Revenue volatility remains acute, with the NOI margin contracting to 78.2% in 2026Q1 from historical peaks near 98%, signaling rising financing costs.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 |
|---|
| Revenue | 993M | 1.31B | 239.9M | 449.67M | -877.95M | 4.89M | -213.22M | 212.93M | 35.97M | 272.27M | -141.12M | 246.68M | 386.29M | -611.33M | 367.63M | 109.26M | 11.97M | 497.46K | 5.43M | 1.65M |
| Revenue Growth % | 67.32% | 444.08% | -46.65% | 151.22% | -18039.4% | 102.3% | -200.13% | 491.92% | -86.79% | 292.94% | -157.21% | -36.14% | 163.19% | -266.29% | 236.46% | 812.86% | 2306.08% | -90.83% | 228.37% | - |
| Property Operating Expenses | 41.96M | 38.86M | 33.13M | 31.59M | 25.97M | 22.51M | 20.77M | 29.57M | 27.25M | 26.58M | 26.07M | 27.29M | 27.86M | 28.14M | 19.46M | 0 | 0 | 0 | 0 | 0 |
| Net Operating Income (NOI) | 951.04M | 1.27B | 206.77M | 418.09M | -903.93M | -17.61M | -233.99M | 183.36M | 8.73M | 245.69M | -167.19M | 219.39M | 358.44M | -639.47M | 348.17M | 109.26M | 11.97M | 497.46K | 5.43M | 1.65M |
| NOI Margin % | 95.77% | 97.02% | 86.19% | 92.98% | 102.96% | -359.91% | 109.74% | 86.11% | 24.26% | 90.24% | 118.47% | 88.94% | 92.79% | 104.6% | 94.71% | 100% | 100% | 100% | 100% | 100% |
| Operating Expenses | 109.53M | 301.63M | -302.98M | -39.78M | -798.98M | -40.09M | -82.86M | 145.04M | -39.54M | 64.53M | -121.67M | 250.6M | 537.48M | -452.42M | 64.69M | 0 | 4.26M | 416.49K | 2.31M | 163.28K |
| G&A Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EBITDA | 758.49M | 964.77M | 509.75M | 457.87M | -109.14M | 22.47M | -152.14M | 38.32M | 48.26M | 275.71M | 27.59M | 28.07M | -113.94M | -103.84M | 283.48M | 2.47M | 7.7M | -1.53M | 3.12M | 1.49M |
| EBITDA Margin % | 76.38% | 73.91% | 212.48% | 101.82% | 12.43% | 459.19% | 71.35% | 18% | 134.17% | 101.26% | -19.55% | 11.38% | -29.49% | 16.99% | 77.11% | 2.26% | 64.37% | -307.45% | 57.44% | 90.12% |
| Depreciation & Amortization | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A / Revenue % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Operating Income | 841.51M | 964.77M | 509.75M | 457.87M | -104.95M | 22.47M | -151.13M | 38.32M | 48.26M | 181.15M | -45.52M | -31.2M | -179.05M | -187.05M | 283.48M | 0 | 7.7M | 80.97K | 3.12M | 1.49M |
| Operating Margin % | 84.74% | 73.91% | 212.48% | 101.82% | 11.95% | 459.19% | 70.88% | 18% | 134.17% | 66.53% | 32.25% | -12.65% | -46.35% | 30.6% | 77.11% | 0% | 64.37% | 16.28% | 57.44% | 90.12% |
| Interest Expense | 4M | 642.09M | 524.15M | 525.79M | 120.79M | 7.11M | 62.97M | 288.23M | 154.23M | 94.56M | 73.11M | 59.28M | 65.11M | 83.22M | 61.2M | 11.86M | 1.32M | 14.15K | 0 | 0 |
| Interest Coverage | - | 1.50x | 0.97x | 0.87x | -0.90x | 3.16x | -2.42x | 0.13x | 0.31x | 2.92x | 0.38x | 0.47x | -1.75x | -1.25x | 4.63x | 0.21x | 5.84x | -108.07x | - | - |
| Non-Operating Income | 83.03M | 0 | 0 | 0 | 4.18M | 0 | 1.01M | 0 | 0 | -94.56M | -73.11M | -59.28M | -65.11M | -83.22M | 0 | -2.47M | 0 | 1.61M | 0 | 0 |
| Pretax Income | 240.5M | 322.69M | -14.39M | -67.92M | -229.93M | 15.36M | -215.11M | -249.91M | -105.97M | 181.15M | -45.52M | -31.2M | -179.05M | -187.05M | 222.28M | -9.39M | 6.38M | -1.54M | 3.12M | 1.49M |
