What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-06 compared with 2025-11-05 · 261 added, 313 removed, 378 unchanged (60% of the section changed)

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Our objective is to provide attractive risk-adjusted returns to our stockholders, primarily through dividends and secondarily through capital appreciation.

As of September 30, 2025, we were invested in:

As of March 31, 2026, we were invested in:

• residential mortgage-backed securities (“RMBS”) that are guaranteed by a U.S.

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• commercial mortgage-backed securities (“CMBS”) that are guaranteed by a U.S.

government agency such as Ginnie Mae or a federally chartered corporation such as Freddie Mac or Fannie Mae (collectively “Agency CMBS”).

During the periods presented in this Quarterly Report, we also invested in:

• CMBS that are not guaranteed by a U.S.

government agency or a federally chartered corporation (“non-Agency CMBS”);

• RMBS that are not guaranteed by a U.S.

government agency or a federally chartered corporation (“non-Agency RMBS”);

government agency such as Ginnie Mae or a federally chartered corporation such as Fannie Mae or Freddie Mac (collectively “Agency CMBS”);

• to-be-announced securities forward contracts (“TBAs”) to purchase Agency RMBS.

Treasury securities;

• a real estate-related financing arrangement in the form of an unconsolidated venture.

During the periods presented in these condensed consolidated financial statements, we also invested in CMBS and RMBS that are not guaranteed by a U.S.

government agency or a federally chartered corporation (“non-Agency CMBS” and “non-Agency RMBS”, respectively).

We continuously evaluate new investment opportunities to complement our current investment portfolio by expanding our target assets and portfolio diversification.

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To maintain our REIT qualification, we are generally required to distribute at least 90% of our REIT taxable income to our stockholders annually.

We operate our business in a manner that permits our exclusion from the definition of “Investment Company” under the 1940 Act.

We operate our business in a manner that permits our exclusion from the “Investment Company” definition under the 1940 Act.

Market Conditions and Impacts

Macroeconomic factors that affect our business include inflation, economic growth, employment conditions, interest rates, interest rate volatility, fiscal and monetary policy, public policy, financial conditions, spread premiums, residential and commercial real estate prices, credit availability, the health of the banking system, consumer spending, personal income and corporate earnings.

Of these macroeconomic factors, financial conditions, inflation, employment conditions, monetary policy, interest rates and interest rate volatility had the most direct impact on our performance and financial condition during the third quarter of 2025.

Financial conditions remained accommodative during the third quarter as volatility measures declined sharply and equity markets performed well, with the S&P 500 Index and the NASDAQ posting gains of 8.1% and 11.4%, respectively.

Credit markets ended the quarter largely unchanged, with investment-grade and high-yield corporate bond spreads widening slightly, while emerging market debt spreads tightened modestly.

Inflation continued to exceed the Federal Reserve’s 2% target over the quarter, with the headline consumer price index (“CPI”) rising 2.9% year-over-year in August, up from 2.7% at the end of June, and core CPI, which excludes food and energy, increased by 3.1% year-over-year, compared to 2.9% previously.

Investor expectations for future inflation increased modestly, reflecting concerns about the potential impact of fiscal and trade policies on consumer prices.

Breakeven rates on Treasury inflation-protected securities moved higher during the quarter, with the two-year breakeven rising to 2.6% from 2.5%, and the five-year breakeven increasing to 2.5% from 2.3%.

Meanwhile, labor market data pointed to continued sluggish growth.

The economy added an average of 51,000 jobs in July and August (with September data delayed due to the government shutdown), down slightly from the second quarter average of 55,000.

The headline unemployment rate increased slightly, moving from 4.1% in June to 4.3% in August.

Despite inflation levels consistently above the Federal Reserve’s 2% target, the Federal Open Market Committee (“FOMC”) lowered its benchmark Federal Funds target rate by 25 basis points in mid-September, citing signs of a weaker labor market.

As of the end of September, Federal Funds futures reflected expectations for an additional 50 basis points of rate cuts by year end.

Quantitative tightening continued through the third quarter, with the Federal Reserve maintaining its monthly runoff of U.S.

Treasuries at $5 billion, while maintaining the $35 billion cap on Agency MBS runoff.

Interest rates declined across the Treasury yield curve during the third quarter, reflecting market expectations for a more accommodative policy stance from the Federal Reserve and continued weakness in the labor market.

The yield on the two-year Treasury fell 12 basis points to 3.60%, the five-year yield declined 6 basis points to 3.73% and the ten-year yield decreased by 8 basis points to 4.15%.

Interest rate volatility declined notably throughout the quarter, as the market coalesced around expectations for two additional rate cuts by the Federal Reserve before year end.

Agency RMBS performed well during the third quarter, benefiting from the persistent decline in interest rate volatility as well as the overall supportive environment for risk assets.

While demand from commercial banks and overseas investors remained relatively subdued during the quarter, the steepening of the yield curve in the front end, aided by expectations for additional monetary policy easing in the coming months, improved investor sentiment for Agency RMBS as money managers and mortgage REITs deployed inflows into the sector.

The outperformance was broadly distributed across the 30-year conventional mortgage coupon stack, with discount coupons recording the largest gains.

Coupons ranging from 2.0% to 5.0% outperformed their Treasury hedges by 90 to 130 basis points, while 5.5% to 6.5% coupons posted more modest excess returns relative to Treasuries of 30 to 80 basis points.

Performance in higher coupons was dampened by elevated prepayment risk, as 30-year mortgage rates declined approximately 0.5% during the quarter.

Prepayment speeds increased marginally during the quarter as the seasonal decline in housing turnover was offset by a notable increase in refinancing activity, which is expected to persist in higher coupons over the next few months.

Positively, premiums on specified pool collateral improved in higher coupons during the quarter as investors sought prepayment protection.

Agency CMBS risk premiums continued to decline with broader financial markets.

September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 One Quarter Change One Year Change

Macroeconomic factors that affect our business include inflation, economic growth, employment conditions, public policy, fiscal and monetary policy, interest rates, interest rate volatility, financial conditions, spread premiums, residential and commercial real estate prices, credit availability, the health of the banking system, consumer spending, personal income and corporate earnings.

Following a strong recovery in the second half of 2025 and impressive start to the new year, financial conditions deteriorated in the latter half of the first quarter, initially weakening as market volatility rose amid signs of a softening labor market.

The decline accelerated following the outbreak of conflict in the Middle East toward the end of February to end the quarter notably weaker.

Against this backdrop of heightened geopolitical risk, equity markets reacted negatively with the S&P 500 and NASDAQ declining 4.6% and 7.1%, respectively.

Credit markets followed a similar trajectory, as valuations across investment-grade credit, high yield bonds and emerging market debt came under pressure amid the sharp increase in volatility.

Inflation readings trended mostly higher during the first quarter, remaining above the Federal Reserve’s 2% target.

The headline consumer price index (“CPI”) ended the quarter at 3.3%, up from 2.7% in December, reflecting a sharp rise in energy and commodity prices stemming from the outbreak of conflict in the Middle East.

Core CPI, which excludes food and energy, remained steady at 2.6%.

Amid heightened uncertainty around energy prices, investors revised inflation expectations higher, most clearly reflected in Treasury inflation-protected securities breakeven rates.

The two-year breakeven rose sharply higher to 3.25% at quarter-end, up from 2.30% at year-end, while the five-year breakeven increased to 2.60%.

The Federal Open Market Committee (“FOMC”) kept the benchmark Federal Funds target rate unchanged at both meetings during the quarter, citing a balance between the risks of a weakening labor market and persistently elevated inflation.

Expectations for future monetary policy action, as reflected in the Fed Funds futures market, were influenced by heightened volatility stemming from increased geopolitical risks related to the conflict in the Middle East.

The futures market began the quarter with expectations for two rate cuts by year-end, driven by signs of labor market softness.

However, as commodity and energy prices surged, those expectations reversed, with futures markets subsequently indicating that the FOMC is likely to maintain its current policy stance through the remainder of 2026.

Interest rates increased across the U.S.

Treasury yield curve during the quarter, reflecting market expectations for higher inflation as elevated energy prices continued to work their way through the economy.

The two-year U.S.

Treasury yield increased by 33 basis points to 3.80%, the five-year yield rose by 23 basis points to 3.94% and the ten-year yield rose by 16 basis points to 4.31%.

Interest rate volatility also moved higher during the quarter, driven by rising concerns around a weakening labor market and increasing geopolitical risks.

Against this macroeconomic backdrop, Agency RMBS delivered mixed performance relative to interest rate hedges during the quarter, as lower coupons performed well while higher coupons underperformed.

Excess returns relative to U.S.

Treasuries were strong in January as the robust performance in the second half of 2025 carried over into the new year, supported by declining interest rate volatility and the announcement of a $200 billion Agency MBS purchase program by Fannie Mae and Freddie Mac.

Following the initial post-announcement surge of demand, however, performance languished, as profit-taking and uncertainty regarding the implementation of the purchase program emerged alongside a modest move higher in interest rate volatility.

Underperformance accelerated in March at the onset of the geopolitical turmoil in the Middle East, as interest rate volatility rose sharply given higher interest rates and increased expectations for tighter monetary policy.

Although lower coupon performance remained positive throughout the quarter, higher coupons were negatively impacted by rising prepayment concerns in the beginning of the quarter and their elevated sensitivity to increased interest rate volatility in the latter half of the quarter.

