Dynex Capital, Inc. (DX) Q3 2025 Financial Results Summary
Dynex Capital, Inc. (the “Company”) announced its third quarter 2025 financial results on October 20, 2025. Below is a summary of the key financial metrics and operational highlights from the report.
Third Quarter Financial Performance and Other Highlights
- Total Economic Return:
- $1.23 per common share, or 10.3% of beginning book value, consisting of:
- Increase in book value of $0.72 per common share
- Dividends declared of $0.51 per common share
- Book Value:
- $12.67 per common share as of September 30, 2025, which represents an increase of 6.0% compared to the prior quarter.
- Income Metrics:
- Comprehensive income of $1.20 per common share
- Net income of $1.09 per common share
- Capital Raised:
- Raised equity capital of $254 million, net of issuance costs, through at-the-market (ATM) common stock issuances.
- Asset Purchases:
- Purchased $2.4 billion in Agency RMBS (Residential Mortgage-Backed Securities)
- Purchased $464 million in Agency CMBS (Commercial Mortgage-Backed Securities)
- Liquidity:
- Over $1 billion in liquidity as of September 30, 2025.
- Leverage:
- Leverage ratio (including to-be-announced securities at cost) was 7.5 times shareholders’ equity.
Income Statement Highlights
- Interest Income:
- Total interest income for the quarter was $149.7 million, an increase from $111.7 million in the previous quarter.
- Interest Expense:
- Total interest expense was $119.1 million, an increase from $88.6 million in the previous quarter.
- Net Interest Income:
- Net interest income was $30.6 million, representing a margin of 0.46%, up from 0.33% in the prior quarter.
- Gains and Losses:
- Unrealized gains on investments, net of $142.5 million.
- Loss on derivatives, net of $10.7 million.
- Operating Expenses:
- General and administrative expenses were $11.5 million.
- Other operating expenses totaled $0.5 million.
- Net Income Calculation:
- The net income available to common shareholders was $147.6 million, compared to a net loss of $16.3 million in the prior quarter.
Dividend and Share Repurchase
- Dividends:
- Declared quarterly dividends of $0.51 per common share, consistent with the previous quarter.
- Share Repurchase:
- No share repurchase program was mentioned in the report.
Investment Portfolio and Financing Updates
- Investment Portfolio:
- Total Agency RMBS fair value was approximately $14.7 billion, up from roughly $13.6 billion last quarter.
- Repurchase Agreement Financing:
- Outstanding repurchase agreements increased to $11.8 billion with an average rate of 4.44%, compared to $8.6 billion at an average rate of 4.47% in the prior quarter.
- Interest Rate Swaps and Hedging:
- Managing interest rate exposure through various derivative instruments maintained effective hedging positions against rate changes.
Operational Insights
- Management emphasized continued effective risk management and capitalization on opportunities within a leveraged Agency mortgage-backed securities portfolio.
- The Company kept a strong focus on raising capital and maintaining a disciplined investment process amid market conditions.
Conclusion
Dynex Capital, Inc.’s Q3 2025 financial results indicate a strong economic performance with notable growth in book value and income metrics. The consistent dividend declaration and active capital raising strategies align with ongoing operational goals. The Company continues to leverage market opportunities amid a robust liquidity position and disciplined risk management strategies.
| September 30, 2025 | June 30, 2025 | September 30, 2025 | |
|---|---|---|---|
| INTEREST INCOME | |||
| Interest income | $149,679 | $111,746 | $356,484 |
| Interest expense | -119,068 | -88,618 | -285,612 |
| Net interest income | 30,611 | 23,128 | 70,872 |
| OTHER GAINS (LOSSES) | |||
| Unrealized gain on investments, net | 142,469 | 33,652 | 286,118 |
| Loss on derivatives, net | -10,694 | -58,093 | -186,875 |
| Total other gains (losses), net | 131,775 | -24,441 | 99,243 |
| EXPENSES | |||
| General and administrative expenses | -11,464 | -11,913 | -35,140 |
| Other operating expense, net | -534 | -380 | -1,268 |
| Total operating expenses | -11,998 | -12,293 | -36,408 |
| Net income (loss) | 150,388 | -13,606 | 133,707 |
| Preferred stock dividends | -2,827 | -2,680 | -7,431 |
| Net income (loss) to common shareholders | $147,561 | $-16,286 | $126,276 |
| Other comprehensive income: | |||
| Unrealized gain on available-for-sale investments, net | 14,966 | 4,064 | 38,420 |
| Total other comprehensive income | 14,966 | 4,064 | 38,420 |
| Comprehensive income (loss) to common shareholders | $162,527 | $-12,222 | $164,696 |
| Weighted average common shares-basic | 135,952,339 | 113,177,331 | 113,373,853 |
| Weighted average common shares-diluted | 136,927,985 | 113,177,331 | 114,202,402 |
| Net income (loss) per common share-basic | $1.09 | $-0.14 | $1.11 |
| Net income (loss) per common share-diluted | $1.08 | $-0.14 | $1.11 |
| Dividends declared per common share | $0.51 | $0.51 | $1.49 |
| September 30, 2025 | June 30, 2025 | |
|---|---|---|
| ASSETS | ||
| Cash and cash equivalents | $490,989 | $387,520 |
| Cash collateral posted to counterparties | 332,818 | 318,317 |
| Mortgage-backed securities (including pledged of $12,382,611 and $9,066,756, respectively) | 13,230,145 | 10,510,006 |
| Due from counterparties | 25,255 | 12,349 |
| Derivative assets | 14,100 | 31,816 |
| Accrued interest receivable | 55,931 | 43,309 |
| Other assets, net | 9,456 | 7,948 |
| Total assets | $14,158,694 | $11,311,265 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
| Liabilities: | ||
| Repurchase agreements | $11,753,522 | $8,600,143 |
| Due to counterparties | 270,719 | 976,506 |
| Derivative liabilities | 4,635 | 31 |
| Cash collateral posted by counterparties | 18,424 | 29,323 |
| Accrued interest payable | 110,517 | 60,855 |
| Accrued dividends payable | 30,688 | 26,125 |
| Other liabilities | 12,641 | 8,289 |
| Total liabilities | 12,201,146 | 9,701,272 |
| Shareholders’ equity: | ||
| Preferred stock | $107,843 | $107,843 |
| Common stock | 1,457 | 1,253 |
| Additional paid-in capital | 2,524,286 | 2,268,143 |
| Accumulated other comprehensive loss | -134,069 | -149,035 |
| Accumulated deficit | -541,969 | -618,211 |
| Total shareholders’ equity | 1,957,548 | 1,609,993 |
| Total liabilities and shareholders’ equity | $14,158,694 | $11,311,265 |
| Preferred stock aggregate liquidation preference | $111,500 | $111,500 |
| Book value per common share | $12.67 | $11.95 |
| Common shares outstanding | 145,714,136 | 125,358,375 |
