Core Viewpoint - Small-cap companies are rapidly adopting AI technologies, leading to increased efficiency and potential profit growth, while currently being the cheapest sector in the market [2] Group 1: Small-Cap Dividend Stocks - BlackRock TCP Capital (TCPC) has a yield of 15.7% and invests in over 150 companies across 20 industries, but is currently facing restructuring due to credit issues [3] - TCPC is trading at an 18% discount to its net asset value (NAV), with a regular yield of 14% and an additional 1.7% from special dividends [4] - New Mountain Finance (NMFC) offers a 12.1% yield and is also trading at a 14% discount to NAV, focusing on U.S. upper-middle-market businesses [5][6] - NMFC's NAV has declined nearly 2% quarter-over-quarter, with markdowns in healthcare and consumer products, but its credit quality remains stable [8][9] - Kayne Anderson BDC (KBDC) has a yield of 12.6% and targets companies with $10 million to $75 million in EBITDA, with a focus on defensive industries [10] - KBDC has initiated a $100 million buyback program and has seen investments increase in Q3, despite a slight decline in NAV [12] Group 2: Income-Generating Investments - Mach Natural Resources LP (MNR) offers a 16.0% distribution and operates primarily in the Anadarko Basin, with a focus on natural gas [13] - MNR trades at approximately 3.5 times this year's EBITDAX estimates, which is below the average for comparable MLPs [14] - MFA Financial (MFA) has a yield of 14.4% and invests in residential mortgage loans and securities, with a recent 13% QoQ increase in origination fees [15][17] - MFA's distributable earnings are expected to drop significantly this year, but the market does not seem to be pricing in a dividend cut [18] - Armour Residential REIT (ARR) offers a high yield of 19.0% but has a history of dividend cuts, trading at about 90% of book value [19][21]

Core Viewpoint - ARMOUR Residential REIT, Inc. has announced a cash dividend of $0.24 for September 2025 for its common stock, with a record date of September 15, 2025, and a payment date of September 29, 2025 [2]. Group 1: Dividend Information - The September 2025 cash dividend for ARMOUR's common stock is set at $0.24 [2]. - The holder of record date for this dividend is September 15, 2025 [2]. - The payment date for the dividend is September 29, 2025 [2]. Group 2: Tax Matters - ARMOUR is taxed as a real estate investment trust (REIT) for U.S. Federal income tax purposes and must distribute substantially all of its ordinary REIT taxable income to maintain this status [3]. - Dividends exceeding current tax earnings and profits for the year are generally not taxable to common stockholders [3]. - The actual dividends are determined at the discretion of the Company's board of directors, considering various factors such as operational results, cash flows, financial condition, and market conditions [3]. Group 3: Company Overview - ARMOUR primarily invests in fixed-rate residential, adjustable-rate, and hybrid adjustable-rate residential mortgage-backed securities issued or guaranteed by U.S. Government-sponsored enterprises [4]. - The company is externally managed and advised by ARMOUR Capital Management LP, which is registered with the Securities and Exchange Commission (SEC) [4].

Group 1 - The core viewpoint is that Clearwater Analytics Holdings (NYSE: CWAN) is recommended to hold due to execution risks associated with the Enfusion acquisition [1] - The analysis emphasizes a fundamentals-based approach to value investing, focusing on companies with long-term durability and robust balance sheets [1] - There is a belief that low multiple stocks are not necessarily cheap, and valuation matters significantly in investment decisions [1] Group 2 - The company has shown results that warrant a reiteration of the hold rating, indicating ongoing concerns about execution risks [1] - The investment strategy prioritizes companies with steady long-term growth and minimal cyclicality [1] - The article suggests that in certain situations, the potential for growth may outweigh immediate price considerations [1]

