Revenue surged 139% YoY to $174.9M in 2026Q2, but NOI margin compressed from 100% to 80.5%, reflecting a shift toward higher-cost assets and raising questions about earnings quality.
Ellington Financial Inc. (EFC) annual income statement — 18-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 |
|---|
| Revenue | 674.13M | 674.54M | 282.19M | 256.5M | 43.15M | 216.8M | 35.15M | 85.16M | 76.83M | 10.74M | 2.35M | 53.24M | 72.97M | 86.94M | 103.04M | 22.52M | 57.58M | 124.28M | 8.48M |
| Revenue Growth % | 136.05% | 139.04% | 10.01% | 494.48% | -80.1% | 516.76% | -58.72% | 10.84% | 615.18% | 357.73% | -95.59% | -27.03% | -16.07% | -15.62% | 357.43% | -60.88% | -53.67% | 1366.11% | - |
| Property Operating Expenses | 110.22M | 106.17M | 0 | 0 | 0 | 42.33M | 0 | 0 | 415K | 21.4M | 21.28M | 20.38M | 1.23M | 1.13M | 923K | 0 | 0 | 0 | 0 |
| Net Operating Income (NOI) | 563.91M | 568.37M | 282.19M | 256.5M | 43.15M | 174.46M | 35.15M | 85.16M | 76.42M | -10.66M | -18.93M | 32.87M | 71.74M | 85.81M | 102.11M | 22.52M | 57.58M | 124.28M | 8.48M |
| NOI Margin % | 83.65% | 84.26% | 100% | 100% | 100% | 80.47% | 100% | 100% | 99.46% | -99.22% | -806.69% | 61.73% | 98.31% | 98.7% | 99.1% | 100% | 100% | 100% | 100% |
| Operating Expenses | 50.53M | 153.08M | 165.92M | 167.29M | 68.12M | 39.52M | 33.33M | 30.63M | 26.92M | 4.15M | 18.05M | 14.81M | 13.02M | 7.58M | 5.89M | -5.55M | -13.19M | -28.44M | -4.71M |
| G&A Expenses | -21.39M | 13.05M | 65.69M | 68.49M | 29M | 20.91M | 16.52M | 14.82M | 9.97M | 2.24M | 18.05M | 14.81M | 13.02M | 7.58M | 5.89M | 10.57M | 15.06M | 26.75M | 9.38M |
| EBITDA | 588.3M | 459.09M | 116.27M | 89.21M | -19.3M | 193.02M | 1.82M | 54.53M | 154.48M | 116.62M | 60.3M | 72.02M | 27.55M | 47.36M | 102.14M | 16.97M | 40.57M | 93.38M | 3.77M |
| EBITDA Margin % | 87.27% | 68.06% | 41.2% | 34.78% | -44.73% | 89.03% | 5.18% | 64.03% | 201.06% | 1085.53% | 2569.07% | 135.26% | 37.76% | 54.47% | 99.13% | 75.36% | 70.45% | 75.14% | 44.44% |
| Depreciation & Amortization | 0 | 0 | 0 | 0 | 5.67M | 0 | 0 | 0 | 51.09M | 51.52M | 60M | 21.82M | -41.54M | -42.19M | -2.81M | 0 | 0 | 0 | 0 |
| D&A / Revenue % | 0% | 0% | 0% | 0% | 13.15% | 0% | 0% | 0% | 66.5% | 479.55% | 2556.33% | 40.97% | -56.93% | -48.53% | -2.72% | 0% | 0% | 0% | 0% |
| Operating Income | 513.38M | 415.29M | 116.27M | 89.21M | -24.97M | 134.94M | 1.82M | 54.53M | 103.38M | 65.1M | 299K | 50.2M | 69.09M | 89.55M | 104.94M | 16.97M | 44.4M | 95.84M | 3.77M |
| Operating Margin % | 76.15% | 61.57% | 41.2% | 34.78% | -57.87% | 62.24% | 5.18% | 64.03% | 134.56% | 605.99% | 12.74% | 94.28% | 94.69% | 103% | 101.85% | 75.36% | 77.1% | 77.12% | 44.44% |
| Interest Expense | 4M | 304.53M | 279.61M | 262.45M | 0 | 44.03M | 61.66M | 0 | 56.71M | 8.17M | 16.31M | 12.11M | 9.93M | 11.03M | 7.8M | 6.65M | 3.83M | 2.46M | 6.19M |
| Interest Coverage | - | 1.51x | 0.42x | 0.34x | - | 4.38x | 0.03x | - | 1.65x | 0.95x | -0.84x | 3.18x | 6.28x | 8.19x | 13.46x | 2.55x | 10.60x | 37.95x | 0.61x |
