Orchid Island Capital (ORC) Reports $72.1M Net Income in Q3 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 27 2025
0mins
Source: Yahoo Finance
- Quarterly Performance Growth: Orchid Island Capital reported a net income of $72.1 million in Q3 2025, a substantial increase from $17.3 million in the same period last year, demonstrating the company's enhanced profitability under stable market conditions.
- Strengthened Capital Base: The company continues to build its capital base entirely through common equity, achieving net interest income and total return potential above historical norms in Agency RMBS investments, further solidifying its market position.
- Stable Leverage Levels: Despite improving market return prospects, Orchid's leverage remains stable at approximately 7.4x, with management indicating room to increase leverage if market conditions become more favorable, thereby enhancing investment returns.
- Cautious Investment Selection: Even with rising prepayments as rates declined, Orchid was still able to identify attractive investment opportunities, with management attributing success to careful security selection and risk management strategies that ensure ongoing investment returns.
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Analyst Views on ORC
Wall Street analysts forecast ORC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ORC is 7.50 USD with a low forecast of 7.50 USD and a high forecast of 7.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 8.320
Low
7.50
Averages
7.50
High
7.50
Current: 8.320
Low
7.50
Averages
7.50
High
7.50
About ORC
Orchid Island Capital, Inc. is a specialty finance company that invests in residential mortgage-backed securities (RMBS). The Company's investment portfolio consists of two categories of Agency RMBS: traditional pass-through Agency RMBS, such as mortgage pass-through certificates and collateralized mortgage obligations issued by the government-sponsored enterprise, and structured Agency RMBS, such as interest only securities, inverse interest only securities and principal only securities, among other types of structured Agency RMBS. Its business objective is to provide attractive risk-adjusted total returns to its investors over the long term through a combination of capital appreciation and the payment of regular monthly distributions. The Company intends to achieve this objective by investing in and strategically allocating capital between pass-through Agency RMBS and structured Agency RMBS. The Company is externally managed by Bimini Advisors, LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Orchid Island Capital to Announce Q4 Earnings on January 29
- Earnings Announcement Schedule: Orchid Island Capital is set to release its Q4 earnings report on January 29 after market close, with consensus EPS estimates at $0.18 and revenue expectations at $35.74 million, indicating market interest in the company's financial performance.
- Dividend Declaration: The company has declared a dividend of $0.12 per share, reflecting its ability to maintain cash flow and shareholder returns in the current market environment, aimed at bolstering investor confidence.
- Historical Performance Review: Historical earnings data shows significant volatility in Orchid Island Capital's performance, prompting investors to closely monitor its future profitability and market risks for more informed investment decisions.
- Market Rating Dynamics: Seeking Alpha's Quant Rating on Orchid Island Capital provides an in-depth analysis of the company's financial health, assisting investors in evaluating its investment value and potential risks.
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Orchid Island Capital Reports Blockbuster Q4 Earnings
- Earnings Surprise: Orchid Island Capital reported a GAAP EPS of $0.62 for Q4, significantly surpassing the analyst estimate of $0.20, and up from $0.53 in Q3 and $0.07 in the same quarter last year, indicating a remarkable improvement in profitability.
- Net Interest Income Surge: The company achieved net interest income of $38.5M in Q4, exceeding the Visible Alpha consensus of $35.7M, and rising from $26.9M in the previous quarter and $8.14M year-over-year, reflecting strong performance in a favorable interest rate environment.
- Significant Capital Gains: Orchid reported net realized and unrealized gains of $70.7M, or $0.43 per share, on RMBS and derivatives, an increase from $60.6M or $0.37 per share in Q3, showcasing the strong performance of its investment portfolio.
- Enhanced Shareholder Returns: As of December 31, 2025, the book value per common share rose to $7.54 from $7.33 on September 30, 2025, with a total return of 7.8%, up from 6.7% in the prior quarter, demonstrating the company's improved ability to return value to shareholders.
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