Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________ FORM 10-Q _______________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-34385 Invesco M ...

Core Viewpoint - Invesco Mortgage Capital (IVR) has been experiencing significant interest in the market, with recent performance showing a decline compared to broader indices and its industry peers [1][2]. Earnings Estimates - For the current quarter, Invesco Mortgage Capital is expected to report earnings of $0.53 per share, reflecting a decrease of -22.1% year-over-year. The consensus estimate has remained unchanged over the last 30 days [5]. - The consensus earnings estimate for the current fiscal year is $2.23, indicating a decline of -22.6% from the previous year, with no changes in the estimate over the last month [5]. - For the next fiscal year, the consensus estimate is $1.84, which represents a decrease of -17.5% compared to the prior year, also remaining unchanged over the past month [6]. Revenue Growth Forecast - The consensus sales estimate for the current quarter is $21.44 million, which indicates a substantial year-over-year increase of +185.5%. For the current fiscal year, the revenue estimate is $83.91 million, reflecting a growth of +127.8%, while the next fiscal year's estimate is $114.53 million, showing a change of +36.5% [11]. Last Reported Results and Surprise History - Invesco Mortgage Capital reported revenues of $17.73 million in the last quarter, marking a year-over-year increase of +105.2%. The EPS for this period was $0.58, down from $0.86 a year ago. The reported revenues were below the Zacks Consensus Estimate of $19.99 million, resulting in a revenue surprise of -11.31%, while the EPS surprise was +3.57% [12]. - Over the last four quarters, the company has surpassed consensus EPS estimates twice and topped revenue estimates once [13]. Valuation - Invesco Mortgage Capital is graded B in the Zacks Value Style Score, indicating that it is trading at a discount compared to its peers [17].

Group 1 - The earnings call is for Invesco Mortgage Capital's second quarter of 2025 [2] - The call is being recorded and includes a presentation available on the company's website [3][4] - The presentation will cover forward-looking statements and non-GAAP financial measures [4] Group 2 - John M. Anzalone, the CEO, will provide an overview during the earnings call [5]

Financial Data and Key Metrics Changes - The economic return for the quarter was negative 4.8%, consisting of a $0.34 dividend per common share and a $0.76 decline in book value per common share [7] - The debt to equity ratio decreased from 7.1x at the end of March to 6.5x at the end of June, indicating a more defensive posture due to elevated near-term uncertainty [7] - As of July 18, 2025, the estimated book value per common share is between $7.99 and $8.31, reflecting a slight recovery in performance [8][25] Business Line Data and Key Metrics Changes - The Agency RMBS portfolio decreased by 15% quarter over quarter as the company managed risk amid trade policy uncertainty [18] - The allocation to Agency CMBS increased from 15% at the end of Q1 to just over 17% as of June 30, 2025, due to the decline in the Agency RMBS portfolio [20] Market Data and Key Metrics Changes - Interest rates declined across the front end of the Treasury yield curve during Q2, while long-term rates increased, reflecting expectations for accommodative policy from the FOMC [6][11] - The two-year Treasury yield declined by 16 basis points, while the thirty-year yield increased by 20 basis points, leading to the steepest two-thirty spread in nearly 3.5 years [11][12] Company Strategy and Development Direction - The company maintains a cautious near-term outlook but is optimistic about the long-term demand for Agency mortgages due to attractive valuations and stabilization in interest rate volatility [8][25] - The focus remains on specified pools with predictable prepayment behavior, particularly in lower loan balance collateral [18] Management's Comments on Operating Environment and Future Outlook - Management noted that financial conditions were volatile in Q2 but ended modestly accommodative, with expectations for two rate cuts by year-end and additional cuts in 2026 [5][25] - The company believes that further easing of monetary policy will lead to a steeper yield curve and a decline in interest rate volatility, supporting long-term demand for agency mortgages [25] Other Important Information - The company’s liquidity position is strong, providing a cushion for potential market stress while allowing for capital deployment as the investment environment improves [25] - The financing market for Agency CMBS remains robust, with no concerns about deterioration during a widening event [62] Q&A Session Summary Question: How does the company view the relative risk versus reward for high coupon RMBS? - The company believes that spreads reflect the risk accurately and has reduced exposure to higher coupon RMBS due to their sensitivity to interest rate volatility [29][30] Question: What is the company's comfort level on leverage? - The company is comfortable with its current leverage, which is lower than in Q1, and does not feel the need to increase leverage to meet return goals [33][34] Question: What is the outlook for swap spreads and the mix of hedges? - The company anticipates that swap spreads will widen, which would be beneficial, and is currently at maximum allocation to interest rate swaps [37][38] Question: What are the views on core earnings and dividends? - The company expects ROEs to remain attractive, supporting the current dividend without significant changes in the near term [41][45] Question: How does the company feel about CMBS spreads when the Fed cuts rates? - The company is comfortable with the financing market for Agency CMBS and expects spreads to tighten as the Fed cuts rates [60][62]

