Angel Oak Mortgage (AOMR) Earnings Transcript

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Wed, February 25, 2026 astatine 8:47 AM CST 22 min read

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Wednesday, Feb. 25, 2026 astatine 8:30 a.m. ET

• Chief Executive Officer — Sreeniwas Vikram Prabhu

• Chief Financial Officer — Brandon Robert Filson

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Sreeniwas Vikram Prabhu: Thank you, KC, and convey you each for joining america today. Our 4th fourth and afloat twelvemonth results were encouraging, serving arsenic a testament to the spot of our net motor and our dedication to our process. We delivered our 2nd consecutive twelvemonth of double-digit nett involvement income percent maturation alongside our 3rd consecutive twelvemonth of operating disbursal reduction, emphasizing the stableness of our level and the spot of our operations. We executed our proven strategy, demonstrating its worth successful an evolving and constructive marketplace situation arsenic we navigate a shifting complaint backdrop.

GAAP publication worth per stock accrued twelvemonth implicit twelvemonth owed to improving valuations successful our bequest securitizations arsenic rates determination little arsenic good arsenic precocious nett involvement income supported by our deployment of superior into high-yielding investments. Credit show remains strong, some successful aggregate and comparative to the wide market, and we judge our portfolio remains good positioned to execute comparably good implicit a scope of macroeconomic outcomes. We proceed to spot the benefits of our deliberate aboriginal determination to measurement up successful recognition prime and absorption our equilibrium expanse connected assets that we judge are resilient crossed a scope of economical outcomes.

The broader involvement complaint situation successful 2025 was characterized successful wide by decreasing rates crossed the curve and implicit the people of the year, amid shifting expectations astir the gait and the way of short-term rates. While uncertainty remains, we are optimistic that short-term rates volition proceed to diminution and we volition spot further steepening successful the output curve. Securitization markets were steadfast passim 2025 with tightening spreads and steadfast capitalist request supporting charismatic word financing for our concern portfolio. We participated successful 4 securitizations and called 2 of our bequest deals from 2019, enabling america to redeploy the de-levered superior into higher-yielding assets. Notably, we besides completed our archetypal HELOC securitization.

We judge HELOCs are an charismatic and increasing plus people and we expect to proceed to put successful them, though we stay focused connected our halfway strategy of acquiring and securitizing high-quality non-QM loans. We had a caller warehouse recognition installation successful 2025, diversifying our lender basal and continuing to optimize our backing premix to enactment high-quality indebtedness purchases. Additionally, we completed our 2nd issuance of elder unsecured notes, the superior from which was rapidly deployed into accretive people plus purchases that generated incremental net wrong a 4th of the indebtedness issuance. These actions presumption america to prolong and further heighten our nett involvement income increases arsenic we determination guardant portion maintaining a prudent attack to leverage and liquidity.