ADAM Nasdaq Earnings call
Adamas Trust, Inc. (ADAM) · Q2 2026 results and valuation
Share price: $5.33 · 2026-11-11
ADAMAS TRUST, INC. is a real estate investment trust that manages a portfolio of residential and multi-family real estate assets, mortgage-backed securities, and other credit-related investments. The company also operates a mortgage origination business providing business purpose loans for residential real estate investors in the United States. Source: 10-K annual report (2026-02-20)
Results Q2 2026 vs Q1 2026 · previous quarter · published 30 Jul 2026 and 30 Apr 2026
Net income up 13.5% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.
1 · Numbers
+13.5%
Net income vs Q1 2026
Outlook given
Net income 55.2M vs 48.6M
Revenue −26.6%
Against the same quarter last year (Q2 2025) it is +545.7%, so it is not just seasonal.
Why Against the same quarter last year (+545.7%), net income increased primarily because the net interest spread rose to 148 basis points due to lower financing costs, while mortgage banking income grew to $16.2 million from stronger gains on loan sales and higher origination fee income.
2 · How management spoke
Upbeat
More upbeat than 67% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Adamas Trust, Inc. expanded its investment portfolio by more than $800 million to $11.7 billion, representing 36% growth from a year ago.
Valuation
Is Adamas Trust, Inc. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 10.0% growth a year (the standard assumption), the model's fair value is $26.80 a share — the stock trades 80% below it. Today's price assumes −6.1% growth a year.
Current price
$5.33
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
-6.1% for 10 yrs
Fair value / share
$26.80
Buy below
$20.10
Price vs fair value
Undervalued 80%
Price vs buy-below price
Undervalued 73%
Read between the lines
-
Figure
ADAM onboarded a new institutional loan financing counterparty that will deliver approximately 60 basis points of savings compared to their existing financing lines.
Source quote
“During the quarter, we onboarded a new institutional loan financing counterparty that will deliver approximately 60 basis points of savings compared to their existing financing lines.”
-
Guidance
The company expects that the 56% capital allocation to remain relatively stable.
-
Figure
The investment portfolio expanded by more than $800 million to $11.7 billion, a 36% increase from a year ago, to provide a foundation to support future earnings.
Source quote
“We expanded our investment portfolio by more than $800 million to $11.7 billion, representing 36% growth from a year ago and providing an even stronger foundation to support future earnings.”
-
Figure
The company added a record $632 million of business purpose loans primarily sourced through Constructive's origination platform during the quarter.
Source quote
“During the quarter, we added a record $632 million of business purpose loans, primarily sourced through Constructive's origination platform.”
-
Figure
The company purchased almost $1.5 billion of single-family assets, split across $798 million in agencies and $679 million in residential credit.
Source quote
“We purchased almost $1.5 billion of single-family assets, split across $798 million in agencies and $679 million in residential credit.”
4 more
-
Figure
Non-QM origination and deal activity increased year-to-date non-agency residential issuance to $132 billion.
Source quote
“Robust non-QM origination and deal activity have brought the year-to-date non-agency residential issuance to $132 billion.”
-
Figure
The BPL rental portfolio grew to $2.3 billion this quarter.
Source quote
“Our BPL rental portfolio has grown to $2.3 billion.”
-
Guidance
Constructive identified approximately $3 million of annual cost savings across its loan origination process, with implementation expected to occur over the coming quarters.
-
Figure
The Board increased the quarterly dividend to $0.27 per share, which remains well covered by EAD.
Source quote
“Our Board increased the quarterly dividend to $0.27 per share, which remains well covered by EAD.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Mortgage banking income increased to $16.2 million, benefiting from stronger gains on loan sales and higher origination fee income.”
“Net interest income increased to $50.2 million during the quarter, while adjusted net interest income increased to $50.3 million, reflecting continued portfolio expansion across agency investments and BPL rental loans.”
“We delivered on another quarter of earnings growth, increased book value and expanded our investment portfolio and continue to make progress on scaling constructive into a larger contributor to recurring...”
