Dynex Capital Swings to $80.4M Net Loss in Q1 2026 as Operating Costs Surge 75%

Dynex Capital, Inc. (NYSE: DX), a mortgage real estate investment trust, reported a net loss of $80.4 million for the three months ended March 31, 2026, compared to a net loss of $3.1 million in the same quarter of 2025. The loss per share widened to $0.41 from $0.06 a year earlier. Read more earnings reports.

Operating expenses climbed to $21.3 million from $12.1 million in the first quarter of 2025, a 75% increase. Labor and related expenses nearly doubled to $15.3 million from $7.9 million, while general and administrative costs rose to $5.2 million from $3.8 million.

The company's balance sheet expanded substantially during the quarter. Total assets grew to $24.3 billion as of March 31, 2026, up from $17.3 billion at the end of 2025. Total liabilities rose to $21.6 billion from $14.9 billion over the same period.

Cash and cash equivalents increased to $773.1 million as of March 31, 2026, compared to $531.0 million at year-end 2025. Combined cash and restricted cash stood at $1.29 billion at quarter-end, up from $930.4 million three months earlier and $588.0 million in the prior-year period.

Cash flow from operations turned positive, generating $69.8 million for the quarter compared to $6.4 million in the first quarter of 2025. Investing activities consumed $7.19 billion in cash, primarily offset by $7.48 billion raised through financing activities.

The company's share count increased significantly. Common shares outstanding rose to 207.2 million as of March 31, 2026, from 174.8 million at the end of 2025 and 102.2 million a year earlier. The weighted average shares outstanding for the quarter more than doubled to 200.1 million from 90.5 million in the prior-year period.

The retained earnings deficit widened to $629.6 million as of March 31, 2026, compared to $441.9 million at the end of 2025, reflecting the accumulated net losses.

Financial Summary