Adamas Trust's stock was up 17.9% in six months and 37.6% over the past year, closing at $9.15 on July 14.
That rally coexists with two warnings in the company’s recent 10-Q: financing costs have climbed sharply, and the cash that actually shows up in the bank is not the same as the accounting profit.
"Adjusted interest expense increased for the three- and six- month periods by approximately $24.7 million and $51.9 million, respectively, as a result of increased financing obtained to fund investing activity through repurchase agreements, warehouse facilities and securitizations as well as issuance of senior unsecured notes." (Adamas Trust / 10-Q / 2026-07-31)
Adamas borrowed more, repos, warehouse lines, securitizations, and new senior notes, and those borrowings added roughly $24.7 million of extra interest in the quarter and about $51.9 million over six months. For a mortgage REIT that levers assets to earn spread, rising financing cost is a direct pressure on net interest margin and on the cash left after paying lenders.
The next quoted warning goes to accounting quality.
"Our cash flow provided by operating activities differs from our net income due to these primary factors: (i) differences between (a) accretion, amortization, depreciation and recognition of income and losses recorded with respect to our investments and (b) the cash received therefrom and (ii) unrealized gains and losses on our investments (including impairment of real estate)." (Adamas Trust / 10-Q / 2026-07-31)
a big chunk of what shows up as profit on the income statement is noncash: accretion, amortization, and marks on investments. The company is telling shareholders that net income and operating cash flow can diverge materially because of those accounting items and unrealized mark-to-market swings.
Put those two facts together and you have the tension that defines this quarter: investors have pushed the stock higher over the last year, while the filings repeatedly flag financing costs that rose tens of millions in months and an earnings profile heavy on noncash items. The filings also list restructuring and cost-reduction issues as recurring adverse items across prior reports, which could affect operating cash generation.
The price action, a 6-month gain of 17.9% and a 12-month gain of 37.6%, reflects demand from buyers. The filing details flag mechanics that can erode returns quickly if funding costs stay higher or if mark-to-market swings turn negative.
The filing presents a tension: rising, material financing costs and accounting volatility on one hand; a market bid for the shares on the other. The filings put both facts on the table; they do not pick which will matter more to future cash generation.
Figures on the rise in adjusted interest expense and the gap between net income and operating cash flow are taken from Adamas Trust’s 10-Q filed July 31, 2026.