v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
As of June 30, 2026, the Company's reportable segments include (i) Loans and Securities and (ii) Arc Home. Segment information for prior periods has been updated to conform to the current year presentation.

The structure of the reportable segments is differentiated by the financial information used by the Chief Operating Decision Maker (“CODM”) and the nature of the Company’s business activities, which is consistent with the reporting structure of the Company’s internal organization. The Company’s CODM is its Chief Executive Officer. The CODM uses net income/(loss) reported on the consolidated statements of operations as the primary measure to make resource allocation decisions and evaluate the segment results. The CODM is regularly provided operating expenses as presented on the consolidated statements of operations when evaluating the Company’s net income/(loss).

The accounting policies applied to the segments are the same as those described in Note 2 to the "Notes to Consolidated Financial Statements (unaudited)". Activities that are not directly attributable or not allocated to either of the reportable segments are reported within "Other" below as a reconciling item to the Company’s consolidated financial statements. Other activities primarily consist of cash and related interest income, the Senior Unsecured Notes and related interest expense, management fees, non-investment related expenses, and preferred stock dividends.

Loans and Securities Segment

The Loans and Securities segment is primarily focused on acquiring and securitizing newly-originated residential mortgage loans within the non-agency segment of the housing market. The Company finances its acquired loans through various financing lines on a short-term basis and utilizes TPG’s proprietary securitization platform to secure long-term, non-recourse, non-mark-to-market financing as market conditions permit. The Company's Residential Investments, Agency RMBS, and Legacy WMC Commercial Investments are included in the Loans and Securities segment. This segment generates revenue primarily in the form of net interest income, inclusive of the cost or benefit of hedging, which represents the difference between the interest earned on the investments and the costs of financing and economic hedges in place on these investments. In addition, the Company's investments in loans and securities are recorded at fair value with any periodic change in fair value recorded in the "Net unrealized gain/(loss)" line item on the consolidated statement of operations which is included in the "Other Income/(Loss)" line item below.

Arc Home Segment

The Arc Home segment includes the Company's equity method investment in AG Arc, which owns Arc Home. Effective August 1, 2025, the Company’s ownership interest in AG Arc’s earnings is 66.0%. For all prior periods, the Company’s ownership interest in AG Arc’s earnings was 44.6%. Refer to Note 10 to the to the "Notes to Consolidated Financial Statements (unaudited)" for additional information related to the Company's investment in AG Arc. Arc Home is a multi-channel licensed mortgage originator and servicer led by an external management team. Arc Home generates revenue primarily through originating and selling residential mortgage loans. In addition, Arc Home recognizes net servicing revenue from mortgage servicing rights as well as net interest income and net unrealized gains or losses from originated residential mortgage loans prior to sale. The Company elected the fair value option with respect to its investment in AG Arc. The net income/(loss) recognized within the Arc Home segment is recorded in the "Equity in earnings/(loss) from affiliates" line item on the consolidated statement of operations and includes any periodic changes in the fair value of the investment.
Reportable Segments

The following tables present the reportable operating segments related to the Company’s results of operations for the three and six months ended June 30, 2026 and 2025 (in thousands).

Three Months Ended June 30, 2026
Loans and SecuritiesArc Home
(1) (2)		OtherTotal
Interest income$123,746 $— $409 $124,155 
Interest expense101,346 — 2,566 103,912 
Total Net Interest Income22,400 — (2,157)20,243 
Total Other Income/(Loss)2,874 — — 2,874 
Management fee to affiliate— — 2,311 2,311 
Non-investment related expenses— — 2,306 2,306 
Investment related expenses4,220 — — 4,220 
Transaction related expenses95 — (3)92 
Total Expenses4,315 — 4,614 8,929 
Income/(loss) before equity in earnings/(loss) from affiliates20,959 — (6,771)14,188 
Equity in earnings/(loss) from affiliates(446)715 — 269 
Income/(loss) before income taxes20,513 715 (6,771)14,457 
Income tax expense188 — — 188 
Net Income/(Loss)20,325 715 (6,771)14,269 
Dividends on preferred stock— — 5,177 5,177 
Net Income/(Loss) Available to Common Stockholders$20,325 $715 $(11,948)$9,092 