| Non-Operating Income | -74.93M | -43.81M | 116.27M | 89.21M | -24.97M | -58.08M | 1.82M | 54.53M | -43.63M | -22.57M | 14.05M | 27.62M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Income | 229.33M | 154.56M | 148.72M | 88.36M | -88.58M | 143.7M | 39.75M | 54.53M | 49.91M | 6.59M | -15.7M | 38.43M | 59.95M | 79.36M | 97.15M | 0 | 0 | 0 | 0 |
| Pretax Margin % | 34.02% | 22.91% | 52.7% | 34.45% | -205.31% | 66.28% | 113.09% | 64.03% | 64.96% | 61.39% | -669.02% | 72.18% | 82.15% | 91.28% | 94.28% | 0% | 0% | 0% | 0% |
| Income Tax | 3.43M | 3.79M | 612K | 457K | -17.72M | 3.14M | 11.38M | 1.56M | 3.23M | 400K | 0 | 340K | 782K | 838K | 0 | -10.33M | -40.57M | -93.38M | 2.42M |
| Effective Tax Rate % | 1.5% | 2.45% | 0.41% | 0.52% | 20% | 2.19% | 28.62% | 2.86% | 6.48% | 6.07% | 0% | 0.88% | 1.3% | 1.06% | 0% | - | - | - | - |
| Net Income | 222.15M | 146.87M | 145.86M | 84.08M | -70.05M | 133.46M | 25.01M | 57.93M | 46.68M | 6.2M | -16.01M | 38.09M | 59.17M | 78.52M | 97.15M | 10.33M | 40.57M | 93.38M | -2.42M |
| Net Margin % | 32.95% | 21.77% | 51.69% | 32.78% | -162.35% | 61.56% | 71.14% | 68.03% | 60.75% | 57.67% | -682.02% | 71.54% | 81.08% | 90.32% | 94.28% | 45.85% | 70.45% | 75.14% | -28.58% |
| Net Income Growth % | 56.71% | 0.69% | 73.47% | 220.04% | -152.48% | 433.68% | -56.83% | 24.12% | 653.45% | 138.7% | -142.03% | -35.62% | -24.65% | -19.17% | 840.7% | -74.55% | -56.55% | 3954.51% | - |
| Funds From Operations (FFO) | 234.88M | 146.87M | 145.86M | 84.08M | -64.38M | 133.46M | 25.01M | 57.93M | 97.77M | 57.71M | 43.99M | 59.9M | 17.63M | 36.33M | 94.34M | 1.31M | 33.93M | 93.38M | -2.42M |
| FFO Margin % | 34.84% | 21.77% | 51.69% | 32.78% | -149.2% | 61.56% | 71.14% | 68.03% | 127.25% | 537.21% | 1874.31% | 112.51% | 24.15% | 41.79% | 91.56% | 5.84% | 58.92% | 75.14% | -28.58% |
| FFO Growth % | 0% | - | - | - | - | - | - | - | 69.41% | 31.2% | -26.57% | 239.86% | -51.49% | -61.49% | 7074.07% | -96.12% | - | - | - |
| FFO per Share | 1.87 | 1.48 | 1.68 | 1.22 | -1.06 | 2.71 | 0.57 | 1.81 | 3.18 | 1.77 | 1.32 | 1.77 | 0.62 | 1.51 | 5.16 | 0.08 | 2.62 | 7.76 | -0.20 |
| FFO Payout Ratio % | 64.48% | 125.03% | 112.12% | 177.53% | -191.17% | 64.22% | 260.02% | 93.75% | 51.89% | 99.87% | 148.1% | 139.32% | 490.46% | 253.4% | 50.26% | 3222.97% | 99.94% | 33.02% | 0% |
| EPS (Diluted) | 1.77 | 1.19 | 1.36 | 0.88 | -1.41 | 2.55 | 0.39 | 1.76 | 1.52 | 0.19 | -0.48 | 1.13 | 2.09 | 3.28 | 5.31 | 0.61 | 3.04 | 7.52 | -0.20 |
| EPS Growth % | 33.33% | -12.5% | 54.55% | 162.41% | -155.29% | 553.85% | -77.84% | 15.79% | 700% | 139.58% | -142.48% | -45.93% | -36.28% | -38.23% | 770.49% | -79.93% | -59.57% | 3860% | - |
| EPS (Basic) | - | 1.19 | 1.36 | 0.88 | -1.41 | 2.55 | 0.39 | 1.76 | 1.54 | 0.19 | -0.49 | 1.13 | 2.09 | 3.28 | 5.31 | 0.61 | 3.04 | 7.52 | -0.20 |
| Diluted Shares Outstanding | 125.64M | 99.44M | 86.85M | 69.06M | 60.62M | 49.21M | 44.12M | 32.07M | 30.71M | 32.57M | 33.21M | 33.85M | 28.38M | 23.99M | 18.29M | 16.5M | 12.96M | 12.04M | 11.98M |
Quick answers to the most common questions about buying EFC stock.
