Ellington Financial Inc.
- Open
- 13.34
- Day high
- 13.42
- Day low
- 13.33
- Prev close
- 13.38
- Volume
- 189K
- Mkt cap
- $1.3B
- P/E (TTM)
- 8.2
- EPS (TTM)
- $1.64
- P/B
- 0.7
- P/S
- 2.0
- Yield
- 11.66%
- Per share
- $1.56
Ellington Financial Inc. (EFC) is a Real Estate company listed on NYSE. The stock is down 1% over the past year. Drillr has 1 published research article covering EFC.
Ellington Financial Inc. (EFC) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
EFC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 7, 2026 | $0.46 | $0.60 | +30.8% | $123M | +7.5% |
| May 6, 2026 | $0.42 | $0.55 | +31.0% | $171M | +50.1% |
| Feb 26, 2026 | $0.44 | $0.47 | +6.8% | $78M | -41.6% |
| Nov 5, 2025 | $0.44 | $0.53 | +20.5% | $77M | -42.0% |
| Aug 7, 2025 | $0.40 | $0.47 | +17.5% | $43M | -61.3% |
| May 7, 2025 | $0.38 | $0.39 | +2.6% | $72M | -31.8% |
| Feb 27, 2025 | $0.38 | $0.45 | +18.4% | $66M | -41.5% |
| Feb 26, 2024 | $0.41 | $0.27 | -34.1% | $85M | +84.8% |
| Feb 23, 2023 | $0.45 | $0.42 | -6.7% | $66M | +91.6% |
| Aug 4, 2022 | $0.45 | $0.41 | -8.9% | $-37M | -244.2% |
| May 5, 2022 | $0.44 | $0.40 | -9.1% | $7M | -78.3% |
| Feb 23, 2022 | $0.47 | $0.44 | -6.4% | $20M | -46.5% |
EFC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jan 5, 2026 | Mumford Lisadirector | Grant | 7,657 | — |
| Jan 5, 2026 | Mumford Lisadirector | Option | 7,657 | — |
| Dec 19, 2025 | Herlihy Johnofficer: Chief Financial Officer | Grant | 36,417 | — |
| Dec 19, 2025 | Smernoff Chrisofficer: Chief Accounting Officer | Grant | 18,209 | — |
| Oct 2, 2025 | SIMON RONALD Idirector | Grant | 9,198 | — |
| Oct 2, 2025 | Dannhauser Stephen Jdirector | Grant | 9,198 | — |
| Oct 2, 2025 | SIMON RONALD Idirector | Buy | 5,544 | $13.56 |
| Oct 2, 2025 | Resendez Edwarddirector | Grant | 9,198 | — |
| Oct 2, 2025 | Mumford Lisadirector | Grant | 9,198 | — |
| Dec 30, 2024 | Mumford Lisadirector | Grant | 8,378 | — |
| Dec 30, 2024 | SIMON RONALD Idirector | Grant | 8,378 | — |
| Dec 20, 2024 | Smernoff Chrisofficer: Chief Accounting Officer | Grant | 14,992 | — |
| Dec 20, 2024 | Herlihy Johnofficer: Chief Financial Officer | Grant | 26,945 | — |
| Oct 16, 2024 | Vranos Michael Wofficer: Co-Chief Investment Officer | Sell | 14,000 | $12.48 |
| Oct 16, 2024 | Vranos Michael Wofficer: Co-Chief Investment Officer | Sell | 14,361 | $12.58 |
Source: EFC SEC Form 4 filings, latest Jan 5, 2026. For informational purposes only — not investment advice.
See the full EFC insider & 13F page →Ellington Financial Inc. company profile
Overview
Ellington Financial Inc. (NYSE:EFC) is a specialty finance company founded in 2007 and publicly traded since 2010. Based in Old Greenwich, Connecticut, the company operates as a mortgage real estate investment trust (REIT) that acquires and manages a diversified portfolio of mortgage-related and other financial assets. Through its subsidiary Ellington Financial Operating Partnership LLC, the company has evolved from a traditional mortgage REIT into a vertically integrated platform that combines investment management with loan origination capabilities, particularly through its Longbridge reverse mortgage subsidiary acquired in recent years.
Business
Ellington Financial operates as a mortgage REIT in the specialty finance sector, focusing on acquiring, managing, and originating various types of mortgage-related investments. The company's business is organized around three primary segments that generate distinct revenue streams. The Credit Strategy segment represents the largest portion of the business, accounting for approximately 70-80% of earnings. This segment invests in non-agency residential mortgage-backed securities (RMBS), which are mortgage securities not guaranteed by government agencies like Fannie Mae or Freddie Mac. These include securities backed by prime jumbo loans (high-value mortgages above conforming loan limits), Alt-A loans (alternative documentation mortgages), subprime loans, and manufactured housing loans. The segment also invests in commercial mortgage-backed securities (CMBS), direct commercial mortgage loans, corporate debt and equity securities, and consumer asset-backed securities. Additionally, it originates and holds various loan types including non-qualified mortgages (non-QM), rental transition loans (RTL), home equity lines of credit (HELOCs), closed-end second lien mortgages, and commercial bridge loans. The Agency Strategy segment represents a smaller portion of the portfolio, typically 10-15% of total assets. This segment invests in agency RMBS, which are mortgage securities whose principal and interest payments are guaranteed by U.S. government-sponsored enterprises like Fannie Mae, Freddie Mac, or Ginnie Mae. These investments offer lower yields but also lower credit risk compared to non-agency investments. The Longbridge segment operates through the company's reverse mortgage subsidiary, contributing approximately 10-15% of earnings. This segment originates government-insured Home Equity Conversion Mortgages (HECMs) and proprietary reverse mortgages for seniors aged 62 and older. Reverse mortgages allow homeowners to convert home equity into cash without monthly payments, with the loan becoming due when the borrower moves, sells, or passes away. The segment also services existing reverse mortgage loans and holds mortgage servicing rights (MSRs).
