Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Data and Key Metrics Changes - The book value per common share increased by 4.5% to $8.41 at quarter end, resulting in a positive economic return of 8.7% for the quarter [9][23] - The debt-to-equity ratio slightly increased to 6.7% from 6.5%, as the company reduced the percentage of preferred stock in its capital structure [10] - The investment portfolio totaled $5.7 billion, consisting of $4.8 billion in agency mortgages and $0.9 billion in agency CMBS [10] Business Line Data and Key Metrics Changes - The agency RMBS portfolio increased by 13% quarter over quarter, with a focus on 4.5% versus 5.5% coupons [18] - Higher coupon specified pool payouts improved during the quarter, reflecting increased investor demand for prepayment protection [17] - Agency CMBS risk premiums declined quarter over quarter, indicating increased investor demand [8] Market Data and Key Metrics Changes - The yield curve steepened, with two-year Treasury yields falling 11 basis points while 30-year yields were down just four basis points [12] - Interest rates declined across the Treasury yield curve, with a notable decrease in interest rate volatility [7][14] - The average unemployment rate increased to 4.3% in August, while inflation measures remained above the Federal Reserve's target [6] Company Strategy and Development Direction - The company remains constructive on agency mortgages, expecting investor demand to broaden due to lower interest rate volatility and attractive valuations [11] - The focus on improving the capital structure and reducing the cost of capital continues, with a commitment to maximizing shareholder returns [24] - The company is monitoring the agency CMBS sector for opportunities to increase allocation as relative value becomes attractive [20] Management's Comments on Operating Environment and Future Outlook - Management views near-term risks as balanced, with expectations for further easing of monetary policy to support agency mortgages in the long term [24] - The company anticipates that changes to bank regulatory capital rules will increase investor demand for agency mortgages and agency CMBS [11] - The economic environment is characterized by strong corporate earnings and improved growth, despite persistent inflation [5][6] Other Important Information - The company raised $36 million by issuing common stock through its ATM program, maintaining a disciplined approach to benefit existing shareholders [10] - The company retained a sizable balance of unrestricted cash and unencumbered investments totaling $423 million [10] Q&A Session Summary Question: Changes in hedge portfolio and net duration exposure - Management indicated a slight reduction in steepener positions and a preference for moving hedges into the front end of the curve, with model duration running slightly long [26][27] Question: Returns on marginal capital deployment relative to dividend level - Levered gross returns were in the upper teens, with net returns in the mid-teens, consistent with the dividend to book yield [30][31] Question: Appetite for changing capital structure with buybacks and common issuance - Management noted that preferred buybacks had minimal impact on capital structure, and they are currently not buying back shares but will consider it if conditions are favorable [35][36] Question: Relative value between agency CMBS and agency RMBS - Agency RMBS continues to provide a more attractive return on equity compared to agency CMBS, which is more aligned with lower coupon agency RMBS [37]

Third Quarter 2025 Earnings Call Invesco Mortgage Capital Inc. October 31, 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 This presentation and comments made in the associated conference call, may include statements and information that constitute "forward-looking statements" within the meaning of the U.S. securities laws as ...

Financial Performance - Net income per common share was $0.74, a significant improvement from a net loss of $0.40 in Q2 2025[8]. - For the three months ended September 30, 2025, the company reported net income of $53.471 million, a significant increase compared to a net loss of $23.327 million in the previous quarter[29]. - Net income attributable to common stockholders for Q3 2025 was $50,208, compared to a loss of $26,567 in Q2 2025 and a profit of $35,271 in Q3 2024[42]. - The comprehensive income for the three months ended September 30, 2025, was $53.471 million, reflecting the company's overall financial performance[31]. Investment and Assets - The investment portfolio totaled $5.7 billion, consisting of $4.8 billion in Agency RMBS and $0.9 billion in Agency CMBS[4]. - Total assets as of September 30, 2025, amounted to $5.961 billion, an increase from $5.688 billion at the end of 2024[34]. - Average earning assets rose to $5,382.2 million in Q3 2025, up from $5,078.9 million in Q2 2025[10]. Income and Expenses - Total interest income for Q3 2025 was $72.9 million, an increase from $70.6 million in Q2 2025[10]. - Interest income for the same period was $72.916 million, while interest expense was $55.302 million, resulting in net interest income of $17.614 million[29]. - Total interest expense for Q3 2025 was $55,302, with an effective interest expense of $26,164, resulting in an effective cost of funds of 2.14%[49]. - Total expenses for Q3 2025 were $4,465, slightly down from $4,693 in Q3 2024[45]. Dividends and Shareholder Returns - The common stock dividend remained unchanged at $0.34 per share, consistent with Q2 2025[8][20]. - The company distributed dividends to preferred stockholders totaling $3.261 million for the three months ended September 30, 2025[31]. - Earnings available for distribution per common share decreased to $0.58 in Q3 2025 from $0.68 in Q3 2024, while basic income per common share increased to $0.74 from $0.63[42]. Debt and Leverage - The debt-to-equity ratio increased slightly to 6.7x from 6.5x in Q2 2025[4][10]. - The company maintained a debt-to-equity ratio, which is a critical measure for assessing financial leverage and risk[36]. - The debt-to-equity ratio as of September 30, 2025, was 6.7, up from 6.5 as of June 30, 2025[54]. Share Transactions - The Company sold 4,638,385 shares of common stock for net cash proceeds of $36.1 million during Q3 2025[21]. - The company repurchased 89,223 shares of Series C Preferred Stock for a total cost of $2.2 million during the three months ended September 30, 2025[22]. Economic Returns - Economic return for Q3 2025 was 8.7%, compared to a negative return of (4.8)% in Q2 2025[6][8]. - Effective net interest income for Q3 2025 was $46,752, with an effective interest rate margin of 3.28%[51]. Gains and Losses - The company experienced a gain on investments of $49.540 million, contrasting with a loss of $5.268 million in the previous quarter[29]. - Realized loss on derivative instruments for Q3 2025 was $49,189, compared to a loss of $172,797 in Q3 2024[43]. Future Projections - As of October 24, 2025, estimated book value per common share is projected to be between $8.31 and $8.65[4].

