$ARR-PC

Armour Residential REIT, Inc.

CIK:0001428205|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2026

Jun. 30, 2025

Jun. 30, 2026

Jun. 30, 2025

Interest Income:

Interest Income

$ 263,870

$ 180,886

$ 513,071

$ 353,767

Interest expense (including $(86,289) and $(68,342) and $(167,064) and $(129,318), respectively with BUCKLER)

(187,051)

(147,781)

(365,538)

(284,321)

Net Interest Income

76,819

33,105

147,533

69,446

Other Income (Loss):

Loss on derivatives, net

^[1]

108,235

(108,022)

191,260

(299,240)

Total Other Income (Loss)

55,157

(94,364)

(55,061)

(90,231)

Expenses:

Management fees

12,539

11,060

24,754

21,829

Compensation

1,163

888

2,116

1,700

Other operating

3,458

4,051

5,637

7,262

Total Expenses

17,160

15,999

32,507

30,791

Less management fees waived

(1,650)

(3,300)

Total Expenses after fees waived

17,160

14,349

32,507

27,491

Net Income (Loss)

114,816

(75,608)

59,965

(48,276)

Dividends on preferred stock

(3,264)

(3,003)

(6,439)

(6,003)

Net Income (Loss) available (related) to common stockholders

$ 111,552

$ (78,611)

$ 53,526

$ (54,279)

Net Income (Loss) per share available (related) to common stockholders (Note 11):

Basic (in dollars per share)

$ 0.86

$ (0.94)

$ 0.43

$ (0.68)

Diluted (in dollars per share)

0.86

(0.94)

0.43

(0.68)

Dividends declared per common share (in dollars per share)

$ 0.72

$ 1.44

Weighted average common shares outstanding:

Basic (in shares)

129,125

83,803

124,378

79,536

Diluted (in shares)

130,018

83,803

125,271

79,536

BUCKLER Securities, LLC | Related Party

Interest Income:

Interest expense (including $(86,289) and $(68,342) and $(167,064) and $(129,318), respectively with BUCKLER)

$ (86,289)

$ (68,342)

$ (167,064)

$ (129,318)

Agency Securities

Other Income (Loss):

Gain (Loss) on Agency Securities, trading, net

(42,624)

16,545

(225,219)

224,802

US Treasury Securities

Other Income (Loss):

Loss on U.S. Treasury Securities, net

$ (10,454)

$ (2,887)

$ (21,102)

$ (15,793)