Revenue model
Ellington Financial generates revenue through multiple complementary business models that leverage both investment income and origination activities. The primary revenue source is net interest income from its investment portfolio, where the company borrows money at short-term rates through repurchase agreements and warehouse facilities, then invests in higher-yielding mortgage-related assets. This interest rate spread, typically ranging from 300-800 basis points depending on asset type, forms the core of the business model. The company also generates fee income through loan origination activities, particularly in the Longbridge reverse mortgage business where it earns origination fees, servicing fees, and gains on loan sales. When market conditions are favorable, Ellington securitizes pools of loans it has originated or acquired, selling them to investors while retaining servicing rights and sometimes subordinate tranches, generating both immediate gains and ongoing servicing income. Trading and investment gains represent another revenue stream, as the company actively manages its portfolio, selling assets when valuations are attractive and reinvesting proceeds into higher-yielding opportunities. The company also uses derivatives and hedging strategies to manage interest rate and credit risk, which can generate additional income. Several factors significantly impact the company's margins and profitability. Interest rate environments are crucial - rising rates increase borrowing costs while potentially creating opportunities to invest in higher-yielding assets, though they can also negatively impact asset valuations. Credit spreads directly affect both the value of existing investments and the attractiveness of new opportunities, with wider spreads generally benefiting new investments. Housing market conditions influence both mortgage origination volumes and credit performance of existing investments. Regulatory changes, particularly those affecting mortgage markets or REIT taxation, can significantly impact operations. Finally, competition from banks, insurance companies, and other specialty lenders affects both investment opportunities and loan origination margins, with increased competition typically compressing spreads and reducing available opportunities.
Competitive moat
Ellington Financial operates in a highly competitive specialty finance sector with limited sustainable competitive advantages. The company's primary moat lies in its specialized expertise and vertically integrated platform that combines investment management with origination capabilities. This integration allows the company to source loans directly through its Longbridge subsidiary and other origination partnerships, potentially accessing better pricing and terms than purely investment-focused competitors. The company's established relationships with loan originators and its ability to provide warehouse financing creates some competitive positioning in sourcing attractive assets. Additionally, its experience in securitization markets and ability to execute complex transactions provides operational advantages in monetizing loan portfolios. However, these moats are relatively weak. The mortgage REIT industry is characterized by low barriers to entry, with access to similar funding sources and investment opportunities available to well-capitalized competitors. Large banks, insurance companies, and other specialty finance companies compete directly for the same assets, often with lower cost of capital. The company faces particular pressure from insurance companies that have become more active in the non-QM market, potentially compressing spreads. Regulatory risks pose ongoing challenges, as changes in mortgage regulations, REIT tax rules, or capital requirements could significantly impact the business model. The company's reliance on short-term financing creates refinancing risk, and its focus on non-agency credit assets exposes it to economic cycles and credit losses that could impair returns. The competitive landscape suggests this is more of a commodity business where execution and timing matter more than sustainable competitive advantages. Success depends heavily on management's ability to navigate interest rate cycles, credit markets, and regulatory changes rather than on durable moats.
Risks & safety
The margin of safety appears moderate with several risk factors requiring attention. **Liquidity and Solvency:** - Cash and unencumbered assets of $853 million (over 50% of total equity) provides substantial liquidity buffer - Recourse leverage maintained at conservative 1.7:1 debt-to-equity ratio - No significant debt maturity concerns with primarily short-term repo financing - Negative free cash flow of -$126 million in Q1 2025 raises operational cash generation concerns **Valuation Metrics:** - Price-to-book ratio of 0.75x suggests trading below tangible book value - Price-to-earnings ratio of 7.8x appears reasonable for current earnings power - Book value per share of $13.44 vs. current price provides some downside protection **Other Considerations:** - Interest rate sensitivity creates mark-to-market volatility risk - Credit portfolio concentration in non-agency mortgages increases recession vulnerability - Dividend coverage appears adequate with current earnings but dependent on market conditions - Regulatory changes could impact REIT status or mortgage market access
Recent development
Over the past few years, Ellington Financial has executed a strategic transformation from a traditional mortgage REIT into a more diversified, vertically integrated platform. The most significant development was the acquisition and expansion of Longbridge Financial, the reverse mortgage origination subsidiary, which has grown from a small investment to contributing meaningful earnings of approximately $0.07-$0.12 per share quarterly. The company has significantly expanded its loan origination capabilities beyond reverse mortgages, building portfolios in non-QM residential loans, rental transition loans, HELOCs, closed-end second lien mortgages, and commercial bridge loans. This vertical integration strategy allows the company to originate loans directly rather than solely purchasing them in secondary markets, potentially improving margins and deal flow. Securitization activity has become a core competency, with the company completing multiple securitization transactions across different loan types, including non-QM, proprietary reverse mortgages, and second lien loans. These securitizations provide both immediate capital and ongoing servicing income while transferring credit risk to investors. The company has made strategic investments in loan origination platforms, including equity stakes in LendSure and American Heritage Lending, diversifying its sourcing channels and potentially creating additional value through these partnerships. Recent quarters have seen the addition of new warehouse financing facilities, expanding total borrowing capacity by hundreds of millions of dollars. Risk management enhancements include building substantial credit hedges, with over $450 million in high-yield corporate bond short positions to protect against credit spread widening. The company has also focused on improving its financing structure, redeeming high-cost preferred stock and debt while negotiating better warehouse terms.
EFC company profile · for informational purposes only — not investment advice.
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