Invesco Mortgage Capital Faces Mounting Pressure Amid Profitability Concerns

Invesco Mortgage Capital finds itself navigating turbulent waters as the mortgage REIT confronts a challenging divergence between its revenue trajectory and declining profitability. The company’s shares have experienced significant downward momentum, closing lower in eight of the last ten trading sessions, raising questions about its ability to reverse this negative trend.

The company’s most recent quarterly report delivered disappointing results, revealing a stark reversal from previous performance. For Q2 2025, Invesco Mortgage Capital reported a loss of $0.40 per share, a dramatic swing from the $0.26 per share profit recorded in the prior quarter. Despite these negative earnings, management maintained its dividend distribution of $0.34 per share, which currently represents a substantial yield of approximately 18%.

Several key metrics highlight the underlying... Read more...