Ellington Financial Inc. (EFC): Business Model Canvas [Dec-2025 Updated]

You're looking past the ticker symbol to figure out how Ellington Financial Inc. (EFC) consistently delivers that high income you see-honestly, it's a masterclass in structured credit management. This isn't your typical mREIT; it's an externally managed platform dynamically steering a $3.56 billion credit portfolio while using proprietary origination like Longbridge to source specialty assets. The proof is in the pudding: Q3 2025 saw Adjusted Distributable Earnings (ADE) hit a quarterly high of $0.53 per share, underpinning that recent 12.3% yield you're tracking. I've mapped out the entire engine-the key partnerships, the cost structure driven by interest expense, and the revenue streams-so you can see exactly how they balance risk and reward. It's all here in the Business Model Canvas below.

Ellington Financial Inc. (EFC) - Canvas Business Model: Key Partnerships

Ellington Financial Inc. relies on a network of specialized partners to execute its investment strategy across diverse asset classes.

Ellington Management Group, L.L.C. for external management and advisory services

Ellington Financial Inc. is externally managed and advised by Ellington Financial Management LLC, which is an affiliate of Ellington Management Group, L.L.C.. Ellington Management Group and its affiliates manage Ellington Financial Inc. (EFC), Ellington Credit Company (EARN), multi-investor hedge funds, separately managed accounts, and opportunistic private funds.. As of September 30, 2025, Ellington had over 170 employees supporting approximately $18.2 billion in Assets Under Management (AUM).. This AUM includes approximately $0.3 billion of Ellington-sponsored CLO equity and notes..

The relationship is structured via a Services Agreement..

Repurchase agreement counterparties for short-term funding

The Treasury team at Ellington Financial Inc. manages all aspects of financing, including counterparty diversification and monitoring the timeline of repo maturities.. Ellington Financial Inc. utilizes repurchase agreements, reverse repurchase agreements, and senior notes for financing its assets..

The recourse debt-to-equity ratio stood at 1.7:1 as of June 30, 2025, and 1.8:1 as of March 31, 2025, when including repo borrowings at certain unconsolidated entities.. The total debt-to-equity ratio, including all recourse and non-recourse borrowings primarily from securitization-related liabilities, was 8.7:1 as of June 30, 2025, and 8.7:1 as of March 31, 2025..

As of March 31, 2025, borrowings related to Forward MSR-related investments under financing agreements were $93.5 million at fair value, net of such financings..

Investment banks for securitization and capital markets access

Ellington Financial Inc. has an ongoing securitization platform.. Subsequent to the end of the third quarter of 2025, the company completed the pricing of seven securitizations and the pricing of $400 million of Moody's- and Fitch-rated senior unsecured notes.. The company has securitized some of the proprietary reverse mortgage loans originated by Longbridge..

The company's Investment Portfolio segment saw its total adjusted long credit portfolio increase to $3.32 billion as of June 30, 2025..

Affiliate loan originators, like LendSure, for sourcing assets

Ellington Financial Inc. makes strategic debt and equity investments in loan origination companies.. The Longbridge Segment focuses on originating and servicing reverse mortgage loans.. The Longbridge portfolio grew 37% to $750.0 million during the third quarter of 2025, driven by a record quarter of proprietary reverse mortgage loan originations..

The company's investment strategy includes a focus on niche market segments for loans where inefficiencies exist..

• Portfolio of commercial mortgage bridge loans expanded as of June 30, 2025.
• Portfolio of non-QM loans expanded as of June 30, 2025.
• Proprietary reverse mortgage loans are a key asset class.

Finance: draft $400 million note pricing impact analysis by next Tuesday.

Ellington Financial Inc. (EFC) - Canvas Business Model: Key Activities

Dynamic management of a $3.56 billion adjusted long credit portfolio

You're managing a portfolio that saw its adjusted long credit size increase to $3.56 billion as of the third quarter of 2025, up 11% quarter-over-quarter from the $3.32 billion reported at June 30, 2025. This portfolio includes non-QM loans, commercial mortgage bridge loans, other residential loans, and CLOs. For the portfolios of RTL, commercial mortgage bridge, and consumer loans, the company received total principal paydowns of $352 million during the third quarter of 2025, which represented 21% of the combined fair value of those portfolios coming into the quarter. The net interest margin on the credit portfolio increased by 54 basis points quarter-over-quarter. Ellington Financial's overall debt-to-equity ratio stood at 8.6:1 at September 30, 2025.

