Orchid Island Capital reversed losses with Q2 earnings of $0.44 per share and improved book value amid higher hedge coverage.
Orchid Island Capital reported Q2 2026 earnings of $0.44 per share, swinging from a $0.11 loss in Q1. Book value increased to $7.22 per share from $7.08, while total return rose to 6.2% from -1.3% in the prior quarter.
The company expanded hedge coverage to 91% of repo funding, up from 72% last quarter, as it added swaps to mitigate interest-rate risks. The average investment portfolio grew to $11.4 billion from $11 billion, though management noted post-quarter book value declines and rising leverage.
Orchid Island paid a $0.30 dividend, down from $0.36 in Q1, reflecting sensitivity to funding costs and mortgage-market volatility.