Arbor Realty Trust Inc (ABR-PD) Q3 2025 Earnings Report

- Summary of QQ3 2025 (quarter ended 2025-09-30) results shows a paradox: revenue of $29.65 million accompanied by a substantial cost of revenue of $44.17 million, producing a gross loss of $14.52 million. Despite the gross loss, the company reported EBITDA of $220.96 million and a net income of $38.46 million, translating to an EPS of $0.20. YoY revenue declined 81.33% and QoQ revenue declined 90.17%, underscoring a dramatic quarterly mix shift and reliance on non-operating drivers for bottom-line results.
- The quarter exhibits a positive operating income of $4.19 million (operating margin ~14.1%), and a net income margin reported at 1.297 (129.7%), aided by a tax benefit and other income components. However, interest expense remains sizable at $184.74 million, highlighting the leverage and funding costs characteristic of mortgage REITs. The earnings profile is therefore heavily influenced by financing and non-operating items rather than pure core lending activity.
- From a cash-flow and liquidity perspective, operating cash flow per share is $0.922 and free cash flow per share is also reported at $0.922, with cash per share of $2.19. The payout ratio is 1.511 and the dividend yield stands at 2.46%. Valuation metrics show price-to-book around 0.789 and price-to-sales around 79.78, reflecting the complex mix of favored preferred equity positioning and the company’s capital structure. Investors should interpret equity- and preferred-valuation signals distinctly for ABR-PD.
- Strategic implications: Arbor Realty Trust remains positioned in the Real Estate Investment Trust (REIT) mortgage ecosystem with a diversified structured finance book. The large interest burden implies sensitivity to funding costs and balance-sheet dynamics, while the positive CFO per share supports ongoing distribution capacity. In the current rate environment, continued monitoring of spreads, securitization activity, and leverage health will be critical for sustained earnings quality.