believe,” “could,” “project,” “predict,” “continue,” or by the negative of these words and phrases or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe existing or future plans and strategies, contain projections of results of operations, liquidity and/or financial condition, or state other forward-looking information. The Company’s ability to predict future events or conditions or their impact or the actual effect of existing or future plans or strategies is inherently uncertain. Although the Company believes that such forward-looking statements are based on reasonable assumptions, actual results and performance in the future could differ materially from those set forth in or implied by such forward-looking statements. You are cautioned not to place undue reliance on these forward‐looking statements, which reflect the Company’s views only as of the date of this press release. Additional information concerning factors that could cause actual results and performance to differ materially from these forward-looking statements is contained from time to time in the Company’s filings with the Securities and Exchange Commission. Except as required by applicable law, neither the Company nor any other person assumes responsibility for the accuracy and completeness of the forward‐looking statements. The Company does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.

About Angel Oak Mortgage REIT, Inc.

Angel Oak Mortgage REIT, Inc. is a real estate finance company focused on acquiring and investing in non-QM loans and other mortgage-related assets in the U.S. mortgage market. The Company’s objective is to generate attractive risk-adjusted returns for its stockholders through cash distributions and capital appreciation across interest rate and credit cycles. The Company is externally managed and advised by an affiliate of Angel Oak Capital Advisors, LLC, which, collectively with its affiliates, is a leading alternative credit manager with market leadership in mortgage credit that includes asset management, lending, and capital markets. Additional information about the Company is available at www.angeloakreit.com.

Angel Oak Mortgage REIT, Inc. Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (in thousands, except for share and per share data)
	Three Months Ended								Twelve Months Ended
	December 31, 2025				December 31, 2024				December 31, 2025				December 31, 2024
INTEREST INCOME, NET
Interest income	$	39,034			$	31,869			$	143,655			$	110,427
Interest expense		28,142				22,007				102,555				73,502
NET INTEREST INCOME	$	10,892			$	9,862			$	41,100			$	36,925
REALIZED AND UNREALIZED GAINS (LOSSES), NET
Net realized gain (loss) on mortgage loans, derivative contracts, RMBS, and CMBS	$	1,374			$	5,300			$	(10,863	)		$	(9,228	)
Net unrealized gain (loss) on trading securities, mortgage loans, portion of debt at fair value option, and derivative contracts		4,429				(24,753	)			30,758				23,761
TOTAL REALIZED AND UNREALIZED GAINS (LOSSES), NET	$	5,803			$	(19,453	)		$	19,895			$	14,533
EXPENSES
Operating expenses	$	1,351			$	1,505			$	5,004			$	6,786
Operating expenses incurred with affiliate		522				402				1,901				1,845
Stock compensation		423				177				1,354				2,041
Securitization costs		1,703				2,215				3,569				3,799
Management fee incurred with affiliate		1,158				1,166				4,612				4,976
Total operating expenses	$	5,157			$	5,465			$	16,440			$	19,447
INCOME (LOSS) BEFORE INCOME TAXES	$	11,539			$	(15,056	)		$	44,555			$	32,011
Income tax expense (benefit)		224				—				531				3,261
NET INCOME (LOSS) ALLOCABLE TO COMMON STOCKHOLDERS	$	11,315			$	(15,056	)		$	44,024			$	28,750
Other comprehensive income (loss)		(318	)			(3,034	)			2,161				1,500
TOTAL COMPREHENSIVE INCOME (LOSS)	$	10,997			$	(18,090	)		$	46,185			$	30,250
Basic earnings (loss) per common share	$	0.46			$	(0.65	)		$	1.85			$	1.18
Diluted earnings (loss) per common share	$	0.45			$	(0.65	)		$	1.80			$	1.17
Weighted average number of common shares outstanding:
Basic		24,756,801				23,390,029				23,682,302				24,179,039
Diluted		25,204,204				23,517,745				24,314,625				24,396,851

