Orchid Island Capital reported strong Q2 2026 results, with net income of $89.2 million or $0.44 per common share, reversing the prior year’s loss and lifting book value to $7.22 per share. The quarter featured net interest income of $60.0 million and $36.0 million in net realized and unrealized gains on RMBS and derivatives, while liquidity remained robust at about $776 million in cash and unpledged securities and $11.1 billion of repo borrowings across 33 lenders. The portfolio expanded, with the average Agency RMBS balance up by roughly $0.45 billion, and the company maintained a hedging mix of futures, swaps, swaptions and TBA contracts; effective portfolio duration rose to about 3.18. The company also announced a quarterly dividend of $0.30 per share and a stock repurchase plan allowing up to 12.5% of shares to be bought back, signaling views of undervaluation. Spreads remained volatile in early 2026 but stabilized over the quarter, with economic net interest spread around 2.41% in Q2 2026 and ongoing efforts to manage funding and capital through repurchase agreements and asset composition. Looking ahead, management signaled expectations of mid-teens to high-teens annualized returns in a range-bound rate environment.