ARMOUR Residential REIT, Inc. reported significant financial performance improvements for the fiscal year ending December 31, 2025, with net income reaching $322.7 million, a substantial increase from a net loss of $14.4 million in 2024. The company's net interest income also rose sharply to $158.3 million, compared to $26.8 million in the previous year. This growth was primarily driven by a larger average securities portfolio and gains on trading securities, which amounted to $514.8 million, contrasting with a loss of $348.6 million in 2024. Total revenue for the year was reported at $800.4 million, up from $550.9 million in 2024.
In terms of operational changes, ARMOUR's total assets increased to approximately $21 billion by the end of 2025, up from $13.5 billion in 2024. The company’s investments in mortgage-backed securities (MBS) and U.S. Treasury Securities accounted for the majority of this growth, with MBS valued at $19.4 billion. The company also reported a significant increase in borrowings under repurchase agreements, which rose to $17.9 billion from $10.7 billion in the prior year. This increase in leverage reflects ARMOUR's strategy to finance its growing portfolio of MBS.
Strategically, ARMOUR has continued to focus on enhancing its capital structure and liquidity. The company raised $874.1 million through common stock offerings in 2025, alongside $4.1 million from the issuance of Series C Preferred Stock. The management agreement with ARMOUR Capital Management LP (ACM) was extended through December 31, 2029, ensuring continuity in management. Notably, ACM has terminated its voluntary waiver of management fees, which had previously reduced fees by $6.6 million annually.
The company’s operational metrics indicate a robust engagement with its investment strategy. ARMOUR's average securities portfolio increased to $16 billion, and it maintained a debt-to-equity ratio of 7.94:1, reflecting its leveraged investment approach. The company also reported a significant increase in cash and cash equivalents, totaling $63.3 million, which supports its liquidity position. ARMOUR's commitment to maintaining its REIT status is evident, as it distributed $271.5 million in dividends to common stockholders, with a portion of these dividends classified as non-taxable returns of capital.
Looking ahead, ARMOUR anticipates continued challenges and opportunities in the mortgage market, particularly in light of fluctuating interest rates and economic conditions. The company remains focused on managing its interest rate risk and optimizing its portfolio to enhance shareholder value. ARMOUR's management has expressed confidence in its ability to navigate the evolving market landscape while maintaining its commitment to sustainable practices and shareholder returns.
About Armour Residential REIT, Inc.
ARMOUR Residential REIT, Inc. is a Maryland-based real estate investment trust specializing in investing in U.S. government-sponsored entity (GSE) mortgage-backed securities (MBS). The company manages a leveraged, diversified portfolio of primarily fixed-rate Agency Securities to generate income through net interest spreads. It employs hedging strategies to mitigate interest rate risks and funds its investments mainly via repurchase agreements. ARMOUR targets investors seeking exposure to residential mortgage markets with a focus on sustainable governance and risk management.
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