Core Insights - CyberArk's subscription revenues rebounded significantly in Q2 2025, reaching $264 million, which is a 66% year-over-year increase [1][10] - The annual recurring revenues (ARR) from subscriptions hit $1.08 billion, marking a 61% increase year-over-year [3][10] - CyberArk's subscription revenues constituted 80% of total revenues in Q2 2025 [3] Subscription Growth Drivers - The growth is attributed to customers transitioning from perpetual maintenance contracts to subscription models [2] - Larger deal sizes and improved customer lifetime value from platform upsells are contributing factors [2] - A significant number of customers are adopting multiple solutions simultaneously, enhancing subscription annual contract value (ACV) [2] Product Enhancements and Acquisitions - Recent product launches, such as Secure AI Agent, and acquisitions like Venafi and Zilla Security are expected to further boost subscription revenue growth [4] - The strong business model has led to Palo Alto Networks planning to acquire CyberArk for approximately $25 billion at a premium [4][10] Competitive Landscape - Competitors like Okta and CrowdStrike are also experiencing growth in subscription revenues [5] - Okta's subscription revenues rose 11.6% year-over-year to $673 million, accounting for 97.8% of total revenues [6] - CrowdStrike's subscription revenues increased by 21% to $1.05 billion, driven by demand for its identity security platform [7] Financial Performance and Valuation - CyberArk's shares have increased by 26.9% year-to-date, outperforming the Zacks Security industry's growth of 7.6% [8] - The forward price-to-sales ratio for CyberArk is 14.14X, higher than the industry average of 11.98X [11] - Earnings estimates for fiscal years 2025 and 2026 imply year-over-year growth of 27% and 25.3%, respectively, with upward revisions in the past 30 days [14]

Group 1: Annaly Capital Management (NLY) - NLY has four preferred shares, with NLY-F and NLY-I showing materially negative yield to call, while NLY-G has a positive yield to call of 8.73%, which is lower than most baby bonds in the sector [2] - A new preferred share, NLY-J, has been issued with a fixed-rate coupon of 8.875%. The share is callable after five years, limiting upside if rates fall, while increasing interest rate risk if rates rise [3] - NLY-J's trading price has increased from $24.80 to $25.10, indicating a common trend for preferred shares to rise in the initial weeks after issuance [4] Group 2: MFA Financial (MFA) - MFA has two preferred shares and two baby bonds, with MFA-C showing a reasonable floating spread of 5.79% over 3-month LIBOR, resulting in a stripped yield of approximately 10.3% to 10.4% at a price of $24.23 [5][6] - MFA-B is a fixed-rate share with an 8.84% stripped yield at $21.58, but the potential upside is limited, making it less attractive compared to baby bonds [8] - Overall, MFA-C is slightly favored over MFA-B, but baby bonds are preferred if their prices dip modestly, as this can significantly impact yield to call and yield to maturity [9] Group 3: ARMOUR Residential REIT (ARR) - ARR was the worst-performing mortgage REIT last week, with shares dropping 4.6%, significantly worse than peers [13][14] - The price-to-NAV for ARR has decreased to a projected 0.92x, indicating a decline in market sentiment following a public offering announcement [14][16] - The public offering was made at about 98% of book value, which did not excite shareholders, contributing to the decline in share price [16]

Core Insights - Nebius (NASDAQ: NBIS) achieved an actual Annual Recurring Revenue (ARR) of $405 million for Q2, exceeding the projected range of $372 to $403 million and surpassing the previous ARR of $310 million in April [1] Company Analysis - The company has demonstrated a proven track record in scaling businesses, with smart capital allocation and insider ownership contributing to its success [1] - Nebius shows consistent revenue growth and provides credible guidance, indicating strong management capabilities [1] Market Positioning - Nebius benefits from a strong technology moat and first-mover advantage, which positions it well for market disruption [1] - The company is experiencing network effects that drive exponential growth and has achieved market penetration in high-growth industries [1] Financial Health - Nebius exhibits sustainable revenue growth with efficient cash flow management, supported by a strong balance sheet and a long-term survival runway [1] - The company avoids excessive dilution and maintains financial strength, which is crucial for its ongoing operations [1] Investment Methodology - The investment strategy focuses on identifying high-conviction opportunities with a balanced portfolio construction, including core positions, growth bets, and speculative investments [1]

Group 1 - Nebius, a data center player, reported strong Q2 earnings, marking a successful transformation into a GPU-as-a-Service vendor [1] - The company's journey over the past year has been significant, highlighting its growth and adaptation in the technology sector [1] Group 2 - The focus on GPU-as-a-Service indicates a strategic shift towards high-demand technology services, particularly in the cloud computing space [1]

