CHMIHIGH SIGNALFINANCIAL10-K

CHMI reported substantially higher profitability with net income and gross profit both growing meaningfully year-over-year, alongside structural changes indicating completion of transition to self-management.

The company has successfully completed its transition away from external management by CHMM, eliminating associated risks and litigation concerns while demonstrating strong operational performance. The removal of management agreement termination risks suggests CHMI has achieved greater operational independence and control over its strategic direction.

Comparing 2026-03-05 vs 2025-03-06View on EDGAR →
FINANCIAL ANALYSIS

CHMI delivered robust financial performance with net income growing substantially from $13.2M to $24.8M and gross profit expanding meaningfully from $31.9M to $56.8M. Cash and equivalents increased modestly to $54.9M, providing adequate liquidity. The overall financial picture signals successful execution of the company's investment strategy in mortgage-related assets while maintaining a solid balance sheet position.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+87.9%
$13.2M$24.8M

Net income grew 87.9% — bottom-line growth signals improving overall business health.

Gross Profit
P&L
+77.8%
$31.9M$56.8M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Cash & Equivalents
Balance Sheet
+18.6%
$46.3M$54.9M

Cash grew 18.6% — improving liquidity position supports investment and shareholder returns.

LANGUAGE CHANGES
NEW — 2026-03-05
PRIOR — 2025-03-06
ADDED
The aggregate market value of the registrant s common stock, $0.01 par value per share, at June 30, 2025, held by those persons deemed by the registrant to be non-affiliates (based upon the closing sale price of the common stock on the New York Stock Exchange on June 30, 2025) was approximately $ 97.4 million.
On March 5, 2026, the registrant had a total of 36,739,538 shares of common stock, $0.01 par value, outstanding.
RMBS means an Agency residential MBS or a non-Agency residential MBS.
Future litigation, regulatory proceedings and governmental investigations could adversely affect the Company s business, results of operations and financial condition.
We attempt to attain this objective by selectively constructing and actively managing a portfolio of Servicing Related Assets and residential mortgage-backed securities ( RMBS ).
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REMOVED
The aggregate market value of the registrant s common stock, $0.01 par value per share, at June 28, 2024, held by those persons deemed by the registrant to be non-affiliates (based upon the closing sale price of the common stock on the New York Stock Exchange on June 28, 2024) was approximately $ 108.4 million.
On March 6, 2025, the registrant had a total of 31,625,073 shares of common stock, $0.01 par value, outstanding.
The Company is exposed to the following risks relating to termination of the management agreement with CHMM: The Company may not be able to fully realize the expected benefits of its transition to a self-managed company or the ability to realize such benefits may take longer than anticipated.
Legal matters related to the termination of the management agreement with CHMM, if commenced by CHMM or the Company, could adversely affect the Company s business, results of operations and financial condition.
We attempt to attain this objective by selectively constructing and actively managing a portfolio of Servicing Related Assets and RMBS.
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