Second Quarter 2025 Earnings Call Invesco Mortgage Capital Inc. July 25, 2025 John Anzalone Kevin Collins Mark Gregson David Lyle Brian Norris Chief Executive Officer President Chief Financial Officer Chief Operating Officer Chief Investment Officer Cautionary Notice Regarding Forward-Looking Statements 2 Q2 2025 Results | Financial Results | | | | | Investment Allocation | | --- | --- | --- | --- | --- | --- | | | Q2 25 | Q1 25 | | | | | Net income (loss) per common share | ($0.40) | $0.26 | | | | | Earnin ...

Core Viewpoint - Invesco Mortgage Capital reported quarterly earnings of $0.58 per share, exceeding the Zacks Consensus Estimate of $0.56 per share, but down from $0.86 per share a year ago, indicating a mixed performance in earnings despite a positive surprise [1][2]. Earnings Performance - The company achieved an earnings surprise of +3.57% for the recent quarter and had a previous quarter surprise of +14.29% with earnings of $0.64 per share against an expectation of $0.56 [1][2]. - Over the last four quarters, Invesco Mortgage Capital has surpassed consensus EPS estimates two times [2]. Revenue Analysis - For the quarter ended June 2025, the company reported revenues of $17.73 million, which fell short of the Zacks Consensus Estimate by 11.31%, compared to $8.64 million in the same quarter last year [2]. - The company has only topped consensus revenue estimates once in the last four quarters [2]. Stock Performance - Invesco Mortgage Capital shares have declined approximately 5.5% since the beginning of the year, contrasting with the S&P 500's gain of 8.1% [3]. Future Outlook - The future performance of Invesco Mortgage Capital's stock will largely depend on management's commentary during the earnings call and the revisions in earnings estimates [3][4]. - The current consensus EPS estimate for the upcoming quarter is $0.53 on revenues of $21.44 million, and for the current fiscal year, it is $2.23 on revenues of $83.91 million [7]. Industry Context - The REIT and Equity Trust industry, to which Invesco Mortgage Capital belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable industry outlook [8]. - The performance of Invesco Mortgage Capital may also be influenced by the overall industry trends, as empirical research suggests a strong correlation between stock movements and earnings estimate revisions [5][8].