Origination of proprietary loans, especially reverse mortgages via Longbridge

The Longbridge segment delivered strong origination contributions. During the third quarter of 2025, Longbridge originated $498.6 million in total volume across its HECM and proprietary lending segments. Proprietary reverse mortgages are a key focus, now accounting for 62% of the Longbridge portfolio's value, which is up from 52% at the end of June 2025. The Longbridge servicing book grew by 37% on a quarterly basis, reaching $750 million in unpaid principal balance (UPB) by the end of September. Longbridge posted a net income of $8.6 million for the third quarter of 2025.

Key origination metrics for Longbridge in Q3 2025:

• Origination profits driven by higher proprietary reverse mortgage loan volumes.
• Steady origination margins for HECM reverse mortgage loans.
• Wholesale and correspondent channels accounted for 71% of the volume.

Executing securitization transactions for long-term, non-mark-to-market financing

Securitization is a core activity used to access global fixed income investors and shift financing away from short-term repo. Ellington Financial priced seven securitizations during the third quarter of 2025, including non-QM and closed-end second lien loans. To date, the company has executed 38 rated securitizations totaling $11.0bn, with $5.5bn of that total executed in the last 12 months alone as of November 2025. The company views this shift to long-term unsecured and securitization financing as a fundamental evolution of its capital structure.

Securitization activity highlights:

Active hedging and risk management to mitigate interest rate and credit risk

Risk management is a cornerstone, utilizing a proprietary portfolio management system called 'ELLiN' across all departments. The dedicated risk oversight group monitors and mitigates inter-related risks, integrating with the investment team to maximize interaction. The company uses derivatives and other hedging instruments opportunistically to hedge credit, interest rate, and foreign currency risk. Ellington Financial's interest rate sensitivity analysis showed a relatively balanced exposure to rate movements for a 50 basis point move in either direction, largely offset by hedging instruments. The company also raised capital to support its balance sheet strength, concluding the pricing of $400 million in 5-year senior unsecured notes on the closing day of the third quarter.

Risk management tools and focus areas include:

• Dedicated risk team oversees hedging rate and spread risks.
• Treasury team manages financing, including counterparty diversification.
• Sensitivity and stress analyses quantify impact of policy change.
• Recourse debt-to-equity ratio was 1.8:1 at September 30, 2025.

Ellington Financial Inc. (EFC) - Canvas Business Model: Key Resources

You're looking at the core assets that let Ellington Financial Inc. (EFC) operate and compete, especially given the market volatility we've seen into late 2025. These aren't just line items; they are the engines driving their strategy.

Deep expertise of the Ellington Platform in structured credit and mortgages

The foundation here is the institutional knowledge, managed by Ellington Financial Management LLC, which is an affiliate of Ellington Management Group, L.L.C. This expertise is evident in their ability to navigate complex credit markets while maintaining a relatively tight risk profile. For instance, the standard deviation of quarterly economic returns from Q1 2011 through Q1 2025 was only 3.6%, which is significantly lower than the peer group range of 6.2% to 13.9%. This suggests a disciplined approach to risk management embedded in the platform's DNA.

This deep knowledge supports their primary investment focus, which, as of June 30, 2025, saw the portfolio weighted heavily toward credit assets.

Diversified investment portfolio across credit and Agency strategies

Ellington Financial Inc. (EFC) maintains a substantial portfolio, reported at a fair value of $4.13 billion as of June 30, 2025. The diversification across strategies is a key resource for stability. Their balance sheet as of that date reflects this allocation:

Further detail within the credit portfolio shows how granular this diversification is, spreading risk across mortgage types. Here's the quick math on the credit allocation:

• Residential Mortgages: 69%
• Commercial Mortgages: 25%
• Consumer Loans: 3%
• Other Investments: 3%

Also, their capital structure is managed conservatively, which acts as a resource against sudden market shocks. The recourse debt-to-equity ratio stood at 1.7:1 as of June 30, 2025, while the total debt-to-equity ratio, including securitization liabilities, was 8.7:1.

Proprietary loan origination platforms, notably Longbridge

The Longbridge Segment, which focuses on originating and servicing reverse mortgage loans, is a critical internal origination resource. Ellington Financial Inc. (EFC) completed the purchase of Longbridge in October 2022. Longbridge is recognized as the #2 HMBS issuer.

