AGNC Investment Q4 Earnings Miss Estimates, Book Value Improves Y/Y

Core Insights - AGNC Investment Corp. reported a fourth-quarter 2025 net spread and dollar roll income per common share of 35 cents, missing the Zacks Consensus Estimate of 37 cents and declining 5.4% from the previous year [1][8] - The company experienced a decline in average asset yield and reduced net interest spread, alongside a higher weighted average cost of funds, which negatively impacted results [2][11] - Despite these challenges, tangible net book value per share increased by 5.6% year-over-year, indicating a positive trend in portfolio value [6][8] Financial Performance - Adjusted net interest and dollar roll income available to common stockholders reached $457 million, up 12.8% from the year-ago quarter [2] - Comprehensive income per common share for the fourth quarter was 89 cents, compared to a comprehensive loss of 11 cents per share in the same quarter last year [3] - Net interest income (NII) was reported at $206 million, missing the Zacks Consensus Estimate by 36.3%, while for the full year 2025, NII totaled $675 million, also below estimates [4] Cost and Yield Analysis - The average asset yield on AGNC's portfolio was 4.87% in Q4 2025, down from 5.02% in Q4 2024 [4] - The combined weighted average cost of funds increased to 3.10%, up from 2.89% in the previous year [5] - The average net interest spread decreased to 1.81%, down from 1.91% year-over-year [5] Portfolio and Investment Metrics - As of December 31, 2025, AGNC's investment portfolio totaled $94.8 billion, including $81.1 billion in Agency mortgage-backed securities [7] - The average actual constant prepayment rate for the investment portfolio was 9.7%, slightly up from 9.6% in the previous year [6] - The economic return on tangible common equity was 11.6%, a significant improvement from an economic loss of 0.6% in the year-ago quarter [6] Dividend Information - AGNC announced a dividend of 36 cents per share for the fourth quarter, with total dividends declared since its IPO amounting to $15.5 billion or $50.08 per share [10]