CIMPHIGH SIGNALFINANCIAL10-K

Chimera Investment Corporation experienced a dramatic operational turnaround with net income swinging from a $580K loss to $230.5M profit, but concerning cash flow deterioration and massive debt increases signal potential liquidity stress.

The extraordinary 39,841% increase in net income appears disconnected from underlying operational performance, as evidenced by operating cash flow turning sharply negative to -$248.9M. The simultaneous 285% spike in interest expense alongside 87% debt growth suggests aggressive leverage expansion that may be unsustainable given the negative operating cash generation.

Comparing 2026-02-18 vs 2025-02-19View on EDGAR →
FINANCIAL ANALYSIS

While total assets grew 20.5% to $15.8B and cash reserves strengthened significantly to $278.6M, the company's financial profile shows concerning imbalances with liabilities expanding 25% and debt nearly doubling. The dramatic swing from positive to deeply negative operating cash flow (-$248.9M) combined with the massive interest expense increase indicates potential strain from the aggressive debt-funded growth strategy. Despite the headline profit improvement, the underlying cash generation deterioration and leverage expansion create significant financial risk for investors.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+39841.2%
-$580K→$230.5M

Net income grew 39841.2% — bottom-line growth signals improving overall business health.

Interest Expense
P&L
+285.5%
$132.2M→$509.5M

Interest expense surged 285.5% — significant debt increase or rising rates materially impacting earnings.

Cash & Equivalents
Balance Sheet
+231.7%
$84.0M→$278.6M

Cash position surged 231.7% — strong cash generation or capital raise providing significant financial cushion.

Operating Cash Flow
Cash Flow
-221%
$205.7M→-$248.9M

Operating cash flow fell 221% — earnings quality concerns; investigate working capital changes and non-cash items.

Total Debt
Balance Sheet
+86.8%
$134.6M→$251.5M

Debt increased 86.8% — substantial leverage increase; assess whether deployed for growth or covering losses.

Total Liabilities
Balance Sheet
+25%
$10.6B→$13.2B

Liabilities increased 25% — monitor debt-to-equity ratio and interest coverage.

Total Assets
Balance Sheet
+20.5%
$13.1B→$15.8B

Asset base grew 20.5% — expansion through organic growth, acquisitions, or capital deployment.

LANGUAGE CHANGES
NEW — 2026-02-18
PRIOR — 2025-02-19
ADDED
FORM 10-K SUMMARY 135 SIGNATURES 136 1 In this Annual Report on Form 10-K, references to we, us, our, Chimera or the Company refer to Chimera Investment Corporation and its subsidiaries unless specifically stated otherwise or the context otherwise indicates.
Government, such as the Government National Mortgage Association ( Ginnie Mae ); GSE refers to a government-sponsored enterprise, such as Fannie Mae, Freddie Mac and Ginnie Mae; FHFA refers to the Federal Housing Financing Agency; CFPB refers to the Consumer Financial Protection Bureau; VA refers to the U.S.
2 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS We make forward-looking statements in this report that are subject to risks and uncertainties.
Business The Company We are a diversified real estate company that invests in, originates, and manages primarily residential real estate assets.
The assets we may invest in and manage for others, through our wholly-owned subsidiary Palisades Advisory Services LLC ( PAS ), include residential mortgage loans, Non-Agency RMBS, Agency RMBS, business purpose loans (including RTLs) and investor loans, MSRs and other real estate-related assets such as Agency CMBS, junior liens and HELOCs, equity appreciation rights, and reverse mortgages.
+7 more — sign up free →
REMOVED
FORM 10-K SUMMARY 135 SIGNATURES 136 1 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS We make forward-looking statements in this report that are subject to risks and uncertainties.
In this Annual Report on Form 10-K, references to we, us, our or the Company refer to Chimera Investment Corporation and its subsidiaries unless specifically stated otherwise or the context otherwise indicates.
Business The Company We are a publicly traded REIT that is primarily engaged in the business of investing in a diversified portfolio of mortgage assets for ourselves and for unrelated third parties through our third-party investment management and advisory services.
The assets we may invest in and manage for others include residential mortgage loans, Non-Agency RMBS, Agency RMBS, business purpose loans ( BPLs ) (including residential transition loans ( RTLs )) and investor loans, mortgage servicing rights ( MSRs ) and other real estate-related assets such as Agency CMBS, junior liens and home equity lines of credit, or HELOCs, equity appreciation rights, and reverse mortgages.
The MBS and other real estate-related securities we purchase may include investment-grade, non-investment grade, and non-rated securities.
+7 more — sign up free →
MORE FINANCIAL SIGNALS
PNRGHIGHPNRG achieved exceptional profitability improvement with net income surging 2,21...
2026-04-16
BNAIHIGHBNAI underwent a dramatic reverse stock split that reduced share count by 86% wh...
2026-04-16
LAKEHIGHLAKE's financial performance deteriorated significantly with operating losses wo...
2026-04-16
NXXTHIGHNextNRG experienced massive financial deterioration with operating losses explod...
2026-04-16
ANALYZE ANY FILING FREE

See what changed in your portfolio's filings

500+ US-listed companies analyzed. Language delta, financial analysis, instant signal scoring.

Try Tracenotes free →