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IVR

Invesco Mortgage Capital Inc.

IVR

Invesco Mortgage Capital Inc. • NYSE
$8.20 ▲ 0.86% (+0.07)
Market Cap $527.48 M
52w High $9.06
52w Low $5.86
Dividend Yield 1.42%
P/E 17.08
Volume 816.11K
Outstanding Shares 64.33M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $57.936M ▲ $1.803M ▼ $53.469M ▲ 92.29% ▲ $0.16 ▲ $108.773M ▲
Q2-2025 $53.474M ▲ $2.041M ▲ $-23.27M ▼ -43.516% ▼ $-0.4 ▼ $29.741M ▼
Q1-2025 $24.3M ▲ $1.663M ▲ $19.641M ▲ 80.827% ▲ $0.26 ▲ $74.842M ▲
Q4-2024 $8.523M ▼ $1.252M ▼ $3.506M ▼ 41.136% ▼ $-0.09 ▼ $-244.274M ▼
Q3-2024 $45.333M $45.333M $40.72M 89.824% $0.63 $107.193M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $58.539M ▼ $5.961B ▲ $5.191B ▲ $769.581M ▲
Q2-2025 $190.542M ▲ $5.4B ▼ $4.691B ▼ $709.376M ▼
Q1-2025 $42.894M ▼ $6.159B ▲ $5.4B ▲ $759.166M ▲
Q4-2024 $73.403M ▲ $5.688B ▼ $4.957B ▼ $730.729M ▼
Q3-2024 $48.254M $6.082B $5.225B $857.003M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $53.469M ▲ $37.296M ▼ $-564.009M ▼ $516.891M ▲ $-9.822M ▼ $37.296M ▼
Q2-2025 $-23.327M ▼ $40.634M ▲ $708.013M ▲ $-739.61M ▼ $9.037M ▲ $40.634M ▲
Q1-2025 $19.641M ▲ $19.346M ▼ $-516.499M ▼ $467.777M ▲ $-29.376M ▼ $19.346M ▼
Q4-2024 $3.506M ▼ $61.855M ▲ $401.358M ▲ $-420.785M ▼ $42.428M ▲ $61.855M ▲
Q3-2024 $40.72M $30.829M $-1.032B $986.018M $-14.989M $30.829M

Five-Year Company Overview

Income Statement

Income Statement Over the past five years, IVR’s income statement shows a story of heavy volatility gradually moving toward stabilization. Earlier in the period, the company reported sizable losses, reflecting stress from market swings in mortgage assets and hedging positions. Those losses eased over time, and the most recent year shows a small profit instead of a loss. Revenue and operating results are choppy and can even look odd in certain years because this type of REIT recognizes both interest income and changes in the market value of its mortgage holdings. That means reported earnings can swing sharply with interest rate moves, even if the underlying portfolio hasn’t changed much. The sign of progress is that operating and net results have turned modestly positive after several difficult years. The caution flag is that the path has not been smooth, and the business remains very sensitive to the interest rate environment and market volatility.

Balance Sheet

Balance Sheet IVR’s balance sheet is typical for a mortgage REIT: a relatively small equity base sitting on top of a large pool of interest‑earning assets funded mostly with debt. Over the past few years, total assets have come down materially, and debt levels have declined as well. This suggests the company has been shrinking or de‑risking its portfolio rather than aggressively growing it. Leverage is still high, but it is lower than it was at the start of the period, which can help reduce risk in turbulent markets. Equity has held roughly steady in recent years after earlier pressure, indicating some stabilization in book value after past damage. Cash balances are modest compared with overall assets, which is normal for this business model but does mean the company depends heavily on access to short‑term funding markets. Overall, the balance sheet looks leaner and somewhat safer than a few years ago, but still inherently exposed to funding and interest‑rate conditions.

Cash Flow

Cash Flow Despite the swings in reported earnings, IVR’s cash flow from operations has been consistently positive over the five‑year period and fairly steady in size. That reflects the nature of its business: it generates ongoing interest income in cash, while a lot of the earnings volatility comes from non‑cash changes in asset values and hedges. Because this is a financial company and not an industrial business, it has essentially no traditional capital spending. As a result, free cash flow looks similar to operating cash flow. This is a plus in terms of simplicity, but the absolute level of cash flow is not especially large relative to the size of the portfolio and debt load. In short, cash generation has been more stable than headline earnings would suggest, but it remains moderate and heavily tied to how wide or narrow the interest margin is between its assets and its borrowings.

Competitive Edge

Competitive Edge IVR operates in a crowded mortgage REIT space where many firms buy similar types of agency mortgage‑backed securities and use leverage to enhance returns. Its main competitive pillars are its affiliation with Invesco, its experienced management team, and its focus on agency mortgage securities that are guaranteed by U.S. government‑related entities. This focus on agency‑backed assets lowers credit risk compared with more speculative mortgage investments, which is a defensive strength. However, it does not fully differentiate IVR, because many peers pursue similar strategies in the same market. IVR’s use of interest rate swaps and other hedges to manage funding costs and interest rate risk is another key part of its positioning. Effective hedging can help protect its net interest spread when markets move abruptly. Still, the company remains highly exposed to macro factors like the shape of the yield curve, funding conditions, and the behavior of mortgage prepayments, so its competitive position is closely tied to execution quality rather than unique assets or brands.

Innovation and R&D

Innovation and R&D IVR does not rely on traditional “R&D” the way a technology or pharmaceutical company would. Instead, its innovation is mainly in investment process, data use, and risk modeling. The company emphasizes mortgage prepayment and valuation models, macro and sector analysis, and a disciplined committee‑driven process for portfolio decisions. These tools and processes can provide an edge in selecting securities, sizing positions, and timing hedges. Over time, even small analytical advantages can matter in a thin‑margin, highly leveraged business like mortgage REITs. That said, most of this innovation is incremental and not easily observable from the outside. It also may be replicable by other well‑resourced asset managers. The moat here is more about accumulated experience, judgment, and risk culture than about exclusive technology.

Summary

IVR’s recent financial picture shows a company that has come through a period of significant stress and is now in a more stable, but still delicate, position. Income has moved from deep losses to modest profits, but results remain highly sensitive to interest rate moves and changes in mortgage spreads. The balance sheet has been trimmed and leverage reduced from prior highs, which lowers risk but also suggests a more cautious stance and less aggressive growth. Cash flow from operations has been consistently positive, even when accounting profits were weak, underscoring that many of the reported swings are non‑cash in nature. Still, the overall level of cash generation is moderate relative to the scale of the balance sheet. Competitively, IVR leans on its expertise in agency mortgage securities, disciplined risk management, and use of hedging rather than on any distinct product or technology. Its strategy is defensive—focused on government‑backed mortgages and careful interest rate management—but remains heavily dependent on the broader interest rate and housing finance environment. Overall, the company appears to be in a phase of repair and cautious operation after earlier damage, with improved stability but ongoing exposure to market conditions that are largely outside its direct control.

NEWS

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