Sign in

You're signed outSign in or to get full access.

BC

BIMINI CAPITAL MANAGEMENT, INC. (BMNM)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 printed modest profitability: net income of $0.043M ($0.00 EPS) as advisory services offset MBS portfolio losses; book value per share was $0.74, up from $0.68 at year-end 2024 .
  • Advisory services revenue rose 20% YoY to $3.81M and +6% QoQ, aided by Orchid Island’s equity raise ($139.4M) despite Orchid’s Q2 net loss ($33.6M), while Royal Palm sold $9.8M of MBS in early Q2 amid tariff-driven turbulence .
  • Net interest spreads remained healthy: average economic spread was 1.57% vs 1.60% in Q1 and 0.56% in Q2 2024; CPR rose to 9.9% from 7.3% in Q1, reflecting a pick-up in prepayments .
  • Management expects to resume RMBS portfolio growth near-term if rate volatility stays low and no new adverse tariff developments arise; near-term stock catalyst is sector normalization with attractive Agency RMBS valuations and improving spreads .

What Went Well and What Went Wrong

What Went Well

  • Advisory services scaled despite sector headwinds: “Bimini's advisory service revenues of approximately $3.8 million represented a 20% increase over the second quarter of 2024 and a 6% increase over the first quarter of 2025” .
  • Spreads held up: average economic interest rate spread was 1.57% (Q2) versus 1.60% (Q1) and 0.56% (Q2 2024), supporting core earnings power as funding costs declined post late-2024 Fed cuts .
  • Book value stability: BVPS remained $0.74 as of June 30, 2025, reflecting equity of $7.4M and 10,005,457 shares outstanding; BVPS improved from $0.68 at 12/31/24 .

What Went Wrong

  • MBS segment loss and hedging drag: PT MBS generated a total return loss with hedge losses of $0.431M; combined portfolio ROIC was (2.9)% in Q2 vs +4.4% in Q1, reflecting adverse market moves and asset sales .
  • Orchid’s quarterly loss weighed on backdrop: Orchid reported a net loss of $33.6M in Q2 with (4.66)% RoE, though it raised $139.4M and grew equity to $912.0M .
  • Sequential softness in investment income and higher other expense: interest revenue declined 9% QoQ due to MBS sales; Q2 “Other (expense) income” was a loss of $0.998M vs a minor loss in Q1 .

Financial Results

MetricQ2 2024Q4 2024Q1 2025Q2 2025
Advisory services ($USD)$3,167,055 $3,076,045 $3,582,289 $3,810,846
Interest and dividend income ($USD)$1,492,191 $1,554,080 $1,947,040 $1,786,616
Interest expense ($USD)$(1,762,116) $(1,794,094) $(1,844,020) $(1,731,415)
Net revenues ($USD)$2,897,130 $2,836,031 $3,685,309 $3,866,047
Other (expense) income ($USD)$(280,003) $599,961 $(27,745) $(997,795)
Expenses ($USD)$2,782,576 $3,840,310 $2,924,157 $2,818,974
Net income (loss) ($USD)$(273,845) $(4,855,477) $552,570 $42,732
Diluted EPS (Class A) ($USD)$(0.03) $(0.48) $0.06 $0.00
Margin MetricsQ2 2024Q4 2024Q1 2025Q2 2025
Average yield on MBS (%)5.88% 5.56% 5.73% 5.54%
Average cost of funds (%)5.53% 4.87% 4.49% 4.39%
Average interest rate spread (%)0.35% 0.69% 1.24% 1.15%
Average economic cost of funds (%)5.32% 5.70% 4.13% 3.97%
Average economic interest rate spread (%)0.56% 0.38% 1.60% 1.57%
Segment/Portfolio DetailQ4 2024Q1 2025Q2 2025
Advisory services revenue ($USD)$3,076,045 $3,582,289 $3,810,846
Investment portfolio net interest income (net of repo) ($USD)$270,552 $435,674 $390,788
Realized/unrealized (losses) gains ($USD)$(2,664,878) $1,489,008 $(276,778)
Hedge gains (losses) ($USD)$3,014,874 $(1,368,795) $(430,791)
KPIsQ4 2024Q1 2025Q2 2025
Book value per share ($)$0.68 $0.74 $0.74
Stockholders’ equity ($USD)$6,821,407 $7,373,977 $7,416,709
Average MBS ($USD)$120,388,407 $121,656,646 $114,294,375
Average repurchase agreements ($USD)$115,101,999 $116,345,999 $108,626,500
3‑month CPR (%)11.1% 7.3% 9.9%
Liquidity ($USD)$5.9M $4.5M $5.7M
Repurchase obligations ($USD)$117.2M $115.5M $101.7M
Weighted avg borrowing rate (%)4.68% 4.47% 4.49%
Effective duration3.622 3.257 2.931

