--- title: "Two Harbors Investment Corp. | 8-K: FY2025 Q4 Revenue: USD 177.34 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/274559121.md" datetime: "2026-02-02T21:18:30.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/274559121.md) - [en](https://longbridge.com/en/news/274559121.md) - [zh-HK](https://longbridge.com/zh-HK/news/274559121.md) generator: "portal-rs" --- # Two Harbors Investment Corp. | 8-K: FY2025 Q4 Revenue: USD 177.34 M Revenue: As of FY2025 Q4, the actual value is USD 177.34 M. EPS: As of FY2025 Q4, the actual value is USD -0.02. EBIT: As of FY2025 Q4, the actual value is USD 32.78 M. #### Fourth Quarter 2025 Financial Performance - **Comprehensive Income Attributable to Common Stockholders**: Two Harbors Investment Corp. reported $50.4 million, or $0.48 per weighted average basic common share, for Q4 2025, which is an improvement from - $80.2 million, or - $0.77 per weighted average basic common share, for Q3 2025 . - **GAAP Net Loss Attributable to Common Stockholders**: The company recorded - $1.3 million, or - $0.02 per weighted average basic common share, for Q4 2025, significantly improving from - $141.2 million, or - $1.36 per weighted average basic common share, for Q3 2025 . - **Earnings Available for Distribution (EAD) to Common Stockholders**: EAD was $27.4 million, or $0.26 per weighted average basic common share, for Q4 2025, a decrease from $37.2 million, or $0.36 per weighted average basic common share, for Q3 2025 . - **Book Value per Common Share**: Book value per common share stood at $11.13 at December 31, 2025, an increase from $11.04 at September 30, 2025 . - **Quarterly Economic Return on Book Value**: The economic return on book value was 3.9% for Q4 2025, rebounding from - 6.3% for Q3 2025 . - **Dividend per Common Share**: Two Harbors Investment Corp. maintained a dividend of $0.34 per common share for both Q4 2025 and Q3 2025 . - **Operating Expenses (excluding non-cash LTIP amortization and certain operating expenses)**: Operating expenses increased to $43.7 million for Q4 2025 from $38.7 million for Q3 2025 . - **Net Interest Expense**: Net interest expense improved to - $15.5 million for Q4 2025, compared to - $34.9 million for Q4 2024 . - **Net Servicing Income**: Net servicing income was $141.7 million for Q4 2025, down from $163.0 million for Q4 2024 . - **Loss on Investment Securities**: A loss of - $14.4 million on investment securities was reported for Q4 2025, compared to - $8.0 million for Q4 2024 . - **(Loss) Gain on Servicing Asset**: Two Harbors Investment Corp. recorded a loss of - $65.2 million on servicing assets for Q4 2025, contrasting with a gain of $82.5 million for Q4 2024 . - **Gain (Loss) on Derivative Instruments**: Gain on derivative instruments decreased to $21.2 million for Q4 2025 from $144.5 million for Q4 2024 . - **Total Expenses**: Total expenses rose to $51.3 million for Q4 2025, up from $40.9 million for Q4 2024 . #### Full Year 2025 Financial Performance - **Dividends Declared per Common Share**: Dividends declared per common share totaled $1.52 for the full year 2025 . - **Economic Return on Book Value**: The economic return on book value was - 12.6% for the full year 2025, or 12.1% excluding a $375 million litigation settlement expense . - **Total Stockholder Return**: The total stockholder return for the period December 31, 2024, through December 31, 2025, was 2.8% . - **Net Interest Expense**: Net interest expense improved to - $78.9 million for the full year 2025, from - $157.7 million for the full year 2024 . - **Net Servicing Income**: Net servicing income decreased to $614.0 million for the full year 2025, from $661.6 million for the full year 2024 . - **Loss on Investment Securities**: A loss of - $96.2 million on investment securities was reported for the full year 2025, compared to - $40.0 million for the full year 2024 . - **(Loss) Gain on Servicing Asset**: Two Harbors Investment Corp. reported a loss of - $242.2 million on servicing assets for the full year 2025, compared to - $62.7 million for the full year 2024 . - **Gain (Loss) on Derivative Instruments**: A loss of - $91.5 million on derivative instruments was recorded for the full year 2025, contrasting with a gain of $106.9 million for the full year 2024 . - **Total Expenses**: Total expenses significantly increased to $560.5 million for the full year 2025, from $166.0 million for the full year 2024, primarily due to a $375.0 million litigation settlement expense . #### Operational Metrics - **MSR Added**: $399.1 million in unpaid principal balance (UPB) was added through flow-sale acquisitions and recapture in Q4 2025, with $7.9 billion UPB for the full year 2025 . - **MSR Sold**: $9.6 billion MSR UPB was sold on a subservicing-retained basis in Q4 2025, and $28.7 billion UPB for the full year 2025 . - **Loans Funded**: $93.8 million UPB in loans were funded in Q4 2025, and $221.1 million UPB for the full year 2025 . - **Second Lien Loans Brokered**: $58.5 million UPB in second lien loans were brokered in Q4 2025, and $198.7 million UPB for the full year 2025 . - **MSR Portfolio Metrics (as of December 31, 2025)**: The MSR portfolio had a weighted average gross coupon rate of 3.55%, a 60+ day delinquency rate of 0.87%, and a 3-month CPR of 6.4% . - **Total Serviced Mortgage Assets**: Total serviced mortgage assets were $203.2 billion UPB as of December 31, 2025, down from $206.3 billion UPB as of September 30, 2025 . #### Financing Summary - **Total Borrowings**: Total borrowings increased to $8.6 billion as of December 31, 2025, from $8.4 billion as of September 30, 2025 . - **Debt-to-Equity Ratio**: The debt-to-equity ratio remained consistent at 4.8:1.0 at December 31, 2025, compared to September 30, 2025 . - **Economic Debt-to-Equity Ratio**: The economic debt-to-equity ratio slightly decreased to 7.0:1.0 at December 31, 2025, from 7.2:1.0 at September 30, 2025 . - **Annualized Cost of Financing**: The annualized cost of financing improved to 4.41% for Q4 2025, from 4.59% for Q3 2025 . - **Convertible Senior Notes Repaid**: $261.9 million in UPB of convertible senior notes were repaid on their January 15, 2026, maturity date . #### Outlook / Guidance Two Harbors Investment Corp. has entered a definitive merger agreement with UWM Holdings Corporation, where its stockholders will receive 2.3328 shares of UWMC Class A Common Stock for each share of Two Harbors Investment Corp. common stock, representing an $11.94 per share value as of December 16, 2025 . This all-stock transaction is intended to be tax-free for Two Harbors Investment Corp.’s stockholders and is expected to close in the second quarter of 2026, subject to customary approvals . Prior to closing, Two Harbors Investment Corp. plans to pay regular quarterly dividends consistent with past practice, but not a partial dividend for the closing quarter if it does not occur at quarter-end . ### Related Stocks - [TWOD.US](https://longbridge.com/en/quote/TWOD.US.md) ## Related News & Research - [3,759 Shares in Ferrari N.V. $RACE Acquired by X Square Capital LLC](https://longbridge.com/en/news/296700358.md) - [Korea Investment CORP Increases Stock Position in L3Harris Technologies Inc $LHX](https://longbridge.com/en/news/296698330.md) - [Johnson & Johnson $JNJ Position Reduced by Oppenheimer Asset Management Inc.](https://longbridge.com/en/news/296697035.md) - [Danske Bank A S Invests $252.05 Million in Bank of America Corporation $BAC](https://longbridge.com/en/news/296695181.md) - [BlackRock Inc. 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