For fiscal year 2025, Ellington Financial Inc. (EFC) reported total revenue of $674.5M. This represents a 7857.2% increase compared to $8.5M in 2008.
Ellington Financial Inc. (EFC) is profitable, generating $146.9M in net income for the fiscal year ending 2025 with a net profit margin of 21.8%.
Ellington Financial Inc. (EFC) reported an operating income of $415.3M, resulting in an operating profit margin of 61.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Ellington Financial Inc. (EFC) generated $568.4M in gross profit for the year, representing a gross profit margin of 84.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
High leverage amplifies rate risk
Metrics are mathematically derived from official filings.
Revenue Surge Driven by Portfolio Expansion
EFC's revenue jumped 139% YoY to $174.9M in 2026Q2, reflecting aggressive portfolio growth and higher asset valuations, as reported in the latest quarterly data.
The 102.8% YoY revenue growth in 2026Q2, following a 123% jump in 2025Q4, indicates a significant scaling of the investment portfolio, likely fueled by the Arlington Asset acquisition and deployment into higher-yielding credit assets. However, the sequential decline from $228.8M in 2026Q1 to $174.9M in 2026Q2 suggests quarter-to-quarter volatility, possibly due to mark-to-market swings or timing of income recognition. Investors should monitor whether this growth trajectory is sustainable given the high leverage and potential for spread compression.
NOI Margin Volatility Reflects Portfolio Mix
NOI margin fell from 100% in 2025Q1 to 80.5% in 2026Q2, indicating a shift toward higher-cost assets or increased operating expenses, based on reported figures.
The decline in NOI margin from a consistent 100% in 2024-2025 to 80.5% in 2026Q2 suggests that the company is now incurring property-level operating expenses, possibly due to the integration of operating subsidiaries like Longbridge. This could indicate a strategic pivot toward more capital-intensive segments, which may compress margins but potentially offer higher risk-adjusted returns. The 88.2% margin in 2026Q1 shows some recovery, but the trend warrants monitoring for cost discipline.
FFO Per Share Signals Dividend Coverage
FFO per share of $0.47 in 2026Q2 exceeds the dividend, suggesting coverage, though the EPS miss of $0.43 vs. $0.46 estimate raises questions about earnings quality, per latest earnings report.
With FFO per share at $0.47 and a dividend yield of 3.1%, the payout appears covered by core earnings, aligning with management's commentary that distributable earnings exceed dividends. However, the GAAP EPS miss relative to consensus indicates that non-FFO adjustments, such as mark-to-market losses or CECL provisions, may be impacting reported earnings. Investors should focus on FFO and AFFO trends to assess the sustainability of the dividend, especially given the high leverage.
Depreciation Distortions Minimal in Mortgage REIT
Depreciation charges are not a major distortion for EFC, as its assets are primarily financial instruments, but the focus should be on credit losses and mark-to-market adjustments, based on reported data.
Unlike traditional REITs, EFC's assets are mortgages and securities, which are not subject to significant physical depreciation. Instead, the key non-cash charges are credit loss provisions under CECL and unrealized gains/losses on securities. The reported net income of $58.6M in 2026Q2 closely aligns with FFO of $58.7M, suggesting minimal depreciation-type adjustments. However, the volatility in net income across quarters (e.g., $21.6M in 2025Q4 vs. $105.3M in 2026Q1) highlights the impact of mark-to-market accounting, which investors should normalize when assessing earnings power.
Organic Growth Masked by Acquisition Activity
Same-store metrics are not disclosed, but the revenue growth appears acquisition-driven, with organic growth likely modest given the high prepayment and refinancing environment, based on available data.
The absence of same-store NOI data makes it difficult to isolate organic performance. However, the revenue surge from $66.1M in 2024Q4 to $174.9M in 2026Q2 is too large to be purely organic, indicating that acquisitions and portfolio expansion are the primary growth drivers. The company's focus on credit-sensitive assets may provide some organic yield pickup, but prepayment risk and spread compression could limit organic growth. Investors should monitor portfolio turnover and reinvestment yields to gauge organic momentum.
Earnings Quality Under Leverage Pressure
The 9.07x debt-to-equity ratio amplifies the impact of mark-to-market swings, and the recent EPS miss suggests reported earnings may overstate core profitability, based on financial statements.
The high leverage magnifies both gains and losses from interest rate and credit spread movements, making reported earnings highly volatile. The EPS miss in 2026Q2, despite strong FFO, indicates that non-core items, such as unrealized losses or credit provisions, are weighing on GAAP earnings. Additionally, the reliance on external management creates potential conflicts of interest, as fee structures may incentivize asset growth over shareholder value. Investors should scrutinize the sustainability of distributable earnings and the adequacy of book value coverage, especially if credit conditions deteriorate.