Chimera Investment Corporation released its third‑quarter 2025 financial results on November 6, 2025. The company posted a GAAP net loss of $0.27 per diluted share and earnings available for distribution of $0.37 per adjusted diluted share, falling short of the consensus estimate of $0.46 per share.
Total revenue for the quarter was $209.1 million, up from $67.39 million in Q2 2025 but down from the $240 million revenue reported in Q3 2024. Adjusted revenue, which excludes one‑time items, was $65 million, a decline that reflects the impact of a significant restructuring charge and lower loan origination volumes in the non‑QM segment.
The earnings miss was driven by a combination of lower net interest income and weaker loan growth. Net interest income fell 12% to $12.3 million, below the analyst expectation of $14.1 million, while loan origination revenue dropped 18% due to tighter underwriting standards and a slowdown in the secondary market. These factors pushed the adjusted EPS below consensus.
Chimera completed the acquisition of HomeXpress Mortgage Corp. on October 1, 2025, for $240 million. The deal is expected to be accretive to earnings in 2026 and expands Chimera’s footprint in the non‑QM and agency mortgage markets. Management highlighted that the cash‑centric position taken in Q3 was a deliberate move to fund the acquisition and position the company for long‑term growth.
President and CEO Phillip Kardis II said the quarter represented a pivotal transition, noting that the company’s cash‑centric strategy and the HomeXpress acquisition would enable it to diversify revenue streams and improve earnings in the coming year. He emphasized a focus on cost discipline and strategic investments in high‑margin segments.
Investors reacted negatively to the earnings miss, citing the shortfall in earnings per share and net interest income as key concerns. Analysts noted that while the acquisition provides a clear growth path, the current quarter’s performance underscores the need for stronger loan growth and tighter cost control.
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