S&P 500
7,633.20
+0.31%
Dow Jones
53,893.00
+1.14%
Nasdaq 100
29,106.20
+0.99%
Russell 2000
2,995.41
+0.37%
FTSE 100
10,904.40
+0.20%
Nikkei 225
64,309.90
+1.28%
Orchid Island Capital

Orchid Island Capital (ORC) Q2 2026 Earnings

Reported Jul 23, 2026 at 4:18 PM ET · SEC Source

Q2 26 EPS

$0.44

BEAT +50.02%

Est. $0.29

Q2 26 Revenue

$96.0M

BEAT +71.07%

Est. $56.1M

vs S&P Since Q2 26

-6.7%

TRAILING MARKET

ORC -2.1% vs S&P +4.6%

Market Reaction

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 … Read more 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

ORC 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.

24/7 Wall St

ORC YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

ORC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 25 Q2 26

“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.”

— Robert E. Cauley, Q2 2026 Earnings Press Release

Back to ORC Stock Page