Invesco Mortgage Capital Reports $31.8M Net Income in Latest Quarter, Up from Loss a Year Earlier

Invesco Mortgage Capital Inc. reported significant financial performance improvements in its latest quarterly filing, with net income attributable to common stockholders reaching $31.8 million for the three months ended June 30, 2026, compared to a net loss of $26.6 million in the same period of 2025. This translates to earnings per share of $0.34, a notable recovery from a loss of $0.40 per share a year earlier. For the six-month period, net income was $8.7 million, reversing a loss of $10.3 million in the prior year. The company attributed this turnaround to a $12.4 million increase in net interest income and a shift from losses on investments to gains on derivative instruments.

The company’s total assets increased to $7.24 billion as of June 30, 2026, up from $6.48 billion at the end of 2025. This growth was primarily driven by an increase in mortgage-backed securities, which rose to $6.95 billion from $6.28 billion. The company also reported a significant rise in interest income, which reached $85.4 million for the second quarter, compared to $70.6 million in the same quarter of the previous year. However, interest expenses also increased slightly, leading to a net interest income of $30.1 million, up from $17.7 million year-over-year.

In terms of operational developments, Invesco Mortgage Capital continued to manage its investment portfolio actively, focusing on Agency RMBS and Agency CMBS. The company reported a total investment portfolio, including to-be-announced (TBA) securities, of $8.15 billion as of June 30, 2026. The allocation to TBAs increased during the first half of 2026, reflecting favorable financing rates. The company also repurchased and retired 111,910 shares of its Series C Preferred Stock during the first half of 2026, as part of its ongoing share repurchase program.

Looking ahead, Invesco Mortgage Capital expressed a constructive outlook for Agency RMBS and Agency CMBS, citing favorable supply and demand dynamics despite ongoing uncertainties in monetary policy and geopolitical developments. The company anticipates that net issuance will remain contained, supporting broad-based investor demand. The management emphasized its commitment to maintaining liquidity to meet potential margin calls and to continue its strategy of providing attractive risk-adjusted returns to stockholders through dividends and capital appreciation.