AGNC Investment Corp. reported significant financial performance for the fiscal year ending December 31, 2025, with total comprehensive income reaching $1.74 per diluted common share, marking a substantial increase from $0.84 per diluted share in 2024. The company achieved an economic return of 22.7% on tangible common equity, up from 13.2% the previous year. This growth was driven by a total income of $3.5 billion, which included $3.5 billion in interest income and $1.1 billion in other gains, net. The company’s investment portfolio expanded to $94.8 billion, a $21.5 billion increase from the previous year, primarily due to a rise in Agency residential mortgage-backed securities (RMBS).
In terms of operational changes, AGNC's investment strategy remained focused on Agency RMBS, which constituted 95% of its portfolio. The weighted average coupon of the portfolio increased to 5.19% from 5.03% in 2024, reflecting a shift towards higher-yielding assets. The company also reported a decline in its hedge ratio to 77% from 88% in the prior year, indicating a strategic adjustment in its risk management approach. The average projected life constant prepayment rate (CPR) for the portfolio increased to 9.6%, up from 7.7% in 2024, largely due to a decline in the average 30-year mortgage rate.
AGNC's workforce remained stable, with 54 full-time employees as of December 31, 2025. The company emphasized its commitment to employee satisfaction, achieving a zero turnover rate over the past three years and receiving recognition as a Great Place to Work™. The company’s strategic focus on enhancing employee engagement and development has contributed to its operational stability and performance.
Looking ahead, AGNC expressed a positive outlook for 2026, supported by favorable market conditions and a balanced supply-demand outlook for Agency RMBS. The company anticipates that continued GSE purchases and a stable interest rate environment will bolster its investment strategy. However, it also acknowledged potential challenges, including the impact of rising hedging costs and reduced mortgage spreads, which could affect future earnings. Overall, AGNC Investment Corp. remains committed to its strategy of providing private capital to the U.S. housing market while navigating the complexities of the financial landscape.
About AGNC Investment Corp.
AGNC Investment Corp. is a leading provider of private capital to the U.S. housing market, primarily investing in Agency residential mortgage-backed securities (RMBS). With a focus on enhancing liquidity in the mortgage market, AGNC targets homeowners and investors. The company employs an active management strategy to optimize returns while maintaining REIT status. AGNC aims to distribute 100% of its taxable income, ensuring attractive yields for stockholders.
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