Ellington Financial

EFC · NYSE · Financials · Financials, fiscal 2016 to 2025

EFC · Last close · November 6, 2026

$11.26

Ellington Financial's revenue rose 10.1% to $336 million in fiscal 2025. Its net margin was 35.3%, down from 38.5% a year earlier. Free cash flow was −$925 million. It paid out $184 million in dividends and buybacks. The diluted share count rose 14.6%.

Ellington Financial Inc. Latest fiscal year ended December 31, 2025 10-K filed March 2, 2026 · 0001628280-26-013279 Updated November 7, 2026

Revenue

$336M

10.1%

Net margin

35.3%

3.3 pts

Net income

$119M

0.8%

Free cash flow

−$925M

Return on equity

7.0%

0.6 pts

Market cap

$1.5B

Nov 6 close

P/E

6.9x

On $1.63 EPS, 4 qtrs

Net margin is net income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on equity is net income as a share of shareholders' equity. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

What Ellington Financial does

Ellington Financial is a real estate investment trust (REIT) that invests in mortgage loans and other financial assets. A REIT generally pays no federal income tax on income it distributes to its stockholders, if it meets certain rules. It takes a credit-focused approach, which means it accepts the risk that borrowers may not repay in return for what it expects to be better returns.

Its main focus is residential and commercial mortgage loans bought through many origination channels, including some affiliated lenders. It also holds mortgage securities, consumer-related and corporate-related assets. Through its subsidiary Longbridge Financial, it originates, services and invests in reverse mortgage loans.

Ellington Financial has no staff of its own for investing. An outside manager, an affiliate of Ellington Management Group, runs its day-to-day business and relies on Ellington's people and systems. Most of its executives also serve as officers of the manager.

Its biggest risks, as it describes them

Trouble in the mortgage and real estate markets could reduce the value of its investments.
Borrowers may not pay, and no one guarantees payments on many of its loans and securities.
Changes affecting Fannie Mae and Freddie Mac could hurt its assets.
Its financing and hedging activities carry risks of their own.
It relies on analytical models that may prove wrong, and on an outside manager.

From Ellington Financial's annual report on Form 10-K, filed March 2, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new annual report.

Income statement

Revenue and net income

US$ billions, fiscal years; net losses in red. Revenue on the left axis, net income on the right; zero is the same line on both.

Revenue (left axis)Net income (right axis)

Gross profit, R&D and operating income

US$ billions, fiscal years. Gross profit is revenue minus the cost of what was sold; research and development is one of the costs paid from it; what remains after all operating costs is operating income. Losses in red.

Gross profitResearch and developmentOperating income

Margins

Percent of revenue

GrossOperatingNetFree cash flow

From fiscal 2017 to 2025, earnings per share grew 1.7% a year and net income 16.9% a year.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Balance sheet

Cash and debt

US$ billions, at each fiscal year end. Debt includes finance leases.

Cash and short-term investmentsDebt

Assets, liabilities and equity

US$ billions, at each fiscal year end. Assets equal liabilities plus equity; negative equity in red.

Total assetsTotal liabilitiesShareholders' equity

Debt and liquidity ratios

Times. Debt to equity, current assets over current liabilities, and net debt over EBITDA (a full year's).

Debt to equityCurrent ratioNet debt to EBITDA

Five years at a glance

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	93	217	229	192	202
Debt incl. finance leases	86	0	0	0	0
Net debt (negative means net cash)	−7	−217	−229	−192	−202
Net debt to EBITDA	—	−1.9x	−0.7x	−0.5x	−0.5x
Debt to equity	0.1x	0.0x	0.0x	0.0x	0.0x
Interest coverage	2.9x	0.8x	1.3x	1.4x	1.3x
Current ratio	—	—	—	—	—
Quick ratio	—	—	—	—	—

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Cash flow

Cash from operations, capital spending and free cash flow

US$ billions, fiscal years. Free cash flow is cash from operations minus capital spending; negative years in red.

Cash from operationsCapital spendingFree cash flow

Stock-based compensation and buybacks

US$ billions, fiscal years. Shares paid to employees (stock-based compensation, a cost that uses no cash) against cash spent buying shares back. Buybacks that only match it leave the share count roughly where it was.

Stock-based compensationShare buybacks

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Projections

Project Ellington Financial's revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.

Open Ellington Financial's projections

Insider trades

No officer, director or 10% owner of Ellington Financial reported buying or selling its shares on the open market between November 7, 2025 and November 6, 2026.

From Form 4 filings with the SEC. Grants, option exercises and shares withheld for tax aren't counted. Insider trades at all companies

Indicators

Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.