[1]	Interest income and expense related to our interest rate swap contracts is recorded in gain (loss) on derivatives, net on the consolidated statements of operations. For additional information, see financial statement Note 7.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025	Dec. 31, 2025
Cash Flows Provided By (Used In) Operating Activities:
Net Income (loss)	$ 114,816	$ (75,608)	$ 59,965	$ (48,276)
Adjustments to reconcile net income (loss) to net cash and cash equivalents and cash collateral posted to counterparties provided by operating activities:
Net (accretion) amortization of premium on Agency Securities			4,695	(917)
Stock based compensation			1,329	986
Changes in operating assets and liabilities:
Increase in accrued interest receivable			(5,301)	(10,243)
Increase in prepaid and other assets			(1,318)	187
Change in derivatives, at fair value			(647)	384,537
Increase in accrued interest payable- repurchase agreements			13,046	7,583
Decrease in accrued interest payable- U.S. Treasury Securities sold short			0	(46)
Increase in accounts payable and other accrued expenses			3,678	1,578
Net cash and cash equivalents and cash collateral posted to counterparties provided by operating activities			321,734	126,446
Cash Flows Provided By (Used In) Investing Activities:
Purchases of Agency Securities			(4,678,791)	(3,181,527)
Principal repayments of Agency Securities			1,453,118	634,182
Proceeds from sales of Agency Securities			1,411,926	1,226,213
Disbursements on reverse repurchase agreements (includes $0 and $(1,860,188) with BUCKLER, respectively)			0	(2,217,750)
Receipts from reverse repurchase agreements (includes $0 and $1,840,375 with BUCKLER, respectively)			0	2,197,875
Decrease in cash collateral posted by counterparties			(88,684)	(363,355)
Net cash and cash equivalents and cash collateral posted to counterparties used in investing activities			(1,912,738)	(2,306,495)
Cash Flows Provided By (Used In) Financing Activities:
Issuance of common stock, net of expenses			414,153	470,537
Proceeds from repurchase agreements (including $38,786,436 and $42,363,476, respectively with BUCKLER)			78,174,756	68,704,178
Principal repayments on repurchase agreements (including $(38,111,283) and $(40,923,923), respectively with BUCKLER)			(76,675,095)	(66,588,046)
Common stock dividends paid			(179,353)	(114,496)
Common stock repurchased			(2,013)	(10,031)
Net cash and cash equivalents and cash collateral posted to counterparties provided by financing activities			1,736,484	2,456,418
Net increase in cash and cash equivalents and cash collateral posted to counterparties			145,480	276,369
Cash and cash equivalents and cash collateral posted to counterparties - beginning of period			289,971	146,183	$ 146,183
Cash and cash equivalents and cash collateral posted to counterparties - end of period	435,451	422,552	435,451	422,552	$ 289,971
Supplemental Disclosure:
Cash paid during the period for interest			485,224	313,885
Non-Cash Investing Activities:
Receivable for unsettled sales			344,372	0
Payable for unsettled purchases			(241,137)	(634,088)
Non-Cash Financing Activities:
Amounts receivable for issuance of common stock			19,924	5,540
BUCKLER Securities, LLC \| Related Party
Cash Flows Provided By (Used In) Investing Activities:
Disbursements on reverse repurchase agreements (includes $0 and $(1,860,188) with BUCKLER, respectively)			0	(1,860,188)
Receipts from reverse repurchase agreements (includes $0 and $1,840,375 with BUCKLER, respectively)			0	1,840,375
Cash Flows Provided By (Used In) Financing Activities:
Proceeds from repurchase agreements (including $38,786,436 and $42,363,476, respectively with BUCKLER)			38,786,436	42,363,476
Principal repayments on repurchase agreements (including $(38,111,283) and $(40,923,923), respectively with BUCKLER)			(38,111,283)	(40,923,923)
Series C Preferred Stock
Cash Flows Provided By (Used In) Financing Activities:
Issuance of Series C Preferred stock, net of expenses			10,475	279
Series C Preferred stock dividends paid			(6,439)	(6,003)
US Treasury Securities
Adjustments to reconcile net income (loss) to net cash and cash equivalents and cash collateral posted to counterparties provided by operating activities:
Net (accretion) amortization of U.S. Treasury Securities			(34)	66
Loss on U.S. Treasury Securities, net			21,102	15,793
Cash Flows Provided By (Used In) Investing Activities:
Purchases of U.S. Treasury Securities (includes $50,049 and $200,680 with BUCKLER, respectively)			(501,709)	(602,133)
US Treasury Securities \| BUCKLER Securities, LLC \| Related Party
Cash Flows Provided By (Used In) Investing Activities:
Purchases of U.S. Treasury Securities (includes $50,049 and $200,680 with BUCKLER, respectively)			(50,049)	(200,680)
Agency Securities
Adjustments to reconcile net income (loss) to net cash and cash equivalents and cash collateral posted to counterparties provided by operating activities:
(Gain) Loss on Agency Securities, trading, net	$ 42,624	$ (16,545)	225,219	(224,802)
Cash Flows Provided By (Used In) Investing Activities:
Proceeds from sales of U.S. Treasury Securities (includes $49,000 and $0 with BUCKLER, respectively)			491,402	0
Agency Securities \| BUCKLER Securities, LLC \| Related Party
Cash Flows Provided By (Used In) Investing Activities:
Proceeds from sales of U.S. Treasury Securities (includes $49,000 and $0 with BUCKLER, respectively)			$ 49,000	$ 0

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Assets
Cash and cash equivalents	$ 83,679	$ 63,270
Cash collateral posted to counterparties	351,772	226,701
Investments in securities, at fair value
Receivable for unsettled sales (including pledged securities of $343,699 ($24,388 with BUCKLER) at June 30, 2026)	344,372	0
Derivatives, at fair value	668,063	611,544
Accrued interest receivable	91,302	86,153
Prepaid and other	22,984	1,742
Total Assets	22,745,816	21,005,159
Liabilities
Repurchase agreements, net (including $9,101,693 and $8,426,540, at June 30, 2026 and December 31, 2025, respectively with BUCKLER)	19,441,457	17,941,796
Cash collateral posted by counterparties	330,743	419,427
Payable for unsettled purchases	241,137	302,094
Derivatives, at fair value	75,175	19,303
Accrued interest payable- repurchase agreements (including $33,909 and $27,752, at June 30, 2026 and December 31, 2025, respectively with BUCKLER)	72,313	59,267
Accounts payable and other accrued expenses	5,897	2,219
Total Liabilities	20,166,722	18,744,106
Commitments and contingencies (Note 8 and Note 13)
Stockholders’ Equity
Preferred stock, $0.001 par value, 50,000 shares authorized; 7.00% Series C Cumulative Preferred Stock; 7,553 shares and 7,048 shares issued and outstanding ($25.00 per share liquidation preference) at June 30, 2026 and December 31, 2025, respectively	7	7
Common stock, $0.001 par value, 175,000 shares authorized; 136,371 shares and 111,915 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively.	136	112
Additional paid-in capital	5,890,026	5,446,152
Cumulative distributions to stockholders	(2,852,873)	(2,667,051)
Accumulated net loss	(458,202)	(518,167)
Total Stockholders’ Equity	2,579,094	2,261,053
Total Liabilities and Stockholders’ Equity	22,745,816	21,005,159
Agency Securities
Investments in securities, at fair value
Debt securities	20,596,296	19,417,640
U.S. Treasury Securities
Investments in securities, at fair value
Debt securities	$ 587,348	$ 598,109