Armour 10-Q Details $327M Q3 Loss, Book Value Down 17% to $14.55
ARR is trading near its 52-week low of $12.275 (4.9% above the low).
Summary
Armour's Q3 10-Q confirms a $327M GAAP loss as MBS marks cut book value 17% to $14.55, while distributable earnings of $0.71 per share still roughly cover the $0.72 dividend. The portfolio's unrealized loss widened to $1.22B and leverage rose to 8.59:1.
Key Events · Earnings and Guidance · ARR
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Q3 GAAP Loss of $327 Million
Net loss to common stockholders of $327.0M, or $2.26 per share, versus $0.86 per share of income in Q2 2026, driven by a $1,165.1M loss on Agency MBS partly offset by $515.1M of swap gains and $311.7M of futures gains.
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Book Value Falls 17% to $14.55
Book value per common share dropped from $17.53 at June 30 and $18.63 at year-end 2025; total economic return was negative 12.9% for the quarter.
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Unrealized Portfolio Loss Widens to $1.22B
Gross unrealized loss on the securities portfolio grew to $1,222.9M at September 30 from $88.9M at December 31, 2025, with Agency MBS at $19.99B fair value against $21.19B amortized cost.
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Distributable Earnings Cover Dividend
Net interest income of $83.7M (net spread 1.10% vs 0.42% a year ago) produced Distributable Earnings of $102.3M, or $0.71 per share, against the $0.72 quarterly dividend.
Analysis · ARR · Real Estate & Construction
This morning's 8-K gave the headline; the 10-Q shows how bad the balance sheet damage is. Book value per common share fell to $14.55 from $17.53 at June 30 and $18.63 at year-end 2025 — a 17% quarterly decline and a negative 12.9% total economic return. Mark-to-market is the driver: a $1,165.1M loss on Agency MBS, partly offset by $515.1M of swap gains and $311.7M of futures gains, left a $327.0M net loss to common ($2.26 per share) versus $0.86 of income in Q2. The unrealized loss embedded in the portfolio widened to $1,222.9M from $88.9M at year-end, so further spread widening would hit book value again. Against that, the earnings engine still works: net interest income of $83.7M (net spread 1.10%, up from 0.42%) produced distributable earnings of $102.3M, or $0.71 per share, roughly covering the $0.72 dividend. Growth was funded through the ATM — 36.9M common shares for $639.7M net at a $17.34 average, well above today's $12.88 price — and leverage rose to 8.59:1 including TBA. Liquidity of $1,019.3M and 18.36M shares still available under the ATM mean no near-term funding crunch, but the dividend is now being paid largely out of spread income while book value absorbs the marks.
How filings like this one have moved
In the 30 days to Oct 21, 2026, 37.2% of the 984 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.83%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, ARR was trading at $12.88 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $1.8B. The 52-week trading range was $12.28 to $19.31. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.