ARMOUR Residential REIT Reports $114.8 Million Net Income in Latest Quarter

ARMOUR Residential REIT, Inc. reported significant financial performance improvements in its latest quarterly filing, with net income reaching $114.8 million for the three months ended June 30, 2026, compared to a net loss of $75.6 million for the same period in 2025. This turnaround was driven by a substantial increase in interest income, which rose to $263.9 million from $180.9 million year-over-year. The company's net interest income also saw a notable increase, climbing to $76.8 million from $33.1 million, reflecting a larger average securities portfolio and effective management of interest rate risks.

The company’s total assets increased to $22.7 billion as of June 30, 2026, up from $21.0 billion at the end of 2025. This growth was primarily attributed to a rise in investments in agency securities, which reached $20.6 billion, compared to $19.4 billion at the end of the previous fiscal year. ARMOUR's liabilities also increased, with total liabilities rising to $20.2 billion from $18.7 billion, largely due to an increase in repurchase agreements, which amounted to $19.4 billion, up from $17.9 billion.

In terms of operational developments, ARMOUR has expanded its equity capital activities, issuing 24,535 common shares under its 2023 Common Stock ATM Sales Agreement, generating net proceeds of $434 million. The company also issued 505 shares of its Series C Preferred Stock, raising $10.5 million. As of June 30, 2026, ARMOUR had 136.4 million shares of common stock outstanding, an increase from 111.9 million shares at the end of 2025. The company continues to maintain a focus on managing its capital structure effectively, with a debt-to-equity ratio of 7.54:1.

Looking ahead, ARMOUR anticipates continued volatility in the interest rate environment, particularly in light of geopolitical tensions and economic uncertainties. The company plans to prioritize risk management strategies to navigate these challenges while maintaining its commitment to delivering shareholder value through dividends and prudent investment practices. ARMOUR's management remains focused on leveraging its portfolio of mortgage-backed securities to generate stable returns, while also monitoring market conditions closely to adapt its strategies as necessary.