# DYNEX CAPITAL INC (DX) Informational only - not investment advice. CIK: 0000826675 SIC: 6798 Real Estate Investment Trusts SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Holding And Other Investment Offices](/major-group/67/) > [SIC 6798 Real Estate Investment Trusts](/industry/6798/) Latest 10-K filed: 2026-02-25 SEC page: https://www.sec.gov/edgar/browse/?CIK=826675 Filing source: https://www.sec.gov/Archives/edgar/data/826675/000082667526000017/dx-20251231.htm ## At a glance No standardized annual SEC companyfacts metrics were extracted for this company; the at-a-glance panel is omitted rather than estimated. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | DX | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | ROE | 13.0% | 5.7% | 88 | 151 | | ROA | 1.8% | 1.5% | 56 | 155 | | Liabilities / equity | 6.04 | 1.48 | 85 | 151 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6798 Real Estate Investment Trusts, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Net income | 319066000 | USD | 2025 | 2026-02-25 | | Assets | 17342178000 | USD | 2025 | 2026-02-25 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000826675.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2011 | 2012 | 2013 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net income | | | | 43,099,000 | 33,893,000 | 7,023,000 | -152,668,000 | 177,530,000 | 102,261,000 | 143,161,000 | -6,130,000 | 113,898,000 | 319,066,000 | | Diluted EPS | 1.03 | 1.35 | 1.10 | | | | -7.01 | 6.93 | 2.78 | 3.17 | -0.25 | 1.49 | 2.47 | | Operating cash flow | | | | 210,514,000 | 204,448,000 | 180,560,000 | 175,346,000 | 173,952,000 | 146,970,000 | 126,352,000 | 62,200,000 | 14,392,000 | 120,821,000 | | Dividends paid | | | | 51,900,000 | 47,532,000 | 52,790,000 | 68,042,000 | 52,437,000 | 58,895,000 | 72,366,000 | 93,041,000 | 117,844,000 | 246,599,000 | | Assets | | | | 3,397,731,000 | 3,305,778,000 | 3,886,089,000 | 5,370,604,000 | 3,094,810,000 | 3,639,738,000 | 3,605,234,000 | 6,369,750,000 | 8,184,579,000 | 17,342,178,000 | | Liabilities | | | | 2,930,547,000 | 2,748,720,000 | 3,358,936,000 | 4,787,616,000 | 2,461,357,000 | 2,868,459,000 | 2,703,906,000 | 5,499,015,000 | 6,999,643,000 | 14,880,034,000 | | Stockholders' equity | | | | 467,184,000 | 557,058,000 | 527,153,000 | 582,988,000 | 633,453,000 | 771,279,000 | 901,328,000 | 870,735,000 | 1,184,936,000 | 2,462,144,000 | | Cash and cash equivalents | | | | 74,120,000 | 40,867,000 | 34,598,000 | 62,582,000 | 295,602,000 | 366,023,000 | 332,035,000 | 119,639,000 | 377,099,000 | 531,043,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2011 | 2012 | 2013 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Return on equity | | | | 9.23% | 6.08% | 1.33% | -26.19% | 28.03% | 13.26% | 15.88% | -0.70% | 9.61% | 12.96% | | Return on assets | | | | 1.27% | 1.03% | 0.18% | -2.84% | 5.74% | 2.81% | 3.97% | -0.10% | 1.39% | 1.84% | | Liabilities / equity | | | | 6.27 | 4.93 | 6.37 | 8.21 | 3.89 | 3.72 | 3.00 | 6.32 | 5.91 | 6.04 | ## As-reported value updates No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks. ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000826675.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | -1.07 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | -0.81 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 0.96 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | | -43,051,000 | -0.82 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | | 24,305,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | | 40,118,000 | 0.64 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 1,287,000 | -8,304,000 | -0.15 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 894,000 | 30,997,000 | 0.38 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 6,887,000 | 51,086,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 17,133,000 | -3,076,000 | -0.06 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 23,128,000 | -13,606,000 | -0.14 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 30,611,000 | 150,388,000 | 1.08 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 43,484,000 | 185,359,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 