Dynex Capital (NYSE:DX) Posts Earnings Results, Misses Estimates By $0.26 EPS

Dynex Capital (NYSE:DX) released its quarterly earnings data on Monday. The real estate investment trust reported $0.22 EPS for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.26), FiscalAI reports. The business had revenue of $202.00 million for the quarter, compared to the consensus estimate of $59.41 million. Dynex Capital had a return on equity of 6.65% and a net margin of 41.53%.

Here are the key takeaways from Dynex Capital’s conference call:

• Dynex reported strong results with a 21.7% total economic return for 2025, Q4 TER of 10.2%, a $2.00 common dividend for the year, and year?over?year book value appreciation.
• The company materially expanded scale and liquidity — having raised $1.5 billion over the past 13 months, a ~ $3 billion equity market cap, about $1.4 billion in cash/unencumbered securities, and roughly $22 billion in TBAs and mortgages.
• Policy shifted market dynamics — the announced $200 billion GSE retained?portfolio buying has tightened spreads and removed a portion of downside tail risk, leading to a more stable but potentially lower upside spread regime; management cites hedged ROEs in the mid?teens at ~7x leverage.
• Portfolio positioning emphasizes security selection and risk management — avoiding the most prepayment?sensitive collateral, using options to manage convexity, and finding specified?pool value especially in the five?coupon area.
• Operating outlook and costs — leverage ended Q4 near ~7.3x with a target in the low?8x range; G&A improved to ~2.1% of equity but Q4 incentive accruals raised near?term expenses, and management expects the expense ratio to remain around ~2% of capital until scale increases further.

Dynex Capital Stock Performance

Shares of NYSE:DX opened at $14.62 on Tuesday. Dynex Capital has a 1-year low of $10.79 and a 1-year high of $14.74. The business has a 50-day moving average price of $13.94 and a two-hundred day moving average price of $13.19. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 0.01. The stock has a market capitalization of $2.15 billion, a P/E ratio of 9.88 and a beta of 0.98.

Dynex Capital Announces Dividend

The company also recently disclosed a monthly dividend, which will be paid on Monday, February 2nd. Investors of record on Wednesday, January 21st will be given a $0.17 dividend. This represents a c) dividend on an annualized basis and a yield of 14.0%. The ex-dividend date is Wednesday, January 21st. Dynex Capital’s dividend payout ratio (DPR) is presently 137.84%.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the stock. Weiss Ratings reissued a “hold (c)” rating on shares of Dynex Capital in a report on Monday, December 29th. UBS Group set a $13.25 target price on shares of Dynex Capital and gave the company a “neutral” rating in a research note on Wednesday, October 8th. Jones Trading restated a “buy” rating and set a $14.00 price target on shares of Dynex Capital in a research report on Monday, October 20th. Finally, Keefe, Bruyette & Woods raised their price target on Dynex Capital from $14.00 to $14.50 and gave the company an “outperform” rating in a report on Thursday, December 18th. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $13.92.

More Dynex Capital News

Here are the key news stories impacting Dynex Capital this week:

• Positive Sentiment: Company highlighted strong full?year and Q4 results including record economic returns, rising net interest income and book value growth — points that support the REIT’s dividend sustainability and long?term yield thesis. Dynex Capital Inc (DX) Q4 2025 Earnings Call Highlights: Record Economic Returns and Strategic …
• Positive Sentiment: Company released press materials and a slide deck with management commentary about strategic actions and an enhanced leadership team, which can reassure investors about execution going forward. View Press Release
• Neutral Sentiment: Earnings call transcript and analyst writeups summarize management’s remarks on portfolio positioning and rate sensitivity; useful for assessing whether Q4 results reflect one?time items or a trend. Dynex Capital, Inc. (DX) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Reported EPS of $0.22 missed consensus ($0.48), which is the main driver of the negative market reaction as headline EPS misses tend to weigh heavily on yield?sensitive REITs. Listen to Conference Call / View Press Release
• Negative Sentiment: Coverage emphasizing that Q4 “slid” and that expenses rose has amplified selling pressure despite the topline and book?value positives; media pieces summarize why traders are cautious. Dynex Slides on Q4, Year-End Numbers

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Russell Investments Group Ltd. raised its holdings in Dynex Capital by 264.7% in the third quarter. Russell Investments Group Ltd. now owns 17,547 shares of the real estate investment trust’s stock worth $216,000 after purchasing an additional 12,736 shares during the period. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Dynex Capital in the 3rd quarter valued at about $217,000. Osaic Holdings Inc. raised its position in Dynex Capital by 36.1% in the 2nd quarter. Osaic Holdings Inc. now owns 22,529 shares of the real estate investment trust’s stock valued at $275,000 after buying an additional 5,974 shares during the last quarter. Vident Advisory LLC acquired a new stake in shares of Dynex Capital in the second quarter valued at approximately $235,000. Finally, Walleye Capital LLC acquired a new stake in Dynex Capital in the 2nd quarter valued at $302,000. Institutional investors and hedge funds own 38.34% of the company’s stock.

Dynex Capital Company Profile

Dynex Capital, Inc is a mortgage real estate investment trust (REIT) that specializes in acquiring and managing mortgage-related assets. The company’s primary business involves investing in residential mortgage-backed securities (RMBS), including agency-backed pools issued or guaranteed by government-sponsored entities such as Fannie Mae, Freddie Mac and Ginnie Mae, as well as selected non-agency RMBS. Dynex Capital seeks to generate net interest income by earning interest on its portfolio while employing leverage through secured repurchase agreements and other debt facilities.

In pursuing its investment objectives, Dynex Capital manages portfolio duration and interest rate exposures, with a focus on preserving capital and optimizing yield over the economic cycle.