Angel Oak Mortgage, Inc. Q2 2026 Earnings Recap

Angel Oak Mortgage REIT’s shares inched up 1.3% post-earnings, reflecting a generally stable quarter with solid net interest income growth offset by unrealized mark-to-market losses; investors appeared to weigh the balance between ongoing portfolio discipline and cautious macroeconomic headwinds.

Key Takeaways

• GAAP net income rose to $3.4 million ($0.14 per diluted share) from $0.8 million ($0.03 per share) in Q2 2025, driven by healthy net interest income but partially offset by unrealized losses totaling $6 million across loan and derivative portfolios.
• Net interest income increased 8% year-over-year to $10.7 million, supported by an 18% rise in interest income to $41.4 million, reflecting targeted asset purchases and lower financing costs.
• The company repurchased $15 million in common equity at accretive levels and secured a 35 basis point reduction on its largest warehouse financing spread, actions expected to benefit future returns.
• Loan purchases totaled $204 million with conservative credit metrics: 7.34% weighted average coupon, 70.5% CLTV, and a credit score of 759, indicating continued credit discipline.
• Operating expenses increased slightly to $3.2 million (ex-stock comp), attributed to higher loan diligence fees tied to larger asset balances, with guidance to maintain stable expense levels going forward.