79,254,000 | -80,362,000 | -0.41 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 93,783,000 | 180,793,000 | 0.80 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from DX's latest 10-K: [/company/DX/business/](/company/DX/business/). ## Risk Factors Verbatim Item 1A Risk Factors from DX's latest 10-K: [/company/DX/risk-factors/](/company/DX/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/826675/000082667526000078/dx-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-07-27 Report date: 2026-06-30 ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS EXECUTIVE OVERVIEW During the second quarter of 2026, financial markets were comparatively calmer as realized volatility moderated from the elevated levels seen earlier in the year, even as investors continued to weigh the outlook for inflation, monetary policy, and global growth against ongoing geopolitical uncertainty. The U.S. economy continued to expand at a moderate pace, with a steady labor market and only a modest increase in inflation expectations. Market participants priced for the possibility of modest Federal Reserve policy rate hikes, but forward rates curves suggested any such hikes would slowly be removed over time as new Federal Reserve Chair Kevin Warsh eventually settled into his new approach for managing the Federal Reserve. Funding markets remained orderly and were well supported by ample system liquidity, and liquidity across the mortgage and repurchase agreement markets continued to function effectively. After spread widening late in the first quarter, spreads across Agency MBS stabilized and moved modestly tighter over the course of the second quarter, supported by muted new mortgage origination supply, the sector's strong liquidity profile, and renewed demand from the GSEs, which increased their purchases of Agency MBS during the bout of widening. Against this backdrop, Agency MBS continues to offer attractive long‑term return potential relative to other high‑quality fixed‑income assets, particularly given the supply dynamics, the sector's strong liquidity profile, and the potential for incremental GSE demand to provide support against episodes of spread widening. At the same time, fund flows into bond funds remain a steady source of demand. The long-term, demographic-led need for income will likely remain a central theme in developed financial markets. We view current spread levels as attractive and remain attentive to the evolving supply‑and‑demand balance, including the pace and composition of GSE purchases, the trajectory of the Federal Reserve's balance sheet, especially its holdings of Agency MBS and the level of banking‑system reserves. We continue to monitor monetary policy, inflation trends, housing market activity, supply‑and‑demand dynamics, and geopolitical developments, as well as operational and cybersecurity risks, as we assess their potential impact on interest rates, spreads, prepayment behavior, and financing conditions. We remain focused on disciplined portfolio construction, security selection, liquidity management, and balance‑sheet resilience as market conditions continue to evolve. The charts below show the range of U.S. Treasury and SOFR-based swap rates for the six months ended June 30, 2026 and information regarding market spreads as of and for the periods indicated: 24 [[GREPCENT_TABLE]] [["","","Market Spreads as of:","","Change in Spreads YTD"],["Investment Type: (1)","","June 30, 2026","","","","","","March 31, 2026","","December 31, 2025"],["Agency RMBS:"],["2.0% coupon","","72","","","","","","73","","70","","2"],["2.5% coupon","","72","","","","","","76","","73","","(1)"],["4.0% coupon","","52","","","","","","52","","50","","2"],["4.5% coupon","","46","","","","","","53","","45","","1"],["5.0% coupon","","48","","","","","","56","","46","","2"],["5.5% coupon","","51","","","","","","63","","51","","\u2014"],["6.0% coupon","","47","","","","","","64","","54","","(7)"],["Agency CMBS(2)","","75","","","","","","84","","82","","(7)"]] [[/GREPCENT_TABLE]] (1)Option adjusted spreads (“OAS”) are based on Company estimates using third-party models