Revenue performance remains highly erratic, evidenced by a 17.6% contraction in 2026Q1 and a decline in NOI margins from a 98.2% peak in 2024Q2 to 84.1% in 2026Q1.
| Revenue | 147.54M | 126.13M | 110.32M | 42.09M | 40.38M | 34.75M | 19.49M | 34.27M | 3.88M | 1.5M |
| Revenue Growth % | 10.99% | 14.33% | 162.1% | 4.24% | 16.19% | 78.28% | -43.11% | 782.21% | 158.24% | - |
| Property Operating Expenses | 28.39M | 14.03M | 11.06M | 4.19M | 4.39M | 29.96M | 0 | 11.07M | 1.46M | 600K |
| Net Operating Income (NOI) | 119.15M | 112.1M | 99.25M | 37.9M | 35.99M | 4.79M | 19.49M | 23.19M | 2.43M | 904K |
| NOI Margin % | 80.76% | 88.88% | 89.97% | 90.05% | 89.13% | 13.78% | 100% | 67.68% | 62.51% | 60.11% |
| Operating Expenses | -27.81M | -51.53M | 16.68M | 12.48M | 10.39M | 34.75M | 19.49M | 3.8M | 3.11M | 2.14M |
| G&A Expenses | 15.19M | 12.65M | 12.81M | 12.48M | 7.24M | 6.37M | 4.93M | 3.8M | 1.5M | 414K |
| EBITDA | 150.25M | 166.57M | 90.39M | 27.88M | 28.49M | 83.47M | 0 | 38.78M | 882K | 94K |
| EBITDA Margin % | 101.84% | 132.06% | 81.93% | 66.25% | 70.56% | 240.21% | 0% | 113.18% | 22.71% | 6.25% |
| Depreciation & Amortization | 3.29M | 2.94M | 5.61M | 2.46M | 2.9M | 0 | 0 | 0 | 1.6M | 1.33M |
| D&A / Revenue % | 2.23% | 2.33% | 5.09% | 5.86% | 7.17% | 0% | 0% | 0% | 41.27% | 88.3% |
| Operating Income | 146.96M | 163.63M | 84.77M | 25.42M | 25.59M | 83.47M | 0 | 19.39M | -721K | -1.23M |
| Operating Margin % | 99.61% | 129.73% | 76.84% | 60.39% | 63.39% | 240.21% | 0% | 56.59% | -18.56% | -82.05% |
| Interest Expense | 4M | 42.77M | 44.37M | 51.56M | 40.26M | 29.77M | 21.31M | 0 | 1.51M | 429K |
| Interest Coverage | - | 3.88x | 1.91x | 0.36x | 1.35x | 2.80x | - | - | 0.00x | -3.22x |
| Non-Operating Income | -3.48M | -2.29M | 0 | 25.42M | 0 | 0 | 0 | 19.39M | -727K | 147K |
| Pretax Income | 119.81M | 123.14M | 35.96M | 18.74M | 14.21M | 83.47M | 34.17M | 19.39M | -1.5M | -1.81M |
| Pretax Margin % | 81.21% | 97.63% | 32.6% | 44.52% | 35.2% | 240.21% | 175.3% | 56.59% | -38.75% | -120.35% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | 103.57M | 105.1M | 29.19M | 13.97M | 6.75M | 43.09M | 12.85M | 19.39M | -1.5M | -1.76M |
| Net Margin % | 70.2% | 83.33% | 26.46% | 33.2% | 16.71% | 123.99% | 65.91% | 56.59% | -38.7% | -117.29% |
| Net Income Growth % | 62.48% | 260.02% | 108.89% | 107.16% | -84.34% | 235.37% | -33.75% | 1390.15% | 14.8% | - |
| Funds From Operations (FFO) | 106.86M | 108.04M | 34.8M | 16.44M | 9.64M | 43.09M | 12.85M | 19.39M | 100K | -436K |
| FFO Margin % | 72.43% | 85.66% | 31.55% | 39.06% | 23.88% | 123.99% | 65.91% | 56.59% | 2.57% | -28.99% |
| FFO Growth % | 245.44% | 210.42% | 111.71% | 70.52% | - | - | - | - | 122.94% | - |
| FFO per Share | 2.08 | 2.16 | 2.00 | 0.96 | 0.66 | 2.12 | 2.47 | 3.88 | 0.02 | -0.09 |
| FFO Payout Ratio % | 27.64% | 57.14% | 100.11% | 291.67% | 307.56% | 32.87% | 64.22% | 0% | 12% | 0% |
| EPS (Diluted) | 2.01 | 2.85 | 1.02 | 0.60 | 0.22 | 3.93 | 1.74 | 3.88 | -0.30 | -0.35 |
| EPS Growth % | 29.65% | 179.41% | 70% | 172.73% | -94.4% | 125.86% | -55.15% | 1393.33% | 14.29% | - |
| EPS (Basic) | - | 4.28 | 1.02 | 0.60 | 0.22 | 6.00 | 2.13 | 3.88 | -0.30 | -0.35 |
| Diluted Shares Outstanding | 51.46M | 50.11M | 17.4M | 17.2M | 14.69M | 20.37M | 5.21M | 5M | 5M | 5M |
Subordinate debt credit impairment
