Track market-moving stories before they get noisy

Invesco Mortgage Capital (IVR - Free Report) closed the most recent trading day at $8.10, moving -1.1% from the previous trading session. This change lagged the S&P 500's 1.01% loss on the day. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 1.4%.

The real estate investment trust's stock has climbed by 2.38% in the past month, falling short of the Finance sector's gain of 2.6% and outpacing the S&P 500's gain of 0.32%.

Analysts and investors alike will be keeping a close eye on the performance of Invesco Mortgage Capital in its upcoming earnings disclosure. The company is expected to report EPS of $0.47, down 18.97% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.01 per share and a revenue of $0 million, signifying shifts of -14.47% and 0%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Invesco Mortgage Capital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Invesco Mortgage Capital currently has a Zacks Rank of #5 (Strong Sell).

Looking at valuation, Invesco Mortgage Capital is presently trading at a Forward P/E ratio of 4.07. For comparison, its industry has an average Forward P/E of 8.78, which means Invesco Mortgage Capital is trading at a discount to the group.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 201, putting it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Discover why agency mortgage REITs act as the ultimate portfolio hedge, designed to aggressively outperform when the broader economy collapses. A clear look at how mREITs leverage low-cost repo market borrowings against government-guaranteed 5% coupon assets to generate massive net interest spreads. Understand the structural advantage of holding agency MBS, where credit risk is fully offloaded onto Fannie Mae and Freddie Mac.

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MCLEAN, Va.--(BUSINESS WIRE)--Claros today announced that it is collaborating with Samsung Foundry on process technology and semiconductor manufacturing to launch high-volume production of Claros’s integrated voltage regulator (IVR). The company’s IVRs are designed to deliver power directly to processing units in data centers, representing a novel approach to managing energy at the chip level inside AI infrastructure.

“Every conversation we have with data center operators hits the same wall: they want to move to integrated voltage regulation, but they need to know it'll be there at volume. This commitment removes that wall,” said Claros Co-Founder and CEO Daniel Kultran

Share The collaboration comes as AI-driven workloads generate unprecedented power demand across hyperscale data centers, stressing utility grids and raising operating costs. While 800 VDC improves rack-level efficiency, without voltage regulation at the processor, much of that benefit is lost. Claros’s IVR completes the 800 VDC chain by regulating power millimeters from the processor, reducing energy loss by up to 30 percent.

“Processor-level power delivery is one of the most critical challenges facing AI infrastructure, and Claros is tackling it with a truly forward-looking approach,” said Margaret Han, Executive Vice President and Head of US Foundry at Samsung Electronics. “We see opportunities for this technology to extend beyond data centers into industrial and automotive applications. We’re pleased to be working with Claros to enable their state-of-the-art IVR solutions on our FinFET technology.”

Samsung Foundry brings a global footprint of high-volume, advanced-node wafer manufacturing capabilities. Claros’s IVR designs will incorporate Samsung Foundry’s US-based 14nm silicon manufacturing, along with other elements of Samsung Foundry’s offerings.

“Every conversation we have with data center operators hits the same wall: they want to move to integrated voltage regulation, but they need to know it'll be there at volume. This commitment removes that wall,” said Claros Co-Founder and CEO Daniel Kultran. “Samsung's FinFET process is the manufacturing foundation our IVR needs, and now our customers have a production timeline they can plan around.”

Claros’s strategic collaboration with Samsung Foundry represents its first manufacturing agreement and follows the company’s recent $30M seed round to redefine data center energy delivery from the chip to the grid.

About Claros

Claros is a power management solutions company that’s leveraging innovative hardware and software to make AI infrastructure more efficient, more resilient, and more sustainable. By driving down the cost and complexity of power delivery and leveraging innovative hardware and software, the company seeks to decrease energy consumption, optimize power delivery, increase compute performance, and maximize the efficiency of AI operations. Founded in 2024, Claros is backed by Red Cell Partners, General Catalyst, VIPC, and others. Visit us at claros.tech and follow us on LinkedIn.

In the latest close session, Invesco Mortgage Capital (IVR - Free Report) was up +1.25% at $8.13. The stock lagged the S&P 500's daily gain of 2.51%. Elsewhere, the Dow saw an upswing of 2.85%, while the tech-heavy Nasdaq appreciated by 2.8%.

Shares of the real estate investment trust witnessed a loss of 4.18% over the previous month, trailing the performance of the Finance sector with its loss of 1.87%, and the S&P 500's loss of 1.66%.

The investment community will be paying close attention to the earnings performance of Invesco Mortgage Capital in its upcoming release. The company is predicted to post an EPS of $0.55, indicating a 14.06% decline compared to the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.25 per share and a revenue of $0 million, signifying shifts of -4.26% and 0%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Invesco Mortgage Capital. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.27% higher. Right now, Invesco Mortgage Capital possesses a Zacks Rank of #2 (Buy).