In addition, swap spreads tightened notably during the quarter, negatively impacting Agency RMBS hedged with swaps relative to those hedged with U.S.

Despite elevated market volatility, heightened geopolitical concerns and relatively elevated supply, Agency CMBS risk premiums contracted during the first quarter as issuance was met with continued investor demand, particularly from banks and money managers attracted to the sector’s high-quality collateral, stable cash flows and relative value versus other spread products.

March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 One Quarter Change One Year Change

Interest Rates

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One-month SOFR 3.66 % 3.69 % 4.13 % 4.34 % 4.32 % (0.03) % (0.66) %

2 Year Treasury 3.60 % 3.72 % 3.91 % 4.25 % 3.65 % (0.12) % (0.05) %

5 Year Treasury 3.73 % 3.79 % 3.98 % 4.39 % 3.58 % (0.06) % 0.15 %

10 Year Treasury 4.15 % 4.23 % 4.24 % 4.58 % 3.80 % (0.08) % 0.35 %

30 Year Treasury 4.73 % 4.77 % 4.61 % 4.78 % 4.13 % (0.04) % 0.60 %

(in basis points) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 One Quarter Change One Year Change

Treasury 3.80 % 3.47 % 3.60 % 3.72 % 3.91 % 0.33 % (0.11) %

Treasury 3.94 % 3.71 % 3.73 % 3.79 % 3.98 % 0.23 % (0.04) %

Treasury 4.31 % 4.15 % 4.15 % 4.23 % 4.24 % 0.16 % 0.07 %

Treasury 4.89 % 4.83 % 4.73 % 4.77 % 4.61 % 0.06 % 0.28 %

(in basis points) March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 One Quarter Change One Year Change

Swap Spreads (1)

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30 Year Mortgage Spreads vs.

5/10 Year Treasury Blend (2)

5/10 Year U.S.

Treasury Securities Blend (2)

FNMA 2.0% 72 83 82 90 75 (11) (3)

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10 Year Agency CMBS Spreads vs.

Treasuries (3)

FHLMC K 37 42 45 41 45 (5) (8)

Treasury Securities (3)

FNMA DUS 38 46 44 47 49 (8) (11)

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Treasury securities.

(3) Agency CMBS spreads represent the difference between the yields on new issue Freddie Mac K Certificates and Fannie Mae Delegated Underwriting and Servicing MBS (“DUS”) and a U.S.

(3) Agency CMBS spreads represent the difference between the yields on new issue Fannie Mae Delegated Underwriting and Servicing MBS (“DUS”) and a U.S.

Treasury security with a similar maturity.

Given the notable decline in interest rate volatility, we remain constructive on Agency RMBS, though we view near term risks as balanced following its recent strong performance.

Our longer-term outlook for the sector remains favorable, as we expect investor demand to broaden given lower interest rate volatility, a steeper yield curve and attractive valuations.

In addition, Agency CMBS continues to offer attractive risk-adjusted yields and diversification benefits relative to our Agency RMBS holdings, supported by its stable cash flow profile and lower sensitivity to interest rate fluctuations.

Lastly, we believe anticipated changes to bank regulatory capital rules would increase demand for Agency RMBS and Agency CMBS, providing further support for both sectors.

Risk sentiment has improved entering the second quarter, supported by a decline in interest rate volatility.

A further de‑escalation of the Middle East conflict would likely provide additional support for risk assets.

From a supply‑and‑demand perspective, Agency RMBS net issuance is expected to remain manageable, the GSEs continue to provide steady demand and bank participation is likely to increase, supported in part by recent Basel capital framework proposals that improve the relative capital efficiency of high-quality mortgage assets.

Together, these macro and technical factors create a more constructive backdrop for our Agency RMBS holdings, particularly as wider spread levels relative to the prior quarter offer more attractive entry points.

In addition, despite elevated supply, our Agency CMBS continues to offer attractive risk‑adjusted yields and diversification benefits, given its stable cash flow profile and lower sensitivity to interest rate fluctuations.

Investment Activities

The table below shows the composition of our investment portfolio as of September 30, 2025, December 31, 2024 and September 30, 2024.

$ in thousands September 30, 2025 December 31, 2024 September 30, 2024

The table below shows the composition of our investment portfolio including TBAs as of March 31, 2026, December 31, 2025 and March 31, 2025.

$ in thousands As of

March 31, 2026 December 31, 2025 March 31, 2025

30 year fixed-rate pass-through, at fair value 5,094,825 5,309,160 4,974,663

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Agency CMBS, at fair value 864,270 898,129 890,372

Non-Agency CMBS, at fair value — 9,836 9,936

Non-Agency RMBS, at fair value — — 7,215

Total investment portfolio 5,749,238 5,445,508 5,873,696

As o f September 30, 2025, our holdings of 30 year fixed-rate Agency RMBS represented approximately 83% of our total investment portfolio compared to 83% as of December 31, 2024 and 87% as of September 30, 2024.

Our 30 year fixed-rate Agency RMBS holdings as of September 30, 2025, December 31, 2024 and September 30, 2024 consisted of specified pools with coupon distributions as shown in the table below.

September 30, 2025 December 31, 2024 September 30, 2024

$ in thousands Fair Value Percentage Period-end Weighted Average Yield Fair Value Percentage Period-end Weighted Average Yield Fair Value Percentage Period-end Weighted Average Yield

Subtotal 6,026,208 6,276,609 5,945,789

TBAs, at implied market value (1)

1,226,450 — —

Total investment portfolio including TBAs 7,252,658 6,276,609 5,945,789

(1) Our presentation of TBAs in the table above represents management's view of our investment portfolio and does not reflect how we record TBAs on our condensed consolidated balance sheets under U.S.

GAAP, we record TBAs that we do not intend to settle on the contractual settlement date as derivative financial instruments.

We value TBAs on our condensed consolidated balance sheets at net carrying value, which represents the difference between the implied market value and the implied cost basis of the TBAs.

For further details of our U.S.

GAAP accounting for TBAs, refer to Note 6 “Derivatives and Hedging Activities” in Part I.

Item 1 of this report on Form 10-Q.

Our TBA dollar roll transactions are a form of off-balance sheet financing.

For further information on how management evaluates our at-risk leverage, see Non-GAAP Financial Measures below.

As o f March 31, 2026, our holdings of 30 year fixed-rate Agency RMBS represented approximately 70% of our total investment portfolio including TBAs, compared to 85% as of December 31, 2025 and 84% as of March 31, 2025.

Our 30 year fixed-rate Agency RMBS holdings as of March 31, 2026, December 31, 2025 and March 31, 2025 consisted of specified pools with coupon distributions as shown in the table below.

March 31, 2026 December 31, 2025 March 31, 2025

$ in thousands Fair Value Percentage Period-end Weighted Average Yield Fair Value Percentage Period-end Weighted Average Yield Fair Value Percentage Period-end Weighted Average Yield

4.5% 757,581 14.9 % 4.89 % 785,584 14.8 % 4.89 % 657,554 13.2 % 4.95 %

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Total 30 year fixed-rate Agency RMBS 5,094,825 100.0 % 5.42 % 5,309,160 100.0 % 5.46 % 4,974,663 100.0 % 5.61 %

Our holdings of Agency RMBS are primarily focused on specified pools with attractive prepayment profiles.

Our holdings of 30 year fixed-rate Agency RMBS are focused in specified pools with attractive prepayment profiles.

We seek to capitalize on the impact of prepayments on our investment portfolio by purchasing specified pools with characteristics that optimize borrower incentive to prepay for both our premium and discount priced investments.

The table below shows the specified pool characteristics of our 30 year fixed-rate Agency RMBS holdings as of September 30, 2025, December 31, 2024 and September 30, 2024.

September 30, 2025 December 31, 2024 September 30, 2024

The table below shows the specified pool characteristics of our 30 year fixed-rate Agency RMBS holdings as of March 31, 2026, December 31, 2025 and March 31, 2025.

March 31, 2026 December 31, 2025 March 31, 2025

$ in thousands Fair Value Percentage Fair Value Percentage Fair Value Percentage

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Total 30 year fixed-rate Agency RMBS 5,094,825 100.0 % 5,309,160 100.0 % 4,974,663 100.0 %

As of September 30, 2025, our holdings of Agency CMBS represented approximately 16% of our total investment portfolio compared to 15% as of December 31, 2024 and 11% as of September 30, 2024.

Our holdings of Agency CMBS benefit from prepayment protection characteristics and have an attractive return profile.

Further, the hedging costs related to these holdings are economical as they are less sensitive to interest rate risk given prepayment protection and scheduled balloon maturity payments.

As of September 30, 2025, approximately 81% of our Agency CMBS holdings were Fannie Mae DUS and 19% were Freddie Mac Multifamily Participation Certificates.

We sold our remaining investments in non-Agency securities during 2025.

As of December 31, 2024 and September 30, 2024, our holdings of non-Agency securities represented less than 1% of our total investment portfolio.

Financing and Other Liabilities

As of March 31, 2026, our holdings of TBAs represented approximately 17% of our total investment portfolio.

We increased our allocation to TBAs during the first quarter of 2026 given attractive implied financing rates in the Agency RMBS TBA dollar roll market.

As of March 31, 2026, our holdings of TBAs consisted of 4.5% to 5.5% coupons in Ginnie Mae collateral.

As of March 31, 2026, our holdings of Agency CMBS represented approximately 12% of our total investment portfolio including TBAs, compared to 14% as of December 31, 2025 and 15% as of March 31, 2025.

