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Segment Reporting | 12 Months Ended
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Dec. 31, 2025
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting As of December 31, 2025, the Company's reportable segments include (i) Loans and Securities and (ii) Arc Home. Segment information for prior periods has been updated to conform to the current year presentation. The structure of the reportable segments is differentiated by the financial information used by the Chief Operating Decision Maker (“CODM”) and the nature of the Company’s business activities, which is consistent with the reporting structure of the Company’s internal organization. The Company’s CODM is its Chief Executive Officer. The CODM uses net income/(loss) reported on the consolidated statements of operations as the primary measure to make resource allocation decisions and evaluate the segment results. The CODM is regularly provided operating expenses as presented on the consolidated statements of operations when evaluating the Company’s net income/(loss). The accounting policies applied to the segments are the same as those described in Note 2 to the "Notes to Consolidated Financial Statements." Activities that are not directly attributable or not allocated to either of the reportable segments are reported within "Other" below as a reconciling item to the Company’s consolidated financial statements. Other activities primarily consist of cash and related interest income, the Senior Unsecured Notes and related interest expense, management fees, non-investment related expenses, and preferred stock dividends. Loans and Securities Segment The Loans and Securities segment is primarily focused on acquiring and securitizing newly-originated residential mortgage loans within the non-agency segment of the housing market. The Company finances its acquired loans through various financing lines on a short-term basis and utilizes TPG’s proprietary securitization platform to secure long-term, non-recourse, non-mark-to-market financing as market conditions permit. The Company's Residential Investments, Agency RMBS, and Legacy WMC Commercial Investments are included in the Loans and Securities segment. This segment generates revenue primarily in the form of net interest income, inclusive of the cost or benefit of hedging, which represents the difference between the interest earned on the investments and the costs of financing and economic hedges in place on these investments. In addition, the Company's investments in loans and securities are recorded at fair value with any periodic change in fair value recorded in the "Net unrealized gain/(loss)" line item on the consolidated statement of operations which is included in the "Other Income/(Loss)" line item below. Arc Home Segment The Arc Home segment includes the Company's equity method investment in AG Arc, which owns Arc Home. As of December 31, 2025 and 2024, the Company had an approximate 66.0% and 44.6% interest in AG Arc, respectively. Refer to Note 10 to the to the "Notes to Consolidated Financial Statements" for additional information related to the Company's investment in AG Arc. Arc Home is a multi-channel licensed mortgage originator and servicer led by an external management team. Arc Home generates revenue primarily through originating and selling residential mortgage loans. In addition, Arc Home recognizes net servicing revenue from mortgage servicing rights as well as net interest income and net unrealized gains or losses from originated residential mortgage loans prior to sale. The Company elected the fair value option with respect to its investment in AG Arc. The net income/(loss) recognized within the Arc Home segment is recorded in the "Equity in earnings/(loss) from affiliates" line item on the consolidated statement of operations and includes any periodic changes in the fair value of the investment. Reportable Segments The following tables present the reportable operating segments related to the Company’s results of operations for the years ended December 31, 2025 and 2024 (in thousands).
| Year Ended December 31, 2025
| Loans and Securities |  | Arc Home (1) (2) |  |  |  | Other |  | Total
Interest income | $ | 477,071 |  |  | $ | — |  |  |  |  | $ | 3,259 |  |  | $ | 480,330 |
Interest expense | 393,607 |  |  | — |  |  |  |  | 10,190 |  |  | 403,797 |