Digging into valuation, Invesco Mortgage Capital currently has a Forward P/E ratio of 3.57. This indicates a discount in contrast to its industry's Forward P/E of 7.67.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

ATLANTA, April 14, 2026 /PRNewswire/ -- Invesco Mortgage Capital Inc. (the "Company") (NYSE: IVR) today announced that President Kevin Collins will assume the role of Chief Executive Officer, effective May 1, 2026. Mr. Collins will succeed John Anzalone, who is retiring from the Company effective April 30 after an impactful nine-year tenure as CEO.

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Invesco Mortgage Capital (IVR - Free Report) . IVR is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 3.7, while its industry has an average P/E of 7.97. Over the last 12 months, IVR's Forward P/E has been as high as 4.12 and as low as 2.63, with a median of 3.41.

We should also highlight that IVR has a P/B ratio of 0.9. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. IVR's current P/B looks attractive when compared to its industry's average P/B of 0.96. Over the past year, IVR's P/B has been as high as 0.99 and as low as 0.70, with a median of 0.88.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. IVR has a P/S ratio of 2.47. This compares to its industry's average P/S of 2.49.

TPG Mortgage Investment Trust Inc. (MITT - Free Report) may be another strong REIT and Equity Trust stock to add to your shortlist. MITT is a Zacks Rank of #2 (Buy) stock with a Value grade of A.

TPG Mortgage Investment Trust Inc. also has a P/B ratio of 0.73 compared to its industry's price-to-book ratio of 0.96. Over the past year, its P/B ratio has been as high as 0.74, as low as 0.53, with a median of 0.67.

These are just a handful of the figures considered in Invesco Mortgage Capital and TPG Mortgage Investment Trust Inc.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that IVR and MITT is an impressive value stock right now.

Invesco Mortgage Capital (IVR - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, IVR broke through the 50-day moving average, which suggests a short-term bullish trend.

The 50-day simple moving average is one of three major moving averages used by traders and analysts to determine support or resistance levels for a wide range of securities. But the 50-day is considered to be more important because it's the first marker of an up or down trend.

Shares of IVR have been moving higher over the past four weeks, up 9.4%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that IVR could be poised for a continued surge.

The bullish case only gets stronger once investors take into account IVR's positive earnings estimate revisions. There have been 1 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on IVR for more gains in the near future.

, /PRNewswire/ -- Invesco Mortgage Capital Inc. (NYSE: IVR) (the "Company") today announced financial results for the quarter ended March 31, 2026.

Net loss per common share of $0.28 compared to net income of $0.68 in Q4 2025 Earnings available for distribution per common share(1) of $0.55 compared to $0.56 in Q4 2025 Monthly common stock dividends totaling $0.36 per share compared to quarterly dividend of $0.36 in Q4 2025 Book value per common share(2) of $8.08 compared to $8.72 as of December 31, 2025 Economic return(3) of (3.2)% compared to 8.0% in Q4 2025 Debt-to-equity ratio of 6.1x compared to 7.0x as of December 31, 2025 Economic debt-to-equity ratio(1) of 7.5x compared to 7.0x as of December 31, 2025 Update from Kevin Collins, Incoming Chief Executive Officer

"During the first quarter of 2026, we operated in a more challenging market environment following the strong recovery in Agency MBS valuations experienced in the second half of 2025. Financial conditions deteriorated as rising geopolitical tensions, higher energy prices and renewed inflation concerns drove increased interest rate volatility and pushed U.S. Treasury yields higher across the curve. These dynamics weighed on risk assets broadly and resulted in higher coupon Agency RMBS underperformance relative to Treasuries. Although our Agency CMBS investments performed well during the quarter, the benefit was outweighed by increased Agency RMBS risk premiums and notable swap spread tightening. Book value declined by 7.3% to $8.08 at quarter end, and when combined with our monthly dividends, resulted in an economic return of (3.2)% for the quarter.

"Our economic debt-to-equity ratio increased to 7.5x as of quarter end, up from 7.0x as of December 31, 2025, reflecting the decline in our book value per common share and a more constructive outlook on Agency RMBS as we enter the second quarter. At quarter end, our $7.3 billion investment portfolio consisted of $5.2 billion Agency RMBS, $1.2 billion Agency TBA, and $0.9 billion Agency CMBS, and we maintained a sizable balance of unrestricted cash and unencumbered investments totaling $493.1 million.

"Risk sentiment has improved entering the second quarter, supported by a decline in interest rate volatility. A further de‑escalation of the Middle East conflict would likely provide additional support for risk assets. From a supply‑and‑demand perspective, Agency RMBS net issuance is expected to remain manageable, the GSEs continue to provide steady demand and bank participation is likely to increase, supported in part by recent Basel capital framework proposals that improve the relative capital efficiency of high-quality mortgage assets. Together, these macro and technical factors create a more constructive backdrop for our Agency RMBS holdings, particularly as wider spread levels relative to the prior quarter offer more attractive entry points. In addition, despite elevated supply, our Agency CMBS continues to offer attractive risk‑adjusted yields and diversification benefits, given its stable cash flow profile and lower sensitivity to interest rate fluctuations."