and market data. OAS shown for prior periods may differ from previous disclosures because the Company regularly updates the third-party model used. (2)Data is sourced from J.P. Morgan and represents the spread to swap rate on newly issued Agency securities collateralized by multifamily properties. Summary of Second Quarter 2026 Financial Performance Our total economic return for the second quarter of 2026 of $0.81 per common share was comprised of an increase in book value of $0.30 per common share and dividends declared of $0.51 per common share. The increase in book value per common share was primarily comprised of a net gain of $102 million on our investment portfolio, net of hedges. The fair value of our Agency MBS benefited from spread tightening late in the second quarter. Although higher interest rates reduced asset valuations during the second quarter, our hedging portfolio effectively mitigated much of this impact, supporting the overall increase in book value. We raised capital of $391 million, net of commissions, using the proceeds to opportunistically add Agency MBS of $2.8 billion. Leverage including TBAs at implied cost decreased to 8.1 times equity, primarily due to the favorable performance of our portfolio. Interest income increased to $94 million for the second quarter of 2026, driven by our continued deployment of capital into Agency MBS purchases, primarily in 4-5% coupons. Operating expenses for the second quarter of 2026 decreased $5 million, due to the absence of one-time compensation and personnel-related costs recognized during the first quarter of 2026. 25 The following table summarizes the changes in the Company's financial position during the three months ended June 30, 2026: [[GREPCENT_TABLE]] [["($s in thousands except per share data)","Net Change in Fair Value","","Components of Comprehensive Income","","Common Book Value Rollforward","","Per Common Share"],["Balance as of March 31, 2026 (1)","","","","","$","2,609,770","","","$","12.60"],["Net interest income","","","$","93,783"],["Periodic interest from interest rate swaps","","","542"],["G & A and other operating expenses","","","(16,213)"],["Preferred stock dividends","","","(2,650)"],["Changes in fair value:"],["MBS and other","$","(26,487)"],["TBAs","(19,229)"],["U.S. Treasury futures","16,568"],["Interest rate swaps","135,239"],["Interest rate swaptions","(4,275)"],["Total net change in fair value","","","101,816"],["Comprehensive income to common shareholders","","","","","177,278"],["Capital transactions:"],["Net proceeds from stock issuance (2)","","","","","392,295"],["Common dividends declared","","","","","(115,776)"],["Balance as of June 30, 2026 (1)","","","","","$","3,063,567","","","$","12.90"]] [[/GREPCENT_TABLE]] (1)Amounts represent total shareholders' equity less the aggregate liquidation preference of the Company's preferred stock of $111.5 million, in thousands and on a per common share basis. (2)Net proceeds from common stock issuance include approximately $391 million from ATM issuances and approximately $1.0 million from amortization of share-based compensation, net of grants, during the three months ended June 30, 2026. 26 FINANCIAL CONDITION Investment Portfolio Our investment portfolio, including TBAs, as of June 30, 2026, has increased $8.2 billion, or 42%, since December 31, 2025. We added over $10 billion, net of sales, of primarily 30-year fixed rate Agency RMBS during the six months ended June 30, 2026. We reduced our TBA securities by a net notional of $0.6 billion. The following charts compare the composition of our investment portfolio as of the dates indicated: The following charts compare the percentage distribution by coupon of our 30-year fixed rate Agency RMBS investments, including TBAs, as of the dates indicated: The following tables compare our 30-year fixed-rate Agency RMBS investments, including TBA dollar roll positions, by coupon as of the dates indicated: [[GREPCENT_TABLE]] [["","","June 30, 2026"],["Agency RMBS by Coupon","","Par/Notional","","Amortized Cost/Implied Cost Basis (3)(5)","","Fair Value (4)(5)","","Weighted Average"],["","","","","Loan Age(in