Annaly Capital Management

NLY Q1 2025 Earnings

Reported Apr 30, 2025 at 4:16 PM ET · SEC Source

Q1 25 EPS

$0.72

BEAT +3.21%

Est. $0.70

Q1 25 Revenue

$1.32B

BEAT +214.71%

Est. $418.5M

vs S&P Since Q1 25

+3.9%

BEATING MARKET

NLY +33.0% vs S&P +29.0%

Market Reaction

Did NLY Beat Earnings? Q1 2025 Results

Annaly Capital Management posted a stronger-than-expected first quarter, with earnings available for distribution of $0.72 per share beating the $0.70 consensus estimate by 3.21%, as the mortgage REIT's core operating economics held firm despite turb… Read more Annaly Capital Management posted a stronger-than-expected first quarter, with earnings available for distribution of $0.72 per share beating the $0.70 consensus estimate by 3.21%, as the mortgage REIT's core operating economics held firm despite turbulence in derivatives markets. Revenue came in at $1.32 billion, clearing estimates by a wide margin, though that figure reflected a 12.8% decline year over year. The standout driver was Annaly's expanding Agency portfolio, which grew 6% to $75.00 billion as the company leaned into intermediate coupon TBA securities and higher coupon specified pools, helping lift net interest income to $219.97 million from $187.29 million in the prior quarter. The company also raised its common dividend to $0.70 per share, signaling confidence in its earnings durability, while GAAP leverage fell to its lowest level in a decade at 6.8x. CEO David Finkelstein acknowledged post-quarter volatility from tariff-driven MBS spread widening but pointed to the company's lean balance sheet and ample liquidity as key advantages heading into a potentially choppy rate environment.

Key Takeaways

  • Agency portfolio grew 6% with additions focused on intermediate coupon TBA securities and higher coupon specified pools
  • Net interest margin expanded to 0.87% from 0.75% in Q4 2024
  • Average GAAP cost of interest bearing liabilities declined 19 basis points to 4.77%
  • EAD of $0.72 per share, up from $0.64 year-over-year
  • Net servicing income increased to $126.3 million from $115.6 million in Q4 2024
  • Correspondent channel lock volume of $5.3 billion with $3.8 billion funded
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NLY YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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NLY Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“We were pleased to deliver a 3% economic return in the first quarter, as well as an increase to our common stock dividend, with each of our three investment strategies contributing positively to our return.”

— David Finkelstein, Q1 2025 Earnings Press Release