(1) Earnings available for distribution (and by calculation, earnings available for distribution per common share) and economic debt-to-equity ratio are non-Generally Accepted Accounting Principles ("GAAP") financial measures. Refer to the section entitled "Non-GAAP Financial Measures" for important disclosures and a reconciliation to the most comparable U.S. GAAP measures.

(2) Book value per common share as of March 31, 2026 and December 31, 2025 is calculated as total stockholders' equity less the liquidation preference of the Company's Series C Preferred Stock ($169.7 million as of March 31, 2026 and $171.4 million as of December 31, 2025), divided by total common shares outstanding.

(3) Economic return for the quarter ended March 31, 2026 is defined as the change in book value per common share from December 31, 2025 to March 31, 2026 of ($0.64); plus dividends declared of $0.36 per common share; divided by the December 31, 2025 book value per common share of $8.72. Economic return for the quarter ended December 31, 2025 is defined as the change in book value per common share from September 30, 2025 to December 31, 2025 of $0.31; plus dividends declared of $0.36 per common share; divided by the September 30, 2025 book value per common share of $8.41.

Key performance indicators for the quarters ended March 31, 2026 and December 31, 2025 are summarized in the table below.

$ in millions, except share amounts

Q1 2026

Q4 2025

Variance

Average Balances (1)

(unaudited)

(unaudited)

Average earning assets (at amortized cost)

$5,946.5

$5,868.9

$77.6

Average borrowings

$5,367.5

$5,393.7

($26.2)

Average total stockholders' equity

$887.5

$793.0

$94.5

U.S. GAAP Financial Measures

Total interest income

$79.6

$77.9

$1.7

Total interest expense

$52.6

$56.6

($4.0)

Net interest income

$27.0

$21.3

$5.7

Total expenses

$4.9

$4.6

$0.3

Net income (loss) attributable to common stockholders

($23.1)

$48.2

($71.3)

Average earning asset yields

5.36 %

5.31 %

0.05 %

Average cost of funds

3.92 %

4.20 %

(0.28) %

Average net interest rate margin

1.44 %

1.11 %

0.33 %

Period-end weighted average asset yields (2)

5.34 %

5.37 %

(0.03) %

Period-end weighted average cost of funds

3.80 %

4.04 %

(0.24) %

Period-end weighted average net interest rate margin

1.54 %

1.33 %

0.21 %

Book value per common share (3)

$8.08

$8.72

($0.64)

Earnings (loss) per common share (basic)

($0.28)

$0.68

($0.96)

Earnings (loss) per common share (diluted)

($0.28)

$0.68

($0.96)

Debt-to-equity ratio

          6.1x  

          7.0x  

         (0.9x) 

Non-GAAP Financial Measures (4)

Earnings available for distribution

$44.7

$39.9

$4.8

Effective interest expense

$31.0

$30.2

$0.8

Effective net interest income

$48.6

$47.7

$0.9

Effective cost of funds

2.31 %

2.24 %

0.07 %

Effective interest rate margin

3.05 %

3.07 %

(0.02) %

Earnings available for distribution per common share

$0.55

$0.56

($0.01)

Economic debt-to-equity ratio

          7.5x  

          7.0x  

          0.5x  

(1) Average earning assets, average borrowings and average total stockholders' equity are calculated based on the weighted month-end balances of mortgage-backed securities at amortized cost, repurchase agreement borrowings and total U.S. GAAP stockholders' equity, respectively.

(2) Period-end weighted average asset yields are based on amortized cost as of period-end and incorporate future prepayment assumptions when appropriate.

(3) Book value per common share is calculated as total stockholders' equity less the liquidation preference of the Company's Series C Preferred Stock ($169.7 million as of March 31, 2026 and $171.4 million as of December 31, 2025), divided by total common shares outstanding.

(4) Earnings available for distribution (and by calculation, earnings available for distribution per common share), effective interest expense (and by calculation, effective cost of funds), effective net interest income (and by calculation, effective interest rate margin), and economic debt-to-equity ratio are non-GAAP financial measures. Refer to the section entitled "Non-GAAP Financial Measures" for important disclosures and a reconciliation to the most comparable U.S. GAAP measures of net income (loss) attributable to common stockholders (and by calculation, basic earnings (loss) per common share), total interest expense (and by calculation, cost of funds), net interest income (and by calculation, net interest rate margin) and debt-to-equity ratio.

Portfolio Composition

The following table summarizes certain characteristics of the Company's investment portfolio including TBAs as of March 31, 2026 and December 31, 2025.

