AGNC Investment (AGNC) Q1 2026 earnings summary

Executive summary

• Reported a comprehensive loss of $(0.18) per common share and an economic return of -1.6% on tangible common equity for Q1 2026, with tangible net book value per share declining to $8.38 from $8.88 at year-end 2025.

• Net spread and dollar roll income per share was $0.42, up from $0.35 in the prior quarter, driven by a 25 bps increase in net interest spread.

• Declared $0.36 in dividends per common share for the quarter, resulting in a 14.4% dividend yield.

• Agency MBS outperformed Treasuries and investment-grade corporates despite spread widening due to geopolitical volatility.

• Investment portfolio totaled $94.7 billion as of March 31, 2026, with a shift toward lower coupon specified pools and 77% of assets having favorable prepayment characteristics.

Financial highlights

• Net loss available to common stockholders was $(192) million for Q1 2026, or $(0.17) per share, with comprehensive loss at $(200) million, or $(0.18) per share.

• Net interest income rose to $319 million from $206 million in Q4 2025.

• Net spread and dollar roll income per share increased to $0.42 from $0.35 in the prior quarter.

• Total assets reached $118.9 billion, with total stockholders’ equity at $12.2 billion as of March 31, 2026.

• Liquidity position at quarter end was $7.0 billion, representing 60% of tangible equity.

Outlook and guidance

• Management remains constructive on Agency MBS/RMBS performance, citing widened mortgage spreads, improved supply-demand technicals, and potential regulatory changes as positive catalysts.

• Near-term challenges include heightened geopolitical and macroeconomic risks, particularly due to the war in Iran and Middle East tensions.

• Longer-term outlook is positive, with expectations for further improvement if volatility subsides.

• Management expects net spread and dollar roll income to remain in the high $0.30s to low $0.40s per share over the next several quarters.

• Leverage expected to remain in the 7x–7.5x range, with flexibility to adjust based on market and policy developments.