These securities offer attractive risk-adjusted yields and diversification benefits.

Further, the hedging costs associated with these holdings are economical as Agency CMBS is less sensitive to interest rate risk given prepayment protection and scheduled balloon maturity payments.

As of March 31, 2026, approximately 80% of our Agency CMBS holdings were Fannie Mae DUS and 20% were Freddie Mac Multifamily Participation Certificates.

We finance the majority of our investment portfolio through repurchase agreements.

Repurchase agreements are generally settled on a short-term basis, usually from one to six months, and bear interest at rates that are expected to move in close relationship to the secured overnight financing rate (“SOFR”).

Additionally, we view our TBAs that are accounted for as derivative financial instruments under U.S.

GAAP as a form of off-balance sheet financing.

Refer to Non-GAAP Financial Measures below for information on how we evaluate our at-risk leverage.

The following table presents the amount of collateralized borrowings outstanding under repurchase agreements as of the end of each quarter, the average amount outstanding during the quarter and the maximum balance outstanding during the quarter.

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Maximum Balance (2)

September 30, 2024 5,184,885 5,004,504 5,184,885

December 31, 2024 4,893,958 4,865,582 4,943,054

March 31, 2025 5,354,561 4,930,237 5,354,561

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September 30, 2025 5,150,081 4,889,782 5,150,081

December 31, 2025 5,619,255 5,393,719 5,619,255

March 31, 2026 5,339,373 5,367,463 5,404,619

(1) Average quarterly balance for each period is based on month-end balances.

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We enter into interest rate swap agreements that are designed to mitigate the effects of changes in interest rates for a portion of our borrowings.

Under these swap agreements, we generally pay fixed interest rates and receive floating interest rates indexed to SOFR.

Under these swap agreements, we pay fixed interest rates and receive floating interest rates indexed to SOFR.

We actively manage our interest rate swap portfolio as the size and composition of our investment portfolio changes.

During the nine months ended September 30, 2025, we entered into interest rate swaps with a notional amount of $745.0 million and terminated existing interest rate swaps with a notional amount of $630.0 million.

We also use futures contracts as an alternative way to help mitigate the potential impact of changes in interest rates on our performance.

During the nine months ended September 30, 2025, we entered into futures contracts with a notional amount of $4.2 billion and terminated existing futures contracts with a notional amount of $4.6 billion.

Daily variation margin for interest rate swaps and futures contracts is characterized as settlement of the derivative itself rather than collateral and is recorded as a realized gain or loss in our condensed consolidated statements of operations.

During the three months ended March 31, 2026, we entered into interest rate swaps with a notional amount of $1.0 billion and terminated or settled interest rate swaps with a notional amount of $730.0 million.

We also use U.S.

Treasury futures contracts as an alternative way to help mitigate the potential impact of changes in interest rates on our performance.

During the three months ended March 31, 2026, we entered into U.S.

Treasury futures contracts with a notional amount of $1.3 billion and terminated or settled U.S.

Treasury futures contracts with a notional amount of $1.4 billion.

Daily variation margin for interest rate swaps and U.S.

Treasury futures contracts is characterized as settlement of the derivative itself rather than collateral and is recorded as a realized gain or loss in our condensed consolidated statements of comprehensive income (loss).

Additionally, we have used and may in the future use short positions in TBAs to manage risk and economically hedge a portion of our exposure to changes in Agency RMBS valuations.

Capital Activities

As of September 30, 2025, we had 20,388,007 shares of our common stock remaining available for sale from time to time in at-the-market or privately negotiated transactions under our equity distribution agreement with placement agents.

The table below shows sales of our common stock under equity distribution agreements during the three and nine months ended September 30, 2025 and 2024.

Three Months Ended September 30, Nine Months Ended September 30,

As of March 31, 2026, we had 36,840,411 shares of our common stock remaining available for sale from time to time in at-the-market or privately negotiated transactions under our equity distribution agreement with placement agents.

The table below shows issuances of our common stock under equity distribution agreements during the three months ended March 31, 2026 and 2025.

Three Months Ended March 31,

Shares in ones, $ in thousands 2026 2025

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Cash proceeds, net of fees paid to placement agents 133,633 36,068

For information on dividends declared during the nine months ended September 30, 2025 and 2024, see Note 10 - “Stockholders' Equity” of our condensed consolidated financial statements in Part I.

For information on dividends declared during the three months ended March 31, 2026 and 2025, see Note 10 - “Stockholders' Equity” of our condensed consolidated financial statements in Part I.

Item 1 of this quarterly report on Form 10-Q.

During the nine months ended September 30, 2025, we did not repurchase any shares of our common stock.

In May 2022, our board of directors approved a share repurchase program for our Series B and Series C Preferred Stock.

During the three and nine months ended September 30, 2025, we repurchased and retired 89,223 and 276,172 shares of Series C Preferred Stock, respectively.

During the three and nine months ended September 30, 2024, we repurchased and retired no shares and 138,008 shares of Series B Preferred Stock, respectively, and 66,507 and 267,916 shares of Series C Preferred Stock, respectively.

We redeemed all outstanding shares of our Series B Preferred Stock in December 2024.

As of September 30, 2025, we had authority to repurchase 430,487 additional shares of our Series C Preferred Stock under the current preferred stock share repurchase program.

During the three months ended March 31, 2026, we did not repurchase any shares of our common stock.

In May 2022, our board of directors approved a share repurchase program for our Series C Preferred Stock.

During the three months ended March 31, 2026, we repurchased and retired 64,688 of Series C Preferred Stock (three months ended March 31, 2025:

90,146 shares).

As of March 31, 2026, we had authority to repurchase 289,443 additional shares of our Series C Preferred Stock under the current preferred stock share repurchase program.

Book Value per Common Share

We calculate book value per common share as follows.

In thousands except per share amounts September 30, 2025 December 31, 2024

In thousands except per share amounts March 31, 2026 December 31, 2025

Numerator (adjusted equity):

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Book value per common share 8.08 8.72

Our book value per common share decreased 5.7% as of September 30, 2025 compared to December 31, 2024.

The decrease in our book value per common share was primarily due to losses on derivative instruments, dividends declared and expenses, which were partially offset by net interest income and gains on investments.

Refer to Item 3.

“Quantitative and Qualitative Disclosures About Market Risk” for interest rate risk and its impact on fair value.

Our book value per common share decreased 7.3% as of March 31, 2026 compared to December 31, 2025.

The decrease in our book value per common share was primarily due to unrealized losses on investments, dividends declared and expenses, which were partially offset by net interest income and gains on derivative instruments.

Critical Accounting Policies and Estimates

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Results of Operations

The table below presents information from our condensed consolidated statements of operations for the three and nine months ended September 30, 2025 and 2024.

Three Months Ended September 30, Nine Months Ended September 30,

The table below presents information from our condensed consolidated statements of comprehensive income (loss) for the three months ended March 31, 2026 and 2025.

Three Months Ended March 31,

$ in thousands, except share data 2026 2025

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Gain (loss) on investments, net (54,940) 82,158

(Increase) decrease in provision for credit losses — 80 — (222)

Equity in earnings (losses) of unconsolidated ventures — — — (193)

Gain (loss) on derivative instruments, net 12,879 (76,679)

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Net income (loss) attributable to common stockholders (23,121) 16,289

Other comprehensive income (loss)

Unrealized gain (loss) on mortgage-backed securities, net — 500

Reclassification of unrealized (gain) loss on sale of mortgage-backed securities to gain (loss) on investments, net — 116

Total other comprehensive income (loss) — 616

Comprehensive income (loss) attributable to common stockholders (23,121) 16,905

Earnings (loss) per share

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Interest Income and Average Earning Asset Yields

The table below presents information related to our average earning assets and earning asset yields for the three and nine months ended September 30, 2025 and 2024.

Three Months Ended September 30, Nine Months Ended September 30,

The table below presents information related to our average earning assets and earning asset yields for the three months ended March 31, 2026 and 2025.

Three Months Ended March 31,

$ in thousands 2026 2025

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(1) Average balances for each period are based on weighted month-end balances.

(2) Average earning asset yields for the period were calculated by dividing interest income, including amortization of premiums and discounts, by average earning assets based on the amortized cost of the investments.

Average earning assets do not include TBAs that are treated as derivative instruments under U.S.

(2) Average earning asset yields for the period are calculated by dividing interest income, including amortization of premiums and discounts, by average earning assets based on the amortized cost of the investments.

All yields are annualized.

Total average earning assets decreased $184.1 million for the three months ended September 30, 2025 and increased $164.3 million for the nine months ended September 30, 2025 compared to the same periods in 2024.

Changes in our average earning assets are a factor of our total stockholders' equity and our desired leverage levels.

Average earning asset yields increased 11 basis points for the three months ended September 30, 2025 and were unchanged for the nine months ended September 30, 2025 compared to the same periods in 2024.

Average earning assets increased $523.9 million for the three months ended March 31, 2026 compared to the same period in 2025.

Changes in our average earning assets are a factor of our total stockholders' equity, our desired leverage levels and our allocation to TBAs.

Average earning asset yields decreased 9 basis points for the three months ended March 31, 2026 compared to the same period in 2025.

Changes in our average earning asset yields are driven by the composition of our investments, amortized cost of our securities and prepayment rates.

Our interest income includes coupon interest and net (premium amortization) discount accretion as shown in the table below.