As of

March 31, 2026

December 31, 2025

$ in thousands

Fair Value

Percentage
of Portfolio

Period-end
Weighted
Average
Yield

Fair Value

Percentage of
Portfolio

Period-end
Weighted
Average
Yield

Agency RMBS:

30 year fixed-rate pass-through coupon:

4.5 %

757,581

10.4 %

4.89 %

785,584

12.5 %

4.89 %

5.0 %

1,434,765

19.8 %

5.20 %

1,486,801

23.7 %

5.20 %

5.5 %

1,704,437

23.5 %

5.49 %

1,534,654

24.5 %

5.51 %

6.0 %

1,198,042

16.5 %

5.93 %

1,283,242

20.4 %

5.93 %

6.5 %

—

— %

— %

218,879

3.5 %

6.14 %

Total 30 year fixed-rate pass-through

5,094,825

70.2 %

5.42 %

5,309,160

84.6 %

5.46 %

Agency CMO

67,113

1.0 %

8.89 %

69,320

1.1 %

9.18 %

Agency CMBS

864,270

11.9 %

4.61 %

898,129

14.3 %

4.62 %

Total MBS portfolio

6,026,208

83.1 %

5.34 %

6,276,609

100.0 %

5.37 %

TBAs, at implied market value (1)

1,226,450

16.9 %

—

— %

Total investment portfolio including TBAs

7,252,658

100.0 %

6,276,609

100.0 %

(1) The presentation of TBAs in the table above represents management's view of the investment portfolio and does not reflect how the Company records TBAs on its condensed consolidated balance sheets under U.S. GAAP. Under U.S. GAAP, the Company records TBAs that it does not intend to settle on the contractual settlement date as derivative financial instruments. The Company values TBAs on its condensed consolidated balance sheets at net carrying value, which represents the difference between implied market value and implied cost basis of the TBAs.

The following table summarizes certain characteristics of the Company's borrowings as of March 31, 2026 and December 31, 2025.

As of

$ in thousands

March 31, 2026

December 31, 2025

Amount
Outstanding

Weighted
Average
Interest Rate

Weighted
Average
Remaining
Maturity (days)

Amount
Outstanding

Weighted
Average
Interest Rate

Weighted
 Average
Remaining
Maturity (days)

Repurchase agreements -
Agency RMBS

4,510,019

3.80 %

31

4,758,568

4.04 %

24

Repurchase agreements -
Agency CMBS

829,354

3.80 %

25

860,687

4.04 %

20

Total borrowings

5,339,373

3.80 %

30

5,619,255

4.04 %

23

The following tables summarize certain characteristics of the Company's interest rate swaps whereby the Company pays fixed interest rates and receives floating interest rates based on the secured overnight financing rate as of March 31, 2026 and December 31, 2025.

$ in thousands

As of March 31, 2026

Maturities

Notional

Amount

Weighted
Average Fixed
Pay Rate

Weighted
Average Floating
Receive Rate

Weighted
Average Years to
Maturity

Less than 3 years

1,675,000

0.86 %

3.68 %

1.7

3 to 5 years

950,000

0.54 %

3.68 %

4.3

5 to 7 years

545,000

3.66 %

3.68 %

6.8

7 to 10 years

495,000

3.99 %

3.68 %

9.3

Greater than 10 years

450,000

2.04 %

3.68 %

18.7

Total

4,115,000

1.66 %

3.68 %

5.8

$ in thousands

As of December 31, 2025

Maturities

Notional

Amount

Weighted
Average Fixed
Pay Rate

Weighted
Average Floating
Receive Rate

Weighted
Average Years to
Maturity

Less than 3 years

2,155,000

1.21 %

3.87 %

1.4

3 to 5 years

950,000

0.54 %

3.87 %

4.6

7 to 10 years

305,000

4.12 %

3.87 %

9.1

Greater than 10 years

410,000

1.83 %

3.87 %

17.9

Total

3,820,000

1.34 %

3.87 %

4.6

The following table summarizes certain characteristics of the Company's U.S. Treasury futures contracts as of March 31, 2026 and December 31, 2025.

As of

March 31, 2026

December 31, 2025

$ in thousands

Notional Amount - Short

Notional Amount - Short

10 year U.S. Treasury futures

310,000

420,000

Ultra 10 year U.S. Treasury futures

375,000

455,000

30 year U.S. Treasury futures

305,000

215,000

Total

990,000

1,090,000

Capital Activities

Dividends

During the three months ended March 31, 2026, the Company declared monthly common stock dividends totaling $0.36 per share and a Series C Preferred Stock dividend of $0.46875 per share.

Issuances of Common Stock

During the three months ended March 31, 2026, the Company issued 15,694,589 shares of common stock for net cash proceeds of $133.6 million through its at-the-market program.

Repurchases of Preferred Stock

During the three months ended March 31, 2026, the Company repurchased and retired 64,688 shares of Series C Preferred Stock with a carrying value of $1.6 million.

About Invesco Mortgage Capital Inc.

