ARMOUR Residential REIT, Inc. (ARR), founded in 2008 and based in Vero Beach, Florida, primarily allocates its capital to residential mortgage-backed securities ...
ARMOUR Residential REIT, Inc. is a specialized mortgage real estate investment trust focused on generating income from a leveraged portfolio of residential mortgage-backed securities and related investments. Incorporated in Maryland in 2008 and headquartered at 3001 Ocean Drive, Vero Beach, Florida, the company is listed on the New York Stock ...ARMOUR Residential REIT, Inc. is a specialized mortgage real estate investment trust focused on generating income from a leveraged portfolio of residential mortgage-backed securities and related investments. Incorporated in Maryland in 2008 and headquartered at 3001 Ocean Drive, Vero Beach, Florida, the company is listed on the New York Stock Exchange under the ticker ARR. Unlike an operating company that manufactures physical products, ARMOUR’s core assets are financial instruments, so it does not have a conventional bill of materials, production plant, inventory system, or product manufacturing cost structure.
The portfolio primarily consists of residential mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises, including Fannie Mae and Freddie Mac, as well as securities guaranteed by the Government National Mortgage Association, commonly known as Ginnie Mae. The underlying mortgages may include fixed-rate, hybrid adjustable-rate, and adjustable-rate home loans. ARMOUR may also invest in U.S. Treasury securities, government-sponsored enterprise debt, money-market instruments, and selected residential mortgage-backed securities that do not carry a government or agency guarantee. These investments expose the company to interest-rate movements, prepayment behavior, financing costs, market liquidity, credit spreads, and changes in the value of mortgage assets.
ARMOUR is externally managed by ARMOUR Capital Management LP, an investment adviser registered with the Securities and Exchange Commission. External management means that the company relies on the manager for portfolio selection, financing strategy, risk management, and day-to-day investment operations. Its cost structure is therefore driven less by employee-intensive operations and more by interest expense, repurchase-agreement financing, hedging activity, management fees, professional services, and other corporate expenses. The company reported approximately 20 full-time employees, reflecting its asset-management and capital-markets model rather than a large internal operating workforce.
As a REIT, ARMOUR generally avoids corporate income tax on the portion of its earnings that it distributes to shareholders, provided it meets applicable tax and distribution requirements. This structure supports a dividend-oriented investment proposition, although distributions can vary and are affected by portfolio earnings, financing conditions, book value changes, and market volatility. The supplied data shows a reported dividend of approximately 2.88 USD per share and a trailing dividend yield of about 17.3 percent, though such figures are market-sensitive and should not be interpreted as guaranteed future returns.
Scott J. Ulm serves as Chief Executive Officer and Vice Chairman. Founder and former Co-Chief Executive Officer Jeffrey J. Zimmer retired from the company in 2024. ARMOUR’s principal strategic objective is to manage a diversified, liquid, and appropriately hedged residential mortgage portfolio while seeking to provide shareholders with recurring income and long-term capital preservation. Key risks include high financial leverage, interest-rate shocks, funding-market disruption, changing prepayment speeds, declines in mortgage-security values, and potential reductions in dividends or book value.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$1.3B
+444.1%
+276.7%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$322.7M
+2341.8%
+309.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+97.0%
+12.6%
+20.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+73.9%
-65.2%
+97.3%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+24.7%
+512.0%
+155.6%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$124.2M
-52.5%
+88.4%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+9.5%
-91.3%
-50.0%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
793.5%
—
-4.6%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.01x
—
—
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator : Good morning, and welcome to ARMOUR Residential REIT's Second Quarter 2026 Earnings Conference Call. Please note this event is being recorded. I would now like to turn the conference over to Scott Ulm, CEO. Please go ahead, sir.
Scott Ulm : Good morning, and welcome to ARMOUR Residential REIT's Second Quarter 2026 Conference Call. This morning, I'm joined by our Chief Financial Officer, Gordon Harper, as well as our Co-Chief Investment Officers, Sergey Losyev and Desmond Macauley. Now, I'd like to turn the call over to Gordon to run through the financial results.
Gordon Harper : Thank you, Scott. By now, everyone has access to ARMOUR's earnings release and our Q2 2026 investor presentation, which can be found on ARMOUR's website at www.armourreit.com. This conference call includes forward-looking statements, which are intended to be subject to the safe harbor protection provided by the Private Securities Litigation Reform Act of 1995. The Risk Factors section of ARMOUR's periodic reports filed with the Securities and Exchange Commission describe certain factors beyond ARMOUR's control that could cause actual results to differ materially from those expressed in or implied by these forward-looking statements. Those periodic reports can be found on the SEC's website at www.sec.gov. All of today's forward-looking statements are subject to change without notice. We disclaim any obligation to update them unless required by law. Also, today's discussion refers to certain non-GAAP measures. These measures are reconciled with comparable GAAP measures in our earnings release. An online replay of this conference call will be available on ARMOUR's website shortly and will continue for 1 year. Our portfolio benefit from MBS spread is tightening. We delivered strong results for the quarter with total economic return of 4.8%. ARMOUR's Q2 GAAP net income available to common stockholders was $111.5 million or $0.86 per common share. Net interest income was $76.8 million. Distributable earnings available to common stockholders was $93.2 million or $0.72 per common share. This non-GAAP measure is defined as net interest income plus TBA drop income adjusted for income or expense on our interest rate swaps and futures contracts minus operating expenses. During Q2, ARMOUR raised approximately $218.7 million of capital by issuing approximately 12.7 million shares of common stock and $4.1 million of capital by issuing approximately 198,000 shares of preferred stock through our at-the-market offered programs. Through July 14, 2026, we raised approximately $88.3 million of capital by issuing 5.2 million shares of common stock through our common stock at the market offering program. ARMOUR paid monthly common stock dividends of $0.24 per common share per month for a total of $0.72 for the quarter. We aim to pay an attractive dividend that is appropriate in context and stable over the medium term. On July 30, a cash dividend of $0.24 per outstanding common …
