AGNC Investment Corp reported a challenging QQ1 2026, with a net loss of $192.0 million and basic earnings per share of -$0.18. The quarter’s results were dominated by a very large financing expense of $731.0 million, which largely eclipsed operating activity and any core revenue generation. Reported revenue was $23.0 million against a cost of revenue of $23.0 million, yielding a negative gross result and a substantial delta to earnings. Total expenses, including interest and other non-operating items, contributed to a unfavorable pre-tax result of -$192.0 million and a net income print of -$192.0 million for the quarter. On the balance sheet, AGNC carries a sizable asset base of $118.9 billion against liabilities of $106.7 billion and stockholders’ equity of $12.18 billion. Cash and cash equivalents stood at $493 million, with net debt reported as -$493 million, reflecting a substantial cash cushion relative to disclosed debt levels in the data. Earnings metrics show YoY declines across net income (-300%) and earnings per share (-63.6%), with QoQ declines in profitability metrics as well. The results underscore the sensitivity of AGNC’s earnings to funding costs and the pace of prepayments and hedging effectiveness under a higher-for-longer rate regime. Absent material improvements in funding costs, asset yields, or hedging efficacy, near-term profitability remains a key overhang for investors.
Key Performance Indicators
Operating Income
Decreasing
-57.00M
QoQ: -107.62% | YoY: -119.93%
Net Income
Decreasing
-192.00M
QoQ: -484.00% | YoY: -300.00%
EPS
Decreasing
-0.18
QoQ: -1 204.29% | YoY: -63.64%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability:
- Revenue: $23.0 million; Cost of revenue: $23.0 million; Gross profit: -$23.0 million (reported). Net effect implies significant non-operating costs and financing costs overshadow operating activity. EBITDA: -$57.0 million; Operating income: -$57.0 million; Net income: -$192.0 million; EPS (diluted): -$0.18; Weighted average shares outstanding: 1,122,600,000.
Profitability trend:
- YoY gross profit: +4.17% (reported); QoQ gross profit: -129.49% (rapid deterioration in gross result if taken at face value).
- YoY operating income: -119.93%; QoQ operating income: -107.62%.
- Net income: -$192.0 million; YoY: -300.00%; QoQ: -484.00%.
- EPS: -$0.18 YoY: -63.64%; QoQ: -1,204.29%.
Liquidity and leverage:
- Cash and cash equivalents: $493.0 million.
- Total assets: $118.897 billion; Total liabilities: $106.716 billion; Total stockholders’ equity: $12.181 billion.
- Net debt: -$493.0 million (negative net debt). Note: Long-term debt is not disclosed in the data; the balance sheet shows a very large asset base and sizeable liabilities with a relatively modest equity cushion, indicating high leverage typical of mortgage REITs but with a notable cash position.
Asset and investment base:
- Total investments: $933.0 million; Goodwill: $526.0 million; Goodwill and intangible assets: $526.0 million.
- Cash position: $493.0 million; Total current assets: $493.0 million; Total non-current assets: $1.459 billion.
Observations:
- The quarter reflects substantial financing costs that dominate the earnings profile, as indicated by the $731.0 million interest expense alongside operating costs. The combination yields a negative profitability trajectory in QQ1 2026, consistent with the sensitivity of mortgage REITs to funding costs and interest rate movements.
Income Statement
Metric
Value
YoY Change
QoQ Change
Gross Profit
-23.00M
4.17%
-129.49%
Operating Income
-57.00M
-119.93%
-107.62%
Net Income
-192.00M
-300.00%
-484.00%
EPS
-0.18
-63.64%
-1 204.29%
Key Financial Ratios
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