Angel Oak Mortgage REIT, Inc. (AOMR) · Nov 3, 2026 · Earnings
Miss — Distributable earnings ≈$0.28/share vs ~$0.32 consensus
Angel Oak Mortgage REIT’s Q3 earnings show better underlying distributable earnings but a consensus miss, steep GAAP losses, and declining book value.
Angel Oak Mortgage REIT is a non-QM mortgage credit REIT that buys newly originated residential loans, finances them through warehouse lines, and converts them into securitizations. That model was already operating under pressure from higher rates and portfolio marks; its prior strategy was to acquire, securitize, retain portions of the deals, and reinvest.
Underlying earnings improved, but not enough to meet the bar. Distributable earnings rose to $6.4 million from $0.5 million a year earlier, or roughly $0.28 per diluted share using the quarter’s share count, versus a published consensus near $0.32. That makes this an earnings miss even though the cash-oriented measure improved year over year. Net interest income was essentially flat at $10.2 million versus $10.2 million, limiting the quality of the improvement.
| Metric | Q3 2026 | Q3 2025 | Consensus |
|---|---|---|---|
| Distributable earnings (Financial Highlights) | $6.405M | $0.529M | |
| Net interest income (Income Statement) | $10.236M | $10.180M | |
| GAAP diluted EPS (Income Statement) | $(0.72) | $0.46 | |
| Economic book value/share (Book Value table) | $11.45 | $12.72 |
The balance-sheet damage is the more important signal. GAAP net loss reached $16.7 million, driven by a $20.9 million net realized and unrealized loss, while economic book value per share fell to $11.45 from $12.24 in the prior quarter and $12.72 a year earlier. The company attributes the pressure to higher rates, and its own release acknowledges that the environment is hurting portfolio valuations and near-term returns on new investments. 〔0〕
Securitizations reduced financing risk but did not erase the mark-to-market pressure. Angel Oak completed two securitizations early in the quarter, before the largest rate increase, and subsequently said recourse debt-to-equity fell from 2.0x at quarter-end to approximately 1.2x after the October AOMT 2026-6 transaction. That is a constructive funding development, but it arrived alongside lower book value and does not change the fact that the portfolio is currently producing weak GAAP returns.
Bottom line: This was a mixed operating quarter that lands slightly below expectations: distributable earnings recovered, but the miss and continued book-value erosion show that higher rates are still weakening the core mortgage-credit story.
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