months)(6)","","3 MonthCPR (6)(7)","","Estimated Duration (8)","","Market Yield (9)"],["($s in thousands)"],["2.0%","","$","1,655,060","","","$","1,467,013","","","$","1,341,563","","","70","","5.1","%","","7.37","","4.90","%"],["2.5%","","748,519","","","728,917","","","637,192","","","70","","6.4","%","","6.92","","4.88","%"],["4.0%","","1,122,540","","","1,065,039","","","1,057,493","","","51","","5.6","%","","5.97","","4.93","%"],["4.5% (1)","","2,219,150","","","2,147,675","","","2,146,620","","","29","","6.5","%","","5.53","","5.02","%"],["5.0%","","8,017,356","","","7,969,870","","","7,942,615","","","15","","6.9","%","","4.82","","5.14","%"],["5.5%","","8,921,868","","","9,028,071","","","9,027,526","","","15","","10.5","%","","3.55","","5.28","%"],["6.0%","","1,418,680","","","1,459,407","","","1,460,687","","","14","","17.3","%","","2.35","","5.31","%"],["TBA 4.0%","","12,000","","","11,259","","","11,231","","","n/a","","n/a","","6.71","","4.89","%"],["TBA 4.5%(2)","","1,075,000","","","1,039,010","","","1,044,581","","","n/a","","n/a","","5.11","","4.91","%"],["TBA 5.0%","","873,000","","","856,769","","","858,950","","","n/a","","n/a","","4.92","","5.23","%"],["TBA 5.5%","","600,000","","","602,276","","","602,531","","","n/a","","n/a","","3.41","","5.41","%"],["Total","","$","26,663,173","","","$","26,375,306","","","$","26,130,989","","","23","","8.7","%","","4.57","","5.15","%"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","","December 31, 2025"],["Agency RMBS by Coupon","","Par/Notional","","Amortized Cost/Implied Cost Basis (3)(5)","","Fair Value (4)(5)","","Weighted Average"],["","","","","Loan Age(in months)(6)","","3 MonthCPR (6)(7)","","Estimated Duration (8)","","Market Yield (9)"],["($s in thousands)"],["2.0%","","$","603,965","","","$","613,475","","","$","497,097","","","63","","5.2","%","","7.42","","4.68","%"],["2.5%","","516,325","","","535,039","","","444,904","","","64","","5.1","%","","7.02","","4.67","%"],["4.0%","","293,073","","","293,432","","","281,889","","","57","","6.5","%","","5.89","","4.63","%"],["4.5% (1)","","1,911,130","","","1,853,757","","","1,881,304","","","33","","5.8","%","","5.46","","4.74","%"],["5.0%","","3,974,655","","","3,913,622","","","3,997,537","","","21","","5.9","%","","4.62","","4.91","%"],["5.5%","","6,325,638","","","6,361,758","","","6,465,769","","","13","","8.1","%","","3.39","","5.10","%"],["6.0%","","1,381,567","","","1,419,727","","","1,432,860","","","9","","8.2","%","","2.28","","5.14","%"],["TBA 4.0%","","1,162,000","","","1,101,441","","","1,102,764","","","n/a","","n/a","","6.29","","4.76","%"],["TBA 4.5%(2)","","1,447,000","","","1,425,945","","","1,430,136","","","n/a","","n/a","","4.58","","4.64","%"],["TBA 5.0%","","176,000","","","175,287","","","175,670","","","n/a","","n/a","","4.51","","5.03","%"],["TBA 5.5%","","183,000","","","185,175","","","185,631","","","n/a","","n/a","","3.28","","5.23","%"],["TBA 6.0%","","221,000","","","226,218","","","226,922","","","n/a","","n/a","","1.99","","5.24","%"],["Total","","$","18,195,353","","","$","18,104,876","","","$","18,122,483","","","21","","7.0","%","","4.29","","4.94","%"]] [[/GREPCENT_TABLE]] (1)Includes a par value of $9 million of 4.5% 15-year Agency RMBS as of June 30, 2026 and December 31, 2025. (2)Includes a notional amount of $440 million of 4.5% 15-year TBA securities as of June 30, 2026 and $690 million as of December 31, 2025. (3)Implied cost basis of TBAs represents the forward price to be paid for the underlying Agency MBS. (4)Fair value of TBAs is the implied market value of the underlying Agency security as of the end of the period. (5)TBAs are included on the consolidated balance sheet within “derivative assets/liabilities” at their net carrying value which is the difference between their implied market value and implied cost basis. Please refer to Note 5 of the Notes to the Consolidated Financial Statements for additional information. (6)TBAs are excluded from this calculation as they do not have a defined weighted-average loan balance or age until mortgages have been assigned to the pool. (7)Constant prepayment rate (“CPR” [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/826675/000082667526000017/dx-20251231.htm Complete FY 2025 MD&A: /company/DX/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-02-25 Report date: 2025-12-31 ITEM 7.