As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at thrifts & mortgage finance stocks, starting with Flagstar Financial (NYSE: FLG).

Thrifts & Mortgage Finance institutions operate by accepting deposits and extending loans primarily for residential mortgages, earning revenue through interest rate spreads (difference between lending rates and borrowing costs) and origination fees. The industry benefits from demographic tailwinds as millennials enter prime homebuying age, technological advancements streamlining the loan approval process, and potential interest rate stabilization improving affordability. However, significant headwinds include net interest margin compression during rate volatility, increased competition from fintech disruptors offering digital-first experiences, mounting regulatory compliance costs, and potential housing market corrections that could impact loan portfolios and default rates.

The 12 thrifts & mortgage finance stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 4.1% while next quarter’s revenue guidance was 1.5% below.

While some thrifts & mortgage finance stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.5% since the latest earnings results.

Flagstar Financial (NYSE: FLG)

Tracing its roots back to 1859 and rebranded from New York Community Bancorp in 2024, Flagstar Financial (NYSE: FLG) is a bank holding company that offers commercial and consumer banking services, with specialties in multi-family lending, mortgage originations, and warehouse lending.

Flagstar Financial reported revenues of $507 million, up 3.5% year on year. This print fell short of analysts’ expectations by 8.3%. Overall, it was a slower quarter for the company with a significant miss of analysts’ revenue and net interest income estimates.

Commenting on the Bank's first quarter performance, Chairman, President, and Chief Executive Officer, Joseph M. Otting stated, "We are pleased to report another quarter of solid progress, highlighted by our second consecutive quarter of profitability and continued momentum across our core banking franchise. We reported net income attributable to common stockholders of $13 million, or $0.03 per diluted share on a GAAP basis and net income attributable to common stockholders of $20 million or $0.04 per diluted share on an adjusted basis. Our first quarter 2026 performance reflects the disciplined execution of our strategic plan and improving fundamentals, including strong C&I loan growth, a higher level of deposits, additional progress in reducing the level of non-accrual and criticized/classified loans, further expansion of our net interest margin, and a strong capital position.

The market seems disappointed with the results as the stock is down 2.1% since reporting and currently trades at $14.05.

Read our full report on Flagstar Financial here, it’s free.

Best Q1: Rocket Companies (NYSE: RKT)

Born in Detroit during the 1980s and evolving into a tech-driven financial powerhouse, Rocket Companies (NYSE: RKT) is a fintech company that provides digital mortgage lending, real estate services, and personal finance solutions through its technology platform.

Rocket Companies reported revenues of $2.82 billion, up 108% year on year, outperforming analysts’ expectations by 2%. The business had an exceptional quarter with a beat of analysts’ EPS and revenue estimates.

Rocket Companies achieved the fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 12.8% since reporting. It currently trades at $12.35.

Is now the time to buy Rocket Companies? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Franklin BSP Realty Trust (NYSE: FBRT)

Operating as a specialized real estate investment trust (REIT) with roots dating back to 2012, Franklin BSP Realty Trust (NYSE: FBRT) originates and manages a diversified portfolio of commercial real estate debt investments secured by properties in the United States and abroad.

Franklin BSP Realty Trust reported revenues of $60.39 million, up 6.1% year on year, falling short of analysts’ expectations by 17.4%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and net interest income estimates.

Franklin BSP Realty Trust delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 4.6% since the results and currently trades at $8.56.

Read our full analysis of Franklin BSP Realty Trust’s results here.

PennyMac Mortgage Investment Trust (NYSE: PMT)

Operating as a real estate investment trust since 2009 to maintain tax advantages, PennyMac Mortgage Investment Trust (NYSE: PMT) is a specialty finance company that invests in mortgage-related assets and operates a correspondent lending business.

PennyMac Mortgage Investment Trust reported revenues of $82.13 million, up 84.7% year on year. This print lagged analysts’ expectations by 15.1%. It was a slower quarter as it also recorded a significant miss of analysts’ revenue and EPS estimates.

The stock is down 17.7% since reporting and currently trades at $9.99.

Read our full, actionable report on PennyMac Mortgage Investment Trust here, it’s free.

PennyMac Financial Services (NYSE: PFSI)

Founded during the 2008 financial crisis to help address the mortgage market meltdown, PennyMac Financial Services (NYSE: PFSI) is a specialty financial services company that originates, services, and manages investments related to residential mortgage loans in the United States.

PennyMac Financial Services reported revenues of $583.1 million, up 10.8% year on year. This number topped analysts’ expectations by 5.3%. However, it was a slower quarter as it recorded a significant miss of analysts’ net interest income and tangible book value per share estimates.

The stock is down 9.1% since reporting and currently trades at $79.55.

Read our full, actionable report on PennyMac Financial Services here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.