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ARR-PC

ARMOUR Residential REIT, Inc.

ARR-PC

ARMOUR Residential REIT, Inc. • NYSE
$21.15 ▼ -0.42% (-0.09)
Market Cap $1.43 B
52w High $22.75
52w Low $19.27
Dividend Yield 1.75%
P/E -13.7
Volume 36.73K
Outstanding Shares 67.50M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $160.832M ▼ $160.832M ▲ $159.259M ▲ 99.022% ▲ $1.5 ▲ $0 ▼
Q2-2025 $194.544M ▲ $10.298M ▼ $-75.608M ▼ -38.864% ▼ $-0.94 ▼ $72.173M ▼
Q1-2025 $177.014M ▲ $13.142M ▲ $27.332M ▲ 15.441% ▼ $0.32 ▲ $164.493M ▲
Q4-2024 $-222.461M ▼ $-45.156M ▼ $-46.44M ▼ 20.876% ▼ $-0.95 ▼ $-1.993M ▼
Q3-2024 $66.406M $66.406M $65.88M 99.208% $1.22 $0

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $44.238M ▼ $19.357B ▲ $17.228B ▲ $2.129B ▲
Q2-2025 $141.166M ▲ $16.241B ▲ $14.581B ▲ $1.66B ▼
Q1-2025 $49.115M ▼ $15.497B ▲ $13.793B ▲ $1.704B ▲
Q4-2024 $67.97M ▲ $13.548B ▲ $12.187B ▲ $1.361B ▲
Q3-2024 $63.855M $13.404B $12.088B $1.317B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $159.259M ▲ $-37.805M ▼ $-3.62B ▼ $3.544B ▲ $-114.032M ▼ $-37.805M ▼
Q2-2025 $-75.608M ▼ $24.964M ▼ $-216.223M ▲ $350.322M ▼ $159.063M ▲ $24.964M ▼
Q1-2025 $27.332M ▲ $101.482M ▲ $-2.09B ▼ $2.106B ▲ $117.306M ▲ $101.482M ▲
Q4-2024 $-46.44M ▼ $90.442M ▲ $-737.311M ▲ $594.951M ▼ $-51.918M ▼ $90.442M ▲
Q3-2024 $65.88M $47.123M $-3.264B $3.226B $9.196M $47.123M

Five-Year Company Overview

Income Statement

Income Statement Earnings for ARMOUR Residential REIT have been quite volatile over the past several years. The company swung between gains and losses, with especially weak results during more turbulent interest‑rate periods. More recently, core operating performance looks somewhat firmer, but bottom‑line profit is still slightly negative. This pattern is typical for mortgage REITs that are heavily exposed to interest‑rate moves and mark‑to‑market swings: accounting earnings can look poor even when underlying interest income is relatively stable. Overall, profitability has improved from the worst years but remains fragile and highly sensitive to market conditions.

Balance Sheet

Balance Sheet The balance sheet shows a classic leveraged mortgage REIT profile: a relatively small equity base supporting a much larger pool of mortgage assets funded mainly with debt. Over time, the asset base has grown, and shareholder equity has inched up as well, suggesting the company has been able to expand its portfolio despite past losses. Cash on hand is modest, which is normal for this model but means the firm relies on continuous access to short‑term financing. The key risk here is leverage: it can amplify returns in stable markets but also magnifies the impact of interest‑rate shocks or funding stress.

Cash Flow

Cash Flow Despite the choppy earnings picture, cash generation from operations has generally been positive and has strengthened over the past few years after a weak period early on. Because the business is financial in nature, it has essentially no traditional capital spending, so most operating cash flow is available for dividends, debt costs, and portfolio adjustments. This contrast—negative or thin accounting profits alongside solid cash flow—is common for mortgage REITs and reflects heavy non‑cash valuation swings in the income statement. Still, sustained cash flow depends on maintaining funding access and managing interest‑rate risk well.

Competitive Edge

Competitive Edge ARMOUR competes in a crowded mortgage REIT space where products are largely similar and true moats are limited. Its main edge comes from management experience and a focused strategy in agency mortgage‑backed securities, which carry very low credit risk but high interest‑rate sensitivity. Relying on an external manager gives it access to specialized portfolio and hedging expertise, but also introduces fee costs and some dependence on that advisor’s skill. Within its niche, ARMOUR is viewed as competent and relatively well‑positioned, but its performance will naturally track the broader health and volatility of the agency MBS market.

Innovation and R&D

Innovation and R&D Innovation for ARMOUR is about financial engineering and risk management, not traditional research and development. The company’s “R&D” is essentially the analytical models, trading strategies, and hedging tools used by its external manager to navigate shifting interest‑rate environments. Its focus on agency securities, active use of derivatives, and disciplined leverage are all strategic choices rather than technological breakthroughs. Future “innovation” will likely show up in how quickly and effectively it adjusts its portfolio mix, hedging stance, and capital structure as monetary policy and regulation evolve, rather than in new products or platforms.

Summary

ARMOUR Residential REIT is a specialized, highly leveraged income vehicle built around agency mortgage‑backed securities. The story is one of volatile reported earnings, gradually improving but still delicate profitability, and generally solid cash generation backed by a growing, debt‑funded asset base. Its prospects hinge far more on interest‑rate trends, funding conditions, and management’s hedging decisions than on traditional growth drivers. For holders of its preferred stock, the key themes to watch are leverage discipline, stability of cash flows, and the firm’s ability to navigate rate cycles without eroding its equity cushion or disrupting its dividend practices.