[Second Quarter 2025 Financial Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results) [Management Update and Performance Summary](index=1&type=section&id=Management%20Update%20and%20Performance%20Summary) Market pressures led to a **(4.8)%** economic return and reduced book value, prompting a defensive posture - Market volatility, driven by tariff announcements and fiscal policy concerns, negatively impacted valuations and resulted in a quarterly economic return of **(4.8)%**[4](index=4&type=chunk) - The company reduced its debt-to-equity ratio to **6.5x** from **7.1x** in the prior quarter, reflecting a more defensive posture due to market uncertainty[4](index=4&type=chunk) - As of July 18, 2025, post-quarter end, the estimated book value per common share recovered to a range of **$7.99** to **$8.31**[5](index=5&type=chunk) Q2 2025 Key Financial Highlights | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Income (Loss) per Common Share | ($0.40) | $0.26 | | Earnings Available for Distribution per Share (Non-GAAP) | $0.58 | $0.64 | | Common Stock Dividend per Share | $0.34 | $0.34 | | Book Value per Common Share (period-end) | $8.05 | $8.81 | | Economic Return | (4.8)% | 2.6% | [Key Performance Indicators](index=2&type=section&id=Key%20Performance%20Indicators) Q2 2025 reported a **$26.6 million** net loss and **$0.40** loss per share, with an improved non-GAAP effective interest rate margin Q2 2025 vs Q1 2025 Performance | Metric ($ in millions, except per share) | Q2 2025 | Q1 2025 | Variance | | :--- | :--- | :--- | :--- | | Net interest income | $17.7 | $18.8 | ($1.1) | | Net income (loss) to common stockholders | ($26.6) | $16.3 | ($42.9) | | Earnings (loss) per common share (basic) | ($0.40) | $0.26 | ($0.66) | | Earnings available for distribution (Non-GAAP) | $38.2 | $40.0 | ($1.8) | | EAD per common share (Non-GAAP) | $0.58 | $0.64 | ($0.06) | Key Ratios and Margins | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Average net interest rate margin (GAAP) | 0.94% | 0.99% | (0.05)% | | Effective interest rate margin (Non-GAAP) | 3.44% | 3.27% | 0.17% | | Debt-to-equity ratio | 6.5x | 7.1x | (0.6x) | [Portfolio and Hedging Activities](index=3&type=section&id=Portfolio%20and%20Hedging%20Activities) The MBS portfolio decreased to **$5.2 billion**, with borrowings reduced to **$4.6 billion**, while hedging utilized swaps and Treasury futures [Investment Portfolio Composition](index=3&type=section&id=Investment%20Portfolio%20Composition) The MBS portfolio decreased to **$5.19 billion**, primarily 30-year fixed-rate Agency RMBS, with Non-Agency RMBS fully divested MBS Portfolio Breakdown by Fair Value ($ in thousands) | Security Type | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | 30 year fixed-rate pass through | $4,222,203 | $4,974,663 | | Agency-CMO | $71,835 | $73,539 | | Agency CMBS | $891,521 | $890,372 | | Non-Agency RMBS | $— | $7,215 | | **Total MBS portfolio** | **$5,185,559** | **$5,945,789** | [Borrowings](index=3&type=section&id=Borrowings) Total borrowings decreased to **$4.64 billion**, maintaining a stable **4.48%** weighted average interest rate and **24-day** maturity Borrowings Summary ($ in thousands) | Metric | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Total Amount Outstanding | $4,635,881 | $5,354,561 | | Weighted Average Interest Rate | 4.48% | 4.47% | | Weighted Average Remaining Maturity (days) | 24 | 25 | [Hedging Instruments](index=3&type=section&id=Hedging%20Instruments) Hedging included **$3.5 billion** in interest rate swaps and **$830 million** in short U.S. Treasury futures, with no TBA contracts - The company did not have any **To-Be-Announced (TBA)** contracts outstanding as of June 30, 2025[16](index=16&type=chunk) - The total notional amount of interest rate swaps was **$3.5 billion**, with a weighted average fixed pay rate of **1.19%** and a weighted average maturity of **6.3 years**[19](index=19&type=chunk) - The company held short positions in U.S. Treasury futures with a total notional amount of **$830 million**, a decrease from **$902.5 million** in the prior quarter[21](index=21&type=chunk) [Capital Activities](index=4&type=section&id=Capital%20Activities) The company declared a **$0.34** per share dividend, issued **$2.2 million** in common stock, and repurchased **$2.3 million** of preferred stock - A common stock dividend of **$0.34** per share was declared on June 24, 2025[22](index=22&type=chunk) - The company sold 282,750 shares of common stock, generating net cash proceeds of **$2.2 million**[23](index=23&type=chunk) - The company repurchased and retired 96,803 shares of its Series C Preferred Stock for a total cost of **$2.3 million**[24](index=24&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) Consolidated statements show a **$23.3 million** net loss from derivative losses, with total assets and equity decreasing [Statements of Operations](index=6&type=section&id=Statements%20of%20Operations) Q2 2025 reported a **$23.3 million** net loss, driven by **$30.9 million** in derivative losses, resulting in a **($0.40)** loss per common share Q2 2025 Statement of Operations Highlights ($ in thousands) | Line Item | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net interest income | $17,729 | $18,821 | | Gain (loss) on derivative instruments, net | ($30,916) | ($76,679) | | Total other income (loss) | ($36,184) | $5,479 | | Net income (loss) | ($23,327) | $19,641 | | Net income (loss) to common stockholders | ($26,567) | $16,289 | | Basic earnings (loss) per share | ($0.40) | $0.26 | [Statements of Comprehensive Income (Loss)](index=7&type=section&id=Statements%20of%20Comprehensive%20Income%20(Loss)) Q2 2025 resulted in a **$24.1 million** comprehensive loss, with **$27.4 million** attributable to common stockholders, reversing Q1 income - Comprehensive loss attributable to common stockholders for Q2 2025 was **$27.4 million**, compared to a comprehensive income of **$16.9 million** in Q1 2025[33](index=33&type=chunk) [Balance Sheets](index=8&type=section&id=Balance%20Sheets) Total assets decreased to **$5.40 billion** and liabilities to **$4.69 billion**, with equity contracting to **$709.4 million** Balance Sheet Summary ($ in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $5,400,370 | $5,688,034 | | Repurchase agreements | $4,635,881 | $4,893,958 | | Total Liabilities | $4,690,994 | $4,957,305 | | Total Stockholders' Equity | $709,376 | $730,729 | [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures like EAD, Effective Interest Metrics, and Economic Debt-to-Equity Ratio offer additional insights into performance - The company uses **non-GAAP** measures such as Earnings available for distribution, Effective interest expense/income, and Economic debt-to-equity ratio to supplement its GAAP results[38](index=38&type=chunk)[39](index=39&type=chunk) [Earnings Available for Distribution (EAD)](index=9&type=section&id=Earnings%20Available%20for%20Distribution%20(EAD)) Q2 2025 EAD decreased to **$38.2 million** or **$0.58** per share, a non-GAAP metric for assessing distributable income capacity Reconciliation of Net Income to EAD ($ in thousands) | Line Item | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net income (loss) to common stockholders | ($26,567) | $16,289 | | Adjustments (Gains/Losses on Investments & Derivatives, etc.) | $64,758 | $23,758 | | **Earnings available for distribution** | **$38,191** | **$40,047** | - EAD per common share was **$0.58** in Q2 2025, compared to **$0.64** in Q1 2025[45](index=45&type=chunk) [Effective Interest Metrics](index=11&type=section&id=Effective%20Interest%20Metrics) Non-GAAP effective interest expense was **$24.3 million** (2.12% cost of funds), yielding **$46.4 million** effective net interest income and a **3.44%** margin GAAP vs. Effective Interest Metrics (Q2 2025) | Metric ($ in thousands) | GAAP | Non-GAAP (Effective) | | :--- | :--- | :--- | | Total interest expense | $52,895 | $24,264 | | Cost of funds | 4.62% | 2.12% | | Net interest income | $17,729 | $46,360 | | Net interest rate margin | 0.94% | 3.44% | [Economic Debt-to-Equity Ratio](index=12&type=section&id=Economic%20Debt-to-Equity%20Ratio) The economic debt-to-equity ratio decreased to **6.5x**, matching GAAP due to no TBA positions, reflecting at-risk leverage - The economic debt-to-equity ratio is a **non-GAAP** measure that includes the implied cost basis of TBA derivatives to provide a view of at-risk leverage[56](index=56&type=chunk) - As of June 30, 2025, both the GAAP debt-to-equity ratio and the economic debt-to-equity ratio were **6.5x**[57](index=57&type=chunk)[58](index=58&type=chunk) [Supplemental Information](index=5&type=section&id=Supplemental%20Information) This section provides corporate details, including REIT status, earnings call information, and average balances of assets and borrowings - The company is a **real estate investment trust (REIT)** externally managed and advised by Invesco Advisers, Inc[25](index=25&type=chunk) - The earnings conference call is scheduled for Friday, **July 25, 2025**, at **9:00 a.m. ET**[26](index=26&type=chunk) Average Balances (Q2 2025) | Metric ($ in thousands) | Amount | | :--- | :--- | | Average earning assets | $5,078,921 | | Average borrowings | $4,577,566 |

