Two Harbors Q2 2026: Net Income Swings to $62M as Merger Nears Close
TWO sits 38% above its 52-week low of $8.78 on light trading volume (0.1× avg).
Summary
Two Harbors reported Q2 2026 net income of $62.2M, a sharp turnaround from a $259.0M loss in Q2 2025, as the prior year's litigation charge did not recur. The $12.00/share CCM merger was approved by shareholders and is expected to close on August 3, 2026.
Key Events · Earnings and Guidance · TWO
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Net Income Swings to $62.2M
Q2 2026 net income was $62.2M, compared to a $259.0M loss in Q2 2025. The prior year included a $199.9M litigation accrual that did not recur.
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Book Value Declines to $10.68/Share
Book value per common share fell to $10.68 from $11.13 at year-end 2025, driven by MSR portfolio runoff and dividends.
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Merger Approved, Closing August 3
Shareholders approved the $12.00/share all-cash merger with CrossCountry Mortgage on July 2, 2026. The deal is expected to close August 3, 2026.
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Balance Sheet Shrinks, Leverage Falls
Total assets declined to $8.83B from $10.86B at year-end, and the debt-to-equity ratio dropped to 3.8:1.0 from 4.8:1.0, reflecting portfolio runoff and deleveraging.
Analysis · TWO · Real Estate & Construction
A sharp swing to a $62.2M net profit in Q2 2026 from a $259.0M loss a year ago was largely driven by the absence of a $199.9M litigation charge that weighed on the prior period. The core servicing business generated $125.9M in net servicing income, yet the MSR portfolio continued to shrink, and book value per share slipped to $10.68. With shareholders approving the pending $12.00/share all-cash merger with CrossCountry Mortgage on July 2 and a close expected August 3, this is likely the last quarterly report before the company goes private.
How filings like this one have moved
In the 30 days to Oct 2, 2026, 29.6% of the 1645 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.57%. 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, TWO was trading at $12.11 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $1.3B. The 52-week trading range was $8.78 to $14.17. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.