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion should be read in conjunction with our financial statements and the related notes included in Part II, Item 8, "Financial Statements and Supplementary Data” in this Annual Report on Form 10-K. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors including, but not limited to, those disclosed in Part I, Item 1A, “Risk Factors” elsewhere in this Annual Report on Form 10-K and in other documents we file with the SEC or otherwise publicly disclose. Please refer to “Forward-Looking Statements” contained within Part I, Item 1, “Business” of the Annual Report on Form 10-K for additional information. This discussion also contains non-GAAP financial measures, which are discussed in the section “Non-GAAP Financial Measures.” For a complete description of our business, including our operating policies, investment philosophy and strategy, financing, risk management and hedging strategies, and other important information, please refer to Part I, Item 1, “Business” of this Annual Report on Form 10-K. EXECUTIVE OVERVIEW During 2025, shifting U.S. policy and persistent global uncertainty created a favorable backdrop for high-quality, liquid assets like Agency MBS. The second Trump Administration implemented significant tariff increases that generated significantly higher customs revenues and passed the One Big Beautiful Bill Act extending tax provisions from 2017 with additional benefits. Despite these policy shifts and stricter immigration enforcement that contributed to unemployment rising to over 4.0% by year-end, the U.S. economy demonstrated resilience with 2.5% GDP growth through the first three quarters. The combination of moderating inflation, a softening labor market, and policy-driven uncertainty enabled the Federal Reserve to reduce the Federal Funds Rate by 75 basis points in the second half of 2025, bringing the target range to 3.50-3.75%. Additionally, the Fed ended its balance sheet runoff in December, announcing Treasury bill purchases to maintain stable reserve levels and reduce funding market volatility. With this backdrop, Agency MBS emerged as one of the better performing sectors within the fixed-income 27 market due to favorable technical and fundamental drivers. The U.S. Treasury yield curve steepened as short-term rates fell more rapidly than long-term yields while Agency MBS spreads substantially tightened relative to Treasuries. Interest rate volatility declined, which aided a reduction in hedging costs. Supply/demand dynamics were favorable overall as new mortgage originations remained muted while demand increased. The charts below show the range of U.S. Treasury and Secured Overnight Funding Rate (“SOFR”)-based swap rates for the year ended December 31, 2025 and information regarding market spreads as of and for the periods indicated: 28 [[GREPCENT_TABLE]] [["","","Market Spreads as of:","","Change in Spreads YTD"],["Investment Type: (1)","","December 31, 2025","","September 30, 2025","","June 30, 2025","","March 31, 2025","","December 31, 2024"],["Agency RMBS:"],["2.0% coupon","","70","","85","","96","","85","","89","","(19)"],["2.5% coupon","","73","","90","","99","","90","","93","","(20)"],["4.0% coupon","","50","","65","","78","","65","","69","","(19)"],["4.5% coupon","","45","","64","","76","","65","","68","","(23)"],["5.0% coupon","","46","","66","","77","","66","","69","","(23)"],["5.5% coupon","","51","","72","","82","","69","","72","","(21)"],["6.0% coupon","","54","","74","","86","","66","","74","","(20)"],["Agency CMBS(2)","","82","","96","","102","","94","","96","","(14)"]] [[/GREPCENT_TABLE]] (1)Option adjusted spreads (“OAS”) are based on Company estimates using third-party models and market data. OAS shown for prior periods may differ from previous disclosures because the Company regularly updates the third-party model used. (2)Data is sourced from J.P. Morgan and represents the