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TWO-PA

Two Harbors Investment Corp.

TWO-PA

Two Harbors Investment Corp. • NYSE
$23.54 ▲ 0.36% (+0.09)
Market Cap $2.45 B
52w High $25.05
52w Low $21.52
Dividend Yield 2.03%
P/E 42.72
Volume 2.77K
Outstanding Shares 103.97M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $247.571M ▲ $21.307M ▼ $-127.921M ▲ -51.67% ▲ $-1.36 ▲ $-9.597M ▼
Q2-2025 $119.383M ▼ $21.469M ▼ $-259.041M ▼ -216.983% ▼ $-2.62 ▼ $79.256M ▲
Q1-2025 $268.241M ▼ $47.094M ▲ $-79.055M ▼ -29.472% ▼ $-0.89 ▼ $53.09M ▼
Q4-2024 $491.729M ▲ $40.885M ▲ $264.945M ▲ 53.88% ▲ $2.54 ▲ $307.601M ▲
Q3-2024 $126.483M $20.18M $-238.485M -188.551% $-2.42 $-94.012M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $7.119B ▲ $10.866B ▼ $9.095B ▼ $1.772B ▼
Q2-2025 $975.054M ▲ $12.959B ▼ $11.073B ▼ $1.886B ▼
Q1-2025 $829.25M ▼ $13.683B ▲ $11.537B ▲ $2.147B ▲
Q4-2024 $7.876B ▲ $12.204B ▼ $10.082B ▼ $2.123B ▼
Q3-2024 $611.706M $12.888B $10.718B $2.169B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $338.096M ▲ $-239.238M ▼ $2.127B ▲ $-1.8B ▼ $88.624M ▼ $-118.106M ▼
Q2-2025 $79.055M ▲ $99.112M ▼ $829.22M ▲ $-827.76M ▼ $100.572M ▲ $-111.913M ▼
Q1-2025 $-79.055M ▼ $111.913M ▲ $-2.028B ▼ $1.796B ▲ $-119.916M ▼ $111.913M ▲
Q4-2024 $276.729M ▲ $-21.059M ▼ $1.224B ▲ $-996.972M ▼ $205.935M ▲ $-48.564M ▼
Q3-2024 $-238.485M $87.081M $-254.936M $-7.261M $-175.116M $43.887M

Five-Year Company Overview

Income Statement

Income Statement Results have improved meaningfully from the deep losses seen around 2020, with the last few years generally showing positive earnings, though with a noticeable dip in 2023 before a rebound. This pattern is typical for a mortgage REIT: income is quite sensitive to interest rate moves and market valuations, so reported profits can swing even when the underlying portfolio hasn’t radically changed. Overall, the recent trend suggests the core business has been profitable, but investors should expect uneven results from year to year rather than a smooth earnings path.

Balance Sheet

Balance Sheet The balance sheet is large but heavily financed with borrowing, which is standard for a mortgage REIT. Debt levels have risen relative to equity compared with a few years ago, while the equity base has slowly eroded from its earlier peak. Cash on hand is modest compared with total assets, implying a reliance on secured funding markets and counterparties. This structure can work well in normal conditions but leaves the company exposed to stress in credit markets or sharp shifts in interest rates that affect asset values and book value per share.

Cash Flow

Cash Flow Despite earnings volatility, operating cash flow has been consistently positive, showing that the portfolio is generating ongoing cash. After accounting for investment spending, free cash flow has been uneven—sometimes mildly positive, sometimes near flat or slightly negative. This reflects a business that is regularly reinvesting in assets and its platform rather than simply harvesting cash. The pattern is not unusual for a mortgage REIT that is actively growing and repositioning its portfolio, but it does mean cash generation is not purely steady or surplus-like every year.

Competitive Edge

Competitive Edge Two Harbors has tried to separate itself from more traditional mortgage REITs by centering the business on mortgage servicing rights and owning its own servicing platform, RoundPoint. This vertical integration gives more control over costs, borrower relationships, and retention when customers refinance. It also provides a partial hedge against interest-rate swings, since servicing rights can gain value when rates rise. The growing third‑party subservicing business and the direct‑to‑consumer lending channel give it additional fee-based income streams and more touchpoints with borrowers. That said, it still operates in a highly competitive, cyclical mortgage market and remains exposed to shifts in rates, housing activity, and regulation, so its advantages are meaningful but not immune to broader industry forces.

Innovation and R&D

Innovation and R&D Instead of classic research and development, the company’s “R&D” is largely about technology and product innovation. It has adopted a modern digital mortgage platform to power its direct‑to‑consumer channel, invested in automation and data tools in servicing, and is exploring third‑party AI to improve efficiency and risk management. On the product side, it is expanding into second‑lien and home‑equity offerings and scaling its third‑party subservicing. These moves signal a deliberate push to become a more technology‑enabled, diversified mortgage platform rather than a passive investor, but they also introduce execution risk—benefits depend on successful implementation, cost control, and sustained borrower demand.

Summary

Two Harbors has evolved from a more traditional mortgage REIT into a vertically integrated, servicing‑heavy platform with multiple income streams. Financially, it has moved from sharp losses during the pandemic shock to more consistent profitability and positive operating cash flow, though results remain choppy due to interest‑rate and valuation swings. The balance sheet is typical for the sector—highly leveraged and reliant on funding markets—so funding and rate risk are central considerations. Its focus on mortgage servicing rights, in‑house servicing via RoundPoint, and growing tech‑enabled channels provides strategic strengths and some natural hedging, while also opening new fee-based revenue lines. Overall, the story is one of a specialized, innovation‑minded mortgage REIT with better diversification than many peers, but still meaningfully exposed to the broader mortgage and interest‑rate cycle.