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Ellington Residential Mortgage ( (EARN) ) has provided an update.
For the third fiscal quarter ended December 31, 2025, Ellington Credit reported a net asset value of $5.19 per share, including $0.24 per share of distributions, but booked a GAAP net loss of $21.1 million, or $0.56 per share, despite generating $7.8 million of net investment income. Management attributed the loss mainly to weakness and spread widening in the CLO equity market rather than deteriorating credit fundamentals, while highlighting that mezzanine CLO debt and active trading partially cushioned performance.
The CLO portfolio stood at $369.5 million at fair value, split roughly evenly between debt and equity, and delivered a weighted average GAAP yield of 13.7% along with $19.1 million in recurring cash distributions. During and around the quarter, the board maintained a steady common distribution of $0.08 per share on a monthly schedule, and the company expanded its credit hedges and indicated it may pivot from a recent focus on mezzanine debt toward selectively adding CLO equity as spreads reprice and new opportunities emerge.
The most recent analyst rating on (EARN) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Ellington Residential Mortgage stock, see the EARN Stock Forecast page.
Spark’s Take on EARN Stock
According to Spark, TipRanks’ AI Analyst, EARN is a Neutral.
The score is held back primarily by inconsistent profitability and weak/negative free cash flow, despite balance-sheet improvement (zero debt) and constructive technical momentum. Valuation is supported by a moderate P/E and very high dividend yield, with recent corporate updates reinforcing dividend commitment.
To see Spark’s full report on EARN stock, click here.
More about Ellington Residential Mortgage
Ellington Credit Company, listed on the NYSE under the ticker EARN, is an investment firm focused on collateralized loan obligation (CLO) securities, with a portfolio concentrated in U.S. and European CLO debt and equity. As of December 31, 2025, CLO holdings accounted for virtually all of its investment assets, reflecting a specialized strategy in structured credit markets. The company actively trades these instruments and employs credit hedges to manage risk and enhance risk-adjusted returns for shareholders.
Average Trading Volume: 436,315
Technical Sentiment Signal: Sell
For an in-depth examination of EARN stock, go to TipRanks’ Overview page.