ULM SCOTT 4

What Happened
Scott Ulm, CEO and a director of Armour Residential REIT (ARR), converted 3,380 vested phantom stock units on February 24, 2026. He received 2,028 actual shares of ARMOUR common stock and converted the remaining 1,352 phantom units to cash to cover income tax withholding (1,352 units × $17.89 = $24,187). The phantom units have no exercise price; the common shares received are valued at approximately $17.89 per share (2,028 × $17.89 ≈ $36,281).

Key Details

• Transaction date: February 24, 2026; Form 4 filed February 26, 2026 (timely).
• Conversion/exercise type: phantom stock conversion (derivative transaction, code M) and tax withholding via cash settlement (code F).
• Shares acquired: 2,028 common shares issued to Ulm.
• Shares disposed/withheld for taxes: 1,352 phantom units converted to cash for $24,187.
• Per-share value used for the tax withholding: $17.89.
• Shares owned after the transaction: not disclosed in the provided excerpt of the filing.
• Footnotes: Each phantom unit equals one share of ARMOUR common stock. The 3,380 units relate to previously reported phantom stock grants (reported on Form 4s filed Jan 14, 2021 and Feb 16, 2023).

Context
Phantom stock is an award that mirrors the economic value of shares; converting vested phantom units into shares is effectively receiving a stock award. The cash conversion of a portion of the units to cover taxes is a routine withholding practice and does not necessarily indicate a separate open‑market sale. Purchases or direct buys by insiders can be more indicative of bullishness; this filing documents a standard vesting/conversion and tax withholding event.