Angel Oak Mortgage REIT 3Q 2026: Interest Income $42.5M, Net Loss $16.7M, EPS $(0.72) — 10-Q Summary

What happened

Angel Oak Mortgage REIT reported third-quarter 2026 interest income of $42.5 million, up 15.8% from $36.7 million a year earlier, but posted a $16.7 million net loss attributable to common stockholders versus $11.4 million net income in the prior-year quarter, with diluted EPS of $(0.72) compared with $0.46.

Confirmed

Global impact / market context

The loss stemmed largely from $22.6 million in net unrealized losses as higher interest rates and market volatility pressured mortgage asset valuations and financing costs, which means the value of loans the company holds fell on paper, outweighing steady net interest income of $10.2 million and hitting profit for common stockholders.

Analyst inference

Target assets totaled about $2.8 billion at September 30 versus $2.7 billion at year-end 2025, and the company acquired $233 million of newly originated non-QM loans and HELOCs at a 7.29% weighted-average coupon, while completing three 2026 securitizations including a $221.4 million second-lien HELOC deal.

Analyst inference

What to watch

1. Management said mortgage rates, spreads and capital-market conditions remain important drivers of portfolio performance and securitization activity. Confirmed
2. Watch whether Angel Oak continues acquiring non-QM loans and HELOCs and completing securitizations, since those deals convert loans into cash and support execution. Proposed
3. Watch unrealized losses on mortgage assets, because if rates and volatility persist, valuation marks could keep pressuring net income even when interest income rises. Analyst inference

Evidence

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