Core Viewpoint - Invesco Mortgage Capital Inc. reported a challenging second quarter in 2025, with a significant economic return of (4.8)%, driven by market volatility and a decline in book value per share, despite maintaining a consistent dividend payout. Financial Performance - The company experienced a net loss attributable to common stockholders of $26.6 million, translating to a loss per share of $0.40, compared to a net income of $16.3 million and earnings per share of $0.26 in Q1 2025 [10][11]. - Total interest income decreased to $70.6 million from $73.8 million in Q1 2025, while total interest expense also fell to $52.9 million from $55.0 million, resulting in a net interest income of $17.7 million, down from $18.8 million [9][10]. - The average earning assets at amortized cost decreased to $5,078.9 million from $5,422.6 million, and average borrowings also declined to $4,577.6 million from $4,930.2 million [9]. Portfolio and Valuation - As of June 30, 2025, the company’s investment portfolio was valued at $5.2 billion, comprising $4.3 billion in Agency RMBS and $0.9 billion in Agency CMBS, with a debt-to-equity ratio of 6.5x, down from 7.1x at the end of Q1 2025 [3][10]. - The estimated book value per common share as of July 18, 2025, is projected to be between $7.99 and $8.31, reflecting a cautious near-term outlook for Agency RMBS but a favorable long-term outlook due to expected investor demand [4][10]. Dividends and Capital Activities - The company declared a common stock dividend of $0.34 per share, consistent with the previous quarter, to be paid on July 25, 2025 [22]. - During the quarter, the company sold 282,750 shares of common stock for net cash proceeds of $2.2 million and repurchased 96,803 shares of Series C Preferred Stock for $2.3 million [23][24]. Economic Return and Non-GAAP Measures - The economic return for the quarter was calculated as the change in book value per common share of ($0.76) plus dividends declared of $0.34, resulting in an economic return of (4.8)%, compared to a positive return of 2.6% in Q1 2025 [6][10]. - Earnings available for distribution per common share decreased to $0.58 from $0.64 in Q1 2025, indicating a decline in the company’s ability to generate income for distribution [10][43].

