Bimini Capital Management, Inc.

Reported Q2 2026 advisory service revenue, including TJIM, was approximately $6.8 million, up from $3.8 million in Q2 2025 and $5.1 million in Q1 2026. Orchid Island Capital’s economic return was 6.2% for the quarter, share count rose about 1.5%, average equity base increased about 5.7% sequentially, and management fee revenue increased 3.4%. Bimini’s portfolio market value was $37.9 million at June 30, 2026 versus $120.8 million at June 30, 2025. Management said a large tax accrual for the six-month period included $1.1 million driven by updated NOL utilization estimates and year-to-date usage, and it also referenced about $1.5 million of transaction costs and several hundred thousand dollars of mark-to-market. Forward-lookingly, management expects the company to remain profitable and cash flow positive, may begin paying down trust preferred debt with available cash, and is focused on using remaining NOLs before they expire.

Robert Cauley framed the quarter as one defined by volatility in rates, geopolitics, and risk assets, but said the business still benefited from strong market conditions overall. He stressed that the TJIM acquisition is transformational because it broadens Bimini beyond Agency RMBS and should make earnings more consistent as the firm approaches the end of its NOL runway. His tone was candid and strategic: he emphasized that the company is not yet at the point of broader structural changes, but that it is preparing for a post-NOL balance sheet and business model.

No separate CFO spoke; Robert Cauley covered the financial commentary. He said the TJIM transaction was completed as an all-cash deal using available cash and a partial portfolio sale, with no debt incurred. He also highlighted that the company remains profitable and cash flow positive year-to-date, may use available cash to pay down trust preferred debt, and that the portfolio’s market value declined to $37.9 million from $120.8 million a year earlier after funding the acquisition. On taxes, he explained that the six-month tax accrual was inflated by a reevaluation of NOL utilization under GAAP, including $1.1 million tied to year-to-date usage and future utilization estimates, plus about $1.5 million of transaction costs and mark-to-market impacts.

An analyst pressed management on whether the Orchid advisory agreement should be monetized before NOLs expire, arguing it could unlock value and reduce tax drag. Cauley said selling or internalizing the agreement would create operational and conflict issues because Bimini’s management also runs the business, and he preferred to keep operating it as a going concern. The analyst also asked about buybacks, tenders, and a possible reverse split; management said it is not ruling anything out, has continued buybacks, but finds it hard to attract sellers and noted prior tender outcomes were mixed. Richard Parry answered that TJIM’s AUM growth is driven partly by market performance on the direct side and largely by consultant-driven asset allocation on the platform side.