Three Months Ended June 30, 2025
Loans and SecuritiesArc Home
(1) (2)		OtherTotal
Interest income$109,986 $— $879 $110,865 
Interest expense90,568 — 2,545 93,113 
Total Net Interest Income19,418 — (1,666)17,752 
Total Other Income/(Loss)(2,713)— — (2,713)
Management fee to affiliate— — 2,301 2,301 
Non-investment related expenses— — 2,507 2,507 
Investment related expenses3,473 — — 3,473 
Transaction related expenses3,018 — — 3,018 
Total Expenses6,491 — 4,808 11,299 
Income/(loss) before equity in earnings/(loss) from affiliates10,214 — (6,474)3,740 
Equity in earnings/(loss) from affiliates268 (37)— 231 
Income/(loss) before income taxes10,482 (37)(6,474)3,971 
Income tax expense26 — — 26 
Net Income/(Loss)10,456 (37)(6,474)3,945 
Dividends on preferred stock— — 5,321 5,321 
Net Income/(Loss) Available to Common Stockholders$10,456 $(37)$(11,795)$(1,376)
Six Months Ended June 30, 2026
Loans and SecuritiesArc Home
(1) (2)		OtherTotal
Interest income$253,159 $— $804 $253,963 
Interest expense207,951 — 5,126 213,077 
Total Net Interest Income45,208 — (4,322)40,886 
Total Other Income/(Loss)(13,302)— — (13,302)
Management fee to affiliate— — 4,630 4,630 
Non-investment related expenses— — 4,962 4,962 
Investment related expenses8,518 — — 8,518 
Transaction related expenses469 — 197 666 
Total Expenses8,987 — 9,789 18,776 
Income/(loss) before equity in earnings/(loss) from affiliates22,919 — (14,111)8,808 
Equity in earnings/(loss) from affiliates(758)3,027 — 2,269 
Income/(loss) before income taxes22,161 3,027 (14,111)11,077 
Income tax expense370 — — 370 
Net Income/(Loss)21,791 3,027 (14,111)10,707 
Dividends on preferred stock— — 10,330 10,330 
Net Income/(Loss) Available to Common Stockholders$21,791 $3,027 $(24,441)$377 
Six Months Ended June 30, 2025
Loans and SecuritiesArc Home
(1) (2)		OtherTotal
Interest income$218,038 $— $1,957 $219,995 
Interest expense178,309 — 5,085 183,394 
Total Net Interest Income39,729 — (3,128)36,601 
Total Other Income/(Loss)(1,164)— — (1,164)
Management fee to affiliate— — 4,628 4,628 
Non-investment related expenses— — 5,787 5,787 
Investment related expenses6,883 — — 6,883 
Transaction related expenses4,079 — — 4,079 
Total Expenses10,962 — 10,415 21,377 
Income/(loss) before equity in earnings/(loss) from affiliates27,603 — (13,543)14,060 
Equity in earnings/(loss) from affiliates77 1,339 — 1,416 
Income/(loss) before income taxes27,680 1,339 (13,543)15,476 
Income tax expense54 — — 54 
Net Income/(Loss)27,626 1,339 (13,543)15,422 
Dividends on preferred stock— — 10,625 10,625 
Net Income/(Loss) Available to Common Stockholders$27,626 $1,339 $(24,168)$4,797 
(1)Net Income/(loss) recognized by AG Arc does not include the Company's portion of gains or losses recorded by Arc Home in connection with the sale of residential mortgage loans to the Company. Refer to Note 10 for more information on this accounting policy.
(2)During the three months ended June 30, 2026, the Company recorded an unrealized gain/(loss) on its investment in AG Arc of $(0.3) million. During the three months ended June 30, 2025, the Company did not record any unrealized gain/(loss) during the period. For the six months ended June 30, 2026 and 2025, the Company recorded an unrealized gain/(loss) on its investment in AG Arc of $0.9 million and $1.4 million, respectively.
The following table presents the Company's assets, liabilities, and stockholders' equity by reportable segment as of June 30, 2026 and December 31, 2025, which reconciles to the total assets, liabilities, and stockholders' equity of the Company on a consolidated basis (in thousands).
Loans and SecuritiesArc HomeOtherTotal
June 30, 2026
Total Assets$7,825,705 $46,435 $63,444 $7,935,584 
Total Liabilities7,278,814 — 110,766 7,389,580 
Total Stockholders' Equity546,891 46,435 (47,322)546,004 
December 31, 2025
Total Assets$8,600,220 $50,016 $61,294 $8,711,530 
Total Liabilities8,039,534 — 111,262 8,150,796 
Total Stockholders' Equity560,686 50,016 (49,968)560,734