Core Points - Invesco Mortgage Capital Inc. will announce its third quarter 2025 results on October 30, 2025, after market close [1] - A conference call to discuss the results will take place on October 31, 2025, at 9:00 a.m. ET, featuring key executives [1] - The company is a real estate investment trust focusing on mortgage-backed securities and related assets, managed by Invesco Advisers, Inc. [3] Company Information - Invesco Mortgage Capital Inc. is externally managed and advised by Invesco Advisers, Inc., a wholly-owned subsidiary of Invesco Ltd. [3] - The company has a cash dividend of $0.34 per share declared by its Board of Directors [6]

Group 1 - U.S. stock futures are higher, with Dow futures gaining approximately 100 points [1] - Quantum Computing Inc. raised $750 million from institutional investors in a market-priced private placement, leading to a sharp decline in its shares by 11.7% to $21.70 in pre-market trading [1] Group 2 - Rich Sparkle Holdings Ltd experienced a significant drop of 15% to $22.10 in pre-market trading after a 10% decline on Friday [3] - Nordic American Tankers Ltd fell 7.8% to $3.07 in pre-market trading [3] - Smurfit WestRock PLC shares decreased by 5.8% to $39.54 in pre-market trading [3] - Mesoblast Ltd shares declined 5.2% to $17.45 in pre-market trading, despite an 8% gain on Friday following the announcement of Ryoncil receiving a J-Code from Medicare & Medicaid Services [3] - Invesco Mortgage Capital Inc saw a decline of 4.4% to $7.42 in pre-market trading [3] - Inventiva ADR shares fell 4.2% to $6.26 in pre-market trading after the appointment of Andrew Obenshain as CEO [3] - International Paper Co dropped 4.2% to $45.21 in pre-market trading ahead of its third-quarter earnings release on October 30 [3] - Lufax Holding Ltd – ADR fell 3.7% to $3.85 in pre-market trading after an 8% decline on Friday [3] - Larimar Therapeutics Inc shares decreased by 3.3% to $4.71 in pre-market trading after a 14% jump on Friday [3]

Market Overview - U.S. stock futures are higher, with Dow futures gaining approximately 100 points [1] Quantum Computing Inc. - Quantum Computing Inc. (NASDAQ:QUBT) raised $750 million from institutional investors through a market-priced private placement led by top shareholders [1] - Shares of Quantum Computing fell sharply by 11.7% to $21.70 in pre-market trading [1] Other Stocks in Pre-Market Trading - Rich Sparkle Holdings Ltd (NASDAQ:ANPA) dropped 15% to $22.10 after a 10% decline on Friday [3] - Nordic American Tankers Ltd (NYSE:NAT) decreased by 7.8% to $3.07 [3] - Smurfit WestRock PLC (NYSE:SW) fell 5.8% to $39.54 [3] - Mesoblast Ltd (NASDAQ:MESO) declined 5.2% to $17.45, despite an 8% gain on Friday following the announcement of Ryoncil receiving a J-Code from Medicare & Medicaid Services [3] - Invesco Mortgage Capital Inc (NYSE:IVR) decreased by 4.4% to $7.42 [3] - Inventiva ADR (NASDAQ:IVA) fell 4.2% to $6.26 after appointing Andrew Obenshain as CEO [3] - International Paper Co (NYSE:IP) dropped 4.2% to $45.21 ahead of its third-quarter earnings release on October 30 [3] - Lufax Holding Ltd – ADR (NYSE:LU) fell 3.7% to $3.85 after an 8% decline on Friday [3] - Larimar Therapeutics Inc (NASDAQ:LRMR) decreased by 3.3% to $4.71 after a 14% jump on Friday [3]

