Ellington Financial Q2 Adjusted EPS Beats by 30% on Longbridge Surge
EFC sits 18% above its 52-week low of $11.275.
Summary
Ellington Financial delivered a strong Q2 beat, with adjusted EPS of $0.60 trouncing the $0.46 consensus and adjusted net income of $75.5M well above the $55.5M estimate. The outperformance was driven by the Longbridge reverse mortgage segment, where higher origination volumes and securitization gains boosted results. Net interest margin came in at 3.36%, and credit losses remained low across both residential and commercial portfolios. This follows a series of rising book value estimates through June, signaling sustained portfolio strength. The stock trades at just 7x forward earnings, leaving room for multiple expansion if momentum continues.
Updates
· SEC 8-K — Book value per common share was $13.61 as of June 30, 2026, up from $13.56 at March 31, 2026. Recourse debt-to-equity ratio was 1.9:1, and total unencumbered assets were $1.86 billion.
At the time of this announcement, EFC was trading at $13.32 on NYSE in the Finance sector, with a market capitalization of approximately $1.6B. The 52-week trading range was $11.28 to $14.12. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.