Companies /Real Estate

Orchid Island Capital Inc

NYSE: ORC Reit - Mortgage
$6.69
▼ $0.05 (−0.74%) today
Markets closed · 8:18pm ET

Q2 2026 Earnings

Reported Jul 23, 2026, 4:18pm ET · SEC source
$0.44
Beat +50.02%
EPS · est. $0.29
$96.0M
Beat +71.07%
Revenue · est. $56.1M
−0.9%
Trailing market
ORC vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−2%0Jul 23Jul 24report 4:18pm ETearnings−0.1%−0.9%
−2%0Jul 23Jul 24earnings−0.1%−0.9%
ORC −0.9%S&P 500 −0.1%
−1.8%−0.9%0Jul 23Jul 24report 4:18pm ETearnings−1.6%−1.4%
−1.8%−0.9%0Jul 23Jul 24earnings−1.6%−1.4%
ORC −1.4%NASDAQ −1.6%
−2%0Jul 22Jul 31report 4:18pm ETearnings+0.8%−2.6%
−2%0Jul 22Jul 31earnings+0.8%−2.6%
ORC −2.6%S&P 500 +0.8%
−4%−2%0+2%Jul 22Jul 31report 4:18pm ETearnings−1.4%−2.6%
−4%−2%0+2%Jul 22Jul 31earnings−1.4%−2.6%
ORC −2.6%NASDAQ −1.4%
−1.06%
Day of report
−0.76%
Next session
−0.76%
One week
+2.75%
30 days

S&P 500 over the same 30 days: +3.65%.

Did ORC Beat Earnings? Q2 2026 Results

Orchid Island Capital, Inc. delivered a blowout second quarter for 2026, posting earnings of $0.44 per share against a consensus estimate of $0.29, a beat of 50.02%, while revenue of $95.95 million topped expectations of $56.09 million by 71.07% and surged 435.7% year over year. The mortgage REIT swung to GAAP net income of $89.19 million from a net loss of $33.58 million in the year-ago period, with the result underpinned by net interest income of $59.97 million and $35.98 million in net realized and unrealized gains on RMBS and derivative instruments. A widening net interest spread, reaching 1.94% compared to 1.15% a year earlier, reflected declining repo borrowing costs of 3.80% against an average RMBS yield of 5.74%. The company delivered a 6.21% total return on equity for the quarter, and CEO Robert Cauley struck a constructive tone on the outlook, noting that current leverage levels support returns of roughly 16.5% to 17.0% annualized, aided by range-bound rates and subdued interest rate volatility.

Key Takeaways
  • Net interest income of $60.0 million driven by 5.74% average RMBS yield vs 3.80% repo borrowing cost
  • Net realized and unrealized gains of $36.0 million on RMBS and derivative instruments
  • Average RMBS portfolio increased by approximately $0.45 billion during the quarter
  • Interest rate spread widened to 1.94% from 1.15% in Q2 2025
  • Repurchase agreement borrowing costs declined from 3.84% in Q1 2026 to 3.80% in Q2 2026
  • Middle East ceasefire in early April 2026 supported a recovery in risk assets

“Orchid generated a 6.21% return for the second quarter of 2026, unannualized. Our outstanding shares grew quite modestly, by approximately 1.5%, and our average Agency RMBS portfolio increased by approximately $0.45 billion for the second quarter of 2026. At quarter-end, our portfolio net interest spread was just under 2% and with current leverage levels – our economic leverage ratio was 7.3 to 1 at quarter-end – returns available to us are approximately equal to our current dividend yield expressed as a percentage of book value per share - at approximately 16.5% to 17.0%. In short, the market is still quite attractive for investing in the sector.”

Orchid Island Capital CEO, on the earnings call

Forward Guidance & Outlook

CEO Cauley expressed a constructive outlook for the Agency RMBS sector, noting that current leverage levels offer returns approximately equal to the dividend yield as a percentage of book value per share — roughly 16.5% to 17.0%. He cited the current macro backdrop of range-bound rates, low and stable interest rate volatility, and monetary policy not likely to become too restrictive as supportive factors for potential returns going forward.

ORC YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$30.0M$60.0M$90.0M$17.9M$96.0MRevenue$19.2M$89.2MNet Income
$0$30.0M$60.0M$90.0MRevenueNet Income

ORC Revenue by Segment

Fixed Rate RMBS$11.5B

Figures from SEC filings and company reports. Not investment advice.