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Two Harbors (TWO)
NYSE:TWO
Earnings Data
Report Date
May 04, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.31Last Year’s EPS
0.24Same Quarter Last Year
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Neutral
The call presented a balanced view: near-term and tactical performance highlights (Q4 economic return +3.9%, book value uptick, strong Q4 RMBS performance, record DTC funding and improved liquidity including repayment of convertible notes) and a transformational strategic benefit from the announced merger with UWM (doubling MSR scale). Offsetting these positives were material challenges including a full-year 2025 economic return of -12.6 before an adjustment for a litigation charge, active MSR sales that reduced owned servicing, reduced net interest/servicing income and mark-to-market headwinds, tighter RMBS spreads that materially lower upside to book value and modestly higher prepayment and spread sensitivity. Management’s tone was constructive about the merger and defensive on portfolio positioning, but uncertainty around spreads, volatility, and near-term dividend decisions tempers the overall outlook.Company Guidance
Strategic Merger with UWM and MSR Scale Expansion
Announced merger with United Wholesale Mortgage (UWM); pro forma MSR portfolio doubles to $400 billion, expected to provide scale for origination, enhanced servicing capabilities (Roundpoint), and strategic alignment to drive growth and shareholder upside.
Strong Quarterly Economic Return
Generated a positive total economic return of 3.9% in Q4 2025; book value increased to $11.13 per share from $11.04 at September 30 (including a $0.34 common stock dividend); comprehensive income of $50.4 million, or $0.48 per share.
Portfolio Performance — Mortgage Assets Outperformed
Mortgage assets significantly outperformed hedges in Q4; portfolio at 12/31 was $13.2 billion (including $9.0B settled positions and $4.2B in TBAs); RMBS spreads tightened materially (current-coupon nominal spreads tightened ~30 bps to 114 bps vs swap curve; OAS tightened ~23 bps to 45 bps), contributing to positive fixed income performance.
Record Growth in Direct-to-Consumer (DTC) Lending
DTC platform funded $94 million in first and second liens in Q4 — a 90% increase from Q3 — with an additional $38 million in pipeline and $58.5 million brokered in second liens (roughly flat QoQ).
Improved Liquidity and Capital Actions
Ended the quarter with over $800 million in cash; repaid $261.9 million of convertible senior notes in full on 01/15/2026; RMBS funding markets remained stable with repo spreads around SOFR + 23 bps and weighted average days-to-maturity of agency RMBS repo at 54 days.
MSR Portfolio Health Metrics
MSR price multiple remained stable at 5.8x; 60+ day delinquency stayed low under 1%; settled ~ $400 million UPB of MSR from flow acquisitions/recapture in Q4 and continue to see prepays generally below projections for most of the portfolio (MSR CPR 6.4%).
Risk Management and Defensive Positioning
Economic debt-to-equity modestly lower at ~7x; management reduced leverage and mortgage risk slightly during the quarter and maintains a paired MSR-RMBS construction designed to reduce exposure to spread volatility.
TWO Earnings History
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 |
|---|---|---|---|
Feb 02, 2026 | $11.85 | $11.81 | -0.34% |
Oct 27, 2025 | $9.50 | $9.50 | 0.00% |
Jul 28, 2025 | $9.66 | $9.44 | -2.32% |
Apr 28, 2025 | $10.82 | $11.20 | +3.50% |
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 (TWO) report earnings?
Two Harbors (TWO) is schdueled to report earning on May 04, 2026, After Close (Confirmed).
What is Two Harbors (TWO) earnings time?
Two Harbors (TWO) earnings time is at May 04, 2026, 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 2026 (Q1) is 0.31.