--- title: "Orchid Island Capital | 10-Q: FY2026 Q1 Revenue: USD 157.84 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/284043200.md" datetime: "2026-04-24T18:17:35.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284043200.md) - [en](https://longbridge.com/en/news/284043200.md) - [zh-HK](https://longbridge.com/zh-HK/news/284043200.md) --- # Orchid Island Capital | 10-Q: FY2026 Q1 Revenue: USD 157.84 M Revenue: As of FY2026 Q1, the actual value is USD 157.84 M. EPS: As of FY2026 Q1, the actual value is USD -0.11, missing the estimate of USD 0.3333. EBIT: As of FY2026 Q1, the actual value is USD -7.397 M. Orchid Island Capital, Inc. operates as a single reportable segment, primarily investing in residential mortgage-backed securities (RMBS) and generating nearly all income from its RMBS portfolio, with a primary objective of providing attractive risk-adjusted total returns through capital appreciation and regular monthly distributions . #### Operational Metrics - **Net Income (Loss):** Orchid Island Capital, Inc. reported a net loss of -$20.0 million (-$0.11 per share) for the three months ended March 31, 2026, compared to a net income of $17.1 million ($0.18 per share) for the same period in 2025 . - **Interest Income:** Interest income increased to $157.8 million for the three months ended March 31, 2026, from $81.1 million for the comparable period in 2025, representing a rise of $76.7 million . This increase was due to a 34 basis point increase in the yield on average RMBS and a $4,987.9 million increase in average RMBS . - **Interest Expense:** Interest expense rose to -$100.8 million for the three months ended March 31, 2026, from -$61.4 million in the prior year, an increase of -$39.4 million . This was driven by a $4,768.0 million increase in average outstanding borrowings, partially offset by a 45 basis point decrease in the average cost of funds . - **Net Interest Income (GAAP):** Net interest income for the three months ended March 31, 2026, was $57.1 million, up from $19.7 million in the comparable 2025 period . - **Economic Net Interest Income:** On an economic basis, net interest income was $71.7 million for the three months ended March 31, 2026, compared to $40.6 million for the same period in 2025 . - **Net Portfolio (Loss) Income:** The company reported a net portfolio loss of -$12.6 million for the three months ended March 31, 2026, a decline from net portfolio income of $21.3 million in the prior year . - **Total Expenses:** Total operating expenses were -$7.4 million for the three months ended March 31, 2026, compared to -$4.2 million for the same period in 2025 . Management fees increased to $4.0 million from $2.7 million, allocated overhead to $0.8 million from $0.6 million, and incentive compensation to $1.4 million from -$0.2 million . #### Unique Metrics - **RMBS Portfolio:** As of March 31, 2026, the RMBS portfolio was valued at $11.3 billion at fair value, with a weighted average coupon of 5.58% . Fixed Rate RMBS constituted 99.9% of the portfolio, with a fair value of $11,326.1 million . - **Prepayment Rates:** Principal repayments on RMBS were $404.7 million for the three months ended March 31, 2026, significantly higher than $133.0 million for the same period in 2025 . The average three-month prepayment speed (CPR) was 14.7% for the quarter ended March 31, 2026, up from 7.8% in 2025 . - **Leverage:** Economic leverage was 7.9 to 1 as of March 31, 2026, compared to 7.3 to 1 as of December 31, 2025 . Adjusted leverage was 7.8 to 1 as of March 31, 2026, compared to 7.4 to 1 as of December 31, 2025 . - **Borrowings:** Average outstanding borrowings were $10,490.1 million for the three months ended March 31, 2026, with an average cost of funds of 3.84% . #### Cash Flow - **Net Cash Provided by Operating Activities:** Orchid Island Capital, Inc. generated $48.6 million in net cash from operating activities for the three months ended March 31, 2026, compared to $25.8 million for the same period in 2025 . - **Net Cash Used in Investing Activities:** Net cash used in investing activities was -$802.2 million for the three months ended March 31, 2026, compared to -$1,526.5 million for the same period in 2025 . - **Net Cash Provided by Financing Activities:** Net cash provided by financing activities was $789.2 million for the three months ended March 31, 2026, compared to $1,565.8 million for the same period in 2025 . - **Cash and Cash Equivalents:** Cash, cash equivalents, and restricted cash at the end of the period were $760.1 million as of March 31, 2026, up from $724.6 million at the beginning of the period . #### Future Outlook and Strategy Given market uncertainty stemming from persistent inflation, a stable labor market, sustained growth, and geopolitical events like the Iranian war, Orchid Island Capital, Inc. plans to deploy modest leverage levels . 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