Armour Posts $327M Q3 Loss as Book Value Drops 17% to $14.55
ARR is trading near its 52-week low of $12.275 (4.9% above the low).
Summary
Armour's Q3 GAAP loss hit $327 million as MBS marks crushed book value to $14.55 from $17.53, though distributable earnings of $0.71 per share still roughly cover the $0.72 dividend.
Updates
· SEC 10-Q — Armour's 10-Q shows Q3 net interest income of $83.7 million and nine-month net loss of $263.8 million, with 148,415,420 common shares outstanding as of October 20, 2026.
Key Events · Earnings and Guidance · ARR
-
Q3 GAAP Loss of $327 Million
Net loss to common stockholders of $327.0 million, or $2.26 per share, versus $0.86 per share of income in Q2 2026.
-
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.
-
MBS Marks Drive the Loss
A $1,165.1 million loss on Agency MBS was partly offset by $515.1 million of interest rate swap gains and $311.7 million of futures gains.
-
Distributable Earnings Cover Dividend
Net interest income of $83.7 million produced Distributable Earnings of $102.3 million, or $0.71 per share, against a $0.72 quarterly dividend.
Analysis · ARR · Real Estate & Construction
The headline loss stems from a $1,165.1 million mark-to-market hit on the MBS portfolio as mortgage spreads widened late in the quarter, only partly offset by $515.1 million of swap gains and $311.7 million of futures gains. That left Armour with a Q3 GAAP loss of $327.0 million, or $2.26 per share. Book value per common share fell to $14.55 from $17.53 at June 30 — a 17% decline in one quarter — and total economic return was negative 12.9%. Yet the cash engine still works: net interest income rose to $83.7 million from $76.8 million, and Distributable Earnings of $0.71 per share essentially cover the $0.72 quarterly dividend. The real pressure is the gap between the $14.55 book value and the $12.88 share price, which reflects the market's skepticism that the 20.8% dividend yield is sustainable if book value keeps eroding. The company also kept feeding the ATM, issuing 12.4 million shares for $205.7 million in Q3 while buying back only 363,700 shares — net dilution into a falling book.
How filings like this one have moved
In the 30 days to Oct 22, 2026, 36.7% of the 1017 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.75%. 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.