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TWO-PC

Two Harbors Investment Corp.

TWO-PC

Two Harbors Investment Corp. • NYSE
$23.90 ▲ 0.21% (+0.05)
Market Cap $2.48 B
52w High $25.20
52w Low $22.25
Dividend Yield 2.27%
P/E 6.54
Volume 9.21K
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 Two Harbors’ earnings profile looks like a recovery story that has largely played out, with a bump in the middle. The company moved from a deep loss in 2020 to steady profitability in the following years, with only a modest setback in 2023 and a much stronger result again most recently. This suggests that its mortgage and servicing portfolio has been realigned to the higher‑rate environment and is now generating more stable income. That said, results can still swing with interest rates and mortgage market conditions, so the recent strength should be viewed as cyclical as well as strategic, not as permanently “locked in.”

Balance Sheet

Balance Sheet The balance sheet shows a leaner company than a few years ago, with a smaller asset base and somewhat thinner equity. At the same time, the business relies more heavily on borrowed money than it did earlier in the decade, which is typical for a mortgage REIT but still increases sensitivity to funding costs and market stress. Cash on hand is modest relative to total assets, implying dependence on secured funding lines and capital markets rather than large cash reserves. Overall, the structure looks efficient but more leveraged, which can amplify both positive and negative cycles.

Cash Flow

Cash Flow Cash generation from operations has been consistently positive, which is important for a capital‑intensive, income‑paying REIT model. Free cash flow has generally been positive as well, though not by a wide margin, reflecting ongoing investment back into the portfolio and servicing platform. The company appears able to fund its day‑to‑day needs and a portion of its growth from internal cash, but still depends on external financing for larger strategic moves. This pattern is typical for mortgage REITs: cash flows are adequate but closely tied to how well the portfolio performs under changing rate conditions.

Competitive Edge

Competitive Edge Two Harbors is trying to stand out in a crowded mortgage REIT space by centering its strategy on mortgage servicing rights and by integrating servicing and, increasingly, origination. The RoundPoint acquisition gives it meaningful scale as a mortgage servicer, more control over costs, and more ways to keep servicing when borrowers refinance, which helps smooth earnings. Its focus on data‑driven risk management and active hedging is meant to soften the impact of rate swings compared with a more traditional bond‑only mREIT. Even so, the company still operates in a highly cyclical, competitive, and regulation‑heavy industry, so its edge is meaningful but not absolute.

Innovation and R&D

Innovation and R&D While not a classic R&D company, Two Harbors is investing in process and technology innovation across its servicing and origination chain. It uses advanced data analytics to model prepayments and credit behavior, and is rolling out a digital origination channel on a leading mortgage platform to better “recapture” customers who refinance. The RoundPoint platform provides a base for future offerings such as third‑party subservicing and potentially new loan types, while AI and automation are being introduced to cut servicing costs and improve efficiency. These efforts aim to turn what is often a commodity business into a more scalable, tech‑enabled platform with more levers to protect margins.

Summary

Overall, Two Harbors has transitioned from a period of heavy losses during the early‑decade mortgage turmoil to a more profitable, MSR‑centric model that appears better aligned with today’s rate environment. Earnings have become healthier and cash flows are generally supportive, but the company now runs with a more leveraged balance sheet, which increases sensitivity to funding markets and interest‑rate volatility. Strategically, its vertical integration of servicing and origination, combined with data and technology investments, provides a clearer competitive story than a traditional mortgage REIT. For holders of its preferred shares like TWO‑PC, the key watchpoints are the stability of earnings through different rate cycles, the resilience of funding and leverage, and the successful execution of the RoundPoint and technology‑driven initiatives that underlie its current strategy.