Bimini Capital outlines continued advisory revenue growth and board changes amid favorable RMBS conditions

Earnings Call Insights: Bimini Capital Management, Inc. (BMNM) Q3 2025

MANAGEMENT VIEW

* Robert Cauley, Chairman, CEO & Secretary, stated that "economic conditions appear to shift towards slower growth, lower rates and generally solid performance for Agency RMBS." He highlighted that the labor market has weakened over the past two quarters and noted the Federal Reserve's recent 25 basis point rate cuts in both September and October. He added, "The sector generated positive absolute and excess returns and the company and Orchid generated positive total returns for the quarter as well."
* Cauley indicated that Orchid continued to raise capital, expanding the base for advisory service revenue generation. He emphasized that advisory service revenues for the third quarter increased by 35% over the comparable 2024 period and by 17% over the second quarter of 2025.
* Cauley announced management changes, stating, "Frank has been an associate with the company since our initial capital raise in late 2003 and has served as a director since 2009... Frank resigned this past Wednesday. At the same time, I would like to welcome Ashley Griffith to the Board of Bimini. Ashley joined the Board yesterday. He brings a wealth of knowledge and expertise in the financial services industry and the securities markets."

OUTLOOK

* Cauley expressed that "the market remains generally conducive for both agency mortgage REIT performance and capital raising." He cautioned that the lack of economic data due to the government shutdown could result in the Federal Reserve withholding further monetary policy steps until more clarity emerges. He also stated, "In the interim, the company should continue to benefit from the favorable market conditions."

FINANCIAL RESULTS

* Cauley reported that advisory service revenues increased by 17% over the second quarter of 2025. He also stated, "Interest revenues decreased by 3% from the second quarter of 2025." The Advisory Services segment generated net income of $2.4 million, and the investment portfolio generated net income of $0.3 million for the third quarter of 2025.
* On a consolidated basis, Bimini generated net income of $1.8 million or $0.18 per share for the third quarter. For the nine months ended September 30, 2025, net income was $2.4 million or $0.24 per share. Book value per share as of September 30, 2025, was $0.92 versus $0.68 per share at December 31, 2024.

Q&A

* No analyst questions were presented during the call. Cauley stated, "To the extent that you have a question that comes up later or you listen to the replay and have a question, please feel free to call us at the office."

SENTIMENT ANALYSIS

* There were no analyst questions or commentary during the call, indicating a neutral or passive tone from the analyst community.
* Management maintained a confident tone in prepared remarks, emphasizing favorable market conditions and revenue growth, and acknowledged board transitions in a positive light. Cauley stated, "We look forward to his contributions to Bimini as we go forward."
* Compared to the previous quarter, management's tone shifted from cautious optimism amid market recovery to a more confident outlook, supported by improved financial results and favorable sector conditions. The absence of analyst participation in both quarters indicates ongoing limited external scrutiny.

QUARTER-OVER-QUARTER COMPARISON

* Guidance language shifted from cautious optimism in the second quarter, where markets were described as recovering from turmoil, to a more positive assessment of current conditions in the third quarter, with solid Agency RMBS performance and capital raising highlighted.
* Advisory service revenues increased more sharply in Q3 (35% year-over-year, 17% sequentially) compared to the 20% year-over-year and 6% sequential increases reported in Q2.
* Consolidated net income for Q3 ($1.8 million) was substantially higher than Q2's modest $43,000. Book value per share also increased from $0.68 at year-end 2024 to $0.92 at the close of Q3 2025.
* Management confidence appeared to strengthen in Q3, with more emphasis on growth opportunities and favorable market conditions, as opposed to the caution expressed in Q2 regarding tariff impacts and market volatility.
* The analyst community remained silent in both quarters, providing no additional scrutiny or pressure on management.

RISKS AND CONCERNS

* Cauley flagged macroeconomic uncertainty, referencing the government shutdown's impact on data availability, which may delay Federal Reserve policy decisions.
* He acknowledged the labor market's recent weakness but also pointed out strong GDP, retail sales, and corporate earnings as mitigating factors.
* Management did not specify additional risks but implied that evolving economic conditions could influence future results.

FINAL TAKEAWAY

Bimini Capital Management reported a strong third quarter with robust advisory service revenue growth, positive returns in Agency RMBS, and an increase in book value per share. The company addressed board changes and anticipates continued benefit from favorable market conditions, while remaining alert to macroeconomic uncertainties and the potential impact of limited economic data on Federal Reserve actions.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/bmnm/earnings/transcripts]

MORE ON BIMINI CAPITAL MANAGEMENT

* Bimini Capital Management, Inc. (BMNM) Q3 2025 Earnings Call Prepared Remarks Transcript [https://seekingalpha.com/article/4840337-bimini-capital-management-inc-bmnm-q3-2025-earnings-call-prepared-remarks-transcript]
* Seeking Alpha’s Quant Rating on Bimini Capital Management [https://seekingalpha.com/symbol/BMNM/ratings/quant-ratings]
* Financial information for Bimini Capital Management [https://seekingalpha.com/symbol/BMNM/income-statement]