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

$ in thousands 2026 2025

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Total interest income 79,641 73,846

Our interest income decreased slightly for the three months ended September 30, 2025 compared to the same period in 2024 as a decrease in average earning assets was largely offset by an increase in average earning asset yields.

Interest income increased $7.0 million for the nine months ended September 30, 2025 compared to the same period in 2024 due to higher average earning assets.

Our interest income increased $5.8 million for the three months ended March 31, 2026 compared to the same period in 2025 due to an increase in average earning assets, which was partially offset by a decrease in average earning asset yields.

Prepayment Speeds

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For Agency RMBS where we do not estimate prepayments, premium amortization and discount accretion are not impacted by prepayments until actual prepayments occur.

For Agency RMBS purchased at a substantial premium relative to principal value, expected future prepayment speeds are estimated on at least a quarterly basis.

If the actual prepayment speed during the period is faster than estimated, the amortization on securities purchased at a premium to par value will be accelerated, resulting in lower interest income recognized.

The following table presents net (premium amortization) discount accretion recognized for the three and nine months ended September 30, 2025 and 2024.

Three Months Ended September 30, Nine Months Ended September 30,

For Agency RMBS purchased at a substantial premium relative to par value, expected future prepayment speeds are estimated on at least a quarterly basis.

Faster prepayment rates on securities purchased at a premium relative to par value result in higher premium amortization and a decrease in interest income.

Conversely, faster prepayment rates on securities purchased at a discount relative to par value result in higher discount accretion and an increase in interest income.

The following table presents net (premium amortization) discount accretion recognized for the three months ended March 31, 2026 and 2025.

Three Months Ended March 31,

$ in thousands 2026 2025

1 unchanged sentence

Agency CMBS 730 95

Non-Agency CMBS — 114 — 372

Non-Agency RMBS — (64)

Treasury Securities — — — (1)

Net (premium amortization) discount accretion (597) 210

The change in net (premium amortization) discount accretion for the three and nine months ended September 30, 2025 compared to the same periods in 2024 was primarily a result of repositioning a portion of our investment portfolio into higher coupon securities that have higher amortized costs relative to principal value.

Our interest income is subject to interest rate risk.

Refer to Item 3.

"Quantitative and Qualitative Disclosures about Market Risk" for more information relating to interest rate risk and its impact on our operating results.

The change in net (premium amortization) discount accretion for the three months ended March 31, 2026 compared to the same period in 2025 was the result of an increase in the amortized costs of our securities relative to par value and faster prepayment rates on higher-coupon, premium-priced securities, which was partially offset by the acceleration of discount accretion on certain Agency CMBS that fully repaid during the period.

Interest Expense and Cost of Funds

The table below presents information related to our borrowings and cost of funds for the three and nine months ended September 30, 2025 and 2024.

Three Months Ended September 30, Nine Months Ended September 30,

The table below presents information related to our borrowings and cost of funds for the three months ended March 31, 2026 and 2025.

Three Months Ended March 31,

$ in thousands 2026 2025

Total average borrowings (1)

Average borrowings (1)

5,367,463 4,930,237

4 unchanged sentences

(1) Average borrowings for each period are based on weighted month-end balances.

Average borrowings do not include the off-balance sheet financing component of TBAs that are treated as derivative instruments under U.S.

(2) Amount represents the maximum borrowings at month-end during each of the respective periods.

(3) Average cost of funds is calculated by dividing annualized interest expense by our average borrowings.

Total average borrowings decreased $114.7 million for the three months ended September 30, 2025 and increased $238.7 million for the nine months ended September 30, 2025 compared to the same periods in 2024.

Changes in our average borrowings are a factor of our total stockholders' equity and our desired leverage levels.

Our average cost of funds decreased 78 basis points and 95 basis points for the three and nine months ended September 30, 2025 compared to the same periods in 2024, respectively.

Changes in our costs of funds are substantially driven by the Federal Funds target rate, which was set at a range of 4.25% to 4.50% for the majority of the three and nine months ended September 30, 2025 and a range of 5.25% to 5.50% for the majority of the three and nine months ended September 30, 2024 .

The table below presents the components of interest expense for the three and nine months ended September 30, 2025 and 2024.

Three Months Ended September 30, Nine Months Ended September 30,

Average borrowings increased $437.2 million for the three months ended March 31, 2026 compared to the same period in 2025.

Changes in our average borrowings are a factor of our total stockholders' equity, our desired leverage levels and our allocation to TBAs.

Cost of funds decreased 54 basis points for the three months ended March 31, 2026 compared to the same period in 2025.

Changes in our cost of funds are substantially driven by the Federal Funds target rate, which was set at a range of 3.50% to 3.75% during the three months ended March 31, 2026 and a range of 4.25% to 4.50% during the three months ended March 31, 2025 .

The table below presents the components of interest expense for the three months ended March 31, 2026 and 2025.

Three Months Ended March 31,

$ in thousands 2026 2025

1 unchanged sentence

Interest expense on repurchase agreement borrowings 52,593 55,025

Total interest expense 55,302 66,315 163,222 187,288

Our interest expense decreased $11.0 million for three months ended September 30, 2025 compared to the same period in 2024 due to a lower cost of funds and a decrease in average borrowings.

Our interest expense decreased $24.1 million for the nine months ended September 30, 2025 compared to the same period in 2024 due to a lower cost of funds, which was partially offset by an increase in average borrowings.

Our interest expense decreased $2.4 million for three months ended March 31, 2026 compared to the same period in 2025 due to a lower cost of funds, which was partially offset by an increase in average borrowings.

Net Interest Income

The table below presents the components of net interest income for the three and nine months ended September 30, 2025 and 2024.

Three Months Ended September 30, Nine Months Ended September 30,

The table below presents the components of net interest income for the three months ended March 31, 2026 and 2025.

Three Months Ended March 31,

$ in thousands 2026 2025

3 unchanged sentences

Net interest rate margin 1.44 % 0.99 %

Our net interest income, which equals total interest income less total interest expense, and our net interest rate margin, which equals the yield on our average earning assets for the period less the average cost of funds, increased for the three months ended September 30, 2025 compared to the same period in 2024 due to a lower cost of funds and an increase in average earning asset yields.

Our net interest income and net interest rate margin increased for the nine months ended September 30, 2025 compared to the same period in 2024 due to a lower cost of funds.

Our net interest income, which equals total interest income less total interest expense, increased for the three months ended March 31, 2026 compared to the same period in 2025 due to a lower cost of funds and higher average earning assets, which were partially offset by higher average borrowings and lower average earning asset yields.

Our net interest rate margin, which equals the yield on our average earning assets for the period less the average cost of funds, increased for the three months ended March 31, 2026 compared to the same period in 2025 due to a lower cost of funds, which was partially offset by lower average earning asset yields.

Our cost of funds is generally more sensitive to changes in interest rates than the yield on our investment portfolio, which is largely comprised of 30 year fixed-rate Agency RMBS.

Gain (Loss) on Investments, net

The table below summarizes the components of gain (loss) on investments, net for the three and nine months ended September 30, 2025 and 2024.

Three Months Ended September 30, Nine Months Ended September 30,

The table below summarizes the components of gain (loss) on investments, net for the three months ended March 31, 2026 and 2025.

Three Months Ended March 31,

$ in thousands 2026 2025

1 unchanged sentence

Net unrealized gains (losses) on MBS accounted for under the fair value option (55,383) 87,624

Net unrealized gains (losses) on U.S.

Treasury securities — — — (372)

Net realized gains (losses) on U.S.

Treasury securities — — — (86)

Total gain (loss) on investments, net (54,940) 82,158

During the three and nine months ended September 30, 2025, we sold MBS and realized net gains of $1.2 million and net losses of $2.4 million, respectively (three and nine months ended September 30, 2024:

net gains of $5.0 million and net losses of $4.8 million, respectively).

Net realized gains during the three months ended September 30, 2025 reflect a decrease in our allocation to higher coupon Agency RMBS.

Net realized losses during the nine months ended September 30, 2025 primarily reflect sales of lower coupon Agency RMBS during the first quarter.

Net realized gains and losses during the three and nine months ended September 30, 2024 primarily reflect sales of 4.0% to 5.0% coupon Agency RMBS with a portion of the proceeds being used to purchase Agency CMBS.

Under the fair value option, changes in fair value are recognized in income on the condensed consolidated statements of operations.

As of September 30, 2025, all of our MBS were accounted for under the fair value option (December 31, 2024:

$5.4 billion or 99.7%).

We recorded net unrealized gains on our MBS portfolio accounted for under the fair value option of $48.3 million and $128.8 million in the three and nine months ended September 30, 2025, respectively, primarily due to a sharp decline in interest rates during the year, as valuations on fixed-rate securities increased as interest rates fell.

We recorded net unrealized gains on our MBS portfolio accounted for under the fair value option of $160.2 million and $59.0 million in the three and nine months ended September 30, 2024, respectively, due to lower interest rates during the third quarter resulting in improved valuations on Agency RMBS and Agency CMBS.

We did not hold any U.S.

Treasury securities during the three and nine months ended September 30, 2025 or the three months ended September 30, 2024.

We recorded net realized and unrealized losses of $458,000 on U.S.

Treasury securities in the nine months ended September 30, 2024.

(Increase) Decrease in Provision for Credit Losses

We recorded an $80,000 decrease and $222,000 increase in the provision for credit losses during the three and nine months ended September 30, 2024, respectively, on a single security based on a comparison of the security's amortized cost

basis to discounted expected cash flows.