For the second quarter of 2025, Longbridge originated $427.1 million across HECM and proprietary loans, with 72% coming through wholesale and correspondent channels and 28% via retail. The company actively securitizes these proprietary reverse mortgage loans and retains certain tranches for risk retention compliance. The book value per common share for Ellington Financial Inc. (EFC) was reported at $13.49 as of June 30, 2025.

Substantial liquidity

Maintaining ample liquidity is essential for seizing opportunities and weathering funding pressures. While preliminary data showed cash and cash equivalents of $203.3 million as of March 31, 2025, the required figure for the end of the second quarter is $211.0 million in cash as of June 30, 2025. This cash position, combined with unencumbered assets, provides a strong buffer. For context, the company generated net income of $42.9 million, or $0.45 per common share, for the quarter ended June 30, 2025. Finance: draft 13-week cash view by Friday.

Ellington Financial Inc. (EFC) - Canvas Business Model: Value Propositions

You're looking at the core reasons why investors choose Ellington Financial Inc. (EFC) over other options in the credit space. It boils down to income, stability, and management commitment. Here's the quick math on what they offer as of late 2025.

High, Consistent Dividend Yield

Ellington Financial Inc. targets delivering a high, consistent income stream. The dividend has been steady at $0.1300 per share monthly through late 2025, with a declaration in August 2025 resulting in a yield of 12.2641506195% based on the stock price at that time. Even with a later reported price of $13.68 in December 2025, the yield remained high at 11.4035081863%. This consistent payout is a primary draw for income-focused portfolios.

Reduced Book Value Volatility Through Diversification and Dynamic Hedging

A key value proposition is the effort to smooth out the ride for shareholders by managing balance sheet fluctuations. Ellington Financial Inc. employs a dynamic credit hedging strategy specifically designed to reduce book value volatility. This strategy aims to stabilize book value during negative credit shocks and bolsters liquidity by providing daily access to mark-to-market gains on those hedge positions. The estimated book value per common share as of October 31, 2025, was $13.25, which included the $0.13 dividend paid that month, showing resilience even amid market movements.

The company's approach to managing volatility involves a broad portfolio structure:

• Portfolio holdings grew by 12% during Q3 2025.
• The firm actively uses credit hedges to stabilize the book value.
• The estimated book value per share as of October 31, 2025, was $13.25.

Access to Specialty Credit Assets

Ellington Financial Inc. focuses on credit assets where they see a lending void left by traditional banks facing stricter regulations. This specialization allows for potentially higher returns, though it comes with specific credit risks. The portfolio growth in Q3 2025 was specifically led by these specialty areas.

The core specialty assets driving returns and growth include:

Strong Alignment of Interests

The structure is designed so that management's financial success is tied directly to shareholder returns. This alignment is evidenced by the significant capital commitment from the management team, which is approximately $53 million invested in Ellington Financial Inc.. Furthermore, insider buying activity was noted in the three months leading up to late 2025. The company is externally managed by Ellington Financial Management LLC, an affiliate of Ellington Management Group, L.L.C..

The management's stake reinforces the focus on long-term value creation, alongside operational metrics like the Q3 2025 Adjusted Distributable Earnings (ADE) of $0.53 per share, which covered the $0.13 dividend. The market capitalization stood at $1.38 billion as of Q3 2025.

Ellington Financial Inc. (EFC) - Canvas Business Model: Customer Relationships

You're looking at how Ellington Financial Inc. (EFC) manages its relationship with its shareholders, which is critical for a publicly-traded mortgage REIT. The focus here is on transparency and consistent return delivery.

Investor relations via regular earnings calls and detailed presentations

Ellington Financial Inc. (EFC) maintains a structured cadence for communicating with its investor base. You can track this through their schedule of quarterly updates. For example, the Q3 2025 Earnings Conference Call took place on 11/06/25, following the Q2 2025 call on 08/08/25 and the Q1 2025 call on 05/08/25.

These events are supported by detailed documentation, like the EFC Third Quarter 2025 Earnings Conference Call Presentation, which was made available as a 1.3 MB PDF. The platform is externally managed and advised by Ellington Financial Management LLC, an affiliate of Ellington Management Group, L.L.C.. As of November 2025, the Ellington Platform has over 170 employees supporting approximately $18.2 billion in assets under management.

