Orchid Island Capital, Inc. (NYSE: ORC) reported a net loss of $178.9 million for the three months ended September 30, 2026. This figure represents a loss of $0.90 per common share, a significant reversal from the net income of $72.1 million reported for the same period in 2025.
The company attributes the loss primarily to market conditions, noting net realized and unrealized losses of $231.7 million on Agency RMBS assets and derivative instruments. In contrast, the company generated $59.1 million in net interest income during the quarter. The company also paid dividends of $0.30 per share.
Despite the financial loss, Orchid Island maintained a liquidity position of $515.7 million as of September 30, 2026. This amount consists of cash and cash equivalents and unpledged securities, representing approximately 44% of stockholders' equity. The company also reported borrowing capacity in excess of $10.4 billion across 33 active lenders.
Portfolio performance showed a decrease in book value per share of $1.20 for the quarter. The company’s average Agency RMBS yield increased slightly to 5.91% from 5.74% in the prior quarter. However, borrowing costs rose to 3.92% from 3.80%.
Management noted that the quarter was marked by turbulent market conditions, including a significant increase in interest rates. To counteract leverage expansion as book value declined, the company increased its hedge coverage to near 100% and utilized a combination of modest asset sales and retaining monthly pay-downs to limit leverage growth.
During the quarter, Orchid Island repurchased approximately 4.95 million shares. To date in October, the company has repurchased an additional 1.67 million shares.