spread to swap rate on newly issued Agency securities collateralized by multifamily properties. Summary of 2025 Financial Performance Our 2025 results directly reflected our ability to capitalize on this favorable environment while maintaining disciplined risk management. For the year ended December 31, 2025, our total economic return ("TER") of $2.75 per common share, or 21.6% of beginning book value, was comprised of an increase in book value of $0.75 per common share and dividends declared of $2.00 per common share. The increase in our book value was predominantly driven by asset appreciation due to tighter spreads between our asset yields and the yields on our interest rate swaps and Treasury futures.The Company's results for 2025 also benefited from higher net interest income due to its purchases of Agency RMBS and CMBS throughout the year at higher yield levels than 2024 while related repurchase agreement financing costs fell following three U.S. Federal Funds rate cuts in 2025. Our increase in the use of SOFR-based interest rate swaps in 2025 added to economic net interest income. Our total equity and market capitalization as of December 31, 2025 more than doubled since December 31, 2024 primarily because we raised over $1.2 billion through the issuance of over 90 million shares of common stock pursuant to our ATM program. We deployed the majority of this capital into opportunities in the Agency MBS market, while also strengthening our organization with refreshed leadership, a new independent auditor, and an expanded office footprint. For our shareholders, 2025 delivered a 29.4% total return including dividends and share price appreciation. Over this decade through December 31, 2025, Dynex shareholders have experienced a 67% cumulative total return, or approximately 9% annualized with dividends reinvested. 29 The following table summarizes the changes in the Company's financial position during the year ended December 31, 2025: [[GREPCENT_TABLE]] [["($s in thousands except per share data)","Net Change in Fair Value","","Components of Comprehensive Income","","Common Book Value Rollforward","","Per Common Share"],["Balance as of December 31, 2024 (1)","","","","","$","1,073,436","","","$","12.70"],["Net interest income","","","$","114,356"],["Periodic interest from interest rate swaps","","","45,063"],["G & A and other operating expenses","","","(53,047)"],["Preferred stock dividends","","","(10,191)"],["Changes in fair value:"],["MBS and other","$","416,278"],["TBAs","94,646"],["U.S. Treasury futures","(46,190)"],["Options on U.S. Treasury futures","(7,852)"],["Interest rate swaps","(194,715)"],["Interest rate swaptions","(4,045)"],["Total net change in fair value","","","258,122"],["Comprehensive income to common shareholders","","","","","354,303"],["Capital transactions:"],["Net proceeds from stock issuance (2)","","","","","1,179,983"],["Common dividends declared","","","","","(257,078)"],["Balance as of December 31, 2025 (1)","","","","","$","2,350,644","","","$","13.45"]] [[/GREPCENT_TABLE]] (1)Amounts represent total shareholders' equity less the aggregate liquidation preference of the Company's preferred stock of $111.5 million, in thousands and on a per common share basis. (2)Net proceeds from common stock issuance include approximately $1.2 billion from ATM issuances and approximately $11 million from amortization of share-based compensation, net of grants, during the year ended December 31, 2025. Outlook for 2026 We believe the favorable macro environment for high-quality, liquid assets will persist into 2026, continuing to support Agency MBS performance. Recent policy actions now point toward a more stable and supportive framework for the mortgage market, creating a strong foundation for forward returns. Most notably, the Administration's January 2026 directive to the GSEs to purchase $200 billion in Agency MBS to support housing affordability creates a powerful technical tailwind. Combined with the potential for modest additional rate cuts, the policy environment has shifted decisively in favor of mortgage market stability. This clarity enhances our confidence in