The Company is a real estate investment trust that primarily focuses on investing in, financing and managing mortgage-backed securities and other mortgage-related assets. The Company is externally managed and advised by Invesco Advisers, Inc., a registered investment adviser and an indirect wholly-owned subsidiary of Invesco Ltd., an independent global investment management firm.

Earnings Call

Members of the investment community and the general public are invited to listen to the Company's earnings conference call on Friday, May 1, 2026, at 9:00 a.m. ET, by calling one of the following numbers:

North America Toll Free:

888-982-7409

International:

1-212-287-1625

Passcode:

Invesco

An audio replay will be available until 5:00 pm ET on May 15, 2026 by calling:

866-363-1806 (North America) or 1-203-369-0194 (International)

The presentation slides that will be reviewed during the call will be available on the Company's website at www.invescomortgagecapital.com.

Cautionary Notice Regarding Forward-Looking Statements

This press release, the related presentation and comments made in the associated conference call, may include statements and information that constitute "forward-looking statements" within the meaning of the U.S. securities laws as defined in the Private Securities Litigation Reform Act of 1995, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements include our views on the risk positioning of our portfolio, domestic and global market conditions (including the Agency RMBS, Agency CMBS and residential and commercial real estate markets), the market for our target assets, our financial performance, including our earnings available for distribution, economic return, comprehensive income and changes in our book value, our intention and ability to pay dividends, our ability to continue performance trends, the stability of portfolio yields, interest rates, spreads, prepayment trends, financing sources, cost of funds, our leverage, liquidity, capital structure and equity allocation. In addition, words such as "believes," "expects," "anticipates," "intends," "plans," "estimates," "projects," "forecasts," and future or conditional verbs such as "will," "may," "could," "should," and "would" as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements.

Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. There can be no assurance that actual results will not differ materially from our expectations. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks identified under the captions "Risk Factors," "Forward-Looking Statements" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our annual report on Form 10-K and quarterly reports on Form 10-Q, which are available on the Securities and Exchange Commission's website at www.sec.gov.

All written or oral forward-looking statements that we make, or that are attributable to us, are expressly qualified by this cautionary notice. We expressly disclaim any obligation to update the information in any public disclosure if any forward-looking statement later turns out to be inaccurate.

INVESCO MORTGAGE CAPITAL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

Three Months Ended

$ in thousands, except share data

March 31,
2026

December 31,
2025

March 31,
2025

Interest income

79,641

77,901

73,846

Interest expense

52,593

56,643

55,025

Net interest income

27,048

21,258

18,821

Other income (loss)

Gain (loss) on investments, net

(54,940)

22,914

82,158

Gain (loss) on derivative instruments, net

12,879

11,887

(76,679)

Total other income (loss)

(42,061)

34,801

5,479

Expenses

Management fee – related party

2,974

2,806

2,996

General and administrative

1,917

1,759

1,663

Total expenses

4,891

4,565

4,659

Net income (loss)

(19,904)

51,494

19,641

Dividends to preferred stockholders

(3,190)

(3,221)

(3,341)

Gain (loss) on repurchase and retirement of preferred stock

(27)

(30)

(11)

Net income (loss) attributable to common stockholders

(23,121)

48,243

16,289

Other comprehensive income (loss)

Unrealized gain (loss) on mortgage-backed securities, net

—

—

500

Reclassification of unrealized (gain) loss on sale of mortgage-backed securities to gain (loss)
on investments, net

—

—

116

Total other comprehensive income (loss)

—

—

616

Comprehensive income (loss) attributable to common stockholders

(23,121)

48,243

16,905

Earnings (loss) per share

Net income (loss) attributable to common stockholders

Basic

(0.28)

0.68

0.26

Diluted

(0.28)

0.68

0.26

INVESCO MORTGAGE CAPITAL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

As of

$ in thousands, except share amounts

March 31, 2026

December 31, 2025

ASSETS

Mortgage-backed securities, at fair value (including pledged securities of $5,585,665 and
$5,879,318, respectively)

6,026,208

6,276,609

Cash and cash equivalents

52,598

56,040

Restricted cash

138,323

110,391

Due from counterparties

25,749

—

Investment related receivable

26,804

27,848

Derivative assets, at fair value

1,119

4,412

Other assets

399

594

Total assets

6,271,200

6,475,894

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Repurchase agreements

5,339,373

5,619,255

Derivative liabilities, at fair value

28,730

—

Dividends payable

10,490

25,845

Investment related payable

6

—

Accrued interest payable

10,738

28,664

Collateral held payable

14

—

Accounts payable and accrued expenses

1,789

1,580

Due to affiliate

3,706

3,006

Total liabilities

5,394,846

5,678,350

Stockholders' equity:

Preferred Stock, par value $0.01 per share; 50,000,000 shares authorized:

7.50% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock: 6,789,443 and
6,854,131 shares issued and outstanding, respectively ($169,736 and $171,353 aggregate
liquidation preference, respectively)

164,191

165,756

Common Stock, par value $0.01 per share; 134,000,000 shares authorized; 87,485,972 and
71,790,532 shares issued and outstanding, respectively

875

718

Additional paid in capital

4,343,365

4,209,977

Retained earnings (distributions in excess of earnings)

(3,632,077)

(3,578,907)

Total stockholders' equity

876,354

797,544

Total liabilities and stockholders' equity

6,271,200

6,475,894

Non-GAAP Financial Measures

The table below shows the non-GAAP financial measures the Company uses to analyze its operating results and the most directly comparable U.S. GAAP measures. The Company believes these non-GAAP measures are useful to investors in assessing its performance as discussed further below.