We sold the security in 2025 and no longer own any securities that are classified as available-for-sale and, therefore, subject to evaluation for credit losses.

Equity in Earnings (Losses) of Unconsolidated Ventures

For the nine months ended September 30, 2024, we recorded equity in losses of $193,000.

We received a final distribution from our sole remaining unconsolidated venture during the first quarter of 2024, and the venture was dissolved in April 2024.

During the three months ended March 31, 2026, we sold our holdings of 6.5% coupon Agency RMBS and realized net gains of $443,000.

Net realized losses of $5.5 million during the three months ended March 31, 2025 reflect sales of 4.0% coupon Agency RMBS.

Under the fair value option, changes in fair value are recognized in income on the condensed consolidated statements of comprehensive income (loss).

As of March 31, 2026 and December 31, 2025, all of our MBS were accounted for under the fair value option.

We recorded net unrealized losses of $55.4 million on our MBS during the three months ended March 31, 2026 due to an increase in interest rates and wider spreads.

We recorded net unrealized gains of $87.6 million on our MBS portfolio accounted for under the fair value option during the three months ended March 31, 2025 due to a sharp decline in interest rates.

Gain (Loss) on Derivative Instruments, net

We record all derivatives on our condensed consolidated balance sheets at fair value.

Changes in the fair value of our derivatives are recorded in gain (loss) on derivative instruments, net in our condensed consolidated statements of operations.

Net interest paid or received under our interest rate swaps is also recognized in gain (loss) on derivative instruments, net in our condensed consolidated statements of operations.

The tables below summarize our realized and unrealized gain (loss) on derivative instruments, net for the following periods.

$ in thousands

Three months ended September 30, 2025

not designated as

hedging instrument Realized gain (loss) on derivative instruments, net Contractual net interest income (expense) Unrealized gain (loss), net Gain (loss) on derivative instruments, net

Interest Rate Swaps (35,447) 29,138 5,714 (595)

Futures Contracts (13,742) — 5,119 (8,623)

Total (49,189) 29,138 10,833 (9,218)

$ in thousands

Three months ended September 30, 2024

not designated as

hedging instrument Realized gain (loss) on derivative instruments, net Contractual net interest income (expense) Unrealized gain (loss), net Gain (loss) on derivative instruments, net

Interest Rate Swaps (160,472) 40,883 517 (119,072)

Futures Contracts (12,419) — 2,527 (9,892)

TBAs 94 — 1,525 1,619

Total (172,797) 40,883 4,569 (127,345)

Changes in the fair value of our derivatives are recorded in gain (loss) on derivative instruments, net in our condensed consolidated statements of comprehensive income (loss).

Net interest paid or received under our interest rate swaps is also recognized in gain (loss) on derivative instruments, net in our condensed consolidated statements of comprehensive income (loss).

The tables below summarize the components of our gain (loss) on derivative instruments, net for the following periods.

$ in thousands

Nine months ended September 30, 2025

not designated as

hedging instrument Realized gain (loss) on derivative instruments, net Contractual net interest income (expense) Unrealized gain (loss), net Gain (loss) on derivative instruments, net

Three months ended March 31, 2026

Derivative Instruments Realized Gain (Loss) on Derivative Instruments, Net Contractual Net

Interest Income (Expense) Unrealized

Gain (Loss), Net Gain (Loss) on Derivative Instruments, Net

Interest rate swaps 2,211 21,578 (6,248) 17,541

Futures Contracts (52,258) — (2,725) (54,983)

Treasury futures contracts 9,481 — (5,160) 4,321

TBAs 11,632 — (20,615) (8,983)

1 unchanged sentence

$ in thousands

Nine months ended September 30, 2024

not designated as

hedging instrument Realized gain (loss) on derivative instruments, net Contractual net interest income (expense) Unrealized gain (loss), net Gain (loss) on derivative instruments, net

Three months ended March 31, 2025

Derivative Instruments Realized Gain (Loss) on Derivative Instruments, Net Contractual Net

Interest Income (Expense) Unrealized

Gain (Loss), Net Gain (Loss) on Derivative Instruments, Net

Interest rate swaps (76,259) 28,079 542 (47,638)

Futures Contracts (12,419) — 2,527 (9,892)

Treasury futures contracts (28,682) — (4,172) (32,854)

TBAs 3,425 — 388 3,813

Total (101,516) 28,079 (3,242) (76,679)

As of September 30, 2025 and December 31, 2024, we held the following interest rate swaps whereby we pay fixed interest rates and receive floating interest rates based upon SOFR.

$ in thousands As of September 30, 2025 As of December 31, 2024

Derivative instrument Notional Amount Weighted Average Fixed Pay Rate Weighted Average Floating Receive Rate Weighted Average Years to Maturity Notional Amount Weighted Average Fixed Pay Rate Weighted Average Floating Receive Rate Weighted Average Years to Maturity

As of March 31, 2026 and December 31, 2025, we held the following interest rate swaps whereby we pay fixed interest rates and receive floating interest rates based upon SOFR.

$ in thousands As of March 31, 2026 As of December 31, 2025

Derivative Instruments Notional Amount Weighted Average Fixed Pay Rate Weighted Average Floating Receive Rate Weighted Average Years to Maturity Notional Amount Weighted Average Fixed Pay Rate Weighted Average Floating Receive Rate Weighted Average Years to Maturity

Interest rate swaps 4,115,000 1.66 % 3.68 % 5.8 3,820,000 1.34 % 3.87 % 4.6

We use interest rate swaps to manage our exposure to changing interest rates and add stability to interest rate expense.

We recorded net losses of $595,000 and $64.4 million on interest rate swaps for the three and nine months ended September 30, 2025, respectively (three and nine months ended September 30, 2024:

net losses of $119.1 million and net gains of $3.3 million, respectively).

Net losses during the nine months ended September 30, 2025 were due to a sharp decline in swap rates during the year.

As of September 30, 2025 and December 31, 2024, we held the following futures contracts.

September 30, 2025 December 31, 2024

We use interest rate swaps to manage our exposure to changing interest rates and add stability to our borrowing costs.

During the three months ended March 31, 2026, we entered into interest rate swaps with a notional amount of $1.0 billion and terminated or settled existing interest rate swaps with a notional amount of $730.0 million.

We recorded net gains of $17.5 million on interest rate swaps for the three months ended March 31, 2026 (three months ended March 31, 2025:

net losses of $47.6 million).

Net gains during the three months ended March 31, 2026 were due to an increase in swap rates.

As of March 31, 2026 and December 31, 2025, we held the following U.S.

Treasury futures contracts.

March 31, 2026 December 31, 2025

$ in thousands Notional Amount - Short Notional Amount - Short

4 unchanged sentences

Total 990,000 1,090,000

We use futures contracts as an alternative way to help mitigate the potential impact of changes in interest rates on our performance.

We recognized net losses of $8.6 million and $55.0 million on futures contracts during the three and nine months ended September 30, 2025, respectively (three and nine months ended September 30, 2024:

Treasury futures contracts as an alternative way to help mitigate the potential impact of changes in interest rates on our performance.

During the three months ended March 31, 2026, we entered into U.S.

Treasury futures contracts with a notional amount of $1.3 billion and terminated or settled existing U.S.

Treasury futures contracts with a notional amount of $1.4 billion.

We recognized net gains of $4.3 million on U.S.

Treasury futures contracts during the three months ended March 31, 2026 (three months ended March 31, 2025:

net losses of $32.9 million).

Net losses during the three and nine months ended September 30, 2025 were due to a decline in interest rates.

We primarily use TBAs that we do not intend to physically settle on the contractual settlement date in long positions as an alternative means of investing in and financing Agency RMBS.

During the second quarter of 2025, we used short positions in TBAs in response to heightened market volatility to manage risk and economically hedge a portion of our exposure to changes in Agency RMBS valuations.

We did not hold any TBAs during the three months ended September 30, 2025.

We recorded net gains of $2.6 million on TBAs during the nine months ended September 30, 2025 (three and nine months ended September 30, 2024:

net gains of $1.6 million and $621,000, respectively).

We incurred management fees of $2.7 million and $8.5 million for the three and nine months ended September 30, 2025, respectively (three and nine months ended September 30, 2024:

$2.9 million and $8.7 million, respectively).

Net gains during the three months ended March 31, 2026 were due to an increase in interest rates.

We primarily use TBAs in long positions as an alternative means of investing in and financing Agency RMBS.

Additionally, we have used and may in the future use short positions in TBAs to manage risk and economically hedge a portion of our exposure to changes in Agency RMBS valuations.

We recorded net losses of $9.0 million on TBAs during the three months ended March 31, 2026 (three months ended March 31, 2025:

net gains of $3.8 million).

Net losses on TBAs during the three months ended March 31, 2026 were due to an increase in interest rates and widening spreads.

We incurred management fees of $3.0 million for the three months ended March 31, 2026 (three months ended March 31, 2025:

$3.0 million).

Our management fees are determined by our average stockholders' equity.

Refer to Note 9 – “Related Party Transactions” of our condensed consolidated financial statements for a discussion of our relationship with our Manager and a description of how our fees are calculated.

Our general and administrative expenses not covered under our management agreement amounted to $1.8 million and $5.5 million for the three and nine months ended September 30, 2025, respectively (three and nine months ended September 30, 2024:

$1.8 million and $5.5 million, respectively).

