Invesco Mortgage Capital Inc. (IVR) Earnings History

Invesco Mortgage Capital Inc. - Q4 FY2025 Earnings

Filed at: Jan 29, 2026, 4:18 PM EST|Read from source

EXECUTIVE SUMMARY

Invesco Mortgage Capital Inc. reported improved financial results for Q4 2025, driven by a supportive financial environment with interest rate cuts, robust corporate earnings, and lower interest rate volatility. The company saw an increase in book value per common share and raised its common stock dividend, reflecting constructive sentiment towards Agency RMBS and Agency CMBS.

POSITIVE HIGHLIGHTS

  • •

    Book value per common share increased by 3.7% to $8.72 at quarter end.

    positive
  • •

    Common stock dividend increased to $0.36 per common share, with a shift to monthly declarations of $0.12 per share.

    positive
  • •

    Average net interest rate margin improved to 1.11% from 0.90% in the prior quarter.

    positive
  • •

    Period-end weighted average net interest rate margin improved to 1.33% from 1.07% in the prior quarter.

    positive

CONCERNS & RISKS

  • •

    Net income attributable to common stockholders decreased to $48.2 million from $50.2 million in Q3 2025.

    negative
  • •

    Earnings available for distribution per common share decreased to $0.56 from $0.58 in Q3 2025.

    negative
  • •

    Basic and diluted earnings per common share decreased to $0.68 from $0.74 in Q3 2025.

    negative
  • •

    Average cost of funds increased to 4.20% from 4.52% in Q3 2025, while average earning asset yields decreased.

    attention
  • •

    Debt-to-equity ratio increased to 7.0x from 6.7x in the prior quarter.

    attention

FINANCIAL METRICS

Revenue
Quarterly
N/A
N/A
Annual (YTD)
$75.42B
N/A
Prior year: $36.83B
Net Income
Quarterly
$48.24B
-3.9%
Prior year: $50.21B
Annual (YTD)
$88.17B
N/A
Prior year: $34.76B
EPS (Diluted)
Quarterly
$0.68
-8.1%
Prior year: $0.74
Operating Income
Quarterly
N/A
N/A
EPS (Basic)
Quarterly
$0.68
-8.1%
Prior year: $0.74

MARGIN ANALYSIS

Net Margin
Current Quarter
0.6%
Prior Year
0.7%
YoY Change
-10 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT COMMENTARY

Financial conditions improved in Q4 2025, supported by interest rate cuts, robust corporate earnings, and lower interest rate volatility.

— Invesco Mortgage Capital Inc., Q4 FY2025 2025 Earnings Call

Agency RMBS outperformed relative to Treasuries due to favorable market conditions and widening swap spreads.

— Invesco Mortgage Capital Inc., Q4 FY2025 2025 Earnings Call

Book value per common share increased to $8.72, and the dividend was increased to $0.36, resulting in an 8.0% economic return.

— Invesco Mortgage Capital Inc., Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Average cost of funds
4.2
-7.1% YoY
Prior year: 4.5
%
Average earning asset yields
5.3
-2.0% YoY
Prior year: 5.4
%
Average net interest rate margin
1.1
+23.3% YoY
Prior year: 0.9
%
Book value per common share
8.7
+3.7% YoY
Prior year: 8.4
$
Debt-to-equity ratio
7
+4.5% YoY
Prior year: 6.7
x
Period-end weighted average asset yields
5.4
-0.9% YoY
Prior year: 5.4
%
Period-end weighted average cost of funds
4.0
-7.1% YoY
Prior year: 4.3
%
Period-end weighted average net interest rate margin
1.3
+24.3% YoY
Prior year: 1.1
%

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.