Orchid Island Capital swung to a profit in the second quarter of 2026, reporting earnings of $0.44 per share compared with a loss of $0.11 per share in the first quarter. Book value per share rose to $7.22 at June 30 from $7.08 at the end of the prior quarter, and total return improved to 6.2% from negative 1.3%. The company aggressively increased its hedge coverage to 91% of repo funding from 72% last quarter, adding interest-rate swaps and other protection amid rising rate uncertainty. Management shifted the portfolio modestly toward lower-coupon 30-year securities, reducing the average coupon by about 6 basis points, while the economic net interest spread narrowed by the same amount. Post-quarter, book value had declined by as much as 4.3% including dividend accrual, and leverage had risen to about 7.73-to-1, leaving future dividends and returns sensitive to funding costs and mortgage-market volatility.
Orchid Island Capital Inc.Swung to Q2 profit, book value rose, and total return improved.
Oracle Corporation