Dynex Capital, Inc. (NYSE: DX) Q2 2025 Earnings | 07/21/2025

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Dynex Capital, Inc. (NYSE: DX) announced its Q2 2025 results on July 21, 2025, delivering a mixed quarter highlighted by substantial portfolio expansion and new equity capital raised but falling short of Wall Street’s earnings and revenue expectations. The company reported a GAAP net loss of $0.14 per share and a comprehensive loss of $0.11 per share for the quarter, both well below analyst forecasts. Total economic loss was $0.10 per share, or -0.8% of beginning book value, driven by a decline in book value per share of $0.61, partially offset by declared dividends of $0.51 per share. Book value per common share stood at $11.95 as of June 30, 2025, representing a 4.8% decrease quarter-over-quarter. Revenue for the period was $23.13 million, missing analyst consensus by over 45%, while adjusted earnings available for distribution (EAD) per share reached $0.22, a modest improvement from Q1 but below expectations. Despite the weak top-line results, Dynex expanded its investment portfolio by 25% over the previous quarter to $14 billion, marking over 50% growth year-over-year, with the bulk of assets allocated to Agency RMBS (96%) and increased activity in Agency CMBS and TBA securities. During the quarter, Dynex raised $282–560 million in new capital through at-the-market equity issuances, bolstering liquidity to $891 million while leveraging grew sharply to 8.3x equity as the firm pursued higher return potential in agency-backed assets. The expansion strategy, while boosting scale and market presence, was accompanied by non-recurring charges related to facility idling and higher portfolio risk due to increased leverage. Net interest income for the quarter was $23.13 million and adjusted EBITDA rebounded to $97 million after a negative Q1, reflecting solid operating execution and aggressive cost controls. CEO Lourenco Goncalves highlighted the positive impact of recent optimization measures, noting improvements in core operational efficiency and cost reductions. The management reaffirmed Dynex’s focus on agency MBS and prudent risk management while maintaining a stable dividend ($0.51/share in Q2), drawing attention to the company’s 16.28% dividend yield and 18-year dividend payment streak. The company’s defensive portfolio allocation, strong liquidity, and continued dividend payments were cited as strengths that may offset near-term volatility and a notable increase in risk profile. About Inside Ticker: For timely earnings recaps, strategic updates, and in-depth analysis on Dynex Capital, Inc. (NYSE: DX) and other U.S. real estate investment trusts, follow Inside Ticker and visit InsideTicker.com for exclusive insights and the latest news. Hashtags: #DynexCapital #DX #Q22025 #Earnings #FinancialResults #MortgageREIT #Dividends #BookValue #PortfolioGrowth #AgencyMBS #CMBS #Leverage #NetLoss #Revenue #CapitalRaising #OperationalExcellence #Liquidity #DividendYield #MarketUpdate #BusinessUpdate #InvestorUpdate #USREIT #InsideTicker #Q2Results #RiskManagement #AssetAllocation #StrategicGrowth #CEOUpdate #REITs #EquityIssuance #CashFlow