Full figures
USD · ROIC.AI fundamentals (NASDAQ:ADAM, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 105.1M | 143.1M | −26.6% | 52.4M | +100.7% |
| Net income | 55.2M | 48.6M | +13.5% | 8.5M | +545.7% |
| EPS | 0.48 | 0.41 | +18.2% | -0.04 | Turned profit |
| P/E | 5.6 | 6.3 | −0.7 | 35.3 | −29.7 |
Topics
Most discussed now
- New Adamas Trust does see a pretty consistent level of the pipeline.
- Adamas Trust's earnings are supported by 3 complementary businesses: a high-quality Agency RMBS portfolio, a growing residential credit…
- The benefits of Adamas Trust's integration with Constructive paired with a robust origination pipeline are becoming increasingly evident…
- More broadly, Adamas Trust believes that directing incremental capital to the best relative value opportunities across its core strategies…
- Net interest income increased to $50.2 million during the quarter, while adjusted net interest income increased to $50.3 million…
Faded since Q1 2026
- Fading The change in net interest spread reflects the continued transition of Adamas Trust's portfolio toward Agency RMBS and BPL rental loans,...
- Dropped Agency current coupon spreads to treasuries reached multiyear tights of 94 basis points in late January, driven by the administration's...
- Dropped It was a quarter where both recurring income or EAD and nonrecurring items worked in Adamas Trust's favor.
- Fading Its investment portfolio reached $10.9 billion at the end of the first quarter, with further growth expected as Adamas Trust continues...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations; Regulation FD disclosure · SEC 8-K
- Other events · SEC 8-K
Adamas Trust, Inc. declared cash dividends for the period from July 15, 2026, to October 14, 2026, for its Series D, E, F, and G preferred stocks.
- Other events · SEC 8-K
Adamas Trust, Inc. completed the issuance and sale of $90 million of its 9.600% Senior Notes due 2031 in a public offering on August 14, 2026.
- Other events · SEC 8-K
Adamas Trust, Inc. entered into an underwriting agreement to sell $90 million of its 9.600% Senior Notes due 2031, with an option for underwriters to purchase an additional $13.5 million.
- Regulation FD disclosure; Other events · SEC 8-K
Adamas Trust, Inc. declared a regular quarterly cash dividend of $0.30 per share for the quarter ending September 30, 2026, payable on October 28, 2026.
- Results of operations; Regulation FD disclosure · SEC 8-K
Adamas Trust, Inc. issued a press release on July 29, 2026, announcing its financial results for the three and six months ended June 30, 2026.
- Other events · SEC 8-K
Adamas Trust, Inc. entered into an equity distribution agreement to offer and sell common stock with a maximum aggregate offering price of up to $250,000,000.
- Director or officer change; Shareholder vote results; Other events · SEC 8-K
Stockholders approved the Third Amendment to the 2017 Equity Incentive Plan, increasing the share pool by 9,000,000 shares and raising the annual compensation limit for non-employee directors to $750,000.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
-
this year
completion of 5 to 6 BPL rental securitizations
Source quote
“As we mentioned before, Adamas is on track to complete 5 to 6 BPL rental securitizations this year.”
-
over the coming quarters
implementation of cost savings improvements
Source quote
“In aggregate, Constructive has identified approximately $3 million of annual cost savings across its loan origination process, and we expect that the implementation of these improvements to occur over the coming quarters.”
-
latter half of 2026 and into 2027
annual savings start to flow through to Constructive's financials
Source quote
“As a result, these annual savings should start to flow through to Constructive's financials in the latter half of 2026 and into 2027.”
-
in 2026
estimated G&A ratio
Source quote
“Total consolidated G&A was $25.6 million, which is within our estimated G&A ratio of approximately 7% to 7.5% in 2026.”
-
as we enter the second half of 2026
positioning of Adamas
Source quote
“We believe those results position Adamas well as we enter the second half of 2026.”