Invesco Mortgage Capital Inc. Earnings Recaps
Q2 2026
Aug 3, 2026
Invesco Mortgage Capital reported a largely in-line quarter with no significant market reaction, reflecting stable performance amid modest declines in earnings available for distribution and book value. Investors appeared cautious given the slight economic headwinds and modest book value erosion despite portfolio growth and prudent risk management.
Key takeaways
- Economic return for the quarter was 3.8%, driven by $0.12 monthly dividends per share and a 0.6% decline in book value per share.
- Earnings available for distribution decreased from $0.55 in Q1 to $0.50 in Q2.
- Estimated book value declined approximately 2.5% quarter-to-date after accounting for dividends, reflecting recent mortgage underperformance.
- Portfolio increased to $8.2 billion with $6 billion in Agency RMBS, $1.2 billion in Agency TBA, and $0.9 billion in Agency CMBS; capital raises totaled $118 million in the quarter.
- Debt-to-equity ratio remained stable; interest rate swap and treasury futures hedges covered 97% of borrowing costs.
Q1 2026
May 4, 2026
Shares declined modestly by 0.9% following Q1 results as investors weighed a near 8% book value decline and a cautious outlook amid volatile market conditions, despite stable earnings and portfolio positioning.
Key takeaways
- Book value per share dropped 7.9% to $8.08, driven by increased interest rate volatility, higher risk premiums on Agency RMBS, and swap spread tightening.
- Economic return for the quarter was negative 3.2%, factoring in dividends of $0.12 per month.
- Earnings available for distribution remained relatively stable at $0.55, down slightly from $0.56 in Q4 2025.
- Leverage increased modestly to 7.5x economic debt-to-equity, reflecting lower book value and selective portfolio adjustments.
- Portfolio totaled $7.3 billion, with Agency RMBS dominating; hedging covered 96% of borrowing costs using interest rate swaps and U.S. Treasury futures.