Dynex Capital, Inc. filed its Form 10-Q for the quarterly period ended September 30, 2026 with the U.S. Securities and Exchange Commission on October 27, 2026, reporting a net loss of $335,536 thousand for the three months ended September 30, 2026.

Key Highlights

  • Net loss of $335.5 million for Q3 2026, compared to net income of $150.4 million in Q3 2025, according to the filing.
  • Total assets grew to $27.93 billion as of September 30, 2026, up from $17.34 billion as of December 31, 2025.
  • Mortgage-backed securities portfolio reached $25.91 billion at fair value as of September 30, 2026, versus $16.31 billion at year-end 2025.
  • Net interest income was $101.6 million for Q3 2026, compared to $30.6 million in Q3 2025.
  • Stock issuances raised approximately $1.22 billion in aggregate during the nine months ended September 30, 2026, including 4,800,000 preferred shares and 83,119,388 common shares.
  • Common shares outstanding increased to 258,430,745 as of September 30, 2026, from 174,814,912 as of December 31, 2025.
  • Net loss per common share (basic and diluted) was $1.34 for Q3 2026, versus earnings of $1.09 basic and $1.08 diluted per share in Q3 2025.

Dynex Capital Reports Q3 2026 Financial Results: Unrealized Losses Drive Net Loss

According to the filing, Dynex Capital (NYSE:DX) reported a net loss of $335,536 thousand for the three months ended September 30, 2026, a reversal from net income of $150,388 thousand in the same period of 2025. The company attributed the swing primarily to unrealized losses on investments, which totaled $1,465,047 thousand in Q3 2026, partially offset by gains on derivative instruments of $1,041,087 thousand. Net interest income, however, improved materially to $101,562 thousand from $30,611 thousand in Q3 2025, driven by higher interest income of $332,497 thousand versus $149,679 thousand a year earlier.

For the nine months ended September 30, 2026, the company disclosed a net loss of $235,106 thousand, compared to net income of $133,707 thousand for the same period in 2025. The nine-month unrealized loss on investments was $1,742,480 thousand, while gains on derivative instruments were $1,274,659 thousand. Total operating expenses for the nine months were $50,060 thousand, up from $36,408 thousand a year earlier. Dividends paid to common shareholders during the nine months totaled $349,547 thousand, the filing stated.

The balance sheet expanded significantly during the period. Total assets reached $27,925,206 thousand as of September 30, 2026, compared to $17,342,178 thousand at December 31, 2025. Repurchase agreements grew to $24,190,276 thousand from $13,904,231 thousand over the same span. Total shareholders' equity stood at $3,052,055 thousand as of September 30, 2026. Preferred stock outstanding increased to 9,260,000 shares with an aggregate liquidation preference of $231,500 thousand, versus 4,460,000 shares and $111,500 thousand at year-end 2025. The registrant reported 259,627,108 common shares outstanding as of October 22, 2026.

What Was Disclosed

Dynex Capital's 10-Q for the quarter ended September 30, 2026 disclosed a net loss driven by large unrealized investment losses, significant balance sheet growth through new equity issuances and expanded repurchase agreements, and improved net interest income relative to the prior year.