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RMBS portfolio growth (Royal Palm)Near-term (Q3 2025)None“As our cash positions have increased… we anticipate resuming growth of the RMBS portfolio in the near-term.” Positive stance
Sector outlook (Agency RMBS)H2 2025None“Agency RMBS are still trading at attractive levels… the sector should perform well” if tariffs don’t re-escalate and rate vol remains low Conditional positive
Liquidity postureOngoingMaintain higher cash via repo collateral managementContinue retaining higher levels of cash by pledging structured MBS and holding cash to avoid distressed sales Maintained
Quantitative guidance (revenue, margins, OpEx, tax, dividends)N/AN/ANo formal guidance issuedMaintained (no guidance)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Tariffs/macro backdropQ4: discussed Fed cuts, shifting outlook; anticipated policy impacts from new administration . Q1: warned tariffs could challenge Q2 but steeper curve could help margins .“Markets were in turmoil” due to reciprocal tariffs early in Q2; conditions gradually abated .Volatile → stabilizing; conditional optimism
Advisory services trajectoryQ4: revenue increased slightly to $3.4M . Q1: +22% YoY to $3.6M; Orchid raised $205.4M .+20% YoY to $3.81M; Orchid raised $139.4M and equity rose to $912.0M .Continued growth, paced by Orchid capital raising
Net interest spreadsQ4 economic spread 0.38% . Q1 1.60% .1.57% (Q2), with average spread 1.15% .Improved vs 2024; stable sequentially
Portfolio actionsQ4: MBS portfolio +$4.0M . Q1: no additions; growth in 2024 .Sold $9.8M MBS early Q2; plan to resume growth near-term .Tactical de‑risking → selective re‑risking
Hedging outcomesQ4: hedge gains $3.0M offset MBS unrealized losses . Q1: hedge losses $(1.37)M .Hedge losses $(0.43)M .Gains → losses; smaller losses in Q2
Prepayments/CPRQ4 CPR 11.1% . Q1 CPR 7.3% .Q2 CPR 9.9%; PT CPR 10.3% .CPR rising sequentially

Management Commentary

  • “Our MBS segment produced a loss of $1.3 million as well but our advisory services segment generated earnings of $1.9 million and Bimini as a whole generated modest net income of approximately $43 thousand” .
  • “Our advisory service revenues… increased by 20%… While we sold $9.8 million of MBS early in the second quarter… we anticipate resuming growth of the RMBS portfolio in the near-term” .
  • “Agency RMBS are still trading at attractive levels… As long as we have no new adverse developments with respect to reciprocal tariffs and interest rate volatility remains low, the sector should perform well” .

Q&A Highlights

  • Q2 2025 earnings call transcript was not available via our document set; highlights cannot be extracted. The press release provided call logistics but no transcript content for Q2 and our search returned no Q2 transcript [ListDocuments].

Estimates Context

  • S&P Global Wall Street consensus appears unavailable for BMNM’s Q2 2025 EPS and revenue; we found no valid consensus metrics or estimate counts. Actuals are shown below; consensus fields are N/A*. Values retrieved from S&P Global.
MetricQ2 2025 ActualQ2 2025 Consensus Mean# of Estimates
Diluted EPS (Class A) ($)$0.00 N/A*N/A*
Net revenues ($USD)$3,866,047 N/A*N/A*

Key Takeaways for Investors

  • Advisory services is the earnings anchor: revenue +20% YoY to $3.81M offsets investment portfolio volatility; continued Orchid capital raising supports fee durability .
  • Spreads are structurally better vs 2024: economic spread ~1.57% with lower funding costs, underpinning core earnings even as Q2 included hedge losses and asset sales .
  • Tactical de‑risking in Q2 via $9.8M MBS sales positions Royal Palm to re‑deploy as volatility eases; management indicated near‑term RMBS portfolio growth .
  • Book value steady at $0.74 and liquidity ~$5.7M, with repo obligations down to ~$101.7M, reducing leverage risk into H2 2025 .
  • Macro catalyst path: stabilization of tariff policy and low rate vol could drive spread capture and portfolio ROIC normalization; sector setup in Agency RMBS remains attractive per management .
  • Trading: near-term stock reaction tied to signs of resumed RMBS purchases and spread resilience; watch CPR trends and hedge performance for signals of margin stability .
  • Estimates: Limited/no sell-side coverage implies potential pricing inefficiencies; results likely judged on fee trajectory (Orchid AUM/equity growth) and spread metrics rather than headline EPS (N/A*; Values retrieved from S&P Global).

Citations: