AGNC Investment Corp falls after significant Q2 earnings miss

Published 21/07/2025, 21:14
AGNC Investment Corp falls after significant Q2 earnings miss

Investing.com -- AGNC Investment Corp (NASDAQ:AGNC) reported a comprehensive loss of $0.13 per share for the second quarter of 2025, falling well short of analyst expectations of $0.41 per share, as mortgage spreads widened amid increased market volatility.

The mortgage real estate investment trust posted a net loss of $0.17 per share, compared to a $0.02 gain in the previous quarter. Net spread and dollar roll income, a key profitability metric for mortgage REITs, came in at $0.38 per share, down from $0.44 in the first quarter. The company’s shares fell 1% following the announcement.

AGNC’s tangible net book value decreased to $7.81 per share, down 5.3% from $8.25 at the end of March, resulting in a negative economic return of 1.0% for the quarter. The company maintained its dividend at $0.36 per share.

"Following the administration’s ’Liberation Day’ tariff announcement in early April, financial markets repriced significantly to reflect greater governmental policy risk and its potentially adverse impact on the economy and monetary policy," said Peter Federico, AGNC’s President, CEO and Chief Investment Officer. "Although most asset class valuations retraced the April losses and ultimately increased quarter-over-quarter, Agency MBS were an exception, as spreads to benchmark rates widened moderately during the second quarter."

The company’s investment portfolio totaled $82.3 billion as of June 30, up from $71.3 billion at the end of the previous quarter. AGNC issued 92.6 million shares of common equity through At-the-Market offerings, raising net proceeds of $799 million during the quarter.

Despite the challenging quarter, management expressed optimism about the future, citing elevated mortgage spreads, balanced supply dynamics, and potential increased bank participation in Agency MBS markets following anticipated regulatory changes.

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