The earnings call presented a mixed outlook. There were achievements in AI implementation and an increase in first lien originations. However, the significant loss contingency accrual and comprehensive loss overshadowed these achievements, contributing to a negative economic return for the quarter.

Company Guidance

During Two's Second Quarter 2025 Earnings Call, the company provided guidance on several financial metrics. The second quarter saw a total economic return of negative 14.5%, which adjusts to minus 1.4% when excluding a loss contingency accrual of $1.92 per share. For the first half of the year, the total economic return on book value was negative 10.3%, or 2.9% excluding the accrual. The 10-year U.S. treasury rate moved through a wide range, settling near its starting point, and the spread between 10-year and 2-year U.S. treasuries widened to 51 basis points. Mortgage rates fluctuated, with the 30-year fixed rate mortgage ending the quarter between 6.7% and 6.8%. The Federal Reserve kept rates unchanged, and several FOMC members suggested potential rate cuts of 50 to 75 basis points in the latter half of 2025. The company funded $48 million UPB in first liens, a 68% increase from the previous quarter, and brokered $44 million UPB in second liens. Two Harbors is also investing in AI technologies to enhance efficiencies and customer experience. The company issued $115 million in senior notes due in 2030 and maintained an economic debt-to-equity ratio of 7x. They reported a comprehensive loss of $221.8 million, which adjusts to $21.9 million when excluding the accrual. The MSR market remains robust, with prepayment rates on their low coupon MSR portfolio expected to stay low. As they look ahead, Two Harbors is focused on leveraging their investment portfolio and operating company to create long-term value, expecting static return estimates for their portfolio to range between 8.8% and 12.1% before leverage adjustments.

Increase in First Lien Originations

First lien originations funded $48 million UPB, up from $29 million in the first quarter, marking an increase of 68%, which outpaced the overall trend in mortgage originations.

Growth in Technology and AI Implementation

Significant investments in AI technologies are being made to increase efficiencies, reduce costs, and enhance homeowner experiences, including the use of human emulation bots, OCR, and generative AI for call summaries.

Stable RMBS and MSR Market

The RMBS funding markets remained stable with spreads at SOFR plus 20 basis points. The MSR market is well supported with demand from bank and nonbank servicers.

Improved Economic Return in July

Economic return quarter-to-date through last Friday was up about 1.5%.

Two Harbors (TWO) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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TWO Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 11, 2025	2025 (Q3)	0.33 / -	0.13	―	―	―
Jul 28, 2025	2025 (Q2)	0.35 / 0.28	0.17	64.71% (+0.11)
Apr 28, 2025	2025 (Q1)	0.40 / 0.24	0.05	380.00% (+0.19)
Jan 29, 2025	2024 (Q4)	0.40 / 0.20	-0.11	281.82% (+0.31)
Oct 28, 2024	2024 (Q3)	0.48 / 0.13	-0.01	1400.00% (+0.14)
Jul 30, 2024	2024 (Q2)	0.44 / 0.17	-0.04	525.00% (+0.21)
Apr 29, 2024	2024 (Q1)	0.41 / 0.05	0.09	-44.44% (-0.04)
Jan 29, 2024	2023 (Q4)	0.45 / -0.11	0.26	-142.31% (-0.37)
Oct 30, 2023	2023 (Q3)	0.48 / -0.01	0.64	-101.56% (-0.65)
Jul 31, 2023	2023 (Q2)	0.56 / -0.04	0.88	-104.55% (-0.92)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

TWO Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jul 28, 2025	$10.33	$10.09	-2.32%
Apr 28, 2025	$11.58	$11.98	+3.45%
Jan 29, 2025	$10.96	$11.69	+6.66%
Oct 28, 2024	$11.48	$10.72	-6.62%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

FAQ

When does Two Harbors Investment Corp. (TWO) report earnings?

Two Harbors Investment Corp. (TWO) is schdueled to report earning on Nov 11, 2025, After Close (Confirmed).

What is Two Harbors Investment Corp. (TWO) earnings time?

Two Harbors Investment Corp. (TWO) earnings time is at Nov 11, 2025, After Close (Confirmed).

Where can I see when companies are reporting earnings?

You can see which companies are reporting today on our designated earnings calendar.

What companies are reporting earnings today?

You can see a list of the companies which are reporting today on TipRanks earnings calendar.

What is TWO EPS forecast?

TWO EPS forecast for the fiscal quarter 2025 (Q3) is 0.33.

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