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Dynex Capital, Inc.

DX

Dynex Capital, Inc. • NYSE
$14.01 ▲ 0.57% (+0.08)
Market Cap $2.06 B
52w High $14.52
52w Low $10.79
Dividend Yield 1.98%
P/E 7.96
Volume 3.88M
Outstanding Shares 146.82M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $138.985M ▲ $0 ▼ $150.388M ▲ 108.204% ▼ $1.09 ▲ $150.388M ▲
Q2-2025 $-1.313M ▼ $11.913M ▲ $-13.606M ▼ 1.036K% ▲ $-0.14 ▼ $0
Q1-2025 $9.042M ▼ $11.764M ▲ $-3.076M ▼ -34.019% ▼ $-0.055 ▼ $0
Q4-2024 $60.332M ▲ $8.8M ▲ $51.086M ▲ 84.675% ▲ $0.61 ▲ $0
Q3-2024 $39.704M $8.271M $30.997M 78.07% $0.38 $0

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $823.807M ▲ $14.159B ▲ $12.201B ▲ $1.958B ▲
Q2-2025 $387.52M ▲ $11.311B ▲ $9.701B ▲ $1.61B ▲
Q1-2025 $327.447M ▼ $9.045B ▲ $7.649B ▲ $1.396B ▲
Q4-2024 $377.232M ▲ $8.185B ▲ $7B ▲ $1.185B ▲
Q3-2024 $268.296M $7.816B $6.674B $1.143B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $150.389M ▲ $68.275M ▲ $-3.288B ▼ $3.337B ▲ $117.97M ▲ $68.275M ▲
Q2-2025 $-13.606M ▼ $31.879M ▲ $-1.505B ▼ $1.591B ▲ $117.827M ▲ $31.879M ▲
Q1-2025 $-3.076M ▼ $6.363M ▼ $-908.356M ▼ $868.464M ▲ $-33.529M ▼ $6.363M ▼
Q4-2024 $51.086M ▲ $15.142M ▲ $31.904M ▲ $168.901M ▼ $215.947M ▲ $15.142M ▲
Q3-2024 $30.997M $-2.255M $-955.245M $953.829M $-17.836M $-2.255M

Five-Year Company Overview

Income Statement

Income Statement Dynex’s earnings profile over the past few years looks very cyclical and closely tied to the interest‑rate environment. Core operating performance has softened recently compared with earlier years, with a dip into slightly negative operating results before a partial recovery. At the same time, bottom‑line results have swung around more than operating income, suggesting that hedging gains and losses and other non‑core items have a big influence on reported profit. Earnings per share have been volatile, with a strong period earlier in the decade, a setback, and then a rebound that has not yet returned to prior highs. Overall, the income statement reflects a business that can be profitable over time but is exposed to sharp swings when rates and mortgage spreads move quickly.

Balance Sheet

Balance Sheet The balance sheet has expanded meaningfully, with the investment portfolio growing and being funded largely through higher borrowings. Shareholders’ equity has also grown, but at a slower pace than total assets, which implies higher financial leverage than in the past. Cash on hand has improved from the prior year but remains a relatively small portion of total assets, which is typical for a mortgage REIT that relies on repurchase agreements and other secured funding. The structure is consistent with the model of an agency-focused mREIT: asset‑heavy, debt‑funded, and sensitive to both funding costs and asset values. The key risk is that higher leverage can amplify both gains and losses when markets move.

Cash Flow

Cash Flow Cash generation from operations has been consistently positive, which is a constructive sign, but the cushion has gradually narrowed compared with earlier years. Because the business is financial in nature, traditional capital spending is minimal, so free cash flow essentially tracks operating cash flow. This means most cash generated can support dividends, funding needs, and portfolio repositioning rather than physical investment. The declining trend in operating cash flow, however, hints that the environment has become tougher and that sustaining past payout levels and balance‑sheet flexibility depends heavily on future market conditions and management’s hedging effectiveness.

Competitive Edge

Competitive Edge Dynex operates in a crowded mortgage REIT space where many players buy similar agency mortgage‑backed securities and use comparable funding tools. Its edge rests less on owning unique assets and more on how it manages risk and allocates capital. The firm emphasizes a global, macro‑driven lens, focusing on interest‑rate policy, housing finance conditions, and market sentiment to position its portfolio. Its concentration in highly liquid, government‑backed mortgage securities helps limit credit risk and allows quick repositioning, which can be an advantage in volatile periods. The flip side is that returns are heavily influenced by macro factors that also affect peers, so outperformance depends largely on superior rate calls, hedging, and discipline rather than structural barriers that lock out competitors.

Innovation and R&D

Innovation and R&D Innovation at Dynex is primarily intellectual and process‑driven rather than technological in the traditional research and development sense. The company highlights a systematic investment framework that blends fundamental analysis, market technicals, and investor psychology to judge risk and return in the mortgage market. Its risk management toolkit, especially the way it uses hedging instruments and scenario analysis around interest‑rate moves, is the main area where it seeks to differentiate itself. Continuous refinement of these models, along with flexible shifting between residential and commercial agency securities, functions as its “R&D.” The key question going forward is whether these methods can keep adapting fast enough to handle sharp changes in rate policy and liquidity, preserving book value while still capturing attractive spreads.

Summary

Overall, Dynex shows the typical strengths and vulnerabilities of a leveraged, agency‑focused mortgage REIT. Income has proven to be sensitive to market swings, with recent years showing more pressure and volatility than earlier in the period. The balance sheet has grown and become more leveraged, amplifying both the opportunity for higher returns and the risk of faster book‑value erosion in stressed markets. Cash flow remains positive but thinner than before, leaving less room for error if conditions stay challenging. The firm’s main differentiator is not unique assets but a disciplined, macro‑oriented investment and hedging approach supported by an experienced team. Future performance will depend heavily on how well management anticipates and navigates interest‑rate shifts, funding costs, and mortgage spread volatility, rather than on traditional product innovation or physical capital investment.

NEWS

November 10, 2025 · 4:01 PM UTC

Dynex Capital, Inc. Declares Monthly Common Stock Dividend of $0.17 Per Common Share for November 2025

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October 20, 2025 · 8:00 AM UTC

Dynex Capital, Inc. Announces Third Quarter 2025 Results

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October 13, 2025 · 4:01 PM UTC

Dynex Capital, Inc. Declares Monthly Common Stock Dividend of $0.17 Per Common Share for October 2025

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October 6, 2025 · 4:01 PM UTC

Dynex Capital, Inc. Schedules Third Quarter 2025 Earnings Release and Conference Call

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September 19, 2025 · 5:00 PM UTC

Dynex Capital, Inc. Announces Corrections to Previously Announced Dividends on Series C Preferred Stock

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