Company: TWO-PC
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001465740-25-000152
Chunk: 66

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 1
Chunk 66
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 in the Company’s TRSs. During the three and nine months ended September 30, 2024, the Company recognized a benefit from income taxes of $10.5 million and a provision for income taxes of $15.7 million, respectively. The benefit recognized for the three months ended September 30, 2024 was primarily due to net losses recognized on MSR and operating expenses incurred, offset by net income from MSR servicing and mortgage loan origination activities in the Company’s TRSs. The provision recognized during the nine months ended September 30, 2024 was primarily due to net income from MSR servicing and mortgage loan origination activities, offset by net losses recognized on MSR and operating expenses incurred in the Company’s TRSs.Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s consolidated financial statements of a contingent tax liability for uncertain tax positions. Additionally, there were no amounts accrued for penalties or interest as of or during the periods presented in these consolidated financial statements.

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Table of ContentsTWO HARBORS INVESTMENT CORP.Notes to the Consolidated Financial Statements (unaudited)

Note 19. Earnings Per Share

The following table presents a reconciliation of the net loss and shares used in calculating basic and diluted loss per share for the three and nine months ended September 30, 2025 and 2024:Three Months EndedNine Months EndedSeptember 30,September 30,(in thousands, except share data)2025202420252024Basic Loss Per Share:Net (loss) income$(127,921)$(238,485)$(466,017)$21,439 Dividends on preferred stock(13,324)(11,784)(39,749)(35,352)Gain on repurchase and retirement of preferred stock— — — 644 Dividends and undistributed earnings allocated to participating restricted stock units(294)(303)(1,042)(940)Net loss attributable to common stockholders, basic$(141,539)$(250,572)$(506,808)$(14,209)Basic weighted average common shares104,144,560 103,635,455 104,069,057 103,531,431 Basic loss per weighted average common share$(1.36)$(2.42)$(4.87)$(0.14)Diluted Loss Per Share:Net loss attributable to common stockholders, basic