Dynex Cap Reports Q2 2026 Results: Full Earnings Call Transcript

Dynex Cap (NYSE: DX ) held its second-quarter earnings conference call on Monday.

Below is the complete transcript from the call.

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For comprehensive financial data and transcripts, visit View the webcast at Summary Dynex Cap reported a strong second quarter with a total economic return of 6.4% and a significant increase in the capital base from $2.4 billion to $3.1 billion.

The company focused its strategy on agency MBS due to its liquidity and resilience, driving portfolio growth by over 40% and maintaining a leverage ratio of 8.1.

Book value per share increased to $12.90, supported by tighter spreads and capital deployment, while net interest income rose to $0.42 per share.

Liquidity remained strong with $1.6 billion in cash and unencumbered securities, representing 51% of total equity, providing flexibility for future opportunities.

Management highlighted the importance of risk management amid geopolitical and technological changes, with a focus on building a durable mortgage investment platform.

The company raised $391 million capital, deployed into agency MBS opportunities, and expects continued attractive returns as spreads remain favorable.

Dynex Cap aims to maintain a leverage range between 7.5 and 8.5, capitalizing on market volatility and liquidity to optimize investment opportunities.

The outlook remains constructive with stable mortgage rates and strong demand for fixed income, positioning the company for durable income and shareholder value creation.

Full Transcript OPERATOR Turning the conference over to Ms.

Kaitlyn Mauritz, Head of Capital Markets and Investor Relations.

Please go ahead.

Kaitlyn Mauritz, Head of Capital Markets and Investor Relations Thank you, Operator, and thank you to everyone joining us today for Dynex Cap's second quarter 2026 earnings conference call.

Joining me on today's call are Smriti Papineau, Co‑Chief Executive Officer and President; Byron Boston, Chairman and Co‑Chief Executive Officer; Michael Sartori, Chief Financial Officer; and T.J.

Connelly, Chief Investment Officer.

Before we begin, I'd like to remind you that today's discussion may include forward‑looking statements.

These statements are based on current expectations, forecasts, and assumptions and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially.

For additional information regarding these risks and factors, please refer to our filings with the SEC, available in the Investors section of our website and on the SEC's website.

Dynex Cap undertakes no obligation to update or revise any forward‑looking statements.

Our earnings press release was issued and filed with the SEC earlier today and is available on the Investors section of our website at dynexcapital.com, as well as on the SEC's website.

We may also reference our earnings presentation during today's call, which is available on our Investors page.

With that, I'll turn the call over to Smriti for opening remarks.

Smriti Papineau, Co‑Chief Executive Officer and President Thank you, Kate, and good morning, everyone.

I'm pleased to report a strong performance quarter for Dynex Cap.

Our total economic return of 6.4% was achieved alongside healthy capital issuance of nearly $400 million for the quarter.

In the first six months of the year, the capital base increased to $3.1 billion from $2.4 billion at year‑end, and we grew our portfolio of agency MBS by over 40%.

We are progressing well on our path, delivering consistent dividend income for our shareholders while building scale and resilience.

Since 2022, we have expanded our capital base by five times and continue to see a significant opportunity to thoughtfully build the company.

From here we are executing our strategy for a more durable mortgage investment platform with a valuation that is consistent with our strong track record, increasing relevance, and scale.

I want to give some context for our strategic thinking.

First, why agency MBS? Our conviction in agency MBS as the core of our strategy is high.

Agency MBS are among the most liquid and cycle‑tested asset classes, with a demonstrated ability to withstand periods of market stress over the past 40 years.

In the last decade, our macro opinion led us to focus more on liquidity and flexibility.

We therefore allocated most of our capital to the agency sector.