Invesco Mortgage Capital Q2 net loss per share $0.40

Overview

• Invesco Mortgage Capital Q2 net loss per share of $0.40 vs Q1 net income of $0.26

• Book value per share declines to $8.05 from $8.81 in Q1

• Debt-to-equity ratio improves to 6.5x at Q2 end, from 7.1x as of March 31, 2025

Outlook

• Company sees cautious near-term outlook for Agency RMBS

• Invesco Mortgage Capital expects stronger long-term demand for Agency RMBS

• Company remains positive on Agency CMBS due to limited issuance

Result Drivers

• INTEREST RATE VOLATILITY - CEO John Anzalone cites increased interest rate volatility and tighter swap spreads as factors impacting Q2 results

• TRADE POLICY UNCERTAINTY - Tariff announcements and subsequent market reactions contributed to economic return decline, per company

• DEFENSIVE POSTURE - Reduced debt-to-equity ratio reflects cautious approach amid trade, fiscal, and monetary policy uncertainties

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for Invesco Mortgage Capital Inc is $7.25, about 5% below its July 23 closing price of $7.61

• The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 3 three months ago

Press Release: ID:nPn2C2489a