Non-GAAP Financial Measure

Most Directly Comparable U.S. GAAP Measure

Earnings available for distribution (and by calculation,
earnings available for distribution per common share)

Net income (loss) attributable to common stockholders (and
by calculation, basic earnings (loss) per common share)

Effective interest expense (and by calculation, effective cost
of funds)

Total interest expense (and by calculation, cost of funds)

Effective net interest income (and by calculation, effective
interest rate margin)

Net interest income (and by calculation, net interest rate
margin)

Economic debt-to-equity ratio

Debt-to-equity ratio

The non-GAAP financial measures used by the Company's management should be analyzed in conjunction with U.S. GAAP financial measures and should not be considered substitutes for U.S. GAAP financial measures. In addition, the non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures of its peer companies.

Earnings Available for Distribution

The Company's business objective is to provide attractive risk-adjusted returns to its stockholders, primarily through dividends and secondarily through capital appreciation. The Company uses earnings available for distribution as a measure of its investment portfolio's ability to generate income for distribution to common stockholders and to evaluate its progress toward meeting this objective. The Company calculates earnings available for distribution as U.S. GAAP net income (loss) attributable to common stockholders adjusted for (gain) loss on investments, net; realized (gain) loss on derivative instruments, net; unrealized (gain) loss on derivative instruments, net; TBA dollar roll income and (gain) loss on repurchase and retirement of preferred stock. The Company may add and has added additional reconciling items to its earnings available for distribution calculation as appropriate.

By excluding the gains and losses discussed above, the Company believes the presentation of earnings available for distribution provides a consistent measure of operating performance that investors can use to evaluate its results over multiple reporting periods and, to a certain extent, compare to its peer companies. However, because not all of the Company's peer companies use identical operating performance measures, the Company's presentation of earnings available for distribution may not be comparable to other similarly titled measures used by its peer companies. The Company excludes the impact of gains and losses when calculating earnings available for distribution because when analyzed in conjunction with its U.S. GAAP results, earnings available for distribution provides additional detail of its investment portfolio's earnings capacity. In addition, certain gains and losses represent one-time events.

Furthermore, gains and losses have not been accounted for consistently under U.S. GAAP. Under U.S. GAAP, certain gains and losses may be reflected in net income whereas other gains and losses may be reflected in other comprehensive income. For example, a portion of the Company's mortgage-backed securities were historically classified as available-for-sale securities, and changes in the valuation of these securities were recorded in other comprehensive income on its condensed consolidated balance sheets. The Company elected the fair value option for its mortgage-backed securities purchased on or after September 1, 2016, and changes in the valuation of these securities are recorded in other income (loss) in the condensed consolidated statements of comprehensive income (loss).

To maintain qualification as a REIT, U.S. federal income tax law generally requires that the Company distribute at least 90% of its REIT taxable income annually. Because the Company views earnings available for distribution as a consistent measure of its investment portfolio's ability to generate income for distribution to common stockholders, earnings available for distribution is one metric, but not the exclusive metric, that is used to determine the amount, if any, of dividends on common stock. However, earnings available for distribution should not be considered as an indication of the Company's taxable income, a guaranty of its ability to pay dividends or as a proxy for the amount of dividends it may pay, as earnings available for distribution excludes certain items that impact its cash needs.

Earnings available for distribution is an incomplete measure of the Company's financial performance and there are other factors that impact the achievement of the Company's business objective. The Company cautions that earnings available for distribution should not be considered as an alternative to net income (determined in accordance with U.S. GAAP), or as an indication of the Company's cash flow from operating activities (determined in accordance with U.S. GAAP), a measure of the Company's liquidity, or as an indication of amounts available to fund its cash needs.

The table below provides a reconciliation of U.S. GAAP net income (loss) attributable to common stockholders to earnings available for distribution for the following periods.