Maintaining a monthly common stock dividend of $0.13 per share

A core element of the customer relationship is the commitment to monthly distributions. Ellington Financial Inc. declared a monthly dividend of $0.13 per share of common stock on December 4, 2025. This payment was scheduled for January 30, 2026, for stockholders of record as of December 31, 2025. This translates to an annualized dividend of $1.56.

The consistency of this payout is benchmarked against recent earnings performance. For the third quarter of 2025, the company reported record Adjusted Distributable Earnings (ADE) of $0.53 per share. This ADE figure significantly outpaced the implied quarterly dividend of $0.39 per share (3 times the monthly $0.13).

Here's a look at how key shareholder metrics stacked up around the Q3 2025 report:

Proactive communication on portfolio strategy and risk management to shareholders

Ellington Financial Inc. (EFC) communicates its strategic evolution clearly to manage expectations regarding portfolio composition and risk. Following the Q3 2025 results, management highlighted a fundamental evolution in their capital structure.

Key strategic updates shared with investors include:

• Total portfolio holdings grew by 12% during Q3 2025.
• Growth was driven by strategic investments in non-QM, proprietary reverse mortgages, and commercial mortgage bridge loans.
• The company priced seven securitizations in the quarter, setting a company record, and completed 20 year-to-date.
• They successfully priced $400 million of 5-year senior unsecured notes at a 7 3/8% interest rate.
• Management views the shift toward a greater proportion of long-term unsecured and securitization financing as key to strengthening the balance sheet.

Risk management is continuously honed, leveraging a data-driven approach to modeling prepayment, default, and interest rates. The company's strategy involves deploying capital from the recent unsecured notes issuance to support further expansion.

Ellington Financial Inc. (EFC) - Canvas Business Model: Channels

You're looking at how Ellington Financial Inc. (EFC) gets its capital and its assets into the hands of investors and into its portfolio. It's a mix of public markets, private debt deals, and internal platforms. Honestly, the structure shows a clear intent to diversify funding sources beyond just one avenue.

New York Stock Exchange (NYSE: EFC) for Common and Preferred Stock Investors

The NYSE is the primary venue for equity investors to access Ellington Financial Inc. As of early December 2025, the market capitalization stood at approximately $1.46 billion. You could see the common stock trading within a projected 2025 channel between $12.71 and $13.87, with a recent opening price noted at $13.60. The estimated book value per share of common stock as of October 31, 2025, was $13.25. For preferred stockholders, Ellington Financial Inc. declared monthly dividends for common stock at $0.13 per share and quarterly dividends for its preferred series in late 2025, such as $0.593907 per share for Series A and $0.390625 per share for Series B.

Here's a quick look at the equity and recent dividend structure:

Debt Capital Markets for Issuing Senior Unsecured Notes

Ellington Financial Inc. actively uses the debt capital markets to secure longer-term, less rate-sensitive funding. A key example is the private offering that closed on October 6, 2025. Through certain subsidiaries, Ellington Financial Inc. issued $400.0 million in aggregate principal amount of 7.375% unsecured senior notes due September 30, 2030. The proceeds from this $400 million issuance were intended for general corporate purposes, including repaying part of outstanding repurchase agreement borrowings. The indenture for these notes requires maintaining a ratio of Consolidated Unencumbered Assets to Unsecured Indebtedness of at least 1.20 to 1.0.

Proprietary Loan Origination Platforms for Direct Asset Sourcing

Direct asset sourcing is heavily channeled through Ellington Financial Inc.'s ownership of origination platforms, most notably Longbridge Financial, LLC, which specializes in reverse mortgages. Ellington Financial Inc. accesses its target assets through a variety of proprietary origination channels. Longbridge, for instance, originated proprietary reverse mortgage loans that were later securitized. In one instance, Ellington Financial Inc. announced the closing of a $232 million securitization backed by proprietary reverse mortgage loans originated by Longbridge on July 31, 2024. From 2019 to 2021, Longbridge more than tripled its annual loan volume to $2.2 billion. Ellington Financial Inc. also utilizes a proprietary whole loan management system.

The platform's asset sourcing capability is substantial:

• Longbridge ranked as the third largest reverse mortgage lender by HMBS securitization volume of new loans as of November 2021, holding an 18% market share in that area.
• The total adjusted long credit portfolio stood at $3.32 billion as of June 30, 2025, up from $3.30 billion as of March 31, 2025.
• The Ellington Platform supports approximately $18.2 billion in assets under management as of September 30, 2025.

