Chief Financial Officer Anthony Rossiello reported GAAP net income available to common shareholders of $8 million, or $0.25 per share, primarily driven by earnings available for distribution (EAD). Net interest income increased 4% sequentially due to ongoing capital rotation into higher-earning assets and a full-quarter benefit from legacy WMC debt refinancing, partially offset by transaction-related securitization expenses.

Chief Executive Officer T.J. Durkin noted book value per share rose from $10.46 to $10.48 in Q4 and remained approximately flat in January. The $0.25 EAD for the quarter covered the declared $0.23 dividend, and the full-year EAD of $0.86 covered $0.85 in dividends, resulting in a 2.4% economic return on equity.

The investment portfolio expanded 27% to $8.5 billion, driven by over $3 billion in loan purchases during 2025 and $4.2 billion in securitization transactions, including $2.4 billion of home-equity deals. Management maintained a conservative leverage profile at 1.6 turns, retaining $55 million of securities from recent home-equity issuances.

Arc Home returned to profitability in the second half of 2025 and contributed $0.02 per share to Q4 EAD, compared with a full-year loss in 2024. Early 2026 momentum included monthly earnings exceeding $1 million and record lock volumes up 34% year-over-year, supporting plans to rotate roughly $35 million of equity into higher-ROE residential credit strategies.