AG Mortgage Investment Trust (NYSE:MITT) Q2 2025 Earnings Fall Short, Stock Declines in Pre-Market Trading

AG Mortgage Investment Trust (NYSE:MITT) reported its second-quarter 2025 results, with earnings and revenue falling short of analyst expectations. The market reaction has been negative, with the stock declining in pre-market trading.

Earnings and Revenue Miss Estimates

• Reported EPS: $0.18 per diluted share, below the consensus estimate of $0.2183.
• Reported Revenue: $17.75 million, missing the expected $21.22 million.
• Earnings Available for Distribution (EAD): $0.18 per share, a non-GAAP metric the company emphasizes as a key performance indicator.

The shortfall in both earnings and revenue appears to be driving the pre-market decline of approximately 0.79%, reflecting investor disappointment. Over the past month, the stock has already seen a downward trend, slipping 2.95%, which suggests broader concerns ahead of this earnings release.

Key Takeaways from the Earnings Report

1. Dividend Increase: The company raised its quarterly common dividend by 5% to $0.21 per share, signaling confidence in cash flow despite the earnings miss.
2. Book Value Decline: Book value per share decreased by 2.4% to $10.39, with a quarterly economic return on equity of -0.5%.
3. Strategic Acquisition: MITT increased its stake in Arc Home, a mortgage originator, from 44.6% to 66%, expecting the deal to be accretive to earnings in 2026.
4. Portfolio and Liquidity:
   • $7.3 billion investment portfolio.
   • Net interest margin of 0.6%, including a minor benefit from interest rate swaps.
   • Total liquidity of $89.7 million.

Market Reaction and Outlook

The immediate market reaction suggests skepticism about the company’s near-term profitability, particularly given the EPS and revenue miss. While management highlighted the dividend hike and the strategic expansion into Arc Home as long-term positives, investors may be concerned about the declining book value and tight net interest margins.

Analysts had projected Q3 2025 revenue of $21.85 million and EPS of $0.2295, along with full-year revenue estimates of $84.9 million. MITT’s performance in Q2 does not bode well for meeting these targets unless the Arc Home acquisition delivers faster-than-expected earnings accretion.

Conclusion

AG Mortgage Investment Trust’s latest earnings reflect challenges in profitability, though management is pushing forward with strategic investments to bolster future earnings. The dividend increase may provide some support, but the market’s reaction indicates concerns over execution and interest margin pressures.

For more detailed earnings estimates and historical performance, see MITT’s earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research before making any financial decisions.