AGNC Investment (AGNC) Q2 2025 earnings summary

Executive summary

• Reported a comprehensive loss of $(0.13) per common share for Q2 2025, with an economic return on tangible common equity of -1.0% and a tangible net book value per share of $7.81 as of June 30, 2025, down from $8.25 at March 31, 2025.

• Net spread and dollar roll income was $0.38 per share, with dividends declared at $0.36 per share.

• Investment portfolio grew to $82.3 billion, primarily in 30-year fixed-rate Agency MBS, with a weighted average coupon of 5.13%.

• Raised $799 million in accretive capital through ATM offerings, with disciplined and opportunistic deployment.

• Maintained strong liquidity, with $6.4 billion in unencumbered cash and Agency MBS, representing 65% of tangible equity.

Financial highlights

• Net loss attributable to common stockholders was $(178) million for Q2 2025, with a comprehensive loss of $(130) million.

• Tangible net book value per share declined by $0.44 sequentially to $7.81.

• Net spread and dollar roll income per share was $0.38, down from $0.44 in Q1 2025.

• Net interest spread was 2.01% for Q2 2025, down from 2.12% in Q1 2025.

• Average cost of funds increased to 2.86% from 2.75% sequentially.

Outlook and guidance

• Management maintains a favorable outlook for Agency MBS, expecting stable or tightening spreads and increased bank and foreign demand as regulatory reforms progress.

• MBS supply is expected to remain manageable, with net new issuance around $200 billion for the year.

• Portfolio composition and hedging strategies will remain dynamic in response to market conditions.

• Duration gap at quarter-end was 0.2 years, indicating a well-hedged portfolio.

• Net spread and dollar roll income projected to remain in the mid-to-high $0.30s to low-to-mid $0.40s per share range.