Core Insights - Invesco Mortgage Capital (IVR) stock increased by 2.91% to $7.78, outperforming the S&P 500's gain of 0.34% [1] - The company is expected to report an EPS of $0.53, reflecting a 22.06% decrease year-over-year, while revenue is forecasted at $21.44 million, a significant increase of 185.49% from the previous year [2] - For the full year, earnings are projected at $2.25 per share, down 21.88% from the prior year, with revenue expected to rise by 127.85% to $83.91 million [3] Company Performance - Over the past month, Invesco Mortgage Capital shares have declined by 2.58%, underperforming the Finance sector's gain of 1.52% and the S&P 500's gain of 3.54% [1] - The Zacks Consensus EPS estimate has remained stable over the last month, and the company currently holds a Zacks Rank of 2 (Buy) [5] Valuation Metrics - Invesco Mortgage Capital is trading at a Forward P/E ratio of 3.36, which is significantly lower than the industry average Forward P/E of 8.71 [6] - The REIT and Equity Trust industry ranks in the bottom 21% of all industries, with a current Zacks Industry Rank of 196 [6] Analyst Insights - Recent revisions to analyst forecasts are crucial as they reflect near-term business trends, with positive revisions indicating analyst optimism about the company's profitability [3] - The Zacks Rank system, which assesses estimated changes, has shown that stocks rated 1 (Strong Buy) have historically provided an average annual return of +25% since 1988 [5][4]

Core Insights - Invesco Mortgage Capital (IVR) stock increased by 1.38% to $7.37, outperforming the S&P 500, which declined by 0.5% [1] - Over the past month, IVR shares have decreased by 6.31%, underperforming the Finance sector's gain of 1.4% and the S&P 500's gain of 2.74% [1] Earnings Performance - The upcoming earnings release for Invesco Mortgage Capital is anticipated to show an EPS of $0.53, reflecting a 22.06% decline year-over-year [2] - The Zacks Consensus Estimate for revenue is projected at $21.44 million, representing a significant increase of 185.49% from the previous year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $2.25 per share, indicating a decline of 21.88%, while revenue is expected to reach $83.91 million, an increase of 127.85% from the prior year [3] Analyst Estimates - Recent changes in analyst estimates for Invesco Mortgage Capital suggest evolving short-term business trends, with positive revisions indicating analysts' confidence in the company's performance [4] Zacks Rank and Valuation - Invesco Mortgage Capital currently holds a Zacks Rank of 2 (Buy), with no changes in the Zacks Consensus EPS estimate over the past month [6] - The company is trading at a Forward P/E ratio of 3.23, which is significantly lower than the industry average Forward P/E of 9.09 [7] Industry Context - The REIT and Equity Trust industry, part of the Finance sector, has a Zacks Industry Rank of 204, placing it in the bottom 18% of over 250 industries [7] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% outperforming the bottom half by a factor of 2 to 1 [8]

Corporate Governance Changes - Invesco Mortgage Capital Inc. announced the retirement of Board Chair John Day effective December 31, 2025, after serving since the company's formation in 2009 [1] - Don Liu has been elected as the new Chair of the Board starting November 4, 2025, having served on the Board since 2022 [2] - Wes McMullan will take over as Chair of the Nomination and Corporate Governance Committee effective November 4, 2025 [3] Audit Committee Leadership - Carolyn Handlon, Chair of the Audit Committee, will not seek re-election at the 2026 annual meeting for personal reasons; she joined the Board in 2017 [4] - Robert Fleshman, a designated audit committee financial expert, has been elected as Chair of the Audit Committee effective January 1, 2026 [4] Executive Leadership Changes - Carolyn Gibbs, an executive director, will retire from Invesco Ltd. after nearly 33 years, with her retirement from the Board effective March 31, 2026 [5] - The Board plans to elect a new executive director to fill Ms. Gibbs' vacancy prior to her retirement [5] Leadership Appreciation - CEO John Anzalone expressed gratitude for John Day's leadership over 16 years and acknowledged the contributions of Carolyn Handlon and Carolyn Gibbs [6] - Don Liu highlighted the benefits of Carolyn Handlon's finance insights and leadership [6] - Tony Wong, Senior Managing Director, praised Carolyn Gibbs for her remarkable leadership and commitment during her tenure [6] Board Succession Planning - The Board has focused on succession planning and leadership transitions over the past two years since adopting a director retirement policy [7]