Revenue has faced severe downward pressure, resulting in a 2025Q1 gross margin of -5.7% as financing costs outpace interest income.
Ellington Credit Company (EARN) annual income statement — 14-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 |
|---|
| Net Interest Income | 41.11M | 32.77M | 15.07M | -2.71M | 20.19M | 25.64M | 17.36M | 8.57M | 22.03M | 30.14M | 24.22M | 34.52M | 42.31M | 24.81M | 0 |
| NII Growth % | 239.26% | 117.46% | 656.67% | -113.41% | -21.27% | 47.74% | 102.51% | -61.11% | -26.9% | 24.43% | -29.82% | -18.43% | 70.55% | - | - |
| Net Interest Margin % | 10.75% | 8.47% | 1.83% | -0.29% | 1.92% | 1.6% | 1.45% | 0.58% | 1.32% | 1.6% | 1.7% | 2.22% | 2.78% | 1.64% | 0% |
| Interest Income | 52.09M | 43.28M | 49.86M | 42.55M | 35.01M | 28.36M | 27.32M | 43.85M | 54.55M | 49.19M | 33.5M | 40.75M | 46.82M | 27.87M | 0 |
| Interest Expense | 9.6M | 10.52M | 34.79M | 45.26M | 14.82M | 2.72M | 9.96M | 35.28M | 32.52M | 19.05M | 9.27M | 6.24M | 4.51M | 3.06M | 0 |
| Loan Loss Provision | -9.6M | -4.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Interest Income | 1.81M | -711K | 811K | 12.8M | -45.26M | -26.2M | 8.58M | 18.97M | -27.82M | -13.65M | -7.31M | -29.34M | -20.39M | -22.4M | 956K |
| Non-Interest Income % | 4.27% | -2.22% | 5.11% | 126.82% | 180.52% | 4703.41% | 33.09% | 68.89% | 480.75% | -82.8% | -43.21% | -566.96% | -93.03% | -928.61% | 100% |
| Total Net Revenue | 42.48M | 32.06M | 15.88M | 10.09M | -25.07M | -557K | 25.94M | 27.54M | -5.79M | 16.49M | 16.91M | 5.17M | 21.92M | 2.41M | 956K |
| Revenue Growth % | 804.71% | 101.88% | 57.32% | 140.26% | -4400.9% | -102.15% | -5.83% | 575.96% | -135.09% | -2.51% | 226.86% | -76.39% | 808.79% | 152.3% | - |
| Non-Interest Expense | 78.77M | 44.82M | 8.78M | 5.54M | 5.13M | 5.75M | 5.83M | 5.29M | 5.51M | 5.7M | 5.01M | 5.14M | 5.75M | 4.33M | 3.1M |
| Efficiency Ratio | 185.4% | 139.82% | 55.31% | 54.83% | -20.45% | -1032.68% | 22.46% | 19.2% | -95.18% | 34.58% | 29.61% | 99.42% | 26.24% | 179.35% | 324.27% |
| Operating Income | 5.79M | -8.44M | 7.1M | 4.56M | -30.2M | -6.31M | 20.11M | 22.26M | -11.29M | 10.79M | 11.91M | 30K | 16.17M | -1.91M | -2.49M |
| Operating Margin % | 13.63% | -26.34% | 44.69% | 45.17% | 120.45% | 1132.68% | 77.54% | 80.8% | 195.18% | 65.42% | 70.39% | 0.58% | 73.76% | -79.35% | -260.67% |
| Operating Income Growth % | - | -218.98% | 55.65% | 115.1% | -378.65% | -131.37% | -9.63% | 297.04% | -204.7% | -9.39% | 39586.67% | -99.81% | 944.72% | 23.19% | - |
| Pretax Income | -36.74M | -14.46M | 7.1M | 4.56M | -30.2M | -6.31M | 20.11M | 22.26M | -11.29M | 10.79M | 11.91M | 30K | 16.17M | -1.91M | -2.14M |
| Pretax Margin % | -86.47% | -45.1% | 44.69% | 45.17% | 120.45% | 1132.68% | 77.54% | 80.8% | 195.18% | 65.42% | 70.39% | 0.58% | 73.76% | -79.35% | -224.27% |
| Income Tax | 0 | -6K | 510K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 348K |
| Effective Tax Rate % | 0% | 0.04% | 7.19% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | -16.23% |
| Net Income | -5.47M | -14.45M | 6.59M | 4.56M | -30.2M | -6.31M | 20.11M | 22.26M | -11.29M | 10.79M | 11.91M | 30K | 16.17M | -1.91M | -2.14M |
| Net Margin % | -12.87% | -45.08% | 41.47% | 45.17% | 120.45% | 1132.68% | 77.54% | 80.8% | 195.18% | 65.42% | 70.39% | 0.58% | 73.76% | -79.35% | -224.27% |
| Net Income Growth % | -4.21% | -319.44% | 44.46% | 115.1% | -378.65% | -131.37% | -9.63% | 297.04% | -204.7% | -9.39% | 39586.67% | -99.81% | 944.72% | 10.73% | - |
| Net Income (Continuing) | -36.74M | -14.45M | 6.59M | 4.56M | -30.2M | -6.31M | 20.11M | 22.26M | -11.29M | 10.79M | 11.91M | 30K | 16.17M | -1.91M | -536.4K |
| EPS (Diluted) | -0.15 | -0.38 | 0.24 | 0.31 | -2.29 | -0.50 | 1.63 | 1.79 | -0.88 | 0.93 | 1.31 | 0.00 | 1.77 | -0.29 | -0.23 |
