Ellington Financial Stock Earnings Reports

Ellington Financial delivered a very strong Q1 2026: GAAP net income was $0.78 per share, adjusted distributable earnings (ADE) were $0.55 per share, and book value per share rose to $13.56 (up 3%). The company raised its ADE run-rate guidance to roughly $0.45 per quarter (above the $0.39 dividend). Key drivers were an outstanding quarter at Longbridge (near-record proprietary reverse mortgage originations, securitization gains, servicing gains, and a $17M litigation settlement), robust loan-originator performance (notably LendSure), and a very active securitization program (seven transactions totaling >$2.8B). The portfolio grew ~4% during the quarter, delinquency rates declined for a second consecutive quarter, realized credit losses remain minimal, and unencumbered assets increased to ~$1.9–$2.0B. Funding and balance-sheet moves included a $117M common equity raise used to redeem high-cost preferred stock (improving cost of capital) and continued emphasis on migrating to more long-term unsecured funding; recourse debt-to-equity was 1.9x and overall debt-to-equity 9x at quarter-end. Risks/notes for investors: mark-to-market treatment of unsecured debt can create book value volatility (noted impact from March widening and an estimated ~$(0.13) remark in April), market-wide spread widening could reduce book value, and the company remains opportunistic on future preferred/unsecured issuances and a pending servicer acquisition subject to approval.