Cherry Hill Mortgage Investment Corporation (NYSE:CHMI) reported its fourth-quarter 2025 financial results, delivering a performance that exceeded analyst expectations on key profitability metrics. The real estate finance company, which invests in residential mortgage-backed securities (RMBS) and mortgage servicing rights (MSRs), saw its shares move higher in after-hours trading following the announcement.
Earnings and Revenue Versus Estimates
The company’s reported results for Q4 2025 came in ahead of Wall Street forecasts. The primary focus for mortgage REIT investors is often on Earnings Available for Distribution (EAD), a non-GAAP metric that aims to reflect the company's recurring earnings power by excluding certain unrealized gains and losses.
- Earnings Per Share (EAD): Cherry Hill reported EAD attributable to common stockholders of $0.11 per diluted share. This surpassed the analyst consensus estimate of $0.1071.
- Revenue (Net Interest Income): The company reported net interest income of $3.2 million for the quarter. This figure significantly exceeded the revenue estimate of approximately $2.45 million.
This double beat on the top and bottom lines is a positive signal regarding the company's core operating performance during the quarter.
Market Reaction
The immediate market reaction to the earnings release was positive. Following the announcement, CHMI's stock price increased by approximately 2.94% in after-market trading. This suggests investors were encouraged by the earnings beat and the details within the report. Prior to the release, the stock had seen modest declines over the past month, making the positive post-earnings move a notable shift in near-term sentiment.
Key Highlights from the Quarter
Beyond the headline numbers, the earnings release outlined several important financial and operational milestones for the quarter ending December 31, 2025:
- GAAP Profitability: The company reported GAAP net income applicable to common stockholders of $5.3 million, or $0.14 per share, a substantial increase from $1.96 million in the prior quarter.
- Book Value Growth: Common book value per share increased to $3.44, which management highlighted as a continued positive trend.
- Dividend Maintenance: Cherry Hill declared a regular quarterly common dividend of $0.10 per share. Based on the stock price at the time of the declaration, this represents an annualized yield of 15.4%.
- Portfolio Performance: The diversified portfolio of RMBS and MSRs performed in what CEO Jay Lown described as a "dynamic market environment." The RMBS portfolio maintained a net interest spread of 2.52%.
- Leverage and Liquidity: Aggregate portfolio leverage stood at 5.4x debt-to-equity, and the company held unrestricted cash of $54.9 million at quarter-end.
Looking Ahead
While the press release did not provide specific forward-looking financial guidance, it did express management's commitment to "growing our portfolio and delivering attractive risk-adjusted returns for our shareholders." Analysts currently estimate the company will generate EAD of approximately $0.1173 per share on revenue of about $2.35 million for the first quarter of 2026.
For a detailed look at historical earnings, future analyst estimates, and consensus projections, you can review the dedicated earnings data for CHMI.
Disclaimer: This article is for informational purposes only and is not intended as investment advice. The analysis is based on publicly available data and earnings materials. Investors should conduct their own research and consider their individual financial circumstances before making any investment decisions.