| EPS Growth % | 7.55% | -258.33% | -22.58% | 113.54% | -358% | -130.67% | -8.94% | 303.41% | -194.62% | -29.01% | - | -99.81% | 710.34% | -26.09% | - |
| EPS (Basic) | - | -0.41 | 0.24 | 0.31 | -2.29 | -0.50 | 1.63 | 1.79 | -0.88 | 0.93 | 1.31 | 0.00 | 1.77 | -0.29 | -0.23 |
| Diluted Shares Outstanding | 37.63M | 37.57M | 27.16M | 14.88M | 13.16M | 12.68M | 12.35M | 12.46M | 12.81M | 11.6M | 9.12M | 9.14M | 9.14M | 6.57M | 9.13M |
Quick answers to the most common questions about buying EARN stock.
For fiscal year 2025, Ellington Credit Company (EARN) reported total revenue of $32.1M. This represents a 3253.3% increase compared to $1.0M in 2012.
Ellington Credit Company (EARN) reported a net loss of $14.5M for the fiscal year ending 2025.
Ellington Credit Company (EARN) reported an operating income of $-8.4M, resulting in an operating profit margin of -26.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Ellington Credit Company (EARN) generated $36.4M in gross profit for the year, representing a gross profit margin of 113.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Net interest margin compression
Metrics are mathematically derived from official filings.
Revenue Contraction Reflects Portfolio Volatility
As reported in recent financial statements, EARN's revenue has experienced significant downward pressure, culminating in a 2025Q1 figure of $921.0K, which highlights the extreme sensitivity of the company's interest-earning asset base to current market conditions and the ongoing challenges in maintaining consistent top-line growth.
The sharp decline in revenue suggests that the company is struggling to deploy capital effectively in an environment characterized by yield curve inversion. Investors should monitor whether this contraction is a strategic defensive pivot or a sign of diminishing access to high-quality, yield-generating mortgage assets.
Structural Margin Erosion Under Pressure
Based on the provided income statement data, EARN's gross margin has collapsed into negative territory at -5.7% in 2025Q1, indicating that the costs associated with financing and hedging activities are currently outpacing the interest income generated by the underlying mortgage-backed securities portfolio.
This negative margin profile suggests that the company's current leverage strategy is failing to produce a positive spread. The inability to maintain positive gross margins warrants further investigation into the efficacy of the manager's hedging instruments and the sustainability of the current interest expense burden.
Operating Inefficiency Amid Fixed Costs
According to the company's quarterly filings, SG&A expenses have remained relatively sticky despite the precipitous drop in revenue, leading to an operating margin of -8.6% in 2025Q1, which underscores the difficulty of scaling the cost structure in a period of significant asset base shrinkage.
The persistence of SG&A costs relative to declining revenue indicates a lack of operating leverage, which may be exacerbated by the external management fee structure. This suggests that the company's fixed cost base is disproportionately high for its current size, potentially limiting the path to profitability.
Earnings Volatility Masks Underlying Performance
As evidenced by the erratic EPS swings from $0.88 in 2022Q4 to -$0.23 in 2025Q1, EARN's reported net income is heavily influenced by non-cash mark-to-market adjustments, making it difficult for investors to discern the true cash-generating capacity of the portfolio from standard GAAP figures.
The frequent divergence between net income and operational reality suggests that headline earnings are an unreliable metric for assessing the company's health. Analysts should focus on Earnings Available for Distribution to better understand the underlying economic return, as the current GAAP results appear heavily distorted by hedging volatility.