Our general and administrative expenses not covered under our management agreement amounted to $1.9 million for the three months ended March 31, 2026 (three months ended March 31, 2025:

$1.7 million).

General and administrative expenses not covered under our management agreement primarily consist of directors and officers insurance, legal costs, accounting, auditing and tax services, filing fees and miscellaneous general and administrative costs.

Gain (Loss) on Repurchase and Retirement of Preferred Stock

In May 2022, our board of directors approved a share repurchase program for our Series B and Series C Preferred Stock.

During the three and nine months ended September 30, 2025, we repurchased and retired 89,223 and 276,172 shares of Series C Preferred Stock, respectively.

respectively.

In May 2022, our board of directors approved a share repurchase program for our Series C Preferred Stock.

During the three months ended March 31, 2026, we repurchased and retired 64,688 shares of Series C Preferred Stock (three months ended March 31, 2025:

90,146 shares).

Gains and losses on repurchases and retirements of preferred stock represent the difference between the consideration transferred and the carrying value of the preferred stock.

Net Income (Loss) Attributable to Common Stockholders

For the three months ended September 30, 2025, our net income attributable to common stockholders was $50.2 million (September 30, 2024:

$35.3 million) or $0.74 basic and diluted net income per average share available to common stockholders (September 30, 2024:

$0.63 per share).

The change in net income attributable to common stockholders was primarily due to (i) net gains on investments of $49.5 million in the 2025 period compared to net gains on investments of $165.2 million in the 2024 period;

(ii) net losses on derivative instruments of $9.2 million in the 2025 period compared to net losses on derivatives of $127.3 million in the 2024 period;

and (iii) a $10.1 million increase in net interest income.

For the nine months ended September 30, 2025, our net income attributable to common stockholders was $39.9 million (September 30, 2024:

$40.2 million) or $0.61 basic and diluted net income per average share available to common stockholders (September 30, 2024:

$0.78 per share).

The change in net income attributable to common stockholders was primarily due to (i) net gains on investments of $126.4 million in the 2025 period compared to net gains on investments of $53.8 million in the 2024 period;

(ii) net losses on derivative instruments of $116.8 million in the 2025 period compared to net losses on derivatives of $5.9 million in the 2024 period;

For the three months ended March 31, 2026, our net loss attributable to common stockholders was $23.1 million (three months ended March 31, 2025:

net income of $16.3 million) or $0.28 basic and diluted net loss per average share available to common stockholders (three months ended March 31, 2025:

$0.26 net income per share).

The change in net income (loss) attributable to common stockholders was primarily due to (i) net losses on investments of $54.9 million in the 2026 period compared to net gains on investments of $82.2 million in the 2025 period;

(ii) net gains on derivative instruments of $12.9 million in the 2026 period compared to net losses on derivatives of $76.7 million in the 2025 period;

and (iii) a $8.2 million increase in net interest income.

21 unchanged sentences

TBA dollar roll income and (gain) loss on repurchase and retirement of preferred stock.

We may add and have added additional reconciling items to our earnings available for distribution calculation as appropriate.

By excluding the gains and losses discussed above, we believe the presentation of earnings available for distribution provides a consistent measure of operating performance that investors can use to evaluate our results over multiple reporting periods and, to a certain extent, compare to our peer companies.

However, because not all of our peer companies use identical operating performance measures, our presentation of earnings available for distribution may not be comparable to other similarly titled measures used by our peer companies.

We exclude the impact of gains and losses when calculating earnings available for distribution because (i) when analyzed in conjunction with our U.S.

GAAP results, earnings available for distribution provides additional detail of our investment portfolio’s earnings capacity and (ii) gains and losses have not been accounted for consistently under U.S.

GAAP, certain gains and losses may be reflected in net income whereas other gains and losses may be reflected in other comprehensive income.

For example, a portion of our mortgage-backed securities were historically classified as available-for-sale securities, and changes in the valuation of these securities

were recorded in other comprehensive income on our condensed consolidated balance sheets.

We elected the fair value option for our mortgage-backed securities purchased on or after September 1, 2016, and changes in the valuation of these securities are recorded in other income (loss) in our condensed consolidated statements of operations.

We exclude the impact of gains and losses when calculating earnings available for distribution because when analyzed in conjunction with our U.S.

GAAP results, earnings available for distribution provides additional detail of our investment portfolio’s earnings capacity.

In addition, certain gains and losses represent one-time events.

We may add and have added additional reconciling items to our earnings available for distribution calculation as appropriate.

Furthermore, gains and losses have not been accounted for consistently under U.S.

GAAP, certain gains and losses may be reflected in net income whereas other gains and losses may be reflected in other comprehensive

For example, a portion of our mortgage-backed securities were historically classified as available-for-sale securities, and changes in the valuation of these securities were recorded in other comprehensive income on our condensed consolidated balance sheets.

To maintain our qualification as a REIT, U.S.

federal income tax law generally requires that we distribute at least 90% of our REIT taxable income annually, determined without regard to the deduction for dividends paid and excluding net capital gains.

We have historically distributed at least 100% of our REIT taxable income.

Because we view earnings available for distribution as a consistent measure of our investment portfolio's ability to generate income for distribution to common stockholders, earnings available for distribution is one metric, but not the exclusive metric, that our board of directors uses to determine the amount, if any, of dividends on our common stock.

federal income tax law generally requires that we distribute at least 90% of our REIT taxable income annually.

Because we view earnings available for distribution as a consistent measure of our investment portfolio's ability to generate income for distribution to common stockholders, earnings available for distribution is one metric, but not the exclusive metric, that is used to determine the amount, if any, of dividends on our common stock.

However, earnings available for distribution should not be considered as an indication of our taxable income, a guaranty of our ability to pay dividends or as a proxy for the amount of dividends we may pay, as earnings available for distribution excludes certain items that impact our cash needs.

5 unchanged sentences

GAAP net income (loss) attributable to common stockholders to earnings available for distribution for the following periods.

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

$ in thousands, except per share data 2026 2025

4 unchanged sentences

Unrealized (gain) loss on derivative instruments, net (1)

(10,833) (4,569) 4,348 (11,096)

TBA dollar roll income (2)

— 39 1,147 1,117

(Gain) loss on repurchase and retirement of preferred stock 27 11

1 unchanged sentence

Earnings available for distribution 44,711 40,047

Basic income (loss) per common share 0.74 0.63 0.61 0.78

Basic earnings (loss) per common share (0.28) 0.26

Earnings available for distribution per common share (3)

0.58 0.68 1.79 2.38

GAAP gain (loss) on derivative instruments, net on the condensed consolidated statements of operations includes the following components.

Three Months Ended September 30, Nine Months Ended September 30,

GAAP gain (loss) on derivative instruments, net on the condensed consolidated statements of comprehensive income (loss) includes the following components.

Three Months Ended March 31,

$ in thousands 2026 2025

7 unchanged sentences

We include TBA dollar roll income in earnings available for distribution because it is the economic equivalent of interest income on the underlying Agency RMBS, less an implied financing cost, over the forward settlement period.

TBA dollar roll income is a component of gain (loss) on derivative instruments, net on our condensed consolidated statements of operations.

TBA dollar roll income is a component of gain (loss) on derivative instruments, net on our condensed consolidated statements of comprehensive income (loss).

(3) Earnings available for distribution per common share is equal to earnings available for distribution divided by the basic weighted average number of common shares outstanding.

The table below shows the components of earnings available for distribution for the following periods.

Three Months Ended September 30, Nine Months Ended September 30,

Three Months Ended March 31,

$ in thousands 2026 2025

2 unchanged sentences

TBA dollar roll income 4,166 1,147

Equity in earnings (losses) of unconsolidated ventures — — — (193)

(Increase) decrease in provision for credit losses — 80 — (222)

Total expenses (4,891) (4,659)

3 unchanged sentences

(1) See below for a reconciliation of net interest income to effective net interest income, a non-GAAP measure.

Earnings available for distribution increased slightly during the three months ended September 30, 2025 compared to the same period in 2024 due to lower preferred dividends resulting from the redemption of our Series B Preferred Stock in December 2024, which was partially offset by a decrease in effective net interest income.

Earnings available for distribution decreased during the nine months ended September 30, 2025 compared to the same period in 2024 due to lower effective net interest income, which was partially offset by lower preferred dividends.

Earnings available for distribution increased during the three months ended March 31, 2026 compared to the same period in 2025 due to higher effective net interest income and an increase in our allocation to TBAs.

See below for details on the change in effective net interest income.

10 unchanged sentences

The following table reconciles total interest expense to effective interest expense and cost of funds to effective cost of funds for the following periods.

Three Months Ended September 30,

$ in thousands Reconciliation Cost of Funds / Effective Cost of Funds Reconciliation Cost of Funds / Effective Cost of Funds

Total interest expense 55,302 4.52 % 66,315 5.30 %

Contractual net interest expense (income) on interest rate swaps recorded as gain (loss) on derivative instruments, net (29,138) (2.38) % (40,883) (3.27) %

Effective interest expense 26,164 2.14 % 25,432 2.03 %

Nine Months Ended September 30,

Three Months Ended March 31,

$ in thousands Reconciliation Cost of Funds / Effective Cost of Funds Reconciliation Cost of Funds / Effective Cost of Funds

2 unchanged sentences

Effective interest expense 31,015 2.31 % 26,946 2.18 %

Our effective interest expense increased slightly in the three months ended September 30, 2025 compared to the same period in 2024 due to a decrease in contractual net interest income on interest rate swaps, which was largely offset by a lower average cost of funds and a decrease in average borrowings.