| Pretax Margin % | 24.22% | 24.72% | -6% | -15.1% | 26.19% | 313.91% | 100.89% | -117.36% | -294.57% | 66.53% | 32.25% | -12.65% | -46.35% | 30.6% | 60.46% | -8.59% | 53.34% | -310.38% | 57.43% | 90.12% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 17.03M | 197.03M | 0 | -15.58M | -163.43M | -10K | -24K | 51.31K | -151K | -394K | 2.04M | 621.66K |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | -16.07% | 108.77% | 0% | 49.94% | 91.28% | 0.01% | -0.01% | -0.55% | -2.36% | 25.52% | 65.53% | 41.75% |
| Net Income | 240.5M | 322.69M | -14.39M | -67.92M | -229.93M | 15.36M | -215.11M | -249.91M | -105.97M | 181.15M | -45.52M | -31.2M | -179.05M | -187.04M | 222.31M | -9.44M | 6.54M | -1.15M | 1.07M | 867.32K |
| Net Margin % | 24.22% | 24.72% | -6% | -15.1% | 26.19% | 313.91% | 100.89% | -117.36% | -294.57% | 66.53% | 32.25% | -12.65% | -46.35% | 30.6% | 60.47% | -8.64% | 54.61% | -230.97% | 19.8% | 52.49% |
| Net Income Growth % | 15341.06% | 2341.82% | 78.81% | 70.46% | -1596.65% | 107.14% | 13.92% | -135.84% | -158.5% | 497.99% | -45.86% | 82.57% | 4.27% | -184.14% | 2454.44% | -244.44% | 668.93% | -206.98% | 23.83% | - |
| Funds From Operations (FFO) | 245.87M | 324.72M | -14.39M | -67.92M | -213.42M | 63.47M | -161.71M | -249.91M | -68.86M | 230.9M | 40.08M | 78.38M | -96.08M | -29.4M | 346.2M | 25.36M | 10.15M | -1.13M | 1.07M | 867.32K |
| FFO Margin % | 24.76% | 24.88% | -6% | -15.1% | 24.31% | 1296.87% | 75.84% | -117.36% | -191.41% | 84.81% | -28.4% | 31.78% | -24.87% | 4.81% | 94.17% | 23.21% | 84.82% | -227.94% | 19.8% | 52.49% |
| FFO Growth % | 0% | - | - | - | -436.26% | 139.25% | - | - | -129.82% | 476.11% | -48.87% | 181.58% | -226.82% | -108.49% | 1264.9% | 149.84% | 995.32% | - | - | - |
| FFO per Share | 2.06 | 3.44 | -0.28 | -1.58 | -9.05 | 3.95 | -12.82 | -21.60 | -8.17 | 29.12 | 5.46 | 9.16 | -10.76 | -3.24 | 61.59 | 3.30 | 13.87 | -0.44 | 0.36 | 0.53 |
| FFO Payout Ratio % | 116.95% | 87.3% | -1048.7% | -318.29% | -66.73% | 152.25% | -46.68% | -49.81% | -140.91% | 38.72% | 276.98% | 213.23% | -223.93% | -995.24% | 77.85% | 344.16% | 87.74% | -2.06% | 0% | 0% |
| EPS (Diluted) | 2.01 | 3.30 | -0.51 | -1.86 | -10.25 | 0.24 | -17.83 | -22.96 | -14.60 | 20.85 | -8.35 | -5.47 | -21.80 | -22.00 | 39.20 | -6.00 | 44.80 | -0.45 | 0.80 | 0.53 |
| EPS Growth % | 508.51% | 747.06% | 72.58% | 81.85% | -4370.83% | 101.35% | 22.34% | -57.26% | -170.02% | 349.7% | -52.65% | 74.91% | 0.91% | -156.12% | 753.33% | -113.39% | 10055.56% | -156.25% | 50.94% | - |
| EPS (Basic) | - | 3.31 | -0.51 | -1.86 | -10.25 | 0.24 | -17.85 | -22.96 | -14.60 | 21.10 | -8.35 | -5.47 | -21.60 | -22.19 | 39.41 | -6.00 | 44.80 | -0.45 | 0.80 | 0.53 |
| Diluted Shares Outstanding | 119.58M | 94.27M | 52.16M | 43.05M | 23.59M | 16.06M | 12.61M | 11.57M | 8.43M | 7.93M | 7.34M | 8.56M | 8.93M | 9.07M | 5.62M | 7.68M | 731.88K | 2.56M | 2.97M | 1.62M |
High leverage margin calls
As reported in recent financial filings, ARR experienced a sharp revenue contraction of 84.8% in 2026Q1, following a period of extreme volatility that saw quarterly revenue swing from $550.5 million in 2023Q4 to negative figures in 2024Q4, suggesting significant instability in the underlying mortgage-backed securities portfolio performance.
