The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Franklin BSP Realty Trust (NYSE: FBRT) and the rest of the thrifts & mortgage finance stocks fared in Q1.

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 3.9% since the latest earnings results.

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. This print fell short of analysts’ expectations by 17.4%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ revenue and net interest income estimates.

Michael Comparato, Chief Executive Officer of FBRT, said, “We believe we are nearing the end of this cycle, and our focus has been on positioning the portfolio accordingly by resolving legacy assets and deploying capital selectively where we see the best risk-adjusted returns. We also made meaningful progress this quarter, including completing the transition of all BSP CRE loans to be serviced internally by NewPoint, a significant step in our integration. With a growing portfolio, strong liquidity, and multiple avenues for deployment, we believe the Company is increasingly well positioned to drive more durable earnings and long-term value."

Franklin BSP Realty Trust delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 4.7% since reporting and currently trades at $8.55.

Read our full report on Franklin BSP Realty Trust 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 118% 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. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $14.16.

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

Ladder Capital (NYSE: LADR)

Founded during the 2008 financial crisis when traditional lenders retreated from commercial real estate, Ladder Capital (NYSE: LADR) is a real estate investment trust that originates commercial real estate loans, owns commercial properties, and invests in real estate securities.

Ladder Capital reported revenues of $51.91 million, up 1.2% year on year, falling short of analysts’ expectations by 1%. It was a softer quarter as it posted a significant miss of analysts’ tangible book value per share and net interest income estimates.

The stock is flat since the results and currently trades at $10.19.

Read our full analysis of Ladder Capital’s results here.

Columbia Financial (NASDAQ: CLBK)

Founded during the Roaring Twenties in 1926 and headquartered in Fair Lawn, New Jersey, Columbia Financial (NASDAQ: CLBK) operates federally chartered savings banks in New Jersey that offer traditional banking services including loans, deposits, and insurance products.

Columbia Financial reported revenues of $66.18 million, up 18.5% year on year. This print beat analysts’ expectations by 9.1%. Aside from that, it was a slower quarter as it produced EPS and net interest income in line with analysts’ estimates.

The stock is up 9.2% since reporting and currently trades at $20.11.

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

Arbor Realty Trust (NYSE: ABR)

With roots dating back to 2003 and a focus on the stability of multifamily housing, Arbor Realty Trust (NYSE: ABR) is a specialized lender that provides financing solutions for multifamily and commercial real estate while also originating and servicing government-backed mortgage loans.

Arbor Realty Trust reported revenues of $117.4 million, down 12.5% year on year. This result surpassed analysts’ expectations by 3.5%. Zooming out, it was a satisfactory quarter as it also recorded a solid beat of analysts’ net interest income estimates but a significant miss of analysts’ EPS estimates.

Arbor Realty Trust had the slowest revenue growth among its peers. The stock is down 32.5% since reporting and currently trades at $5.51.

Read our full, actionable report on Arbor Realty Trust 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 Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.