the path ahead for MBS spreads. We anticipate sustained global demand for high-quality, liquid, dollar-denominated assets as geopolitical uncertainties persist and credit concerns mount in riskier sectors. Agency MBS remain uniquely positioned at the intersection of government-backed credit quality, superior yields to U.S. Treasuries, deep liquidity, and defensive characteristics appropriate for an uncertain late-cycle environment. While spreads have tightened from the historically wide levels where we deployed capital in 2025, current valuations remain compelling on a forward-looking basis given the policy support, technical factors, and risk-adjusted return characteristics relative to alternatives. 30 FINANCIAL CONDITION Investment Portfolio Our investment portfolio (including TBAs) as of December 31, 2025, has increased 98% since December 31, 2024. We added $8.2 billion of Agency RMBS and $1.2 billion of Agency CMBS during the year ended December 31, 2025, of which $809 million were pending settlement as of December 31, 2025. The following charts compare the composition of our MBS portfolio (including TBAs) as of the dates indicated: The following tables compare our 30-year fixed-rate Agency RMBS investments, including TBA dollar roll positions, as of the dates indicated: [[GREPCENT_TABLE]] [["","","December 31, 2025"],["Agency RMBS by Coupon","","Par/Notional","","Amortized Cost/Implied Cost Basis (3)(5)","","Fair Value (4)(5)","","Weighted Average"],["","","","","Loan Age(in months)(6)","","3 MonthCPR (6)(7)","","Estimated Duration (8)","","Market Yield (9)"],["($s in thousands)"],["2.0%","","$","603,965","","","$","613,475","","","$","497,097","","","63","","5.2","%","","7.42","","4.68","%"],["2.5%","","516,325","","","535,039","","","444,904","","","64","","5.1","%","","7.02","","4.67","%"],["4.0%","","293,073","","","293,432","","","281,889","","","57","","6.5","%","","5.89","","4.63","%"],["4.5% (1)","","1,911,130","","","1,853,757","","","1,881,304","","","33","","5.8","%","","5.46","","4.74","%"],["5.0%","","3,974,655","","","3,913,622","","","3,997,537","","","21","","5.9","%","","4.62","","4.91","%"],["5.5%","","6,325,638","","","6,361,758","","","6,465,769","","","13","","8.1","%","","3.39","","5.10","%"],["6.0%","","1,381,567","","","1,419,727","","","1,432,860","","","9","","8.2","%","","2.28","","5.14","%"],["TBA 4.0%","","1,162,000","","","1,101,441","","","1,102,764","","","n/a","","n/a","","6.29","","4.76","%"],["TBA 4.5%(2)","","1,447,000","","","1,425,945","","","1,430,136","","","n/a","","n/a","","4.58","","4.64","%"],["TBA 5.0%","","176,000","","","175,287","","","175,670","","","n/a","","n/a","","4.51","","5.03","%"],["TBA 5.5%","","183,000","","","185,175","","","185,631","","","n/a","","n/a","","3.28","","5.23","%"],["TBA 6.0%","","221,000","","","226,218","","","226,922","","","n/a","","n/a","","1.99","","5.24","%"],["Total","","$","18,195,353","","","$","18,104,876","","","$","18,122,483","","","21","","7.0","%","","4.29","","4.94","%"]] [[/GREPCENT_TABLE]] [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/DX/mda/fy2025/ All MD&A years: /company/DX/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/DX/mda/fy2024/): filed 2025-02-28; accession 0000826675-25-000021 (https://www.sec.gov/Archives/edgar/data/826675/000082667525000021/dx-20241231.htm) - [FY 2023 MD&A](/company/DX/mda/fy2023/): filed 2024-02-26; accession 0000826675-24-000011 (https://www.sec.gov/Archives/edgar/data/826675/000082667524000011/dx-20231231.htm) - [FY 2022 MD&A](/company/DX/mda/fy2022/): filed 2023-02-27; accession 0000826675-23-000023 (https://www.sec.gov/Archives/edgar/data/826675/000082667523000023/dx-20221231.htm) - [FY 2021 MD&A](/company/DX/mda/fy2021/): filed 2022-02-28; accession 0000826675-22-000006 (https://www.sec.gov/Archives/edgar/data/826675/000082667522000006/dx-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 6798 Real Estate Investment Trusts) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/DX.md · JSON record: /company/DX.json · verified financials: /company/DX/financials.json / /company/DX/financials.csv · machine TOC for the whole site: /llms.txt