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Annaly Q3 Earnings Surpass Estimates, Book Value Declines Y/Y
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Key Takeaways
Annaly posted Q3 2025 EAD of 73 cents per share, beating the consensus estimate of 72 cents per share.
Average yield on interest-earning assets rose to 5.40%, boosting net interest margin to 1.70%.
Book value per share declined to $19.25, even as total assets climbed 12.2% from the prior quarter.
Annaly Capital Management, Inc. (NLY - Free Report) reported third-quarter 2025 adjusted earnings available for distribution (EAD) per average share of 73 cents, which beat the Zacks Consensus Estimate of 72 cents. The figure increased from 66 cents in the year-ago quarter.
NLY’s average yield on interest-earning assets improved in the reported quarter. However, the company recorded a year-over-year decline in book value per share (BVPS).
Inside Annaly’s Headlines
Net interest income (NII) was $275.8 million in the reported quarter, which missed the Zacks Consensus Estimate by 38.3%. In the prior-year quarter, the company reported a NII of $13.4 million.
At the end of the third quarter, Annaly had $125.9 billion of total assets, rising 12.2% from the prior quarter.
In the reported quarter, the average yield on interest-earning assets (excluding premium amortization adjustment or PAA) was 5.40%, up from the prior-year quarter’s 5.16%. The average economic costs of interest-bearing liabilities were 3.96%, up from 3.93% in the year-ago quarter.
Net interest spread (excluding PAA) of 1.50% in the third quarter increased from 1.32% in the prior-year quarter. Also, the net interest margin (excluding PAA) was 1.70% compared with 1.52% in the third quarter of 2024.
Annaly’s BVPS was $19.25 as of Sept. 30, 2025, down from $19.54 in the prior-year quarter. At the end of the reported quarter, the company’s economic capital ratio was 14.8%, up from 14.6% in the prior-year quarter.
In the third quarter, the weighted average actual constant prepayment rate was 8.6%, up from 7.6% in the year-ago quarter.
Economic leverage was 5.7X as of Sept. 30, 2025, unchanged from the year-ago quarter.
Annaly generated an annualized EAD return on average equity of 14.7% in the third quarter, which increased from the prior-year quarter’s 12.9%.
Our Take on NLY
Annaly’s third-quarter results benefited from the rise in average yield and total assets. Its prudent asset selection will continue to drive performance in the upcoming period. However, a decline in BVPS is concerning. Also, achieving solid returns may be challenging due to uncertainty in the financial markets.
Annaly Capital Management Inc Price, Consensus and EPS Surprise
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Annaly Q3 Earnings Surpass Estimates, Book Value Declines Y/Y
Key Takeaways
Annaly Capital Management, Inc. (NLY - Free Report) reported third-quarter 2025 adjusted earnings available for distribution (EAD) per average share of 73 cents, which beat the Zacks Consensus Estimate of 72 cents. The figure increased from 66 cents in the year-ago quarter.
NLY’s average yield on interest-earning assets improved in the reported quarter. However, the company recorded a year-over-year decline in book value per share (BVPS).
Inside Annaly’s Headlines
Net interest income (NII) was $275.8 million in the reported quarter, which missed the Zacks Consensus Estimate by 38.3%. In the prior-year quarter, the company reported a NII of $13.4 million.
At the end of the third quarter, Annaly had $125.9 billion of total assets, rising 12.2% from the prior quarter.
In the reported quarter, the average yield on interest-earning assets (excluding premium amortization adjustment or PAA) was 5.40%, up from the prior-year quarter’s 5.16%. The average economic costs of interest-bearing liabilities were 3.96%, up from 3.93% in the year-ago quarter.
Net interest spread (excluding PAA) of 1.50% in the third quarter increased from 1.32% in the prior-year quarter. Also, the net interest margin (excluding PAA) was 1.70% compared with 1.52% in the third quarter of 2024.
Annaly’s BVPS was $19.25 as of Sept. 30, 2025, down from $19.54 in the prior-year quarter. At the end of the reported quarter, the company’s economic capital ratio was 14.8%, up from 14.6% in the prior-year quarter.
In the third quarter, the weighted average actual constant prepayment rate was 8.6%, up from 7.6% in the year-ago quarter.
Economic leverage was 5.7X as of Sept. 30, 2025, unchanged from the year-ago quarter.
Annaly generated an annualized EAD return on average equity of 14.7% in the third quarter, which increased from the prior-year quarter’s 12.9%.
Our Take on NLY
Annaly’s third-quarter results benefited from the rise in average yield and total assets. Its prudent asset selection will continue to drive performance in the upcoming period. However, a decline in BVPS is concerning. Also, achieving solid returns may be challenging due to uncertainty in the financial markets.
Annaly Capital Management Inc Price, Consensus and EPS Surprise
Annaly Capital Management Inc price-consensus-eps-surprise-chart | Annaly Capital Management Inc Quote
NLY currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Release Dates of Annaly’s Peers
Apollo Commercial Real Estate Finance, Inc. (ARI - Free Report) is expected to report third-quarter 2025 results on Oct. 30.
The Zacks Consensus Estimate for ARI’s quarterly earnings has been unchanged at 28 cents per share over the past seven days.
Starwood Property Trust, Inc. (STWD - Free Report) is slated to post third-quarter 2025 results on Nov. 10.
The Zacks Consensus Estimate for STWD’s quarterly earnings has remained unchanged at 49 cents per share over the past seven days.