Angel Oak Mortgage REIT (AOMR) Q2 2025 earnings summary

Executive summary

• Q2 2025 GAAP net income was $0.8 million ($0.03 per diluted share), with distributable earnings of $2.6 million ($0.11 per share), reflecting improved portfolio performance and capital deployment.

• Net interest income grew 5% year-over-year to $9.9 million, while interest income rose 35% to $35.1 million; book value per share was $10.37 and economic book value per share was $12.97 as of June 30, 2025, both down over 3% sequentially.

• Two major securitizations were completed and $42.5 million in senior unsecured notes were issued, supporting new loan purchases and capital deployment.

• Portfolio-wide 90+ day delinquency rate improved to 2.35%, down from 2.71% sequentially, reflecting better credit performance.

• Dividend of $0.32 per share declared, payable August 29, 2025.

Financial highlights

• Interest income for Q2 2025 was $35.1 million, up 35% year-over-year; net interest income was $9.9 million, up 5% year-over-year.

• Distributable earnings for Q2 2025 were $2.6 million, compared to a loss of $2.3 million in Q2 2024.

• Operating expenses (excluding securitization and stock comp) were $500,000, down 15% year-over-year and flat sequentially.

• Book value per share as of June 30, 2025, was $10.37 (down 3.1% sequentially); economic book value was $12.97 (down 3.3%).

• For the six months ended June 30, 2025, net income was $21.3 million, up from $12.6 million in the prior year period.

Outlook and guidance

• Sequential net interest income growth expected to resume in Q3 2025, supported by recent capital markets activity and loan deployment.

• Management intends to continue quarterly dividends while focusing on long-term book value growth.

• Securitization pipeline remains active, with another deal targeted for September, contingent on loan pipeline progress.

• Anticipate continued capital recycling and selective leverage to support portfolio growth.

• The strategic transaction with Brookfield is not expected to materially change investment objectives or management.