Our effective interest expense increased in the nine months ended September 30, 2025 compared to the same period in 2024 due to a decrease in contractual net interest income on interest rate swaps and an increase in average borrowings, which was partially offset by a lower average cost of funds.

Our effective cost of funds increased in the three and nine months ended September 30, 2025 compared to the same periods in 2024 due to a decrease in contractual net interest income on interest rate swaps, which was partially offset by a lower average cost of funds.

Our effective interest expense increased in the three months ended March 31, 2026 compared to the same period in 2025 due to a decrease in contractual net interest income on interest rate swaps and an increase in average borrowings, which were partially offset by a lower cost of funds.

Our effective cost of funds increased in the three months ended March 31, 2026 compared to the same period in 2025 due to a decrease in contractual net interest income on interest rate swaps, which was partially offset by a lower cost of funds.

In addition to changes caused by the underlying floating rate index, the amount of contractual net interest income or expense on interest rate swaps that we recognize has changed based on changes in the size and composition of our interest rate swap portfolio.

During the third quarter of 2024, we also began using futures contracts, which do not earn or incur contractual interest, in lieu of certain interest rate swaps as an alternative way to help mitigate the potential impact of changing interest rates on our performance.

See preceding discussion under “Gain (Loss) on Derivative Instruments, net” for details of our interest rate swap portfolio as of September 30, 2025 and December 31, 2024.

We also use U.S.

Treasury futures contracts, which do not earn or incur contractual interest, in lieu of certain interest rate swaps as an alternative way to help mitigate the potential impact of changing interest rates on our performance.

preceding discussion under “Gain (Loss) on Derivative Instruments, net” for details of our interest rate swap portfolio as of March 31, 2026 and December 31, 2025.

The following table reconciles net interest income to effective net interest income and net interest rate margin to effective interest rate margin for the following periods.

Three Months Ended September 30,

$ in thousands Reconciliation Net Interest Rate Margin / Effective Interest Rate Margin Reconciliation Net Interest Rate Margin / Effective Interest Rate Margin

Net interest income 17,614 0.90 % 7,510 0.01 %

Contractual net interest income (expense) on interest rate swaps recorded as gain (loss) on derivative instruments, net 29,138 2.38 % 40,883 3.27 %

Effective net interest income 46,752 3.28 % 48,393 3.28 %

Nine Months Ended September 30,

Three Months Ended March 31,

$ in thousands Reconciliation Net Interest Rate Margin / Effective Interest Rate Margin Reconciliation Net Interest Rate Margin / Effective Interest Rate Margin

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Effective net interest income 48,626 3.05 % 46,900 3.27 %

Our effective net interest income decreased in the three months ended September 30, 2025 compared to the same period in 2024 due to a decrease in contractual net interest income on interest rate swaps, which was partially offset by a lower average cost of funds and an increase in average earning asset yields.

Our effective net interest income decreased in the nine months ended September 30, 2025 compared to the same period in 2024 due to a decrease in contractual net interest income on interest rate swaps, which was partially offset by a lower average cost of funds.

Our effective net interest rate margin was unchanged in the three months ended September 30, 2025 compared to the same period in 2024 as a decrease in contractual net interest income on interest rate swaps was offset by a lower average cost of funds and an increase in average earning asset yields.

Our effective net interest rate margin decreased in the nine months ended September 30, 2025 compared to the same period in 2024 due to a decrease in contractual net interest income on interest rate swaps, which was partially offset by a lower average cost of funds.

Our effective net interest income increased in the three months ended March 31, 2026 compared to the same period in 2025 due to higher average earning assets and a lower cost of funds, which were partially offset by a decrease in contractual net interest income on interest rate swaps, higher average borrowings and lower average earning asset yields.

Our effective net interest rate margin decreased in the three months ended March 31, 2026 compared to the same period in 2025 due to a decrease in contractual net interest income on interest rate swaps and lower average earning asset yields, which were partially offset by a lower cost of funds.

Economic Debt-to-Equity Ratio

The table below shows our debt-to-equity ratio and our economic debt-to-equity ratio as of September 30, 2025 and December 31, 2024.

The table below shows our debt-to-equity ratio and our economic debt-to-equity ratio as of March 31, 2026 and December 31, 2025.

Our debt-to-equity ratio is calculated in accordance with U.S.

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GAAP financial measure of debt-to-equity ratio, provides information that is useful to investors in understanding how management evaluates our at-risk leverage and gives investors a comparable statistic to those of other mortgage REITs who also invest in TBAs and present a similar non-GAAP measure of leverage.

$ in thousands September 30,

$ in thousands March 31,

2026 December 31,

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(1) Debt-to-equity ratio is calculated as the ratio of total repurchase agreements to total stockholders' equity.

(2) Economic debt-to-equity ratio is calculated as the ratio of total repurchase agreements and TBAs at implied cost basis (none as of September 30, 2025;

$606,000 as of December 31, 2024) to stockholders' equity.

(2) Economic debt-to-equity ratio is calculated as the ratio of total repurchase agreements and TBAs at implied cost basis ($1.2 billion as of March 31, 2026;

none as of December 31, 2025) to total stockholders' equity.

Liquidity and Capital Resources

Liquidity is a measure of our ability to meet potential cash requirements, including ongoing commitments to pay dividends, fund investments, repay borrowings and fund other general business needs.

Liquidity is a measure of our ability to meet potential cash requirements, including ongoing commitments to pay dividends, purchase investments, repay borrowings and fund other general business needs.

Our primary sources of funds for liquidity consist of the net cash proceeds from our common equity offerings, net cash provided by operating activities, proceeds from repurchase agreements and other financing arrangements and future issuances of equity and/or debt securities.

We currently believe that we have sufficient liquidity and capital resources available for the acquisition of additional investments, repayments on borrowings, margin requirements and the payment of cash dividends as required for continued qualification as a REIT.

We generally maintain liquidity to pay down borrowings under repurchase arrangements to reduce borrowing costs and otherwise efficiently manage our long-term investment capital.

We generally maintain liquidity to pay down borrowings under financing arrangements to reduce borrowing costs and otherwise efficiently manage our long-term investment capital.

Because the level of these borrowings can be adjusted on a daily basis, the level of cash and cash equivalents carried on our condensed consolidated balance sheets is significantly less important than our potential liquidity available under borrowing arrangements or through the sale of liquid investments.

However, there can be no assurance that we will maintain sufficient levels of liquidity to meet any margin calls.

We held cash, cash equivalents and restricted cash of $180.7 million as of September 30, 2025 (September 30, 2024:

We held cash, cash equivalents and restricted cash of $190.9 million as of March 31, 2026 (March 31, 2025:

$181.5 million).

Our cash, cash equivalents and restricted cash change due to normal fluctuations in cash balances related to the timing of principal and interest payments, repayments of debt, and asset purchases and sales.

Our operating activities provided net cash of approximately $97.3 million for the nine months ended September 30, 2025 (September 30, 2024:

$121.3 million).

Our investing activities used net cash of $372.5 million in the nine months ended September 30, 2025 (September 30, 2024:

$898.8 million).

We used cash of $2.0 billion to purchase MBS during the nine months ended September 30, 2025 (September 30, 2024:

$1.9 billion).

Our primary source of cash from investing activities for the nine months ended September 30, 2025 was proceeds from sales of MBS of $1.5 billion (September 30, 2024:

$887.2 million from the sales of MBS and $10.8 million from the sale of U.S.

Treasury securities).

We also generated $364.8 million from principal payments of MBS during the nine months ended September 30, 2025 (September 30, 2024:

$261.9 million) and used cash of $198.3 million to settle derivative contracts in the nine months ended September 30, 2025 (September 30, 2024:

$146.5 million).

Our financing activities provided net cash of $245.1 million for the nine months ended September 30, 2025 (September 30, 2024:

$747.3 million).

During the nine months ended September 30, 2025, we received net cash from proceeds on our repurchase agreements of $256.1 million (September 30, 2024:

Our operating activities provided net cash of approximately $26.7 million for the three months ended March 31, 2026 (March 31, 2025:

$19.3 million).

We used cash of $79.6 million for the nine months ended September 30, 2025 to pay dividends (September 30, 2024:

Our investing activities provided net cash of $195.0 million for the three months ended March 31, 2026 compared to net cash used by investing activities of $516.5 million for the three months ended March 31, 2025.

We used cash of $228.9 million to purchase MBS for the three months ended March 31, 2026 (March 31, 2025:

$884.4 million).

Proceeds from issuance of common stock provided $74.4 million for the nine months ended September 30, 2025 (September 30, 2024:

We posted cash variation margin of $25.0 million on TBAs for the three months ended March 31, 2026 (March 31, 2025:

received net cash of $525,000).

Principal payments on MBS provided cash of $214.0 million (March 31, 2025:

$95.3 million).We also generated $211.5 million in proceeds from sales of MBS for the three months ended March 31, 2026 (March 31, 2025:

$373.6 million) and received net cash of $23.3 million to settle derivative contracts for the three months ended March 31, 2026 (March 31, 2025:

cash used of $101.5 million).

Our financing activities used net cash of $197.2 million for the three months ended March 31, 2026 compared to net cash provided of $467.8 million for the three months ended March 31, 2025.

During the three months ended March 31, 2026, we used net cash for repayments on our repurchase agreements of $279.9 million (March 31, 2025:

received net cash from repurchase agreements of $460.6 million).