Three Months Ended

$ in thousands, except per share data

March 31,
2026

December 31,
2025

March 31,
2025

Net income (loss) attributable to common stockholders

(23,121)

48,243

16,289

Adjustments:

(Gain) loss on investments, net

54,940

(22,914)

(82,158)

Realized (gain) loss on derivative instruments, net (1)

(23,324)

18,863

101,516

Unrealized (gain) loss on derivative instruments, net (1)

32,023

(4,354)

3,242

TBA dollar roll income (2)

4,166

—

1,147

(Gain) loss on repurchase and retirement of preferred stock

27

30

11

Subtotal

67,832

(8,375)

23,758

Earnings available for distribution

44,711

39,868

40,047

Basic income (loss) per common share

(0.28)

0.68

0.26

Earnings available for distribution per common share (3)

0.55

0.56

0.64

(1)

U.S. GAAP gain (loss) on derivative instruments, net on the condensed consolidated statements of comprehensive income (loss) includes the following components.

Three Months Ended

$ in thousands

March 31,
2026

December 31,
2025

March 31,
2025

Realized gain (loss) on derivative instruments, net

23,324

(18,863)

(101,516)

Unrealized gain (loss) on derivative instruments, net

(32,023)

4,354

(3,242)

Contractual net interest income (expense) on interest rate swaps

21,578

26,396

28,079

Gain (loss) on derivative instruments, net

12,879

11,887

(76,679)

(2)

A TBA dollar roll is a series of derivative transactions where TBAs with the same specified issuer, term and coupon but different settlement dates are simultaneously bought and sold. The TBA settling in the later month typically prices at a discount to the TBA settling in the earlier month. TBA dollar roll income represents the price differential between the TBA price for current month settlement compared to the TBA price for forward month settlement. The Company includes TBA dollar roll income in earnings available for distribution because it is the economic equivalent of interest income on the underlying Agency RMBS, less an implied financing cost, over the forward settlement period. TBA dollar roll income is a component of gain (loss) on derivative instruments, net on the Company's condensed consolidated statements of comprehensive income (loss).

(3)

Earnings available for distribution per common share is equal to earnings available for distribution divided by the basic weighted average number of common shares outstanding.

The table below presents the components of earnings available for distribution for the following periods.

Three Months Ended

$ in thousands

March 31,
2026

December 31,
2025

March 31,
2025

Effective net interest income (1)

48,626

47,654

46,900

TBA dollar roll income

4,166

—

1,147

Total expenses

(4,891)

(4,565)

(4,659)

Subtotal

47,901

43,089

43,388

Dividends to preferred stockholders

(3,190)

(3,221)

(3,341)

Earnings available for distribution

44,711

39,868

40,047

(1)

See below for a reconciliation of net interest income to effective net interest income, a non-GAAP measure.

Effective Interest Expense/Effective Cost of Funds/Effective Net Interest Income/Effective Interest Rate Margin

The Company calculates effective interest expense (and by calculation, effective cost of funds) as U.S. GAAP total interest expense adjusted for contractual net interest income (expense) on its interest rate swaps that is recorded as gain (loss) on derivative instruments, net. The Company views its interest rate swaps as an economic hedge against increases in future market interest rates on its borrowings. The Company adds back the net payments or receipts on its interest rate swap agreements to its total U.S. GAAP interest expense because the Company uses interest rate swaps to add stability to interest expense.

The Company calculates effective net interest income (and by calculation, effective interest rate margin) as U.S. GAAP net interest income adjusted for contractual net interest income (expense) on its interest rate swaps that is recorded as gain (loss) on derivative instruments, net.

The Company believes the presentation of effective interest expense, effective cost of funds, effective net interest income and effective interest rate margin measures, when considered together with U.S. GAAP financial measures, provides information that is useful to investors in understanding the Company's borrowing costs and operating performance.

The following table reconciles total interest expense to effective interest expense and cost of funds to effective cost of funds for the following periods.

Three Months Ended

March 31, 2026

December 31, 2025

March 31, 2025

$ in thousands

Reconciliation

Cost of Funds
/ Effective
Cost of Funds

Reconciliation

Cost of Funds
/ Effective
Cost of Funds

Reconciliation

Cost of Funds
/ Effective
Cost of Funds

Total interest expense

52,593

3.92 %

56,643

4.20 %

55,025

4.46 %

Less: Contractual net interest expense
(income) on interest rate swaps
  recorded as gain (loss) on
  derivative instruments, net

(21,578)

(1.61) %

(26,396)

(1.96) %

(28,079)

(2.28) %

Effective interest expense

31,015

2.31 %

30,247

2.24 %

26,946

2.18 %

The following table reconciles net interest income to effective net interest income and net interest rate margin to effective interest rate margin for the following periods.

Three Months Ended

March 31, 2026

December 31, 2025

March 31, 2025

$ in thousands

Reconciliation

Net Interest
Rate Margin /
Effective
Interest Rate
Margin

Reconciliation

Net Interest
Rate Margin /
Effective
Interest Rate
Margin

Reconciliation

Net Interest
Rate Margin /
Effective
Interest Rate
Margin

Net interest income

27,048

1.44 %

21,258

1.11 %

18,821

0.99 %

Add: Contractual net interest income
  (expense) on interest rate swaps
  recorded as gain (loss) on
derivative instruments, net

21,578

1.61 %

26,396

1.96 %

28,079

2.28 %

Effective net interest income

48,626

3.05 %

47,654

3.07 %

46,900

3.27 %

Economic Debt-to-Equity Ratio

The following table shows the Company's debt-to-equity ratio and the Company's economic debt-to-equity ratio as of March 31, 2026 and December 31, 2025. The Company's debt-to-equity ratio is calculated in accordance with U.S. GAAP and is the ratio of total debt to total stockholders' equity.

