As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at thrifts & mortgage finance stocks, starting with Franklin BSP Realty Trust (NYSE: FBRT).

Thrifts & Mortgage Finance institutions operate by accepting deposits and extending loans primarily for residential mortgages, earning revenue through interest rate spreads (difference between lending rates and borrowing costs) and origination fees. The industry benefits from demographic tailwinds as millennials enter prime homebuying age, technological advancements streamlining the loan approval process, and potential interest rate stabilization improving affordability. However, significant headwinds include net interest margin compression during rate volatility, increased competition from fintech disruptors offering digital-first experiences, mounting regulatory compliance costs, and potential housing market corrections that could impact loan portfolios and default rates.

The 13 thrifts & mortgage finance stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 2.1% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.8% since the latest earnings results.

Franklin BSP Realty Trust (NYSE: FBRT)

Operating as a specialized real estate investment trust (REIT) with roots dating back to 2012, Franklin BSP Realty Trust (NYSE: FBRT) originates and manages a diversified portfolio of commercial real estate debt investments secured by properties in the United States and abroad.

Franklin BSP Realty Trust reported revenues of $84.04 million, up 49.8% year on year. This print fell short of analysts’ expectations by 10.3%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.

Michael Comparato, Chief Executive Officer of FBRT, said, “2025 was a year of transition for FBRT. We have diversified our business lines with the NewPoint acquisition and we have been sorting through the remaining legacy 2021 and 2022 assets. While we have managed through the credit cycle with minimal losses, it has taken longer to resolve and sell the real estate than we originally planned. This has led to over-distributing capital to investors. In order to stabilize our book value and match the earnings power of our company to distributions, our Board reset the quarterly dividend to $0.20. Our earnings power to support a meaningfully higher dividend remains unchanged, and the team is working tirelessly to position us for higher earnings. In the near term, our priority is delivering durable book value growth and matching our yields to our distributions. "

Unsurprisingly, the stock is down 10.6% since reporting and currently trades at $9.07.

Read our full report on Franklin BSP Realty Trust here, it’s free.

Best Q4: Arbor Realty Trust (NYSE: ABR)

With roots dating back to 2003 and a focus on the stability of multifamily housing, Arbor Realty Trust (NYSE: ABR) is a specialized lender that provides financing solutions for multifamily and commercial real estate while also originating and servicing government-backed mortgage loans.

Arbor Realty Trust reported revenues of $133.4 million, down 12.1% year on year, outperforming analysts’ expectations by 10.3%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 7.9% since reporting. It currently trades at $7.83.

Is now the time to buy Arbor Realty Trust? Access our full analysis of the earnings results here, it’s free.

Ladder Capital (NYSE: LADR)

Founded during the 2008 financial crisis when traditional lenders retreated from commercial real estate, Ladder Capital (NYSE: LADR) is a real estate investment trust that originates commercial real estate loans, owns commercial properties, and invests in real estate securities.

Ladder Capital reported revenues of $50.47 million, down 26.4% year on year, falling short of analysts’ expectations by 9.2%. It was a disappointing quarter as it posted a significant miss of analysts’ tangible book value per share estimates and a significant miss of analysts’ revenue estimates.

Ladder Capital delivered the slowest revenue growth in the group. As expected, the stock is down 7.3% since the results and currently trades at $10.25.

Read our full analysis of Ladder Capital’s results here.

PennyMac Financial Services (NYSE: PFSI)

Founded during the 2008 financial crisis to help address the mortgage market meltdown, PennyMac Financial Services (NYSE: PFSI) is a specialty financial services company that originates, services, and manages investments related to residential mortgage loans in the United States.

PennyMac Financial Services reported revenues of $537.1 million, flat year on year. This print lagged analysts' expectations by 15.4%. It was a softer quarter as it also produced a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.

PennyMac Financial Services had the weakest performance against analyst estimates among its peers. The stock is down 41.7% since reporting and currently trades at $87.28.

Read our full, actionable report on PennyMac Financial Services here, it’s free.

Ellington Financial (NYSE: EFC)

Operating under the guidance of Ellington Management Group, a respected name in structured credit markets, Ellington Financial (NYSE: EFC) acquires and manages a diverse portfolio of mortgage-related, consumer-related, and other financial assets to generate returns for investors.

Ellington Financial reported revenues of $78.24 million, up 8.7% year on year. This result came in 13.8% below analysts' expectations. Overall, it was a disappointing quarter as it also recorded a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.

The stock is down 4.3% since reporting and currently trades at $11.99.

Read our full, actionable report on Ellington Financial here, it’s free.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.