Ellington Financial Inc.EFC
Ellington Financial Inc. Segments Disclosure
Segment Reporting
An operating segment is defined as a component of an entity that (i) engages in business activities from which revenues are recognized and expenses incurred, (ii) has discrete financial information available, and (iii) is evaluated on a regular basis by the Chief Operating Decision Maker (the "CODM") for decision-making purposes, including investment and operating decisions, such as capital and resource allocation decisions; and communicates results, strategy, and other relevant information to the Board of Directors and shareholders. The Company's CODM is, collectively, its Chief Executive Officer and President and its Co-Chief Investment Officers.
The Company has determined that it has two reportable segments, the Investment Portfolio Segment and the Longbridge Segment. The Company’s CODM assesses each segment’s performance and makes investment and operating decisions, based on each segment's contribution of net income, among other metrics.
As discussed in Note 1, the Investment Portfolio Segment includes a diverse array of the Company's financial assets, as well as associated financing, hedging, and various allocable expenses. The Longbridge Segment is primarily focused on the origination and servicing of, and investment in, reverse mortgage loans, including associated financial assets, financing, hedging, and allocated expenses.
Income and expense items that are not directly allocable to either segment are included in Corporate/Other as reconciling items to the Company's consolidated financial statements. These unallocable items include: (i) all income and expense items related to the Company's Unsecured borrowings, at fair value and preferred stock outstanding, including any hedges related thereto; (ii) management and incentive fees; (iii) income tax expense (benefit); (iv) certain compensation and benefits expenses and various other expenses; and (v) interest income (expense) on cash margin.
The following tables present the Company's results of operations by reportable segment for the years ended December 31, 2025, 2024, and 2023, and various reconciling items to the Company's results of operations overall. Other segment expenses may include professional, administrative and custody fees, technology- and data-related expenses, marketing expenses, licensing fees, rent and miscellaneous office expenses, and non-cash equity compensation.
| Year Ended December 31, 2025 | |||||||||||||||||||||||
| (In thousands) | Investment Portfolio Segment | Longbridge Segment | Corporate/ Other | Total | |||||||||||||||||||
| Interest income | $ | 375,731 | $ | 111,994 | $ | 6,765 | $ | 494,490 | |||||||||||||||
| Total other income (loss) | 554 | 158,741 | (12,808) | 146,487 | |||||||||||||||||||
| Significant expenses: | |||||||||||||||||||||||
| Interest expense | (196,480) | (84,654) | (23,399) | (304,533) | |||||||||||||||||||
| Base management fee to affiliate (net of fee rebates) | — | — | (25,404) | (25,404) | |||||||||||||||||||
| Incentive fee to affiliate | — | — | (4,533) | (4,533) | |||||||||||||||||||
| Investment and transaction related expenses—Servicing expense | (6,063) | (22,497) | — | (28,560) | |||||||||||||||||||
| Investment and transaction related expenses—Other | (16,112) | (30,135) | (5,962) | (52,209) | |||||||||||||||||||
| Compensation and benefits | (8,788) | (69,942) | (4,903) | (83,633) | |||||||||||||||||||
| Other expenses | — | (28,835) | (15,362) | (44,197) | |||||||||||||||||||
Net Income (Loss) before Income Tax Expense (Benefit) and Earnings (Losses) from Investments in Unconsolidated Entities | 148,842 | 34,672 | (85,606) | 97,908 | |||||||||||||||||||
| Income tax expense (benefit) | — | — | 3,792 | 3,792 | |||||||||||||||||||
| Earnings (losses) from investments in unconsolidated entities | 56,653 | — | — | 56,653 | |||||||||||||||||||
| Net Income (Loss) | 205,495 | 34,672 | (89,398) | 150,769 | |||||||||||||||||||
| Net income (loss) attributable to non-controlling interests | 2,569 | — | 1,331 | 3,900 | |||||||||||||||||||
| Dividends on preferred stock | — | — | 28,126 | 28,126 | |||||||||||||||||||
| Net Income (Loss) Attributable to Common Stockholders | $ | 202,926 | $ | 34,672 | $ | (118,855) | $ | 118,743 | |||||||||||||||
| Non-cash items: | |||||||||||||||||||||||
| Amortization and depreciation expense | $ | — | $ | 992 | $ | — | $ | 992 | |||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||
| (In thousands) | Investment Portfolio Segment | Longbridge Segment | Corporate/ Other | Total | |||||||||||||||||||
| Interest income | $ | 358,308 | $ | 50,660 | $ | 7,047 | $ | 416,015 | |||||||||||||||