Investment Banks and Brokers for Trading Securities and Derivatives

The trading of securities and derivatives relies on relationships with major financial intermediaries. Ellington Financial Inc. benefits from Ellington Management Group's more than 30-year history of investing in a broad spectrum of mortgage-backed securities and related derivatives. The $400.0 million senior notes issuance in October 2025 was placed with qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S, indicating the use of investment banking syndicates for placement. Ellington Financial Inc. invests in various financial assets, including non-mortgage and mortgage-related derivatives, which necessitates active trading channels.

Ellington Financial Inc. (EFC) - Canvas Business Model: Customer Segments

You're looking at the groups Ellington Financial Inc. (EFC) serves, which is key to understanding how they make money in the specialty finance space. These aren't typical retail customers; they are sophisticated financial players and borrowers in specific credit niches.

Income-focused investors seeking high dividend yields (mREIT shareholders)

This group is primarily interested in the regular cash distributions Ellington Financial Inc. provides. They are the equity base that supports the entire structure, seeking attractive, risk-adjusted total returns. The monthly dividend has been set at $0.13 per share, with the Q3 2025 Adjusted Distributable Earnings (ADE) coming in at a record $0.53 per common share, significantly outpacing the $0.39 per common share in dividends paid for that quarter. This strong coverage is what keeps income-focused investors interested. The book value per common share was reported as $13.40 as of September 30, 2025, and estimated at $13.25 as of October 31, 2025.

• Retail investors hold between 35.71% and 62.20% of the stock, depending on the reporting source.
• The company's market capitalization was approximately $1.5 billion as of late 2025.

Institutional investors and debt holders of unsecured notes and securitizations

Institutional investors are a powerful segment, owning a substantial portion of Ellington Financial Inc. equity, reported at around 57% or 47.75%. These large funds, like BlackRock, Inc., the largest shareholder with a holding of 14.55% to 17%, influence governance. Separately, debt holders are crucial for long-term, non-mark-to-market financing. Ellington Financial Inc. recently priced $400.0 million in senior unsecured notes in October 2025, carrying a 7.375% coupon and maturing in 2030. This issuance was intended to repay part of outstanding borrowings.

Here's a look at the debt structure as of early 2025 and recent activity:

Borrowers of specialty loans, including reverse mortgage and non-QM loans

Ellington Financial Inc. serves borrowers through its credit portfolio, which includes specialty loans. The company's portfolio expanded by 12% in Q3 2025, driven by these areas. The Longbridge Segment, focused on reverse mortgages, contributed $0.09 per common share to net income in Q3 2025. The overall credit strategy generated $0.42 per common share in GAAP net income for the same period. These borrowers are accessing capital through Ellington Financial Inc.'s investments in residential and commercial mortgage loans, non-QM loans, and consumer loans.

• Longbridge Segment ADE contribution in Q3 2025: $0.16 per common share.
• Credit Portfolio ADE contribution in Q3 2025: $0.59 per common share.
• The company's overall portfolio is diversified, with about 73% of its credit portfolio invested in residential mortgages split among various security types.

Counterparties for derivatives and repurchase agreements

This segment involves financial institutions that engage in short-term funding and hedging activities with Ellington Financial Inc. The company utilizes repurchase agreements (repos) as a key source of financing. As of March 31, 2025, outstanding borrowings under repos and other secured financing totaled $4.8 billion. The recent $400 million unsecured note issuance is explicitly aimed at repaying a portion of these repurchase agreement borrowings. Furthermore, Ellington Financial Inc. actively uses mortgage-related and non-mortgage-related derivatives to manage risk exposure, meaning other financial firms are counterparties in these complex hedging trades.

The scale of secured financing activity is substantial:

Ellington Financial Inc. (EFC) - Canvas Business Model: Cost Structure

You're looking at the expenses that drive Ellington Financial Inc.'s operations, which are heavily weighted toward financing costs and management fees, given its structure as a mortgage REIT.

The cost of capital is a primary driver of expense. As of September 30, 2025, the total weighted average borrowing rate on recourse borrowings for Ellington Financial Inc. decreased to 5.99% overall. This compares to a Recourse Debt-to-Equity Ratio of 1.8:1 on that date, which was up from 1.7:1 as of June 30, 2025. The firm also priced $400 million of senior unsecured notes with a fixed coupon of 7.3% in September 2025, though this was immediately swapped to a floating rate.

