Eagle Point Income Company Inc.

For Q2 2026, Eagle Point Income reported NAV of $12.52 per share, up 4% from $11.99 at March 31. GAAP net income was $20 million, or $0.84 per share, versus a GAAP net loss of $0.95 per share in Q1 2026 and GAAP net income of $0.49 per share in Q2 2025. NII was $0.37 per share; NII less realized losses was negative $0.29 per share, compared with $0.34 per share in Q1 2026 and $0.39 per share in Q2 2025. Recurring cash flows totaled $12 million, or $0.52 per share, and the company paid $0.33 per share in cash distributions during the quarter. As of July month-end, management estimated NAV at $12.30 to $12.40 per share, with midpoint down 1% from June month-end. Forward, the company declared monthly common distributions of $0.11 per share for the remainder of 2026 and said it expects leverage to rise over time as it continues issuing Series AA and AB preferred stock; cash available for investment and other purposes was over $53 million net of pending transactions and settlement at July month-end.

Tom Majewski characterized the quarter as strong and emphasized that the NAV rebound reflected a market recovery in loan prices and CLO valuations rather than a broad credit deterioration. He said the portfolio repositioning, CLO resets/refinancings, and early par repayments on discounted CLO debt investments improved long-term earnings power and risk-adjusted returns. He also highlighted the company’s broader platform, citing differentiated opportunities like the Sports Illustrated Tickets transaction and calling the Series AA preferred a competitive advantage.

Lena Umnova focused on the earnings bridge and capital structure. She said NII was $0.37 per share, NII less realized losses was negative $0.29 per share, and GAAP net income was $20 million or $0.84 per share, with recurring cash flows of $12 million or $0.52 per share exceeding common distributions and expenses. She also noted preferred equity was 12% of total assets less current liabilities, below the 25% to 35% target range, and said the company had over $53 million of cash and revolver capacity available at July month-end.

Analysts pressed on declining recurring cash distributions, share repurchases, leverage, and the growth in CLO trading volume. Management said lower cash flows were mainly due to CLO equity spread compression in 2025 and some quarter-to-quarter timing effects from semiannual paying bonds, while CLO debt income should rise if base rates increase. On buybacks, Tom said the team is balancing the stock’s discount against liquidity and daily volume; on leverage, Dan said the company retired expensive 8% preferreds earlier this year and expects to continue issuing 6% Series AA and AB preferreds over several quarters, with the revolver still undrawn.