0001043219-26-000013
SEC filingAnnaly Capital Management, Inc. reported strong financial results for fiscal year 2025, with net income attributable to the company of $2.03 billion and comprehensive income attributable to common stockholders of $2.40 billion. Key profit drivers included net interest income of $1.14 billion, net servicing income of $519.3 million, and total other income of $589.6 million, which was bolstered by net gains on investments of $1.75 billion, partially offset by net losses on derivatives of -$1.21 billion. The company generated $692.9 million in operating cash flow, while investing activities used $27.36 billion primarily for purchases of securities and loans, and financing activities provided $27.22 billion mainly from repurchase agreements and securitized debt issuances. The balance sheet shows total assets of $135.61 billion, with significant holdings in securities ($91.29 billion) and assets transferred to securitization vehicles ($32.07 billion), supported by total liabilities of $119.45 billion and total equity of $16.16 billion.
Annaly Capital Management, Inc. delivered robust financial performance for the fiscal year ending December 31, 2025. The company reported net income of $2.05 billion, with net income attributable to Annaly reaching $2.03 billion after accounting for $24.4 million attributable to noncontrolling interests. Comprehensive income was even stronger at $2.58 billion, driven by $529.1 million in other comprehensive income from unrealized gains on available-for-sale securities. Net income available to common stockholders was $1.87 billion after deducting $157.9 million in preferred stock dividends. The company achieved basic and diluted earnings per share of $3.00 based on 639.5 million and 641.0 million weighted average shares outstanding, respectively.
The company's revenue streams are diversified across interest income, servicing income, and investment activities. Interest income totaled $5.96 billion against interest expense of $4.82 billion, resulting in net interest income of $1.14 billion. Servicing and related income contributed $579.6 million with expenses of $60.3 million, yielding net servicing income of $519.3 million. Other income totaled $589.6 million, primarily composed of $1.75 billion in net gains on investments, offset by -$1.21 billion in net losses on derivatives and supplemented by $51.1 million in other net income. The company's revenue structure reflects its focus on mortgage-backed securities and related financial instruments.
The company maintained strong profitability metrics with income before income taxes of $2.04 billion. General and administrative expenses were well-controlled at $199.6 million, comprising compensation expense of $151.6 million and other general and administrative expenses of $48.1 million. The effective tax rate was minimal, with income tax benefit of -$6.9 million. The company's profitability was supported by efficient operations and favorable market conditions for its investment portfolio. Comprehensive income margin, calculated as comprehensive income divided by total revenue components, demonstrates the company's ability to generate substantial returns from its core business activities.
Cash flow from operating activities was positive at $692.9 million, driven by net income of $2.05 billion adjusted for various non-cash items including -$246.6 million in amortization of premiums and discounts and -$1.82 billion in net payments on derivatives. Investing activities used $27.36 billion primarily for purchases of securities ($40.75 billion) and loans ($18.65 billion), partially offset by proceeds from sales and repayments. Financing activities provided $27.22 billion mainly from net proceeds of repurchase agreements and other secured financing, along with $14.59 billion from securitized debt issuances. The balance sheet shows total assets of $135.61 billion, with significant holdings in securities ($91.29 billion) and assets transferred to securitization vehicles ($32.07 billion). Total liabilities were $119.45 billion, including $81.87 billion in repurchase agreements and $28.92 billion in securitized debt. Total equity stood at $16.16 billion, with stockholders' equity of $16.09 billion and noncontrolling interests of $69.1 million.
The filing does not provide specific forward-looking guidance, management commentary, or explicit risk factors beyond the presented financial data. Investors should monitor interest rate environments, mortgage market conditions, and regulatory changes that could impact the company's investment portfolio and financing costs. The company's strategic focus appears to remain on managing its portfolio of mortgage-backed securities and related assets while maintaining adequate liquidity and capital levels to support its operations and dividend payments of $1.88 billion during the period.