Core Insights - Nebius Group N.V. (NBIS) aims to achieve $1.1 billion in annualized run-rate revenue (ARR) and $630 million in total group revenues by 2025, with a strong performance in Q2 2025 reporting revenues of $105.1 million, a 625% increase year over year and more than double the previous quarter [1][11] Company Performance - The company's AI cloud infrastructure revenues surged due to high customer demand for copper GPUs, with the platform operating at near-peak utilization [2] - Nebius' core business focuses on an AI cloud platform for intensive workloads, supported by in-house developed software and hardware, with R&D hubs in Europe, North America, and Israel [3] - In Q2, the core unit achieved positive adjusted EBITDA ahead of schedule, with the entire supply of previous-generation hoppers sold out, awaiting the launch of new Blackwell GPUs [4] Growth Strategy - Nebius is expanding its data center capacity significantly, targeting 220 MW of active or GPU-ready power by year-end and over 1 GW by 2026 [5] - The company has raised over $4 billion in capital and has a strong balance sheet, with access to additional funds through its other businesses and investments [7] - Nebius enhanced its cloud software to support growing capacity and large-scale clusters, expanding its customer base with major tech firms [6] Market Context - The global demand for AI-specific infrastructure is increasing, with hyperscalers, startups, and enterprises ramping up GPU investments [2] - Nebius faces competition from technology giants like Microsoft and CoreWeave, which are also expanding their AI capabilities and infrastructure [8][9][10] Financial Metrics - Nebius raised its year-end ARR guidance from $700 million–$1 billion to $900 million–$1.1 billion due to expected sales increases from GPU upgrades and capacity growth [4][11] - The company's shares have surged 642.1% year to date, outperforming the Internet – Software and Services industry, which grew by 41.8% [13]

Core Viewpoint - Armour Residential REIT (ARR) experienced a quarter that was largely as expected, with a slight decline in book value and weaker-than-anticipated earnings, primarily due to market fluctuations early in the quarter, although some recovery in June mitigated the impact [1][23]. Book Value and Earnings Performance - ARR reported a minor decrease in book value (BV) of 1.1% during Q2 2025, which was in line with expectations, but it underperformed compared to stronger peers in the agency mREIT sector [11][23]. - The on-balance sheet investment portfolio valuation gain was $16.5 million, closely matching the projected $20.0 million, leading to a BV underperformance of $0.04 per common share [3][23]. - Core earnings/EAD for Q2 2025 were reported at $67.9 million, which was a modest underperformance compared to the estimated $74.0 million, resulting in a variance of $0.071 per share [11][19]. Interest Income and Operational Expenses - Net interest income decreased from $36.3 million in Q1 2025 to $33.1 million in Q2 2025, a decline of $3.2 million, which was below the projected $37.5 million [7][23]. - Operational expenses increased from $13.1 million in Q1 2025 to $14.3 million in Q2 2025, which also contributed to the core earnings underperformance [8][23]. Hedging and Derivative Performance - ARR increased its hedging coverage ratio from 84% to 93% during Q2 2025, which was slightly above the projected range of 85%-90% [4][16]. - The company experienced a derivative valuation loss of $157 million, which was more severe than the anticipated loss of $150 million, contributing to a BV underperformance of $0.09 per common share [4][23]. Sector Comparison and Future Outlook - ARR's performance was weaker compared to peers like AGNC, DX, and NLY, which reported better results in terms of BV and core earnings [23]. - The company is currently rated as a HOLD, with expectations for stabilization in core earnings/EAD in Q3 2025 before any potential rating downgrades [13][24].

Core Viewpoint - Varonis Systems (NASDAQ: VRNS) has been previously rated as a buy due to sound fundamentals despite market focus on near-term weaknesses [1] Group 1: Company Analysis - The reported growth and margins of Varonis Systems appear messy, indicating potential challenges in financial performance [1] - The company is positioned within a spectrum of investment strategies, including fundamental, technical, and momentum investing, suggesting a multifaceted approach to its market evaluation [1] Group 2: Investor Perspective - The individual investor managing their own capital emphasizes the importance of connecting with like-minded investors and tracking investment ideas through platforms like Seeking Alpha [1]