AGNC Investment (AGNC) Q4 2025 earnings summary

Executive summary

• Achieved a 22.7% full-year economic return and a 34.8% total stock return in 2025, nearly double the S&P 500 with dividends reinvested.

• Tangible net book value per share rose to $8.88 at year-end 2025, with a 7.2% increase from the prior quarter.

• Comprehensive income per share was $1.74 for 2025 and $0.89 for Q4; net spread and dollar roll income per share was $1.50 for the year and $0.35 for Q4.

• Dividends declared per share totaled $1.44 for 2025, with a consistent $0.36 per share each quarter.

• Entered 2026 with a favorable investment backdrop, strong demand, and a diversified investor base.

Financial highlights

• Q4 comprehensive income was $0.89 per share; economic return on tangible equity was 11.6%.

• Net income available to common stockholders was $1,509M for 2025, with $908M in Q4.

• Tangible net book value per share increased by $0.47 over the year and $0.60 sequentially.

• Net interest spread for Q4 was 1.81%, with an average asset yield of 4.95% and average cost of funds at 3.10%.

• Liquidity position at $7.6B, representing 64% of tangible equity.

Outlook and guidance

• Management expects a constructive investment environment in 2026, citing lower interest rate and Agency MBS spread volatility.

• Projected returns on new capital deployments in the 13%-15% range, exceeding the dividend yield.

• Dividend coverage remains strong, with existing and incremental portfolios aligned with cost of capital.

• Focus remains on agency-guaranteed residential MBS investments with attractive funding.

• Leverage strategy remains cautious, awaiting more clarity on spread stability.