Angel Oak Mortgage, Inc.

Second-quarter 2026 GAAP net income was $3.4 million, or $0.14 per diluted common share, versus $800,000, or $0.03, in Q2 2025. Distributable earnings were $9 million, up from $2.6 million a year earlier. Interest income was $41.4 million and net interest income was $10.7 million, compared with $35.1 million and $9.9 million in Q2 2025, respectively. Operating expenses were $3.6 million, or $3.2 million excluding non-cash stock compensation. As of quarter end, GAAP book value per share was $10.13 and economic book value was $12.24; both were down modestly from Q1 2026, by 1.7% and 0.3%, respectively. The company said it expects to continue roughly one securitization per quarter and noted that AOMT 2026-3 and AOMT 2026-HB1 were executed after quarter-end. It also declared a $0.32 per share common dividend payable August 28, 2026.

Sreeniwas Prabhu framed the quarter as one of disciplined execution in a still-uncertain macro backdrop. He emphasized value-driven capital deployment, balance sheet flexibility, and using securitization strategically rather than simply for volume. He pointed to portfolio-strengthening actions including monetizing legacy retained bonds, repurchasing stock at accretive levels, and reducing financing spread, while reiterating confidence in Angel Oak’s origination and securitization platform.

Brandon Filson said results were helped by healthy net interest income and steady operating expenses, offset by unrealized mark-to-market losses in the securitized loan and derivative portfolios. He cited $3.6 million of unrealized losses in the securitized and residential loan portfolios and $2.4 million of unrealized derivative loss, with liquidity at $48.6 million and recourse debt-to-equity at 2.3x at quarter end, falling to about 1x after the post-quarter securitizations. He also highlighted $204 million of loan purchases with a 7.34% weighted average coupon, a 70.5% weighted average CLTV, and a 759 weighted average credit score, plus stable credit performance with 90-day-plus delinquencies at about 2.8%.

Analysts focused on securitization cadence, HELOC strategy, spread compression, and credit trends. Management said HELOCs are expected to be a 10% to 15% allocation of overall originations, with AOMR remaining predominantly non-QM, and said the second HELOC securitization this year is likely. On securitizations, management kept its view of roughly four non-QM deals per year and said there is a decent chance of a second non-QM securitization in Q3, while noting the market remains constructive and that tighter spreads have not become meaningfully more volatile.