Did Ellington Financial beat or miss consensus estimates last quarter?

What is the revenue and EPS growth rate for Ellington Financial year over year?

What guidance did Ellington Financial's management provide for the next earnings period?

What is Ellington Financial's latest dividend and current dividend yield?

What is the market's earnings forecast for Ellington Financial next quarter?

What were the key takeaways from Ellington Financial's earnings call?

What factors drove the changes in Ellington Financial's revenue and profit?

What is Ellington Financial's gross profit margin?

- **Record ADE Growth**: $0.53 per share driven by securitization gains and strong credit performance.
- **Portfolio Expansion**: 12% QoQ growth in non-QM, reverse, and commercial loans.
- **Capital Shift**: 20% of borrowings now unsecured, reducing repo reliance.
- **Strategic Securitization**: 20 deals YTD, enhancing liquidity and capital efficiency.
- **Credit Resilience**: Cumulative realized losses of 13/47 basis points on residential/commercial portfolios.


**【CEO Summary Section】**
- Reported GAAP net income of $0.29 per share and Adjusted Diluted Earnings (ADE) of $0.53 per share, driven by higher net interest income and securitization gains.
- Portfolio growth of 12% quarter-over-quarter, led by non-QM loans, proprietary reverse mortgages, and commercial bridge loans.
- Completed 7 securitizations during the quarter, with 20 total year-to-date, enhancing liquidity and capital efficiency.
- Priced $400 million of 5-year senior unsecured notes at a 363 basis point spread, reducing reliance on short-term repo financing.

**【CFO Financial Commentary】**
- GAAP net income of $0.29 per share, with ADE of $0.53 per share, exceeding expectations due to strong credit performance and securitization gains.
- Credit portfolio realized losses of 13 basis points on $14.7 billion in residential loans, and 47 basis points on $2 billion in commercial loans, reflecting disciplined underwriting.
- Agency RMBS portfolio decreased by 18% to $221 million due to net sales, while Longbridge segment grew 37% to $750 million in retained tranches.
- Recourse debt-to-equity ratio improved to 1.8:1, with 20% of borrowings now unsecured.

**【Q&A Highlights】**
- **Credit Performance**: Cumulative realized losses of 13 basis points on residential loans and 47 basis points on commercial loans, with annualized rates near 0%.
- **Securitization Strategy**: 7 Q3 securitizations and 20 year-to-date, reducing repo reliance and enhancing capital efficiency.
- **Unsecured Debt Issuance**: $400 million 5-year notes priced at 7.3%, lowering cost of funds by 17 basis points.
- **Originator Valuations**: Affiliate loan originators' stakes valued at trailing 12-month earnings multiples, with book value growth driving liquidity.
- **Market Risk Management**: Hedging strategies mitigate prepayment and interest rate risks, with 30% of loans carrying prepayment penalties.
- **Regulatory Outlook**: Stable HPA assumptions and no material regulatory changes impacting reverse mortgage residuals.


Ellington Financial Inc. (EFC) Q3 2025 Earnings Call Transcript

Investment Portfolio Segment

Longbridge Segment

Corporate/Other

EFC

EFC fundamentals

You can ask Aime