ARR Q3 FY26 earnings call: key takeaways

• ARR reported a GAAP net loss of $2.26 per share, which was in line with expectations, and the company remains constructive on the agency MBS market despite recent volatility. (1:05)

Results vs expectations

EPS basis: Provider EPS (EODHD), not yet checked against the SEC

The stock moved -0.9% over the report window (S&P 500 ETF -1.2%). Earnings history

What changed since last quarter

• The company raised its target leverage range as it sees opportunities in wider mortgage spreads. (16:40)
• ARR plans to reinvest proceeds from asset sales into moderate discount priced MBS with higher returns. (12:00)
• The CFO stated that the company is positioned to take advantage of market conditions with a focus on liquidity and managing duration. (19:15)

What analysts pressed on

• How the company plans to balance share repurchases with adding leverage. (21:17)
• Whether increased housing policy could impact prepayment environments. (17:36)
• Concerns about the depth of repo markets going into the end of the year. (23:39)

In their words

• We set our dividend at a level we consider appropriate for the medium term. (9:59)
• We are comfortable with that level. In the near term, there could be bouts of volatility... (16:40)
• We do have dry powder to add leverage as warranted when we have a greater clarity. (16:40)
• We are the dovish side of the markets. (28:22)