Angel Oak Mortgage REIT (AOMR) Q4 2025 earnings summary

Executive summary

• Achieved second consecutive year of double-digit net interest income growth, with FY 2025 net interest income up 11% to $41.1 million and interest income rising 30% year-over-year.

• GAAP net income for FY 2025 was $44 million ($1.80 per diluted share), and distributable earnings were $14.6 million ($0.59 per share).

• GAAP book value per share increased 5.6% year-over-year to $10.74, driven by improved legacy securitization valuations and higher net interest income.

• Credit performance remained strong, with the 90+ day delinquency rate improving to 2.18% at year-end.

• Four securitizations were completed in 2025, contributing $704 million in unpaid principal balance.

Financial highlights

• Interest income rose 30% year-over-year to $143.7 million; net interest income up 11% to $41.1 million.

• Fourth quarter GAAP net income was $11.3 million ($0.45 per diluted share); full-year GAAP net income was $44 million ($1.80 per share), up 53% from 2024.

• Distributable earnings for Q4 2025 were $7.3 million; full-year distributable earnings were $14.6 million.

• Operating expenses for the year decreased 15.5% to $16.4 million; excluding non-cash items, operating expenses were $11.5 million, down 15.4%.

• Declared a $0.32 per share common dividend, payable February 27, 2026.

Outlook and guidance

• Expect continued growth in net interest income, supported by ongoing loan purchases and securitization activity.

• Management expects continued strong performance by selectively deploying capital and executing accretive securitizations amid evolving credit and rate environments.

• Anticipate maintaining prudent leverage and liquidity management, with a focus on net interest margin and earnings growth.

• Recourse debt to equity ratio was 1.4x at year-end and is expected to remain below 2.5x.

• Market for non-QM solutions remains significant and growing, with the company positioned as a leading platform.