- Angel Oak Mortgage, Inc. Q1 2026 Earnings Call Summary
May 5, 2026
Angel Oak Mortgage, Inc. Q1 2026 Earnings Call Summary - Moby
Strategic Execution and Performance Drivers
Achieved a consecutive quarter of net interest income expansion, driven by contributions from newly added assets and a sustained focus on cost control. Completed the AOMT 2026-2 securitization in early March, strategically timing the market to secure favorable pricing before geopolitical tensions in the Middle East increased risk appetite volatility. Reported a GAAP net loss primarily due to unrealized valuation changes in the loan portfolio, which management attributes to temporary spread widening and rate increases rather than credit deterioration. Maintained a high-quality credit profile with a weighted average credit score of 759 and a conservative 67% loan-to-value ratio on first-quarter loan purchases. Attributed the 24% year-over-year growth in interest income to targeted asset purchases and a growing net interest margin supported by consistent securitization market access. Emphasized that the platform's differentiated credit performance, characterized by proactive credit spectrum migration, is expected to result in lower losses than peers across the full credit cycle.
Strategic Outlook and Guidance Assumptions
Maintains a target of executing approximately four securitizations per year, or roughly one per quarter, to maintain a methodical and repeatable capital markets strategy. Expects prepay speeds to remain stable or tick upward only if mortgage rates fall meaningfully, as the majority of the current portfolio carries coupons below newly originated rates. Anticipates maintaining current operating expense levels, focusing on efficiency while managing professional fees associated with loan diligence and asset growth. Models long-term return on equity (ROE) expectations in the mid-teens for non-QM and low 20s for HELOCs, though current market volatility has temporarily compressed these to the low teens. Projects that book value has already begun to recover slightly post-quarter end due to continued accretive asset purchases and incremental earnings generation.
Risk Factors and Structural Dynamics
Identified a 50 basis point increase in 90+ day delinquencies from Q4 2025 to 2.7%, though management noted this remains materially flat year-over-year and reflects strong collateral performance. Noted that whole loan pricing decreased by approximately 1 point in Q1, reflecting the direct impact of wider spreads and higher treasury base rates on portfolio valuations. Highlighted a $1.7 million increase in professional service fees, partially driven by expensing costs related to the ATM program during a period where no shares were issued. Flagged that the decision to call legacy 2021 and 2022 securitizations is currently on hold pending a reduction in rate market volatility to ensure the actions are accretive.
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Q&A Session Highlights
HELOC pipeline development and securitization pacing
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Management confirmed they are currently building the HELOC pipeline and intend to co-mingle assets with other Angel Oak entities for a securitization in the coming months. The projected pace remains steady at approximately two HELOC securitizations per year.
Impact of prepayment speeds on retained tranches
Management explained a natural hedging effect where increased speeds decrease the value of interest-only (IO) bonds but increase the valuation of junior unrated equity pieces as they are paid off sooner. The 2024 vintage is seeing higher speeds due to higher initial coupons, which was expected as rates began to moderate.
Current market ROE and securitization spreads
Current ROEs for new deals are trending in the high 12% to lower teens range due to increased treasuries and spreads, down from mid-teens in the prior quarter. AAA spreads are currently estimated between 135 and 145 basis points depending on timing and specific collateral.
Strategic criteria for calling legacy securitizations
The decision to call '21 and '22 deals depends on funding costs, leverage levels, and current market volatility. Management requires a "cessation or dramatic reduction" in rate volatility before committing to these calls to ensure they are accretive to the firm.
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- Angel Oak Mortgage (AOMR) Q1 Earnings and Revenues Miss Estimates
May 5, 2026
Angel Oak Mortgage (AOMR) came out with quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.3 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -40.00%. A quarter ago, it was expected that this real estate finance company would post earnings of $0.28 per share when it actually produced earnings of $0.29, delivering a surprise of +3.57%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Angel Oak, which belongs to the Zacks REIT and Equity Trust industry, posted revenues of $40.69 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 2.18%. This compares to year-ago revenues of $32.87 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Angel Oak shares have added about 4.9% since the beginning of the year versus the S&P 500's gain of 5.2%.
What's Next for Angel Oak?
While Angel Oak has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Angel Oak was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.33 on $42.6 million in revenues for the coming quarter and $1.29 on $170.9 million in revenues for the current fiscal year.
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Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust is currently in the bottom 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Starwood Property Trust (STWD), another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 8.
This commercial real estate investment trust is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of -4.4%. The consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level.
Starwood Property Trust's revenues are expected to be $478 million, up 14.3% from the year-ago quarter.
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This article originally published on Zacks Investment Research (zacks.com).
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- Angel Oak Mortgage (AOMR) Q1 Earnings and Revenues Miss Estimates
May 5, 2026 · zacks.com
Angel Oak Mortgage (AOMR) came out with quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.3 per share. This compares to earnings of $0.17 per share a year ago.
