Q2 25 EPS
$0.73
BEAT +2.50%
Est. $0.71
Q2 25 Revenue
$1.42B
BEAT +498.69%
Est. $237.0M
vs S&P Since Q2 25
+9.4%
BEATING MARKET
NLY +23.0% vs S&P +13.6%
Market Reaction
Did NLY Beat Earnings? Q2 2025 Results
Annaly Capital Management delivered a solid beat in Q2 2025, with earnings available for distribution of $0.73 per share edging past the $0.71 consensus estimate by 2.50%, as expanding net interest margins and portfolio growth offset GAAP headwinds f… Read more Annaly Capital Management delivered a solid beat in Q2 2025, with earnings available for distribution of $0.73 per share edging past the $0.71 consensus estimate by 2.50%, as expanding net interest margins and portfolio growth offset GAAP headwinds from derivative losses. Revenue came in at $1.42 billion, well above the $237.00 million consensus, though the figure reflected a 13.8% decline year over year. The single most material driver of the quarter was the 6% expansion of the Agency MBS portfolio to $79.50 billion, fueled by $761.00 million in ATM proceeds deployed into higher-coupon specified pools and TBAs, which helped lift net interest income to $273.20 million from $219.97 million in Q1 and pushed the net interest margin to 1.04%. Book value per share dipped to $18.45, and the common dividend held steady at $0.70 per share. Institutional investors, who control roughly 60% of shares outstanding, will be watching management's confidence that its diversified Agency, Residential Credit, and MSR platform can sustain industry-leading risk-adjusted returns heading into the second half.
Key Takeaways
- • Agency portfolio grew by 6% with nearly $5 billion in new investments deployed from accretive capital raised
- • Net interest margin improved to 1.04% from 0.87% in Q1 2025
- • Net interest income increased to $273.2 million from $220.0 million in Q1 2025
- • Record quarterly securitization issuance of $3.6 billion across seven deals in Residential Credit
- • EAD per share increased to $0.73 from $0.72 in prior quarter
- • Average yield on interest earning assets rose to 5.42% from 5.18%
- • Seventh consecutive quarter with a positive economic return
NLY YoY Financials
Q2 2025 vs Q2 2024, source: SEC Filings
NLY Revenue by Segment
With YoY comparisons, source: SEC Filings
“Despite significant intra-quarter volatility across financial markets, Annaly delivered its seventh consecutive quarter with a positive economic return, underscoring the benefits of holding our Agency, Residential Credit and MSR strategies together on balance sheet. Our Agency portfolio grew by nearly $5 billion as we were able to deploy accretive capital raised into the sector. Residential Credit experienced another record quarter of origination and securitization activity as Onslow Bay furthers its leadership across the non-Agency market. Meanwhile, our MSR portfolio continued to generate substantial cash flow while we expand our flow, subservicing and recapture partners. Looking forward, we remain encouraged by opportunities across our three investment strategies and believe our diversified housing finance portfolio can continue to generate industry leading risk-adjusted returns.”
— David Finkelstein, Q2 2025 Earnings Press Release
NLY Earnings Trends
NLY vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
NLY EPS Trend
Earnings per share: estimate vs actual
NLY Revenue Trend
Quarterly revenue: estimate vs actual
NLY Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 | — | — | — | — | — |
| Q1 26 | — | $0.76 | — | — | — |
| Q4 25 FY | — | $1.40 | — | — | — |
| FY Full Year | — | $2.92 | — | — | — |
| Q3 25 BEAT | $0.72 | $0.73 | +1.28% | $1.53B | +205.47% |
| Q2 25 BEAT | $0.71 | $0.73 | +2.50% | $1.42B | +498.69% |
| Q1 25 BEAT | $0.70 | $0.72 | +3.21% | $1.32B | +214.71% |