As reported in financial statements, NREF experienced a significant revenue contraction of 17.6% in 2026Q1, following a period of erratic top-line performance that saw revenue swing from $19.7M in 2024Q2 to $47.6M in 2025Q2, suggesting a highly transactional and unpredictable origination pipeline.
The wide variance in quarterly revenue suggests that NREF's reliance on non-recurring origination fees and opportunistic CMBS investments creates significant noise in the top-line. Investors should monitor whether the recent decline reflects a strategic pullback in lending activity or a broader inability to source accretive multifamily opportunities in the current high-rate environment.
Based on reported figures, the company's NOI margin has demonstrated significant instability, dropping from a peak of 98.2% in 2024Q2 to 84.1% by 2026Q1, which may indicate rising property-level operating costs or a shift in the underlying asset mix toward lower-yielding, higher-expense debt instruments.
The erosion of NOI margins suggests that the cost of maintaining the underlying collateral may be outpacing rental income growth, particularly in the Sunbelt multifamily portfolio. This trend warrants further investigation into whether the firm is absorbing higher maintenance or tax burdens on its distressed or value-add positions.
According to recent SEC filings, NREF's FFO per share has fluctuated wildly, ranging from a negative $0.60 in 2024Q1 to a peak of $1.00 in 2025Q3, highlighting the difficulty in relying on FFO as a consistent indicator of cash-generating capability for this mREIT.
The extreme volatility in FFO appears to be driven by non-cash valuation adjustments within the CMBS portfolio rather than core interest income. This suggests that the dividend may be supported by accounting accruals rather than recurring cash flow, necessitating a closer look at the company's ability to generate distributable earnings.
As indicated by the divergence between GAAP net income and operational cash flow metrics, the company's reliance on non-cash gains appears to inflate reported profitability, with net income reaching $43.1M in 2025Q3 while FFO simultaneously spiked, suggesting potential reliance on Level 3 asset mark-to-market adjustments.
The disconnect between GAAP earnings and actual cash generation implies that the firm's reported success may be sensitive to management's internal valuation models for illiquid CMBS assets. Investors should be wary that these paper gains could reverse rapidly if market conditions for multifamily debt deteriorate, potentially leading to significant future impairments.
Quick answers to the most common questions about buying NREF stock.
For fiscal year 2025, NexPoint Real Estate Finance, Inc. (NREF) reported total revenue of $126.1M. This represents a 8286.2% increase compared to $1.5M in 2015.
NexPoint Real Estate Finance, Inc. (NREF) is profitable, generating $105.1M in net income for the fiscal year ending 2025 with a net profit margin of 83.3%.
NexPoint Real Estate Finance, Inc. (NREF) reported an operating income of $163.6M, resulting in an operating profit margin of 129.7%. This margin reflects the operational efficiency of the business before interest and taxes.
NexPoint Real Estate Finance, Inc. (NREF) generated $112.1M in gross profit for the year, representing a gross profit margin of 88.9%. This demonstrates the company's core pricing power and production efficiency.