Ellington Financial Inc. is externally managed by Ellington Financial Management LLC, which incurs fees based on equity and performance. The Base Management Fee is calculated as 1.50% per annum of total equity of the Operating Partnership. For the second quarter ended June 30, 2025, the reported costs were:

The Longbridge loan origination platform's direct costs are reflected in its segment contribution and transaction expenses. For the three-month period ended September 30, 2025, the Longbridge segment contributed a net income of $8.6 million. Overall Other Operating Expenses for Ellington Financial Inc. for the report ending September 30, 2025, amounted to -$33.4 million USD.

Costs related to executing securitization transactions and hedging activities are also significant. Ellington Financial Inc. priced seven securitizations during the third quarter of 2025. Non-capitalized transaction costs for the nine-month period ended September 30, 2025, totaled $5.5 million. Furthermore, the firm actively uses dynamic interest rate hedging, which resulted in net losses on interest rate hedges being a drag on results during the third quarter.

• The Longbridge portfolio grew by 37% sequentially to $750 million as of September 30, 2025.
• The firm's credit portfolio net interest margin increased to 3.65% in Q3 2025, partly due to a lower cost of funds.
• The Agency strategy saw net gains on interest rate hedges in Q3 2025, which were supportive of the strategy's results.

Ellington Financial Inc. (EFC) - Canvas Business Model: Revenue Streams

You're looking at how Ellington Financial Inc. (EFC) actually brings in the money, which is key to understanding its dividend coverage and overall valuation. Honestly, for a specialty finance company like EFC, it all boils down to the spread between what they earn on assets and what they pay for funding, plus any asset sales.

Net interest income from the credit portfolio is definitely the engine room here, driving a lot of that Adjusted Distributable Earnings (ADE). The robust performance in Q3 2025, which saw ADE hit a quarterly high of $\$0.53$ per share, was directly fueled by increased net interest income from their loan portfolios and strong credit performance across the board. The company's total portfolio holdings grew by $12\%$ during that quarter, showing they are actively deploying capital into these income-producing assets. To be fair, the credit strategy was a powerhouse in Q3 2025, contributing net income of $\$42.4$ million, or $\$0.42$ per common share, to the overall results.

The Adjusted Distributable Earnings (ADE) metric is what you really want to watch, as it shows the cash flow available for dividends. In Q3 2025, the ADE hit $\$0.53$ per share, which substantially exceeded the $\$0.39$ per common share dividend declared for that quarter. This strong coverage gives you confidence in the near-term sustainability of the payout. For context, the total ADE for Q3 2025 was $\$54.2$ million. The Investment Portfolio segment was the primary contributor to this, generating $\$0.59$ per share in ADE, while the Longbridge segment added $\$0.16$ per share.

When you look at gains from sales of loans and securities, and securitization-related gains, you see the impact of EFC's active capital markets platform. The CEO pointed to excellent results from their securities businesses and robust securitization activity as drivers for the strong Q3 2025 performance. They priced seven securitizations and closed on $\$400$ million of senior unsecured notes during that quarter, which replaces shorter-term repo financing with longer-term, non-mark-to-market debt-that's a structural improvement to the revenue base's stability. While specific gain dollar amounts aren't always broken out separately from net interest income in every summary, the success of these activities is clearly reflected in the overall strong earnings.

To give you a clearer picture of the core earning power, here's how the interest-related income looked in the first quarter of 2025, which is a solid baseline for their asset base:

The difference between that interest income and expense in Q1 2025 was the primary component of their net interest margin (NIM) generation. Here's how the segment net income broke down in Q1 2025, showing where the earnings power was concentrated:

• Credit strategy net income: $\$52.9$ million (or $\$0.58$ per share)
• Agency strategy net income: $\$4.2$ million (or $\$0.05$ per share)
• Longbridge Financial segment net loss: $(\$1.0)$ million

You can see the credit strategy was the clear standout performer in Q1 2025. By Q3 2025, the net income from the credit strategy was $\$42.4$ million, still a major driver. The company's ability to generate $\$0.53$ per share in ADE in Q3 2025, despite the Longbridge segment posting a net loss of $\$1.0$ million in Q1 2025 due to hedges, really shows the resilience of the core credit and securities businesses. Finance: draft 13-week cash view by Friday.