Total Net Interest Income | 83,464 |  |  | — |  |  |  |  | (6,931) |  |  | 76,533 |
Total Other Income/(Loss) | 13,217 |  |  | — |  |  |  |  | — |  |  | 13,217 |
Management fee to affiliate | — |  |  | — |  |  |  |  | 9,266 |  |  | 9,266 |
Non-investment related expenses | — |  |  | — |  |  |  |  | 10,819 |  |  | 10,819 |
Investment related expenses | 15,625 |  |  | — |  |  |  |  | — |  |  | 15,625 |
Transaction related expenses | 6,400 |  |  | 895 |  |  |  |  | 10 |  |  | 7,305 |
Total Expenses | 22,025 |  |  | 895 |  |  |  |  | 20,095 |  |  | 43,015 |
Income/(loss) before equity in earnings/(loss) from affiliates | 74,656 |  |  | (895) |  |  |  |  | (27,026) |  |  | 46,735 |
Equity in earnings/(loss) from affiliates | (1,304) |  |  | 4,125 |  |  |  |  | — |  |  | 2,821 |
Income/(loss) before income taxes | 73,352 |  |  | 3,230 |  |  |  |  | (27,026) |  |  | 49,556 |
Income tax expense | 888 |  |  | — |  |  |  |  | — |  |  | 888 |
Net Income/(Loss) | 72,464 |  |  | 3,230 |  |  |  |  | (27,026) |  |  | 48,668 |
Dividends on preferred stock | — |  |  | — |  |  |  |  | 21,242 |  |  | 21,242 |
Net Income/(Loss) Available to Common Stockholders | $ | 72,464 |  |  | $ | 3,230 |  |  |  |  | $ | (48,268) |  |  | $ | 27,426 |
| Year Ended December 31, 2024
| Loans and Securities |  | Arc Home (1) (2) |  |  |  | Other |  | Total
Interest income | $ | 404,269 |  |  | $ | — |  |  |  |  | $ | 4,226 |  |  | $ | 408,495 |
Interest expense | 330,456 |  |  | — |  |  |  |  | 12,147 |  |  | 342,603 |
Total Net Interest Income | 73,813 |  |  | — |  |  |  |  | (7,921) |  |  | 65,892 |
Total Other Income/(Loss) | 21,655 |  |  | — |  |  |  |  | — |  |  | 21,655 |
Management fee to affiliate | — |  |  | — |  |  |  |  | 7,533 |  |  | 7,533 |
Non-investment related expenses | — |  |  | — |  |  |  |  | 10,620 |  |  | 10,620 |
Investment related expenses | 13,522 |  |  | — |  |  |  |  | — |  |  | 13,522 |
Transaction related expenses | 3,044 |  |  | — |  |  |  |  | 120 |  |  | 3,164 |
Total Expenses | 16,566 |  |  | — |  |  |  |  | 18,273 |  |  | 34,839 |
Income/(loss) before equity in earnings/(loss) from affiliates | 78,902 |  |  | — |  |  |  |  | (26,194) |  |  | 52,708 |
Equity in earnings/(loss) from affiliates | 2,000 |  |  | 1,141 |  |  |  |  | — |  |  | 3,141 |
Income/(loss) before income taxes | 80,902 |  |  | 1,141 |  |  |  |  | (26,194) |  |  | 55,849 |
Income tax expense | 112 |  |  | — |  |  |  |  | — |  |  | 112 |
Net Income/(Loss) | 80,790 |  |  | 1,141 |  |  |  |  | (26,194) |  |  | 55,737 |
Dividends on preferred stock | — |  |  | — |  |  |  |  | 19,353 |  |  | 19,353 |
Net Income/(Loss) Available to Common Stockholders | $ | 80,790 |  |  | $ | 1,141 |  |  |  |  | $ | (45,547) |  |  | $ | 36,384 |
(1)Net Income/(loss) recognized by AG Arc does not include the Company's portion of gains or losses recorded by Arc Home in connection with the sale of residential mortgage loans to the Company. Refer to Note 10 for more information on this accounting policy. (2)During the years ended December 31, 2025 and 2024, the Company recorded an unrealized gain/(loss) on its investment in AG Arc of $2.7 million and $2.6 million, respectively. The following table presents the Company's assets, liabilities, and stockholders' equity by reportable segment as of December 31, 2025 and 2024, which reconciles to the total assets, liabilities, and stockholders' equity of the Company on a consolidated basis (in thousands).
| Loans and Securities |  | Arc Home |  |  |  | Other |  | Total
December 31, 2025 |  |  |  |  |  |  |  |  |
Total Assets | $ | 8,600,220 |  |  | $ | 50,016 |  |  |  |  | $ | 61,294 |  |  | $ | 8,711,530 |
Total Liabilities | 8,039,534 |  |  | — |  |  |  |  | 111,262 |  |  | 8,150,796 |
Total Stockholders' Equity | 560,686 |  |  | 50,016 |  |  |  |  | (49,968) |  |  | 560,734 |
December 31, 2024 |  |  |  |  |  |  |  |  |
Total Assets | $ | 6,760,628 |  |  | $ | 30,778 |  |  |  |  | $ | 122,203 |  |  | $ | 6,913,609 |
Total Liabilities | 6,263,163 |  |  | — |  |  |  |  | 107,023 |  |  | 6,370,186 |
Total Stockholders' Equity | 497,465 |  |  | 30,778 |  |  |  |  | 15,180 |  |  | 543,423 |

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- Definition The entire disclosure for reporting segments including data and tables. 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