Granite Point Mortgage Trust Inc. (NYSE:GPMT) reported its fourth-quarter and full-year 2025 financial results, delivering a mixed performance against analyst expectations. The commercial mortgage real estate investment trust (REIT) posted a narrower-than-expected loss per share, but its revenue fell short of forecasts, contributing to a negative after-market reaction.
Earnings and Revenue Versus Estimates
For the quarter ended December 31, 2025, Granite Point reported a distributable loss of $0.06 per share. This figure, which the company uses as a key non-GAAP performance metric, came in significantly better than the analyst consensus estimate for a loss of $0.1479 per share.
However, the company's top-line results missed the mark. Total revenue for the quarter was $7.47 million, falling short of the $10.42 million analysts had anticipated. This revenue miss appears to have tempered any positive sentiment from the narrower loss.
The market's immediate reaction reflected this dichotomy. Following the earnings release, GPMT's stock was down approximately 2.6% in after-hours trading, suggesting investors focused on the revenue shortfall and the broader challenges reflected in the report.
Key Highlights from the Q4 and Full-Year Report
The earnings release detailed a year of significant portfolio repositioning for Granite Point. Management highlighted 2025 as an "impactful year" with numerous loan resolutions and repayments, a trend that has continued into early 2026.
- Credit and Portfolio Management: The company recorded a substantial provision for credit losses of $14.4 million in Q4, contributing to a GAAP net loss. The total allowance for credit losses stood at $148.4 million, or 8.4% of the total loan portfolio. The weighted average risk rating of the loan portfolio was 2.9 on a scale where higher numbers indicate greater risk.
- Balance Sheet and Liquidity: Book value per common share was $7.29 at year-end. The company ended the quarter with $66.0 million in unrestricted cash and reduced its total leverage ratio to 2.0x from higher levels in prior periods.
- Positive Momentum in 2026: In a post-quarter update, management noted a strong start to 2026, including two full loan repayments totaling $174.3 million. They have also reduced the weighted average cost of funds on repurchase facilities and further lowered the total leverage ratio to approximately 1.7x. CEO Jack Taylor stated these actions are intended to "re-position our portfolio and allow us to reallocate capital in new originations later in the year."
Looking Ahead: Analyst Estimates for 2026
The company did not provide specific quantitative financial guidance for the coming year in its press release. However, current analyst estimates paint a cautious picture for Granite Point's near-term earnings power.
- For the first quarter of 2026, analysts expect a distributable loss of $0.207 per share on revenue of $10.9 million.
- For the full year 2026, the consensus estimate is for a loss of $0.697 per share on revenue of $45.6 million.
The management commentary about repositioning the portfolio and resuming new originations later in the year suggests a strategic shift, but the analyst projections indicate the path back to profitability may extend through the coming year.
Conclusion
Granite Point's Q4 2025 results underscore a company in the midst of a challenging workout cycle for its loan portfolio. While the narrower-than-expected per-share loss is a positive data point, the revenue miss and the continued high level of credit reserves highlight the ongoing pressure from a stressed commercial real estate debt environment. The market's negative after-hours reaction suggests investors are weighing the costs of this repositioning against the future benefits. The key for GPMT will be executing on its stated plan to resolve problem assets, strengthen its balance sheet, and eventually redeploy capital into new, higher-yielding investments.
For a detailed look at historical earnings and future analyst estimates for Granite Point Mortgage Trust, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
