Company: TWO-PC
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001465740-25-000152
Chunk: 67

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 1
Chunk 67
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$(141,539)$(250,572)$(506,808)$(14,209)Reallocation impact of undistributed earnings to participating restricted stock units— — — — Interest expense attributable to convertible notes— — — — Net loss attributable to common stockholders, diluted$(141,539)$(250,572)$(506,808)$(14,209)Basic weighted average common shares104,144,560 103,635,455 104,069,057 103,531,431 Effect of dilutive shares issued in an assumed vesting of performance share units— — — — Effect of dilutive shares issued in an assumed conversion— — — — Diluted weighted average common shares104,144,560 103,635,455 104,069,057 103,531,431 Diluted loss per weighted average common share$(1.36)$(2.42)$(4.87)$(0.14)For the three and nine months ended September 30, 2025 and 2024, excluded from the calculation of diluted earnings per share was the effect of adding undistributed earnings reallocated to participating RSUs, the assumed vesting of outstanding PSUs and the assumed conversion of the Company’s convertible senior notes, as inclusion for each would have been antidilutive under the two-class method for all periods.

Note 20. Segment Reporting

The Company generally derives its revenues from its investment portfolio of MSR and Agency RMBS, which includes servicing fee income, float income, ancillary and other fee income, and interest income, net of premium amortization and discount accretion, and mortgage loan origination activities established primarily to benefit the MSR portfolio through the retention or recapture of existing borrowers. The Company’s investment portfolio is subject to market risks, primarily interest rate risk, basis risk and prepayment risk. Through its investment in MSR and interest-only Agency RMBS, management seeks to offset a portion of its Agency pool market value exposure. The Company’s strategy of pairing MSR and Agency RMBS, with a focus on managing various associated risks, including interest rate, basis, prepayment, and credit and financing risk, is intended to generate more stable performance, relative to an investment portfolio of Agency RMBS without MSR, across changing market environments. 

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