Proceeds from issuance of common stock provided $133.6 million for the three months ended March 31, 2026 (March 31, 2025:

$36.1 million).We also paid dividends of $48.6 million for the three months ended March 31, 2026 (March 31, 2025:

$28.0 million).

As of September 30, 2025, the average margin requirement (weighted by borrowing amount), or the haircut, under our repurchase agreements was 4.5% for Agency RMBS and 4.9% for Agency CMBS.

As of March 31, 2026, the average margin requirement (weighted by borrowing amount), or the haircut, under our repurchase agreements was 4.3% for Agency RMBS and 4.9% for Agency CMBS.

The haircuts ranged from a low of 3% to a high of 5% for Agency RMBS and a low of 4% to a high of 5% for Agency CMBS.

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If interest rates increase or if spreads widen, then the value of our collateral (and our unpledged assets that constitute our liquidity) will decline, we will experience margin calls, and we will seek to use our liquidity to meet the margin calls.

There can be no assurance that we will maintain sufficient levels of liquidity to meet any margin calls or increased collateral requirements.

There can be no assurance that we will maintain sufficient levels of liquidity to meet margin calls or increased collateral requirements.

If our haircuts increase, our liquidity will proportionately decrease.

In addition, if we increase our borrowings, our liquidity will decrease by the amount of additional haircut on the increased level of indebtedness.

Our interest rate swaps and futures contracts require us to post initial margin and daily variation margin based on subsequent changes in their fair value.

Our interest rate swaps and U.S.

Treasury futures contracts require us to post initial margin and daily variation margin based on subsequent changes in their fair value.

Daily variation margin requirements also entitle us to receive collateral from our counterparties if the value of amounts owed to us under the derivative agreement exceeds the minimum margin requirement.

Our TBAs also include provisions for the posting or receipt of variation margin based on changes in fair value.

We intend to maintain a level of liquidity in relation to our assets that enables us to meet reasonably anticipated margin calls and increased collateral requirements but that also allows us to be substantially invested in securities.

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Forward-Looking Statements Regarding Liquidity

As of September 30, 2025, we held $5.4 billion of Agency securities that are financed by repurchase agreements.

We also had approximately $364.9 million of unencumbered investments and unrestricted cash of $58.5 million as of September 30, 2025.

As of September 30, 2025, our known contractual obligations primarily consisted of $5.2 billion of repurchase agreement borrowings with a weighted average remaining maturity of 21 days.

As of March 31, 2026, we held $5.6 billion of Agency securities that are financed by repurchase agreements.

We also had approximately $440.5 million of unencumbered investments and unrestricted cash of $52.6 million as of March 31, 2026.

As of March 31, 2026, our known contractual obligations primarily consisted of $5.3 billion of repurchase agreement borrowings with a weighted average remaining maturity of 30 days.

We generally intend to refinance the majority of our repurchase agreement borrowings at market rates upon maturity.

Repurchase agreement borrowings that are not refinanced upon maturity are typically repaid through the use of cash on hand or proceeds from sales of securities.

Additionally, we had TBAs with an implied cost basis of $1.2 billion as of March 31, 2026.

Under certain market conditions, it may be uneconomical for us to roll our TBA long positions into future months.

This may result in us being required to take delivery of the underlying securities and fund those securities using cash or other financing sources, potentially reducing our liquidity.

Based upon our current portfolio and existing borrowing arrangements, we believe that cash flow from operations and available borrowing capacity will be sufficient to enable us to meet anticipated short-term (one year or less) liquidity requirements to fund our investment activities, pay fees under our management agreement, fund our required distributions to stockholders and fund other general corporate expenses.

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In addition, we may increase our capital resources by obtaining long-term credit facilities or through public or private offerings of equity or debt securities, possibly including classes of preferred stock, common stock, senior or subordinated notes and convertible notes.

Such financing will depend on market conditions for capital raises and our

ability to invest such offering proceeds.

Such financing will depend on market conditions for capital raises and our ability to invest such offering proceeds.

If we are unable to renew, replace or expand our sources of financing on substantially similar terms, it may have an adverse effect on our business and results of operations.

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Under these agreements, we pledge assets from our investment portfolio as collateral.

Additionally, certain counterparties may require us to provide cash collateral in the event the market value of the assets declines to maintain a contractual repurchase agreement collateral ratio.

Additionally, certain counterparties may require us to provide additional collateral in the event the market value of the assets declines to maintain a contractual repurchase agreement collateral ratio.

If a counterparty were to default on its obligations, we would be exposed to potential losses to the extent the fair value of collateral pledged by us to the counterparty, including any accrued interest receivable on such collateral, exceeded the amount loaned to us by the counterparty plus interest due to the counterparty.

As of September 30, 2025, one counterparty held collateral that exceeded the amounts borrowed under the related repurchase agreements by more than 5% of our stockholders' equity.

The following table summarizes our exposure to counterparties by geographic concentration as of September 30, 2025.

As of March 31, 2026, no counterparty held collateral that exceeded the amounts borrowed under the related repurchase agreements by more than 5% of our stockholders' equity.

The following table summarizes our exposure to counterparties by geographic concentration as of March 31, 2026.

The information is based on the geographic headquarters of the counterparty or counterparty's parent company.

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If our cash available for distribution is less than our REIT taxable income, we could be required to sell assets or borrow funds to make cash distributions, or we may make a portion of the required distribution in the form of a taxable stock distribution or distribution of debt securities.

As discussed above, our distribution requirements are based on REIT taxable income rather than U.S.

GAAP net income.

The primary differences between our REIT taxable income and U.S.

GAAP net income are:

(i) unrealized gains and losses on investments for which we have elected the fair value option that are included in current U.S.

GAAP income but are excluded from REIT taxable income until realized or settled;

(ii) gains and losses on derivative instruments that are included in current U.S.

GAAP net income but are excluded from REIT taxable income until realized;

and (iii) temporary differences related to amortization of premiums and discounts on investments.

For additional information regarding the characteristics of our dividends, refer to Note 11 – "Stockholders' Equity" of our annual report on Form 10-K for the year ended December 31, 2024.

Unrelated Business Taxable Income

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Other Matters

We believe that we satisfied each of the asset tests in Section 856(c)(4) of the Internal Revenue Code of 1986, as amended (the "Code") for the period ended September 30, 2025, and that our proposed method of operation will permit us to satisfy the asset tests, gross income tests, and distribution and stock ownership requirements for our taxable year that will end on December 31, 2025.

We believe that we satisfied each of the asset tests in Section 856(c)(4) of the Internal Revenue Code of 1986, as amended (the "Code") for the period ended March 31, 2026, and that our proposed method of operation will permit us to satisfy the asset tests, gross income tests, and distribution and stock ownership requirements for our taxable year that will end on December 31, 2026.

At all times, we intend to conduct our business so that neither we nor our Operating Partnership nor the subsidiaries of our Operating Partnership are required to register as an investment company under the 1940 Act.

If we were required to register as an investment company, then our use of leverage would be substantially reduced.

Because we are a holding company that conducts our business through our Operating Partnership and the Operating Partnership’s wholly-owned or majority-owned

subsidiaries, the securities issued by these subsidiaries that are excepted from the definition of "investment company" under Section 3(c)(1) or Section 3(c)(7) of the 1940 Act, together with any other investment securities the Operating Partnership may own, may not have a combined value in excess of 40% of the value of the Operating Partnership’s total assets (exclusive of U.S.

Because we are a holding company that conducts our business through our Operating Partnership and the Operating Partnership’s wholly-owned or majority-owned subsidiaries, the securities issued by these subsidiaries that are excepted from the definition of “investment company” under Section 3(c)(1) or Section 3(c)(7) of the 1940 Act, together with any other investment securities the Operating Partnership may own, may not have a combined value in excess of 40% of the value of the Operating Partnership’s total assets (exclusive of U.S.

government securities and cash items) on an unconsolidated basis, which we refer to as the 40% test.

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Rather, through the Operating Partnership’s wholly-owned or majority-owned subsidiaries, we and the Operating Partnership are primarily engaged in the non-investment company businesses of these subsidiaries.

IAS Asset I LLC and certain of the Operating Partnership’s other subsidiaries that we may form in the future rely upon the exclusion from the definition of "investment company" under the 1940 Act provided by Section 3(c)(5)(C) of the 1940 Act, which is available for entities "primarily engaged in the business of purchasing or otherwise acquiring mortgages and other liens on and interests in real estate." This exclusion generally requires that at least 55% of each subsidiary’s portfolio be comprised of qualifying assets and at least 80% be comprised of qualifying assets and real estate-related assets (and no more than 20% comprised of miscellaneous assets).

We calculate that as of September 30, 2025, we conducted our business so as not to be regulated as an investment company under the 1940 Act.

IAS Asset I LLC and certain

of the Operating Partnership’s other subsidiaries that we may form in the future rely upon the exclusion from the definition of “investment company” under the 1940 Act provided by Section 3(c)(5)(C) of the 1940 Act, which is available for entities “primarily engaged in the business of purchasing or otherwise acquiring mortgages and other liens on and interests in real estate.” This exclusion generally requires that at least 55% of each subsidiary’s portfolio be comprised of qualifying assets and at least 80% be comprised of qualifying assets and real estate-related assets (and no more than 20% comprised of miscellaneous assets).

We calculate that as of March 31, 2026, we conducted our business so as not to be regulated as an investment company under the 1940 Act.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis