Shares of Chimera Investment (NYSE:CIM) plummeted 5.08% in pre-market trading on Wednesday following the release of its second quarter 2025 earnings report. The mortgage real estate investment trust (REIT) fell short of analyst expectations, triggering a selloff among investors.

Chimera reported adjusted earnings per share of $0.39 for the quarter, missing the consensus estimate of $0.46 by 15.22%. While this represents a 5.41% increase from the same period last year, it wasn't enough to satisfy market expectations. The company's net interest income also disappointed, coming in at $66.01 million, well below the analyst forecast of $81.395 million and representing a 1.91% decrease year-over-year.

Despite the earnings miss, Chimera announced some positive developments, including the acquisition of HomeXpress Mortgage Corporation, which is expected to strengthen its position in mortgage origination. The company also reported an economic return of 0.5% for the quarter and highlighted its efforts to enhance portfolio diversification through the addition of Agency RMBS and MSRs. However, these factors were not enough to offset investor concerns about the weaker-than-expected financial performance, leading to the significant drop in share price.