The Company presents an economic debt-to-equity ratio, a non-GAAP financial measure of leverage that considers the impact of the off-balance sheet financing of its investments in TBAs that are accounted for as derivative instruments under U.S. GAAP. The Company includes these types of TBAs at implied cost basis in its measure of leverage because a forward contract to acquire Agency RMBS in the TBA market carries similar risks to Agency RMBS purchased in the cash market and funded with on-balance sheet liabilities. Similarly, a contract for the forward sale of Agency RMBS has substantially the same effect as selling the underlying Agency RMBS and reducing the Company's on-balance sheet funding commitments. The Company believes that presenting its economic debt-to-equity ratio, when considered together with its U.S. GAAP financial measure of debt-to-equity ratio, provides information that is useful to investors in understanding how management evaluates at-risk leverage and gives investors a comparable statistic to those of other mortgage REITs who also invest in TBAs and present a similar non-GAAP measure of leverage.

As of

$ in thousands

March 31,
2026

December 31,
2025

Repurchase agreements

5,339,373

5,619,255

Total stockholders' equity

876,354

797,544

Debt-to-equity ratio (1)

6.1

7.0

Economic debt-to-equity ratio (2)

7.5

7.0

(1)

Debt-to-equity ratio is calculated as the ratio of total repurchase agreements to total stockholders' equity.

(2)

Economic debt-to-equity ratio is calculated as the ratio of total repurchase agreements and TBAs at implied cost basis ($1.2 billion as of March 31, 2026; none as of December 31, 2025) to total stockholders' equity.

Average Balances

The table below presents information related to the Company's average earning assets, average earning asset yields, average borrowings and average cost of funds for the following periods.

Three Months Ended

$ in thousands

March 31,
2026

December 31,
2025

March 31,
2025

Average earning assets (1)

5,946,466

5,868,897

5,422,552

Average earning asset yields (2)

5.36 %

5.31 %

5.45 %

Average borrowings (3)

5,367,463

5,393,719

4,930,237

Average cost of funds (4)

3.92 %

4.20 %

4.46 %

(1)

Average balances for each period are based on weighted month-end balances. Average earning assets do not include TBAs that are treated as derivative instruments under U.S. GAAP.

(2)

Average earning asset yields for each period are calculated by dividing interest income, including amortization of premiums and discounts, by average earning assets based on the amortized cost of the investments. All yields are annualized.

(3)

Average borrowings for each period are based on weighted month-end balances. Average borrowings do not include the off-balance sheet financing component of TBAs that are treated as derivative instruments under U.S. GAAP.

(4)

Average cost of funds is calculated by dividing annualized interest expense by average borrowings.

Greg Seals,
Investor Relations
404-439-3323

SOURCE Invesco Mortgage Capital Inc.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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One company value investors might notice is Invesco Mortgage Capital (IVR - Free Report) . IVR is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 3.7. This compares to its industry's average Forward P/E of 8.05. Over the last 12 months, IVR's Forward P/E has been as high as 4.12 and as low as 2.63, with a median of 3.41.

We should also highlight that IVR has a P/B ratio of 0.9. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.98. Within the past 52 weeks, IVR's P/B has been as high as 0.99 and as low as 0.70, with a median of 0.88.

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Value investors will likely look at more than just these metrics, but the above data helps show that Invesco Mortgage Capital is likely undervalued currently. And when considering the strength of its earnings outlook, IVR sticks out as one of the market's strongest value stocks.

In the latest trading session, Invesco Mortgage Capital (IVR - Free Report) closed at $7.96, marking a +2.18% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.26%. Elsewhere, the Dow saw an upswing of 0.17%, while the tech-heavy Nasdaq depreciated by 0.97%.

Shares of the real estate investment trust have depreciated by 4.88% over the course of the past month, underperforming the Finance sector's gain of 0.29%, and the S&P 500's gain of 0.23%.

Investors will be eagerly watching for the performance of Invesco Mortgage Capital in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.47, indicating a 18.97% decline compared to the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.01 per share and a revenue of $0 million, representing changes of -14.47% and 0%, respectively, from the prior year.

Any recent changes to analyst estimates for Invesco Mortgage Capital should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

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In the context of valuation, Invesco Mortgage Capital is at present trading with a Forward P/E ratio of 3.88. This signifies a discount in comparison to the average Forward P/E of 8.49 for its industry.

The REIT and Equity Trust industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 214, positioning it in the bottom 13% of all 250+ industries.

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