Chimera Investment Corporation (NYSE: CIM) saw its stock price plummet by 5.08% in pre-market trading on Thursday following the release of its disappointing third-quarter 2025 earnings report. The company reported a GAAP net loss of $0.27 per diluted common share, falling short of analyst expectations and raising concerns among investors.

The real estate investment trust's financial performance for the quarter ended September 30, 2025, revealed several challenges. While Chimera reported earnings available for distribution of $0.37 per adjusted diluted common share, this figure missed the consensus estimate of $0.46 provided by three analysts. The company's pretax profit for the quarter was negative $329,000, with net interest income standing at $65.011 million.

Adding to investor concerns, Chimera reported an economic return of -1.4% for the quarter, indicating difficulties in current market conditions. However, the company did complete the acquisition of HomeXpress for $240 million in cash and stock, a move aimed at diversifying and growing earnings. Despite this strategic initiative, the market's immediate reaction suggests that investors are focusing on the short-term earnings miss rather than potential long-term benefits from the acquisition. As Chimera navigates these challenges, market participants will be closely watching for signs of improvement in the coming quarters.