Dynex Capital Inc reported results for the second quarter ended June 30, 2026, with interest income of $302.8M and net income of $180.8M, driven by increased deployment into Agency RMBS and active hedging that helped stabilize book value compared with the year-ago quarter.

Financial Highlights

  • Revenue: $302.8M interest income for Q2 2026, versus $111.7M in Q2 2025 (170.9% YoY).
  • Net income: $180.8M for Q2 2026; net income (loss) to common shareholders $178.1M, versus $(13.6)M in Q2 2025.
  • Diluted EPS: $0.80 for Q2 2026, versus $(0.14) in Q2 2025.

Business Highlights

  • Portfolio deployment: Increased investments in Agency RMBS, adding over $10B net in 30‑year fixed MBS and opportunistically purchasing 4–5% coupons.
  • Liquidity and funding: Raised capital through ATM issuances and used proceeds to acquire Agency MBS to support portfolio growth and reinvestment.
  • Hedging and risk management: Actively hedged interest-rate exposure; hedges largely offset rate-driven valuation declines and helped stabilize book value.
  • Operational efficiency: Reduced quarterly operating expenses versus the prior quarter (no one‑time compensation) while monitoring liquidity, margins, and counterparty risk.

Original SEC Filing:

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