Federal National Mortgage Association (FNMA) Q4 2025 earnings summary

Executive summary

• Reported net income of $3.5 billion for Q4 and $14.4 billion for full year 2025, down 15% year-over-year, marking 14 consecutive years of annual profitability.

• Ended 2025 with $109.0 billion in net worth, up from $94.7 billion at year-end 2024 and $95.5 billion since 2020.

• Provided $409 billion in liquidity to the mortgage market in 2025, supporting 1.5 million households, including 704,000 home purchases and 531,000 rental units.

• Achieved operational excellence through disciplined expense management, technology enhancements, and a 15% workforce reduction.

Financial highlights

• Q4 net income declined 9% sequentially and 15% year-over-year due to fair value losses and higher administrative expenses.

• Full-year net income decreased 15% year-over-year, mainly due to a shift to provision for credit losses and lower fair value gains.

• Net interest income remained steady at $28.6 billion; net revenues for FY25 were $28.96 billion.

• Administrative expense ratio improved to 12.36% in 2025 from 12.45% in 2024.

• Illustrative return on required equity was 10.2% for Q4 and full year.

Outlook and guidance

• Expense reduction efforts are expected to deliver multiyear savings and sustain a smaller cost footprint.

• Multifamily delinquency levels could increase in 2026 due to ongoing market challenges.

• Competitive dynamics and capital requirements may continue to impact single-family business share in 2026.

• Plan to continue investing in agency MBS while managing interest rate risk.

• Leadership cited strong momentum entering 2026, with a focus on long-term success and continued support for the housing market.