Annaly Capital Management Reports $843.1 Million Net Income for Q3 2025

Annaly Capital Management, Inc. reported significant financial performance for the third quarter of 2025, with net income reaching $843.1 million, or $1.21 per share, compared to $82.4 million, or $0.05 per share, in the same period last year. This increase in profitability was primarily driven by a substantial rise in net interest income, which surged to $275.8 million from $13.4 million year-over-year. The company also noted a favorable shift in net gains on derivatives, which improved to a loss of $92.3 million from a loss of $1.8 billion in the prior year. For the nine months ending September 30, 2025, net income totaled $1.0 billion, or $1.45 per share, compared to $538.7 million, or $0.80 per share, for the same period in 2024.

Total assets for Annaly increased to $125.9 billion as of September 30, 2025, up from $103.6 billion at the end of 2024. This growth was attributed to a $15.3 billion increase in securities and a $7.5 billion rise in securitized residential whole loans. The company’s cash and cash equivalents also rose by $608.7 million, while mortgage servicing rights increased by $567 million. The total liabilities also saw a significant increase, rising to $110.9 billion from $90.9 billion, largely due to higher repurchase agreements and debt issued by securitization vehicles.

Strategically, Annaly has been active in the capital markets, raising approximately $1.1 billion in equity during the third quarter, including $823 million through its at-the-market sales program. The company also issued its first preferred stock since 2019, raising $275 million in gross proceeds. The Agency mortgage-backed securities (MBS) portfolio ended the quarter at a market value of $87.3 billion, reflecting a 10% increase from the previous quarter. Annaly's residential credit business also expanded, with the portfolio increasing by $265 million to $6.9 billion in economic market value of assets.

Operationally, Annaly reported a weighted average economic leverage ratio of 5.7:1, consistent with the previous year, and maintained a strong liquidity position with $5.9 billion in cash and unencumbered Agency MBS. The company’s risk management strategies have been effective, as evidenced by its ability to navigate market volatility and maintain a diversified portfolio. Looking ahead, Annaly remains optimistic about its investment strategies, particularly in the Agency MBS sector, and expects to continue generating attractive risk-adjusted returns despite potential economic uncertainties.