Reported NOI margins of 94.1% to 98.0% in recent quarters contrast sharply with the volatile net income line, which swung from $211.7M in 2025Q4 to -$323.7M in 2026Q3, suggesting that financing and mark-to-market effects dominate GAAP results.
ARMOUR Residential REIT, Inc. (ARR) annual income statement — 19-year revenue, gross profit & net income history
| 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 | 890.1M | 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 % | 21.3% | 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 | 48.08M | 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) | 842.02M | 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 % | 94.6% | 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 | -156.08M | 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 | 16.02M | 0 | 37.87M | 36.53M | 31.46M | 29.12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EBITDA | 612.92M | 966.8M | 509.75M | 457.87M | -88.44M | 70.58M | -97.72M | 38.32M | 85.38M | 230.9M | 40.08M | 78.38M | -96.08M | -29.41M | 407.37M | 37.27M | 11.32M | 96.04K | 3.12M | 1.49M |
| EBITDA Margin % | 68.86% | 74.07% | 212.48% | 101.82% | 10.07% | 1442.15% | 45.83% | 18% | 237.33% | 84.81% | -28.4% | 31.78% | -24.87% | 4.81% | 110.81% | 34.11% | 94.58% | 19.31% | 57.44% | 90.12% |
| Depreciation & Amortization | 5.79M | 2.03M | 0 | 0 | 16.51M | 48.11M | 53.41M | 0 | 37.11M | 49.75M | 85.6M | 109.59M | 82.97M | 157.65M | 123.9M | 34.81M | 3.62M | 15.06K | 0 | 0 |
| D&A / Revenue % | 0.65% | 0.16% | 0% | 0% | -1.88% | 982.96% | -25.05% | 0% | 103.16% | 18.27% | -60.66% | 44.42% | 21.48% | -25.79% | 33.7% | 31.86% | 30.21% | 3.03% | 0% | 0% |
| Operating Income | 998.11M | 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 % | 112.13% | 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 | 474M | 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 | -52.08M | 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 % | -5.85% | 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 | -52.08M | 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 % | -5.85% | 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 % | -180.69% | 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) | 162.64M | 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 % | 18.27% | 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 | 1.13 | 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 % | 224.72% | 83.59% | -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) | -0.36 | 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 % | 62.5% | 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 | 144.56M | 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 |
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.
Key Metrics
Top Statement Risk
High leverage and volatile earnings
Metrics are mathematically derived from official filings.
Revenue Volatility Obscures Underlying Earnings Trend
Based on reported figures, ARR's quarterly revenue swung between roughly $36M and $411M over ten quarters, with the latest quarter showing a 30.3% decline to $274.3M, making headline growth rates unreliable for judging trajectory.
The wide swings in revenue appear driven by mark-to-market and hedge-related items rather than a stable interest income base, which is typical for leveraged agency mREITs. Net interest income is the more relevant driver, and the data does not provide a clean series for it. Investors should monitor whether the portfolio size and spread environment are stabilizing before drawing conclusions about growth.
NOI Margins Mask Financing Cost Pressure
As reported in the income statement, ARR's NOI margin ranged from 77.5% to 98.0%, but the 95.2% margin in the latest quarter sits against a net margin of 24.72%, indicating heavy financing and operating costs below the NOI line.
For an mREIT, the NOI-style margin is largely a function of revenue recognition and does not reflect the cost of repo borrowing, which the data does not isolate. The gap between high reported margins and a much lower net margin suggests that interest expense absorbs most of the economics. Investors should treat the headline margin as a weak indicator of true profitability.
FFO Turned Negative Amid Volatile Results
According to the reported figures, ARR's FFO per share moved from -$0.90 to $1.91 and back to -$0.43 across recent quarters, with the most recent FFO reading of -$51.5M raising concerns about dividend coverage given a 5.3% yield.
The sign flips in FFO per share suggest earnings power is highly sensitive to rate and hedge movements, not to operating growth. A negative FFO quarter combined with a high yield implies the dividend may rely on balance sheet capacity or prior gains rather than recurring earnings. Investors should monitor AFFO or core earnings disclosures, which are absent from the provided data, before assessing dividend safety.
Limited Depreciation Relevance for Agency Portfolio
Based on ARR's reported figures, the GAAP earnings base is dominated by mark-to-market and hedge results rather than real estate depreciation, as the company holds mortgage securities instead of physical property.
Because ARR owns agency MBS rather than depreciable real estate, the traditional REIT depreciation adjustment carries limited weight. The more relevant distortion is unrealized gains and losses flowing through comprehensive income. Analysts should focus on earnings available for distribution rather than standard FFO adjustments.
Strongest Case Against Earnings Quality
Based on reported figures, ARR's Q3 2026 net loss of -$323.7M against a prior-quarter profit of $114.8M, combined with a 7.94x debt-to-equity ratio, challenges the sustainability of reported earnings.
Headline net income is highly unstable and appears to reflect hedge and valuation effects that may reverse, undermining any assumption of recurring profitability. The high leverage amplifies these swings and raises margin call risk if collateral values fall. Investors should treat reported earnings as a poor guide to distributable capacity until core earnings are clearly disclosed.