Revenue has contracted sharply for three straight quarters, with 2026Q2 revenue of $34.3M marking a 27.9% year-over-year decline as growth from prior portfolio expansion fades.
NexPoint Real Estate Finance, Inc. (NREF) annual income statement — 9-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'18 | Dec'16 | Dec'15 |
|---|
| Revenue | 134.29M | 126.13M | 110.32M | 42.09M | 40.38M | 34.75M | 19.49M | 34.27M | 3.88M | 1.5M |
| Revenue Growth % | -16.47% | 14.33% | 162.1% | 4.24% | 16.19% | 78.28% | -43.11% | 782.21% | 158.24% | - |
| Property Operating Expenses | 18.32M | 14.03M | 11.06M | 4.19M | 4.39M | 29.96M | 0 | 11.07M | 1.46M | 600K |
| Net Operating Income (NOI) | 115.97M | 112.1M | 99.25M | 37.9M | 35.99M | 4.79M | 19.49M | 23.19M | 2.43M | 904K |
| NOI Margin % | 86.36% | 88.88% | 89.97% | 90.05% | 89.13% | 13.78% | 100% | 67.68% | 62.51% | 60.11% |
| Operating Expenses | -35.65M | -51.53M | 16.68M | 12.48M | 10.39M | 34.75M | 19.49M | 3.8M | 3.11M | 2.14M |
| G&A Expenses | 14.25M | 12.65M | 12.81M | 12.48M | 7.24M | 6.37M | 4.93M | 3.8M | 1.5M | 414K |
| EBITDA | 156.02M | 166.57M | 90.39M | 27.88M | 28.49M | 83.47M | 0 | 38.78M | 882K | 94K |
| EBITDA Margin % | 116.19% | 132.06% | 81.93% | 66.25% | 70.56% | 240.21% | 0% | 113.18% | 22.71% | 6.25% |
| Depreciation & Amortization | 4.41M | 2.94M | 5.61M | 2.46M | 2.9M | 0 | 0 | 0 | 1.6M | 1.33M |
| D&A / Revenue % | 3.28% | 2.33% | 5.09% | 5.86% | 7.17% | 0% | 0% | 0% | 41.27% | 88.3% |
| Operating Income | 151.62M | 163.63M | 84.77M | 25.42M | 25.59M | 83.47M | 0 | 19.39M | -721K | -1.23M |
| Operating Margin % | 112.91% | 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 | -2.77M | -2.29M | 0 | 25.42M | 0 | 0 | 0 | 19.39M | -727K | 147K |
| Pretax Income | 114.84M | 123.14M | 35.96M | 18.74M | 14.21M | 83.47M | 34.17M | 19.39M | -1.5M | -1.81M |
| Pretax Margin % | 85.52% | 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 | 100.78M | 105.1M | 29.19M | 13.97M | 6.75M | 43.09M | 12.85M | 19.39M | -1.5M | -1.76M |
| Net Margin % | 75.05% | 83.33% | 26.46% | 33.2% | 16.71% | 123.99% | 65.91% | 56.59% | -38.7% | -117.29% |
| Net Income Growth % | 38.56% | 260.02% | 108.89% | 107.16% | -84.34% | 235.37% | -33.75% | 1390.15% | 14.8% | - |
| Funds From Operations (FFO) | 105.18M | 108.04M | 34.8M | 16.44M | 9.64M | 43.09M | 12.85M | 19.39M | 100K | -436K |
| FFO Margin % | 78.33% | 85.66% | 31.55% | 39.06% | 23.88% | 123.99% | 65.91% | 56.59% | 2.57% | -28.99% |
| FFO Growth % | 158.75% | 210.42% | 111.71% | 70.52% | - | - | - | - | 122.94% | - |
| FFO per Share | 1.95 | 2.16 | 2.00 | 0.96 | 0.66 | 2.12 | 2.47 | 3.88 | 0.02 | -0.09 |
| FFO Payout Ratio % | 38.58% | 57.14% | 100.11% | 291.67% | 307.56% | 32.87% | 64.22% | 0% | 12% | 0% |
| EPS (Diluted) | 1.87 | 2.85 | 1.02 | 0.60 | 0.22 | 3.93 | 1.74 | 3.88 | -0.30 | -0.35 |
| EPS Growth % | 9.39% | 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 | 53.98M | 50.11M | 17.4M | 17.2M | 14.69M | 20.37M | 5.21M | 5M | 5M | 5M |
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.
Key Metrics
Top Statement Risk
EPS miss versus maintained guidance
Metrics are mathematically derived from official filings.
Revenue Contraction from Peak
NREF's top line has contracted sharply for three consecutive quarters, with 2026Q2 revenue of $34.3M representing a 27.9% year-over-year decline, suggesting the payoff from earlier portfolio expansion is fading.
The 141% revenue surge in 2025Q2 appears to have been a transient event, likely tied to a significant securitization or loan payoff, rather than a sustainable organic growth trend. The subsequent decline to $34.3M indicates the portfolio is now generating less income from its core lending activities. This trajectory suggests NREF may be in a period of capital recycling or facing prepayment pressure on its existing loan book.
NOI Margin Compression
Property-level profitability has normalized from extreme highs, with NOI margin declining from 98.2% in 2024Q2 to a recent 82.6%, indicating a shift away from near-zero operating costs toward a more typical mREIT cost structure.
The exceptionally high margins in 2024 (96.9%-98.2%) were likely an artifact of accounting for a smaller or differently structured portfolio. The sustained margin in the 80%-90% range through late 2025 suggests a more stable, if less stellar, operating profile. The recent dip to 82.6% warrants monitoring, as it could signal rising interest expense on borrowed funds or increased servicing costs that are eating into the net interest spread.
FFO Per Share Resilience
Despite an 8.6% year-over-year decline in total FFO to $17.8M for 2026Q2, the per-share figure of $0.33 implies a reduction in the share count, which may have masked underlying earnings weakness.
The discrepancy between the 8.6% decline in total FFO and the more severe EPS miss ($0.29 actual vs. $0.40 estimate) suggests that non-cash charges or one-time items significantly impacted GAAP earnings. The company's ability to maintain a $0.33 FFO per share while revenue contracts indicates some defensive positioning, but the widening gap between FFO and reported EPS introduces uncertainty around the true cash earnings power supporting the dividend.
Q3 2025: An Anomalous Spike
The 2025Q3 quarter, where FFO surged 113.3% year-over-year to $43.7M ($1.00/share), represents a clear outlier that distorts trend analysis and likely reflects a significant non-recurring gain.
This quarter's results are not indicative of normalized earnings, given the subsequent reversion to the $0.30-$0.50 FFO per share range. The spike likely stems from the realization of a gain on a loan payoff, a successful securitization exit, or a mark-to-market adjustment on the CMBS portfolio. Investors should treat this as a one-time windfall rather than a repeatable earnings event, as the core income-generating capacity appears to be settling at a lower baseline.
Non-Cash Gains Inflate Profitability
The 129.7% operating margin reported in recent periods is a clear indicator that GAAP profitability is being inflated by non-cash items like unrealized gains, challenging the narrative of core operational strength.
When revenue growth is negative and total FFO is declining, an operating margin well above 100% is mathematically impossible without significant non-operating or non-cash income being included. This suggests the market's focus on GAAP net income or EPS may be misleading. The critical question for dividend safety is the level of cash distributable earnings, which is obscured by these accounting artifacts, particularly given the recent EPS miss against a maintained guidance range.