Angel Oak Mortgage REIT, Inc. Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except for share and per share data)
	As of:
	December 31, 2025				December 31, 2024
ASSETS
Residential mortgage loans - at fair value	$	294,134			$	183,064
Residential mortgage loans in securitization trusts - at fair value		2,076,776				1,696,995
RMBS - at fair value		280,005				300,243
Cash and cash equivalents		41,619				40,762
Restricted cash		3,666				2,131
Principal and interest receivable		10,354				8,141
TBA securities and interest rate futures contracts - at fair value		240				1,515
Other assets		42,984				36,918
Total assets	$	2,749,778			$	2,269,769
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Notes payable	$	218,757			$	129,459
Non-recourse securitization obligations, collateralized by residential mortgage loans in securitization trusts (see Note 3)		1,915,321				1,593,612
Securities sold under agreements to repurchase		54,041				50,555
Senior unsecured notes		89,023				47,740
TBA securities and interest rate futures contracts - at fair value		32				—
Due to broker		198,191				201,994
Accrued expenses		2,021				2,291
Accrued expenses payable to affiliate		783				766
Interest payable		3,423				934
Income taxes payable		—				2,785
Management fee payable to affiliate		663				666
Total liabilities	$	2,482,255			$	2,030,802
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock, $0.01 par value. As of December 31, 2025: 350,000,000 shares authorized, 24,914,647 shares issued and outstanding. As of December 31, 2024: 90,000,000 shares authorized, 23,500,175 shares issued and outstanding.	$	249			$	234
Additional paid-in capital		474,577				461,057
Accumulated other comprehensive income (loss)		(1,314	)			(3,475	)
Retained earnings (deficit)		(205,989	)			(218,849	)
Total stockholders' equity	$	267,523			$	238,967
Total liabilities and stockholders' equity	$	2,749,778			$	2,269,769

Angel Oak Mortgage REIT, Inc. Reconciliation of Net Income (Loss) to Distributable Earnings and Distributable Earnings Return on Average Equity (Unaudited)
	Three Months Ended								Twelve Months Ended
	December 31, 2025				December 31, 2024				December 31, 2025				December 31, 2024
	(in thousands)
Net income (loss) allocable to common stockholders	$	11,315			$	(15,055	)		$	44,024			$	28,750
Adjustments:
Net unrealized (gains) losses on trading securities		1,645				196				(216	)			1,026
Net unrealized (gains) losses on derivatives		427				136				1,307				(2,849	)
Net unrealized (gains) losses on residential loans in securitization trusts and non-recourse securitization obligation		(8,380	)			23,560				(28,578	)			(5,313	)
Net unrealized (gains) losses on residential loans		1,879				839				(3,271	)			(16,598	)
Net unrealized (gains) losses on commercial loans		—				21				—				(27	)
Non-cash equity compensation expense		423				177				1,354				2,041
Distributable Earnings	$	7,309			$	9,874			$	14,620			$	7,030

		Three Months Ended								Twelve Months Ended
		December 31, 2025				December 31, 2024				December 31, 2025				December 31, 2024
		($ in thousands)
Annualized Distributable Earnings		$	29,238			$	39,500			$	14,620			$	7,030
Average total stockholders’ equity		$	265,844			$	252,033			$	253,705			$	255,860
Distributable Earnings Return on Average Equity			11.0	%			15.7	%			5.8	%			2.7	%

Angel Oak Mortgage REIT, Inc. Reconciliation of Stockholders’ Equity to Stockholders’ Equity Including Economic Book Value Adjustments and Economic Book Value per Share of Common Stock (Unaudited)
	December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024
	(in thousands, except for share and per share data)
GAAP total stockholders’ equity	$	267,523		$	264,165		$	246,389		$	251,480		$	238,967
Adjustments:
Fair value adjustment for securitized debt held at amortized cost		48,789			52,770			61,846			63,593			68,784
Stockholders’ equity including economic book value adjustments	$	316,312		$	316,935		$	308,235		$	315,073		$	307,751
Number of shares of common stock outstanding at period end		24,914,647			24,914,035			23,765,202			23,500,175			23,500,175
Book value per share of common stock	$	10.74		$	10.60		$	10.37		$	10.70		$	10.17
Economic book value per share of common stock	$	12.70		$	12.72		$	12.97		$	13.41		$	13.10

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260225012892/en/

Investors:

investorrelations@angeloakreit.com

855-502-3920



IR Agency Contact:

Nick Teves or Joseph Caminiti, Alpha IR Group

312-445-2870

AOMR@alpha-ir.com



Company Contact:

KC Kelleher, Head of Corporate Finance & Investor Relations

404-528-2684

kc.kelleher@angeloakcapital.com

Source: Angel Oak Mortgage REIT, Inc.