Arbor Realty Trust’s QQ1 2026 results underscore a challenging up-cycle quarter dominated by a sizeable drag from legacy nonperforming and subperforming assets. Management reiterated progress on resolving delinquent loans and REO while deploying capital into performing assets to stabilize and grow run-rate income. Distributable earnings for the quarter were $0.18 per share, excluding $23 million of one-time realized losses tied to the resolution of delinquent/REO assets, and the Board reset the quarterly dividend to $0.17 per share to preserve capital given a higher-for-longer rate environment. The company remains focused on reducing non-interest income drag, expanding origination platforms across agency, balance sheet lending, single-family rental (SFR), and construction lending, and leveraging CLO and securitization opportunities to fund growth. Management projects a path to resolving most nonperforming assets over the next several quarters, with appreciable earnings lift anticipated in 2027 as the legacy backlog converts to performing assets and run-rate income normalizes. Commentary highlights a stabilized credit regime, a more constructive SFR/Build-to-Rent outlook, and disciplined capital allocation, including potential buybacks where appropriate.

Key Performance Indicators

Revenue

Decreasing

25.74M

QoQ: -91.80% | YoY: -82.24%

Gross Profit

Decreasing

-21.94M

-85.25% margin

QoQ: -107.65% | YoY: -117.54%

Operating Income

Decreasing

8.06M

QoQ: -96.45% | YoY: -89.81%

Net Income

Decreasing

12.92M

QoQ: -48.16% | YoY: -68.32%

EPS

Decreasing

0.07

QoQ: -10.74% | YoY: -58.44%

Revenue Trend

Margin Analysis

Key QQ1 2026 metrics and commentary (USD unless noted)
- Revenue: $25.74 million; Gross profit: -$21.94 million; EBITDA: $193.14 million; Operating income: $8.06 million; Net income: $12.92 million; EPS: $0.0665; Diluted EPS: $0.0610; Weighted average shares: 194.19 million (non-diluted), 211.74 million (diluted)
- YoY / QoQ revenue: -82.2% / -91.8%; Gross profit: -117.5% / -107.7%; Operating income: -89.8% / -96.5%; Net income: -68.3% / -48.2%; EPS: -58.4% / -10.7%
- Distributable earnings: $37.4 million for Q1, or $0.18 per share, excluding $23 million of one-time realized losses
- Dividend: Board reset to $0.17 per share; expected to be covered by earnings for remainder of 2026 with potential for growth in late 2026 and 2027
- Balance sheet / liquidity: cash and cash equivalents $407.1 million; total assets $14.692 billion; total stockholders’ equity $2.980 billion; preferred stock $0.634 billion; CECL reserve ~ $131 million on loans; REO impairment reserves ~$21.5 million in 1Q06; REO target $250–$300 million by year-end 2026; nonperforming assets (delinquencies + REO) ~$1.0 billion at 3/31/26
- Core asset yields / funding: core investments ~$12.0 billion; all-in debt cost ~6.4%; average cost of funds ~6.52%; spot net interest spreads flat ~0.63%; MSR portfolio supports roughly $129 million gross annual servicing income; balanced across GSE agency origination and balance sheet lending
- Production and pipeline: agency and balance sheet lending pipelines – Q1 agency volume to $795 million (incl. $88 million CMBS brokerage); Q2 production underway with ~ $350 million closed through May 2026; construction lending closed $113 million in Q1 with ~$250 million expected in Q2; SFR origination ~$125 million in Q1 with a potential material uptick as housing legislation clarifications emerge; target production range for 2026 remains $750 million to $1 billion
- Guidance signals: expect Q2 earnings around $0.15–$0.17 per share (adjusted for a ~$0.02 drag), Q3 around $0.17, potential growth in Q4, and meaningful upside in 2027 as delinquent assets convert to performing loans.
- Market stance: improving sentiment on SFR/build-to-rent post-legislation clarifications; rates higher-for-longer path acknowledged; emphasis on reducing non-interest income drag and accelerating legacy asset resolution with guarantees and capital support for underlying properties.

Arbor Realty Trust Inc (ABR-PE) Q1 2026 Earnings Report

Company Status Snapshot

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue Trend

Margin Analysis

Financial Highlights

Income Statement

Key Financial Ratios

Metric	Value	YoY Change	QoQ Change
Revenue	25.74M	-82.24%	-91.80%
Gross Profit	-21.94M	-117.54%	-107.65%
Operating Income	8.06M	-89.81%	-96.45%
Net Income	12.92M	-68.32%	-48.16%
EPS	0.07	-58.44%	-10.74%