Indicator	FY23	FY24	FY25
Piotroski F-score	—	—	—
Rule of 40	274.2%	−130.5%	−265.0%
Altman Z''	—	—	—
Accruals ratio	2.1%	3.5%	5.8%

Piotroski F-score: how many of nine simple tests of profitability, funding and efficiency the company passed in the year (Piotroski, 2000); 8 or 9 is strong, 0 to 2 weak. Rule of 40: revenue growth plus free cash flow margin; software investors treat 40% or more as the bar. Altman Z'': working capital, retained earnings, operating income and equity weighed against assets and liabilities (Altman, 1995); Altman puts above 2.6 in the safe zone and below 1.1 in the distress zone. Accruals ratio: net income minus cash from operations, over average total assets; lower means profit is backed by cash.

The nine F-score tests

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Fail	Fail	Fail
Return on assets rose	Pass	Pass	Fail
Cash from operations exceeds net income	Fail	Fail	Fail
Debt fell relative to assets	Fail	Fail	Fail
Current ratio rose	—	—	—
Share count didn't rise	Fail	Fail	Fail
Gross margin rose	—	—	—
Revenue rose relative to assets	Pass	Pass	Pass
F-score	—	—	—

Companies that report no gross profit are scored on the other eight.

Compare

Put Ellington Financial side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Ellington Financial	FY25	10.1%	—	−275.1%	—	−0.5x	—
Hannon Armstrong Sustainable Infrastructure Capital	FY25	4.4%	—	—	—	—	—	Compare
Credit Acceptance	FY25	7.2%	—	45.4%	30.9%	1.0x	—	Compare
Amerisafe	FY25	2.7%	—	2.8%	—	—	—	Compare
Goosehead Insurance	FY25	16.1%	20.4%	23.6%	75.5%	3.0x	5	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score under Indicators.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	—	—	—	93	47	151	60	277	306	336
Revenue growth	—	—	—	—	−50.0%	223.7%	−60.3%	361.6%	10.4%	10.1%
Gross profit	—	—	—	—	—	—	—	—	—	—
Research and development	—	—	—	—	—	—	—	—	—	—
Operating income	36	35	43	—	—	—	—	—	—	—
Net income	−16	34	47	56	17	125	−85	61	118	119
Diluted EPS (US$)	−0.48	1.04	1.52	1.76	0.39	2.58	−1.43	0.89	1.36	1.19
Diluted shares (millions)	—	—	—	33	44	49	61	69	88	100
Cash flow
Cash from operations	70	−463	−494	79	120	51	43	−242	−430	−926
Capital expenditure	—	—	—	0	0	2	0	0	0	0
Free cash flow	—	—	—	79	119	49	42	−242	−431	−925
Dividends paid	65	58	51	54	65	86	123	149	164	184
Share buybacks	14	15	23	1	3	0	2	12	1	0
Acquisitions	0	0	0	0	0	0	39	0	0	0
Stock-based compensation	0	0	0	0	1	1	1	1	1	4
Balance sheet at fiscal year end
Cash and short-term investments	123	47	45	72	112	93	217	229	192	202
Debt incl. finance leases	0	85	85	85	86	86	0	0	0	0
Total assets	2,413	2,993	3,972	4,338	3,414	5,177	14,086	15,316	16,317	19,353
Total liabilities	1,768	2,372	3,376	3,470	2,492	3,854	12,865	13,780	14,726	17,482
Shareholders' equity	638	600	564	829	885	1,291	1,196	1,517	1,570	1,834
Margins and ratios
Gross margin	—	—	—	—	—	—	—	—	—	—
Operating margin	—	—	—	—	—	—	—	—	—	—
Net margin	—	—	—	60.5%	37.0%	83.0%	−142.2%	22.0%	38.5%	35.3%
Free cash flow margin	—	—	—	84.7%	255.8%	32.5%	70.8%	−87.3%	−140.9%	−275.1%
Rule of 40 (growth + FCF margin)	—	—	—	—	205.8%	256.2%	10.5%	274.2%	−130.5%	−265.0%
Return on capital	—	4.7%	5.3%	18.2%	3.6%	11.3%	8.0%	—	—	—
Return on equity	−2.3%	5.5%	8.0%	8.1%	2.0%	11.5%	−6.9%	4.5%	7.6%	7.0%
Return on assets	−0.6%	1.3%	1.3%	1.4%	0.4%	2.9%	−0.9%	0.4%	0.7%	0.7%
Net debt to EBITDA	—	—	—	—	—	—	−1.9x	−0.7x	−0.5x	−0.5x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Ellington Financial's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Ellington Financial.