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ORC

Orchid Island Capital, Inc.

ORC

Orchid Island Capital, Inc. • NYSE
$7.23 ▲ 0.84% (+0.06)
Market Cap $1.10 B
52w High $9.01
52w Low $5.69
Dividend Yield 1.44%
P/E 13.9
Volume 5.55M
Outstanding Shares 151.72M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $77.519M ▲ $77.519M ▲ $72.078M ▲ 92.981% ▼ $0.53 ▲ $0
Q2-2025 $-28.582M ▼ $-28.582M ▼ $-33.578M ▼ 117.48% ▲ $-0.29 ▼ $0
Q1-2025 $21.348M ▼ $21.348M ▲ $17.122M ▲ 80.204% ▲ $0.18 ▲ $0 ▼
Q4-2024 $66.884M ▲ $583K ▼ $5.545M ▼ 8.29% ▼ $0.07 ▼ $69.398M ▲
Q3-2024 $21.589M $21.589M $17.32M 80.226% $0.24 $0

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $583.96M ▲ $9.139B ▲ $8.053B ▲ $1.086B ▲
Q2-2025 $442.72M ▲ $7.611B ▲ $6.699B ▲ $911.96M ▲
Q1-2025 $401.351M ▲ $7.304B ▲ $6.448B ▲ $855.88M ▲
Q4-2024 $309.33M ▼ $5.722B ▼ $5.053B ▼ $668.5M ▲
Q3-2024 $322.105M $5.916B $5.26B $656.024M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2025 $-33.578M ▼ $18.443M ▼ $-291.235M ▲ $329.028M ▼ $56.236M ▼ $18.443M ▼
Q1-2025 $17.122M ▲ $25.779M ▲ $-1.527B ▼ $1.566B ▲ $65.039M ▲ $25.779M ▲
Q4-2024 $5.545M ▼ $17.514M ▲ $181.973M ▲ $-198.151M ▼ $1.336M ▼ $17.514M ▲
Q3-2024 $17.32M ▲ $-14.824M ▼ $-877.737M ▼ $969.267M ▲ $76.706M ▲ $-14.824M ▼
Q2-2024 $-4.979M $19.291M $-680.554M $714.654M $53.391M $19.291M

Five-Year Company Overview

Income Statement

Income Statement Orchid Island’s income statement shows a very volatile earnings pattern, which is common for mortgage REITs but still important to note. Revenue and gross profit are modest and move around quite a bit year to year, reflecting shifting interest rate conditions and changes in the value of its mortgage securities. Operating and EBITDA results have swung from meaningful losses a few years ago to solidly positive more recently, suggesting that management has navigated recent rate moves better than in the past. However, net income and earnings per share have been inconsistent, with a very weak year in the middle of this period and only a return to modest profitability in the latest year. In plain terms: the business model can generate good income in favorable markets, but the earnings profile is choppy and heavily exposed to interest rate and market value swings rather than to steady, fee-like income.

Balance Sheet

Balance Sheet The balance sheet is typical of a leveraged mortgage REIT: a relatively small equity base supporting a much larger pool of interest-earning assets funded primarily with debt. Assets grew again in the most recent year after shrinking earlier, indicating that the company has been scaling its portfolio back up as conditions allowed. Debt is high compared with equity, which is inherent to the business model but also amplifies both gains and losses. Cash holdings are modest but have generally been sufficient to support operations and portfolio management. Equity has grown over the five-year period, but only gradually and with some volatility, highlighting that book value is sensitive to market movements. Overall, financial structure is heavily geared and highly dependent on stable funding markets and effective risk management.

Cash Flow

Cash Flow Cash flow has been more stable than the income statement, which is a helpful contrast. Operating cash flow has remained positive throughout the past five years, though at varying levels, showing the core portfolio continues to generate cash even when reported earnings move up and down. Because this is a financial company with no meaningful physical investment needs, capital expenditures are essentially negligible. As a result, free cash flow closely tracks operating cash flow and has been positive each year. The main takeaway is that while accounting profits are volatile, the underlying cash engine has stayed intact, but it still depends heavily on funding conditions and interest rate spreads remaining workable.

Competitive Edge

Competitive Edge Orchid Island operates in a crowded and specialized niche: agency mortgage REITs. The basic tools and securities it uses are widely available to competitors, so the firm does not enjoy a strong structural moat. Its edge, to the extent it has one, comes from human factors: portfolio construction, risk management discipline, and day‑to‑day decision-making in a complex and fast-moving interest rate environment. The company’s focus on agency mortgage-backed securities reduces credit risk but leaves it highly exposed to interest rate and prepayment dynamics. In this space, performance differences across firms tend to come down to how well management sizes leverage, chooses security structures, and executes hedging strategies. Orchid’s position is thus competitive but not unique, and it is very dependent on management skill and on broader macro conditions rather than on any proprietary technology or brand advantage.

Innovation and R&D

Innovation and R&D Innovation at Orchid Island is strategic rather than technological. The firm does not invest in traditional research and development; instead, its “R&D” is effectively its ongoing refinement of portfolio mix, structured mortgage products, and hedging tactics. It differentiates itself through choices such as focusing on specific types of agency securities, using more complex structures when it sees an edge, and dynamically adjusting hedges to manage interest rate risk. These are sophisticated techniques but are also widely practiced in the industry. The real differentiator is execution quality, not novel tools. Investors should view the company’s innovation as continuous tuning of a financial strategy, not as breakthroughs that would create a wide, long-lasting moat.

Summary

Overall, Orchid Island is a classic leveraged mortgage REIT: earnings and book value are highly sensitive to interest rates, funding costs, and the valuation of mortgage-backed securities. Recent years show a recovery from a particularly weak period, with improving profitability and a rebuilt asset base, but the track record still reflects significant volatility. The balance sheet is intentionally leveraged, which can amplify returns when conditions are favorable but also raises risk if markets turn or funding tightens. Cash generation has been steadier than accounting earnings, aided by the low capital spending needs of a financial portfolio business. Strategically, the company competes through management expertise, portfolio selection, and risk management rather than through traditional innovation or unique products. This creates opportunity when management calls are correct but also means the business is exposed to macro shocks and competitive pressure, with only a relatively narrow and execution‑dependent competitive advantage.

NEWS

November 27, 2025 · 4:15 PM UTC

Orca Energy Group Inc. Announces Completion of Q3 2025 Interim Filings

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November 12, 2025 · 4:50 PM UTC

Orchid Island Capital Announces November 2025 Monthly Dividend and October 31, 2025 RMBS Portfolio Characteristics

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November 6, 2025 · 4:05 PM UTC

Bimini Capital Management Announces Board of Directors Changes

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October 23, 2025 · 4:05 PM UTC

Orchid Island Capital Announces Third Quarter 2025 Results

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October 15, 2025 · 5:00 PM UTC

Orchid Island Capital Announces Estimated Third Quarter 2025 Results, October 2025 Monthly Dividend and September 30, 2025 RMBS Portfolio Characteristics

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