Arbor Realty Trust reported a robust top-line for QQ2 2025, with revenue of $301.8 million and a gross margin of 95.8%, underscoring the quality of its structured finance asset base in the multifamily, single-family rental, and commercial real estate segments. Despite the strong gross profit, operating income and net income declined versus prior periods as financing costs surged, reflecting the company’s high leverage and debt servicing obligations in a rising-rate environment. Net income reached $34.29 million and diluted EPS was $0.12 for the quarter, with YoY revenue up 111.5% and QoQ revenue up 108.2%—a reflection of portfolio activity, securitizations, and/or one-time financing events that boosted quarterly top-line comparables. However, operating income fell by 33.1% YoY and 27.7% QoQ, driven primarily by interest expense of $171.6 million, pressuring margins despite a strong gross profit base. Free cash flow stood at $60.0 million, supporting a dividend-oriented business model, but cash flow coverage metrics signal elevated leverage and the potential for refinancing risk going forward.