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Jun 30, 2025
AGNC Q2 2025 Earnings Report
AGNC reported a net loss and lower tangible book value due to wider mortgage spreads in Q2 2025.
Key Takeaways
AGNC posted a net loss of $178M with EPS of -$0.17. Tangible book value declined to $7.81 per share due to wider mortgage spreads, but liquidity remained strong at $6.4B. Net spread and dollar roll income was $0.38 per share, highlighting resilient core earnings despite market volatility.
Net loss of $178M and EPS of -$0.17 driven by wider mortgage spreads
Tangible book value decreased to $7.81 per share, down 5.3% QoQ
Liquidity remained strong at $6.4B, representing 65% of tangible equity
Net spread and dollar roll income of $0.38 per share showed stable core earnings
Forward Guidance
Management expressed optimism for Agency MBS investments due to elevated mortgage spreads, balanced supply-demand dynamics, and supportive regulatory outlook.
Positive Outlook
- Favorable outlook for levered and hedged Agency MBS investments
- Mortgage spreads to benchmark rates remain elevated by historical standards
- Supply and demand dynamics remain balanced
- Anticipated regulatory changes may increase bank participation in Agency MBS markets
- Administration intends to preserve Agency MBS’ credit profile and support mortgage spreads
Challenges Ahead
- Wider mortgage spreads negatively impacted tangible book value in Q2
- Interest rate volatility remains elevated following policy announcements
- Investor sentiment turned sharply negative in April
- Economic return was negative due to spread widening
Historical Earnings Impact
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Avg. Return Before/After Earnings
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