Cherry Hill Mortgage 3Q 2026: Revenue $6.6M, Net loss $3.9M, EPS ($0.11) — 10-Q Summary
Cherry Hill Mortgage Investment Corp. reported 3Q 2026 revenue of $6.6M, down 23.5% YoY, and a net loss of $3.9M, compared to a $2M profit in the prior-year quarter. Diluted EPS was ($0.11), versus $0.05. The company's MSR unpaid principal balance decreased to $14.9B, and RMBS holdings fell to $1.0B. A merger agreement was signed in August 2026, with closing expected in 4Q 2026, subject to approvals.
How this was made
The 30-second read
Why it matters
The quarter shows revenue down 23.5% year over year and a swing to a $3.9M loss, with nine-month net servicing income declining due to a smaller servicing portfolio. It also discloses a signed merger agreement expected to close in Q4 2026, subject to approvals.
Market read
Traders may reassess CHMI’s near-term earnings trajectory from servicing income contraction while monitoring merger approval risk into Q4.
What to watch
The summary highlights MSR unpaid principal balance and RMBS holdings changes, but does not quantify hedging effectiveness, financing costs, or MSR valuation mark-to-market, which can materially change the earnings outlook.
Background
Cherry Hill Mortgage Investment Corp. is an internally managed residential mortgage finance company investing in servicing assets and Agency RMBS.
Ticker impact
Cherry Hill Mortgage Investment Corp. reported 3Q 2026 revenue of $6.6M and diluted EPS of ($0.11), plus a $3.9M loss to common holders.
Likely downside bias as investors price in continued MSR servicing income pressure and the near-term uncertainty around merger closing.
The article is a first-report 10-Q summary with concrete quarterly losses, revenue/EPS deterioration, and servicing portfolio decline, which typically drives near-term sentiment for mortgage REITs.
Market effects
Reinforces ongoing pressure on mortgage servicing income and MSR balances, a key driver for mortgage REIT earnings sensitivity to servicing portfolio size.
No specific regional transmission beyond US mortgage finance sentiment.
Limited direct global impact; primarily affects US mortgage finance and agency RMBS/MSR risk appetite.
Counterpoint
The merger agreement could be a catalyst that offsets near-term earnings weakness if closing improves capital structure or business model efficiency.
Key entities
- companyCherry Hill Mortgage Investment Corp.
Reported 3Q 2026 results, MSR and RMBS balance changes, and a merger agreement with expected Q4 closing.