Summary of Investigator Resources (IVR) Conference Call - July 23, 2025 Industry Overview - **Precious Metals Market Dynamics**: Investors tend to favor gold during global uncertainty, but silver historically outperforms gold in bull markets. In the 1970s, gold increased from $35 to $850, a 24 times return, while silver rose 35% during the same period [1][2]. - **Demand Drivers for Silver**: Silver serves dual purposes as a store of wealth and an industrial commodity, utilized in electronics, electric vehicles (EVs), and green energy technologies. The ongoing decarbonization trend is expected to drive demand for silver significantly [3][4]. - **Supply Constraints**: Approximately 75% of silver production comes from Latin America, Russia, and China, regions known for geopolitical instability. The Silver Institute reports deficits of 100 to 250 million ounces, which is about one-fourth of global production [5][6]. Company Overview: Investigator Resources - **Paris Silver Project**: Investigator Resources owns the Paris Silver Project, which contains 57 million ounces of high-grade silver. The project is positioned in a stable jurisdiction and has district-scale exploration potential [9][10]. - **Financial Position**: The company has a market cap of approximately $48 million and $5 million in cash, indicating strong funding for ongoing projects [11]. - **Definitive Feasibility Study (DFS)**: The DFS is underway, with previous studies indicating $480 million in free cash. The silver price has increased by 70% since the last study, suggesting potential upside of an additional $650 million [12][13]. Investment Opportunity - **Cost Optimization**: The company is focusing on reducing operational expenditures (OpEx) to lower cutoff grades, which would allow for more silver to be included in the mine plan. This includes transitioning to alternative power sources and optimizing tailings management [14][15]. - **Exploration Potential**: The Paris project is part of a 15-kilometer silver corridor with confirmed widespread mineralization. Recent acquisitions, such as the Athena project, present additional exploration opportunities [16][18]. - **Upcoming Drilling Programs**: Drilling is set to commence in September in a separate area near Broken Hill, which has historical gold and copper mines, highlighting further potential for discovery [19][20]. Market Context - **Macro Factors**: The current economic environment, characterized by massive money printing, rising U.S. debt, and declining confidence in fiat currencies, is driving investors towards precious metals as a hedge against inflation. The gold to silver ratio is currently at 86:1, significantly above the historical average of 65:1, indicating potential for silver price appreciation [6][7][8]. Conclusion - **Strategic Positioning**: Investigator Resources is well-positioned to capitalize on the rising demand for silver, with a low-cost, high-grade project and significant exploration potential. The current market conditions present a compelling investment opportunity in the silver sector [21].

Paris Silver Project Overview - The Paris Silver Project boasts a JORC (2012) Resource of 57 million ounces of silver and 99 thousand tonnes of lead[35] - A Pre-Feasibility Study (PFS) was completed in 2021, and a Definitive Feasibility Study (DFS) is currently underway[35] - The project is considered a high-grade, low-cost, high-margin silver project located in a Tier-1 jurisdiction[11] Silver Market Dynamics - Silver is described as having a dual role as both an industrial metal and a store of wealth, with rising demand and tight supply[11] - Only approximately 27.8% of silver comes from primary silver mines, with the rest being a by-product of other mining operations[19] - The silver market is forecast to continue experiencing a deficit[23] Investigator Resources Limited - The company's market capitalization is $48.5 million, with $5.1 million in cash as of June 30, 2025 (unaudited), resulting in an enterprise value of $43.4 million[38] - The top 20 shareholders hold 30% of the company's shares[38] - The PFS indicated a free cash flow of A$487 million, an NPV8 of A$202 million, a CAPEX of A$131 million, an IRR of 48%, and an ASIC of A$17.45/oz[40] Exploration and Expansion Potential - Investigator Resources is exploring a 15km mineralized corridor around the Paris Silver Project[11] - The company has a farm-in agreement on an adjacent high-grade silver prospect called Athena, where historical drilling terminated in silver mineralization[51, 52] - Drilling is scheduled to commence in September 2025 at Curnamona, a copper/gold prospect[55]