- Angel Oak Mortgage REIT, Inc. Reports First Quarter 2026 Financial Results
May 5, 2026 · businesswire.com
ATLANTA--(BUSINESS WIRE)--Angel Oak Mortgage REIT, Inc. (NYSE: AOMR) (the “Company,” “we,” and “our”), a leading real estate finance company focused on acquiring and investing in first and second lien non-QM loans and other mortgage-related assets in the U.S. mortgage market, today reported financial results for the quarter ended March 31, 2026. First Quarter 2026 Highlights Q1 2026 GAAP net loss of $(7.4) million, or $(0.30) per diluted share of common stock. Q1 2026 net interest income of $12.
- ANGEL OAK MORTGAGE REIT, INC. REPORTS FIRST QUARTER 2026 FINANCIAL RESULTS
May 5, 2026
ATLANTA--(BUSINESS WIRE)--ANGEL OAK MORTGAGE REIT, INC. (NYSE: AOMR) (THE “COMPANY,” “WE,” AND “OUR”), A LEADING REAL ESTATE FINANCE COMPANY FOCUSED ON ACQUIRING AND INVESTING IN FIRST AND SECOND LIEN NON-QM LOANS AND OTHER MORTGAGE-RELATED ASSETS IN THE U.S. MORTGAGE MARKET, TODAY REPORTED FINANCIAL RESULTS FOR THE QUARTER ENDED MARCH 31, 2026. FIRST QUARTER 2026 HIGHLIGHTS Q1 2026 GAAP NET LOSS OF $(7.4) MILLION, OR $(0.30) PER DILUTED SHARE OF COMMON STOCK. Q1 2026 NET INTEREST INCOME OF $12.
- TPG Mortgage Investment Trust (MITT) Q1 Earnings Top Estimates
Apr 29, 2026 · zacks.com
TPG Mortgage Investment Trust (MITT) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.2 per share a year ago.
- Angel Oak Mortgage REIT, Inc. Sets Date for First Quarter 2026 Earnings Release and Conference Call
Apr 21, 2026 · businesswire.com
ATLANTA--(BUSINESS WIRE)--Angel Oak Mortgage REIT, Inc. (NYSE: AOMR) (the “Company,” “we,” and “our”), a leading real estate finance company focused on acquiring and investing in first lien non-QM loans and other mortgage-related assets in the U.S. mortgage market, announced today that the Company will release its first quarter 2026 financial results before the market opens on Tuesday, May 5, 2026. A conference call will be held that day at 8:30 a.m. Eastern Time. Webcast: A webcast of the conf.
- ANGEL OAK MORTGAGE REIT, INC. SETS DATE FOR FIRST QUARTER 2026 EARNINGS RELEASE AND CONFERENCE CALL
Apr 21, 2026
ATLANTA--(BUSINESS WIRE)--ANGEL OAK MORTGAGE REIT, INC. (NYSE: AOMR) (THE “COMPANY,” “WE,” AND “OUR”), A LEADING REAL ESTATE FINANCE COMPANY FOCUSED ON ACQUIRING AND INVESTING IN FIRST LIEN NON-QM LOANS AND OTHER MORTGAGE-RELATED ASSETS IN THE U.S. MORTGAGE MARKET, ANNOUNCED TODAY THAT THE COMPANY WILL RELEASE ITS FIRST QUARTER 2026 FINANCIAL RESULTS BEFORE THE MARKET OPENS ON TUESDAY, MAY 5, 2026. A CONFERENCE CALL WILL BE HELD THAT DAY AT 8:30 A.M. EASTERN TIME. WEBCAST: A WEBCAST OF THE CONF.
- Angel Oak Mortgage REIT Upgraded As Its Loan Book Grows And Delinquency Drops
Apr 20, 2026 · seekingalpha.com
Angel Oak Mortgage REIT is upgraded from Hold to Buy, supported by robust non-QM loan demand and overall portfolio growth trends. AOMR demonstrates leading revenue CAGR (+42.5%) and RoCE (+17.3%) among peers, with strong earnings efficiency and a positive consensus EPS growth outlook. Despite a high dividend yield, AOMR's elevated payout ratio (217%) and lack of dividend growth warrant caution, though positive EPS estimates could support a sustainability case.
- Dividend Power: 6 Ideal Buys In April
Apr 8, 2026 · seekingalpha.com
I spotlight 35 low-priced Dividend Power 'dogs' with robust yields and reasonable valuations, emphasizing six 'safer' picks where free cash flow covers dividends. Analyst forecasts project 41.67% to 96.55% net gains for the top ten Dividend Power stocks by April 2027, with an average estimated return of 59.49%. All 35 Dividend Power stocks show annual dividends from $1,000 invested exceeding their single share prices, underscoring attractive yield-to-price dynamics.