The extreme fluctuations in top-line figures appear to be driven by the interplay between interest rate environments and the company's hedging strategy rather than organic growth. Investors should monitor whether this volatility indicates a fundamental inability to maintain a stable net interest margin in the current yield curve environment.
Based on the provided income statement data, the NOI margin plummeted to 78.2% in 2026Q1 from historical peaks near 98%, indicating that rising financing costs and operational expenses are increasingly eroding the profitability of the company's interest-earning assets relative to its core revenue generation.
The narrowing gap between gross interest income and net operating income suggests that the company's cost of funds is becoming increasingly difficult to manage. This trend warrants further investigation into whether the current leverage profile is sustainable if short-term borrowing costs remain elevated for an extended period.
According to the latest quarterly figures, ARR reported a negative FFO of $51.5 million in 2026Q1, a stark reversal from the $214.2 million reported in 2025Q4, which raises significant concerns regarding the company's ability to cover its dividend obligations through recurring operational cash flow.
The transition to negative FFO per share suggests that the company's core earnings power is currently insufficient to support its historical payout levels. Analysts should be wary of potential dividend cuts or further equity dilution if these negative earnings trends persist into subsequent quarters.
Financial statements indicate a debt-to-equity ratio of 7.94x, which, when combined with the recent negative FFO performance, suggests that the company's reliance on high leverage to drive returns may be creating a precarious situation where minor asset price declines could trigger forced deleveraging events.
The company's aggressive use of repo financing appears to leave it highly exposed to liquidity shocks in the mortgage market. Investors should consider whether the current valuation adequately prices in the risk of book value erosion resulting from the necessity to sell assets during periods of market stress.
Quick answers to the most common questions about buying ARR stock.
For fiscal year 2025, ARMOUR Residential REIT, Inc. (ARR) reported total revenue of $1.31B. This represents a 78899.5% increase compared to $1.7M in 2007.
ARMOUR Residential REIT, Inc. (ARR) is profitable, generating $322.7M in net income for the fiscal year ending 2025 with a net profit margin of 24.7%.
ARMOUR Residential REIT, Inc. (ARR) reported an operating income of $964.8M, resulting in an operating profit margin of 73.9%. This margin reflects the operational efficiency of the business before interest and taxes.
ARMOUR Residential REIT, Inc. (ARR) generated $1.27B in gross profit for the year, representing a gross profit margin of 97.0%. This demonstrates the company's core pricing power and production efficiency.