Dynex Capital, Inc. Earnings Summary — Q2 FY2026

• Total economic return was 6.4% for the quarter, driven by a $0.30 increase in book value and $0.51 in dividends.
• The investment portfolio expanded 11% to $27.6 billion, primarily through the addition of $2.8 billion in Agency MBS.
• Common equity capital of $391 million was raised through the ATM program to fund opportunistic MBS purchases.
• Liquidity remains robust at $1.6 billion (51% of total equity), supporting defensive positioning.
• Leverage including TBAs decreased slightly to 8.1x from 8.6x, reflecting improved portfolio performance.
• Net interest spread improved to 1.16% from 1.11% in the prior quarter.
• Operating expenses decreased by $5 million QoQ due to the absence of one-time Q1 compensation costs.

Management highlighted a 'powerful flywheel' effect as the platform scales, enhancing efficiency and broadening access to capital. Strategy remains focused on a 'raise-and-deploy' model into high-quality Agency MBS during attractive return environments.

Improving

The company swung from a net loss in Q1 to substantial profitability in Q2, backed by spread tightening and effective interest rate hedging.

The company is positioned to capture durable risk-adjusted returns as the Agency MBS market benefits from spread stability; however, uncertainty remains regarding Federal Reserve policy and geopolitical impacts on the yield curve.