Book Value Drops 21.9% as Rate Volatility Drives $1.89 GAAP Loss
ADAM is trading near its 52-week low of $6.445 (14% above the low).
Summary
Adamas posted a GAAP basic loss of $1.89 per share for Q3 2026, driven by $471.9 million of unrealized losses on its Agency mortgage securities as rates rose and spreads widened. Book value per share fell 21.9% quarter-over-quarter to $7.93, and adjusted book value dropped 19.6% to $8.88 — the stock trades at $7.34, below stated book. The quarterly economic return was (19.00)%. The offsetting story is distributable earnings: EAD per share of $0.30 rose 25% year-over-year and fully covers the recently raised $0.30 dividend, while adjusted net interest income of $51.5 million rose 2.4% sequentially. Management says it cut TBA short positions by 76% after quarter-end, betting Agency spread tail risk is receding, and calls the mortgage repricing some of the most attractive buying in several quarters. This follows the $90 million 9.6% senior notes deal completed in August and the late-September shelf registration. The conference call is tomorrow, October 29, at 9:00 a.m. ET.
At the time of this announcement, ADAM was trading at $7.34 on NASDAQ in the Real Estate & Construction sector, with a market capitalization of approximately $699.3M. The 52-week trading range was $6.45 to $10.36. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.