| Total other income (loss) | 28,621 | 156,549 | (15,932) | 169,238 | |||||||||||||||||||
| Significant expenses: | |||||||||||||||||||||||
| Interest expense | (216,144) | (45,187) | (18,275) | (279,606) | |||||||||||||||||||
| Base management fee to affiliate (net of fee rebates) | — | — | (23,460) | (23,460) | |||||||||||||||||||
| Investment and transaction related expenses—Servicing expense | (5,348) | (18,832) | — | (24,180) | |||||||||||||||||||
| Investment and transaction related expenses—Other | (9,853) | (23,031) | — | (32,884) | |||||||||||||||||||
| Compensation and benefits | (5,523) | (58,396) | (4,812) | (68,731) | |||||||||||||||||||
| Other expenses | — | (24,418) | (15,703) | (40,121) | |||||||||||||||||||
Net Income (Loss) before Income Tax Expense (Benefit) and Earnings (Losses) from Investments in Unconsolidated Entities | 150,061 | 37,345 | (71,135) | 116,271 | |||||||||||||||||||
| Income tax expense (benefit) | — | — | 612 | 612 | |||||||||||||||||||
| Earnings (losses) from investments in unconsolidated entities | 32,445 | — | — | 32,445 | |||||||||||||||||||
| Net Income (Loss) | 182,506 | 37,345 | (71,747) | 148,104 | |||||||||||||||||||
| Net income (loss) attributable to non-controlling interests | 1,010 | 77 | 1,156 | 2,243 | |||||||||||||||||||
| Dividends on preferred stock | — | — | 27,697 | 27,697 | |||||||||||||||||||
| (Gain) loss on redemption of preferred stock | — | — | 335 | 335 | |||||||||||||||||||
| Net Income (Loss) Attributable to Common Stockholders | $ | 181,496 | $ | 37,268 | $ | (100,935) | $ | 117,829 | |||||||||||||||
| Non-cash items | |||||||||||||||||||||||
| Amortization and depreciation expense | $ | — | $ | 1,469 | $ | — | $ | 1,469 | |||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||
| (In thousands) | Investment Portfolio Segment | Longbridge Segment | Corporate/ Other | Total | |||||||||||||||||||
| Interest income | $ | 344,575 | $ | 18,913 | $ | 6,684 | $ | 370,172 | |||||||||||||||
| Total other income (loss) | 12,457 | 118,512 | 38,230 | 169,199 | |||||||||||||||||||
| Significant expenses: | |||||||||||||||||||||||
| Interest expense | (223,814) | (25,822) | (12,815) | (262,451) | |||||||||||||||||||
| Base management fee to affiliate (net of fee rebates) | — | — | (20,419) | (20,419) | |||||||||||||||||||
| Investment and transaction related expenses—Servicing expense | (4,843) | (15,521) | — | (20,364) | |||||||||||||||||||
| Investment and transaction related expenses—Other | (5,106) | (11,754) | — | (16,860) | |||||||||||||||||||
| Compensation and benefits | (6,238) | (50,259) | (21,937) | (78,434) | |||||||||||||||||||
| Other expenses | — | (24,374) | (27,259) | (51,633) | |||||||||||||||||||
Net Income (Loss) before Income Tax Expense (Benefit) and Earnings (Losses) from Investments in Unconsolidated Entities | 117,031 | 9,695 | (37,516) | 89,210 | |||||||||||||||||||
| Income tax expense (benefit) | — | — | 457 | 457 | |||||||||||||||||||
| Earnings (losses) from investments in unconsolidated entities | (855) | — | — | (855) | |||||||||||||||||||
| Net Income (Loss) | 116,176 | 9,695 | (37,973) | 87,898 | |||||||||||||||||||
| Net income (loss) attributable to non-controlling interests | 3,125 | (41) | 730 | 3,814 | |||||||||||||||||||
| Dividends on preferred stock | — | — | 23,182 | 23,182 | |||||||||||||||||||
| Net Income (Loss) Attributable to Common Stockholders | $ | 113,051 | $ | 9,736 | $ | (61,885) | $ | 60,902 | |||||||||||||||
| Non-cash items | |||||||||||||||||||||||
| Amortization and depreciation expense | $ | — | $ | 1,095 | $ | — | $ | 1,095 | |||||||||||||||
The following tables present the Company's balance sheet by reportable segment as of December 31, 2025 and 2024 which reconciles to the Company's financial position overall.
| December 31, 2025 | ||||||||||||||||||||||||||
| (In thousands) | Investment Portfolio Segment | Longbridge Segment | Corporate/ Other | Total | ||||||||||||||||||||||
| Total Assets | $ | 6,382,070 | $ | 12,782,482 | $ | 188,358 | $ | 19,352,910 | ||||||||||||||||||
| Total Liabilities | 4,228,911 | 12,500,150 | 752,694 | 17,481,755 | ||||||||||||||||||||||
| Total Equity | 2,153,159 | 282,332 | (564,336) | 1,871,155 | ||||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||
| (In thousands) | Investment Portfolio Segment | Longbridge Segment | Corporate/ Other | Total | ||||||||||||||||||||||
| Total Assets | $ | 5,628,583 | $ | 10,493,971 | $ | 194,474 | $ | 16,317,028 | ||||||||||||||||||
| Total Liabilities | 4,076,568 | 10,270,289 | 379,349 | 14,726,206 | ||||||||||||||||||||||
| Total Equity | 1,552,015 | 223,682 | (184,875) | 1,590,822 | ||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.