Revenue: As of FY2025 Q4, the actual value is USD 177.34 M.EPS: As of FY2025 Q4, the actual value is USD -0.02.EBIT: As of FY2025 Q4, the actual value is USD 32.78 M.<h4>Fourth Quarter 2025 Financial Performance</h4><ul><li>Comprehensive Income Attributable to Common Stockholders: Two Harbors Investment Corp. reported $50.4 million, or $0.48 per weighted average basic common share, for Q4 2025, which is an improvement from - $80.2 million, or - $0.77 per weighted average basic common share, for Q3 2025 .</li><li>GAAP Net Loss Attributable to Common Stockholders: The company recorded - $1.3 million, or - $0.02 per weighted average basic common share, for Q4 2025, significantly improving from - $141.2 million, or - $1.36 per weighted average basic common share, for Q3 2025 .</li><li>Earnings Available for Distribution (EAD) to Common Stockholders: EAD was $27.4 million, or $0.26 per weighted average basic common share, for Q4 2025, a decrease from $37.2 million, or $0.36 per weighted average basic common share, for Q3 2025 .</li><li>Book Value per Common Share: Book value per common share stood at $11.13 at December 31, 2025, an increase from $11.04 at September 30, 2025 .</li><li>Quarterly Economic Return on Book Value: The economic return on book value was 3.9% for Q4 2025, rebounding from - 6.3% for Q3 2025 .</li><li>Dividend per Common Share: Two Harbors Investment Corp. maintained a dividend of $0.34 per common share for both Q4 2025 and Q3 2025 .</li><li>Operating Expenses (excluding non-cash LTIP amortization and certain operating expenses): Operating expenses increased to $43.7 million for Q4 2025 from $38.7 million for Q3 2025 .</li><li>Net Interest Expense: Net interest expense improved to - $15.5 million for Q4 2025, compared to - $34.9 million for Q4 2024 .</li><li>Net Servicing Income: Net servicing income was $141.7 million for Q4 2025, down from $163.0 million for Q4 2024 .</li><li>Loss on Investment Securities: A loss of - $14.4 million on investment securities was reported for Q4 2025, compared to - $8.0 million for Q4 2024 .</li><li>(Loss) Gain on Servicing Asset: Two Harbors Investment Corp. recorded a loss of - $65.2 million on servicing assets for Q4 2025, contrasting with a gain of $82.5 million for Q4 2024 .</li><li>Gain (Loss) on Derivative Instruments: Gain on derivative instruments decreased to $21.2 million for Q4 2025 from $144.5 million for Q4 2024 .</li><li>Total Expenses: Total expenses rose to $51.3 million for Q4 2025, up from $40.9 million for Q4 2024 .</li></ul><h4>Full Year 2025 Financial Performance</h4><ul><li>Dividends Declared per Common Share: Dividends declared per common share totaled $1.52 for the full year 2025 .</li><li>Economic Return on Book Value: The economic return on book value was - 12.6% for the full year 2025, or 12.1% excluding a $375 million litigation settlement expense .</li><li>Total Stockholder Return: The total stockholder return for the period December 31, 2024, through December 31, 2025, was 2.8% .</li><li>Net Interest Expense: Net interest expense improved to - $78.9 million for the full year 2025, from - $157.7 million for the full year 2024 .</li><li>Net Servicing Income: Net servicing income decreased to $614.0 million for the full year 2025, from $661.6 million for the full year 2024 .</li><li>Loss on Investment Securities: A loss of - $96.2 million on investment securities was reported for the full year 2025, compared to - $40.0 million for the full year 2024 .</li><li>(Loss) Gain on Servicing Asset: Two Harbors Investment Corp. reported a loss of - $242.2 million on servicing assets for the full year 2025, compared to - $62.7 million for the full year 2024 .</li><li>Gain (Loss) on Derivative Instruments: A loss of - $91.5 million on derivative instruments was recorded for the full year 2025, contrasting with a gain of $106.9 million for the full year 2024 .</li><li>Total Expenses: Total expenses significantly increased to $560.5 million for the full year 2025, from $166.0 million for the full year 2024, primarily due to a $375.0 million litigation settlement expense .</li></ul><h4>Operational Metrics</h4><ul><li>MSR Added: $399.1 million in unpaid principal balance (UPB) was added through flow-sale acquisitions and recapture in Q4 2025, with $7.9 billion UPB for the full year 2025 .</li><li>MSR Sold: $9.6 billion MSR UPB was sold on a subservicing-retained basis in Q4 2025, and $28.7 billion UPB for the full year 2025 .</li><li>Loans Funded: $93.8 million UPB in loans were funded in Q4 2025, and $221.1 million UPB for the full year 2025 .</li><li>Second Lien Loans Brokered: $58.5 million UPB in second lien loans were brokered in Q4 2025, and $198.7 million UPB for the full year 2025 .</li><li>MSR Portfolio Metrics (as of December 31, 2025): The MSR portfolio had a weighted average gross coupon rate of 3.55%, a 60+ day delinquency rate of 0.87%, and a 3-month CPR of 6.4% .</li><li>Total Serviced Mortgage Assets: Total serviced mortgage assets were $203.2 billion UPB as of December 31, 2025, down from $206.3 billion UPB as of September 30, 2025 .</li></ul><h4>Financing Summary</h4><ul><li>Total Borrowings: Total borrowings increased to $8.6 billion as of December 31, 2025, from $8.4 billion as of September 30, 2025 .</li><li>Debt-to-Equity Ratio: The debt-to-equity ratio remained consistent at 4.8:1.0 at December 31, 2025, compared to September 30, 2025 .</li><li>Economic Debt-to-Equity Ratio: The economic debt-to-equity ratio slightly decreased to 7.0:1.0 at December 31, 2025, from 7.2:1.0 at September 30, 2025 .</li><li>Annualized Cost of Financing: The annualized cost of financing improved to 4.41% for Q4 2025, from 4.59% for Q3 2025 .</li><li>Convertible Senior Notes Repaid: $261.9 million in UPB of convertible senior notes were repaid on their January 15, 2026, maturity date .</li></ul><h4>Outlook / Guidance</h4>Two Harbors Investment Corp. has entered a definitive merger agreement with UWM Holdings Corporation, where its stockholders will receive 2.3328 shares of UWMC Class A Common Stock for each share of Two Harbors Investment Corp. common stock, representing an $11.94 per share value as of December 16, 2025 . This all-stock transaction is intended to be tax-free for Two Harbors Investment Corp.’s stockholders and is expected to close in the second quarter of 2026, subject to customary approvals . Prior to closing, Two Harbors Investment Corp. plans to pay regular quarterly dividends consistent with past practice, but not a partial dividend for the closing quarter if it does not occur at quarter-end .

Two Harbors Investment Corp. | 8-K: FY2025 Q4 Revenue: USD 177.34 M