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AGNCZ

AGNC Investment Corp. 8.75% Series H Fixed-Rate Cumulative Redeemable Preferred Stock

AGNCZ

AGNC Investment Corp. 8.75% Series H Fixed-Rate Cumulative Redeemable Preferred Stock • NASDAQ
$25.72 ▲ 0.94% (+0.24)
Market Cap $27.59 B
52w High $25.73
52w Low $25.00
Dividend Yield 1.44%
P/E 0
Volume 236.79K
Outstanding Shares 1.07B

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $786M ▲ $816M ▲ $806M ▲ 102.545% ▼ $0.78 ▲ $1.687B ▲
Q2-2025 $-112M ▼ $28M ▼ $-140M ▼ 125% ▲ $-0.17 ▼ $528M ▲
Q1-2025 $78M ▼ $78M ▼ $50M ▼ 64.103% ▼ $0.016 ▼ $0
Q4-2024 $154M ▼ $154M ▲ $122M ▼ 79.221% ▼ $0.097 ▼ $0 ▼
Q3-2024 $376M $30M $346M 92.021% $0.39 $1.178B

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $450M ▼ $108.969B ▲ $97.525B ▲ $11.444B ▲
Q2-2025 $656M ▲ $102.021B ▲ $91.674B ▲ $10.347B ▲
Q1-2025 $455M ▼ $95.889B ▲ $85.847B ▲ $10.042B ▲
Q4-2024 $505M ▼ $88.015B ▼ $78.253B ▼ $9.762B ▲
Q3-2024 $507M $89.59B $79.934B $9.656B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $806M ▲ $153M ▼ $-5.337B ▼ $5.223B ▲ $39M ▼ $153M ▼
Q2-2025 $-140M ▼ $180M ▼ $-3.444B ▲ $3.418B ▼ $154M ▲ $180M ▼
Q1-2025 $50M ▼ $192M ▲ $-5.727B ▼ $5.482B ▲ $-53M ▼ $192M ▲
Q4-2024 $122M ▼ $79M ▲ $4.926B ▲ $-5.02B ▼ $-15M ▲ $79M ▲
Q3-2024 $346M $7M $-9.616B $9.489B $-120M $7M

Five-Year Company Overview

Income Statement

Income Statement AGNC’s earnings profile is volatile but shows a clear recovery pattern in recent years. After a difficult year earlier in the period, when results swung into a loss, profitability has since improved with both operating and net income returning to healthy positive levels. This rebound suggests that management has been able to navigate a challenging interest‑rate environment better over time. However, the large moves from loss to profit highlight that results are heavily influenced by market factors, hedging gains and losses, and valuation changes, not just underlying spread income. For a preferred security like AGNCZ, that means income to support dividends can be quite sensitive to rate cycles and market swings, even when the business model itself remains unchanged.

Balance Sheet

Balance Sheet The balance sheet is large and heavily invested in financial assets, as is typical for a mortgage REIT. Asset levels dipped mid‑period and have since rebuilt, while shareholder equity has gradually recovered after earlier erosion. Reported balance‑sheet debt looks modest in this summary, but real economic leverage is higher because the firm relies on short‑term funding markets, which are not fully captured by a simple debt line. Overall, AGNC appears to have rebuilt some of its capital cushion, but book value remains exposed to interest‑rate movements and changes in mortgage pricing. For preferred holders, the key takeaway is that there is a meaningful equity buffer beneath them, but that buffer can move around with markets.

Cash Flow

Cash Flow Cash generation is lumpy, reflecting the trading and hedging nature of the business. Most years show solid positive operating cash flow, with one notable weak year in the middle of the period. Capital spending is essentially nonexistent, so free cash flow closely tracks operating cash flow. This means the firm’s ability to fund obligations, including preferred dividends, relies more on the stability of its financing model and spreads than on heavy reinvestment needs. The pattern tells a story of a business that can produce strong cash in favorable conditions but may see cash tighten when markets turn, reinforcing the importance of risk management and liquidity access.

Competitive Edge

Competitive Edge AGNC operates as a specialized mortgage REIT with a narrow focus on agency mortgage‑backed securities. Its edge comes from scale, specialization, and long experience in this one corner of the fixed‑income market. By concentrating on government‑backed mortgages, the firm largely sidesteps credit risk and instead competes on its skill at managing interest‑rate and prepayment risk. Size helps it obtain funding efficiently and execute large portfolio adjustments. The main vulnerability is that the model depends on healthy funding markets and manageable interest‑rate volatility. When rate shocks or spread disruptions occur, earnings and book value can move sharply, even if credit quality remains high.

Innovation and R&D

Innovation and R&D Innovation here is about process, data, and risk tools rather than new products. AGNC has been building out a research and strategy function focused on advanced analytics, better interest‑rate and prepayment modeling, and more dynamic hedging. The firm is leaning into technology to refine how it sizes positions, structures its hedge book, and responds to changing rate environments. If successful, these efforts should translate into more consistent earnings and book value through cycles, though this is an ongoing journey rather than a completed shift. For a preferred security, the value of this innovation is mainly in potentially reducing downside volatility rather than chasing new growth avenues.

Summary

AGNCZ is a fixed‑rate preferred security tied to a mortgage REIT whose fundamentals are driven by interest‑rate dynamics rather than traditional lending or fee income. The underlying company has moved from a period of stress to more solid profitability and has rebuilt parts of its capital base, but its results remain inherently volatile because they are closely tied to market conditions and hedging outcomes. The balance sheet is large, leveraged, and mostly composed of government‑backed mortgage assets, creating low credit risk but meaningful exposure to rate moves and funding conditions. Cash flows are generally strong over time but uneven year to year. AGNC’s scale, specialization, and growing use of data and analytics support its competitive position, yet investors should recognize that this remains a high‑beta, rate‑sensitive model where stability for preferred holders depends on disciplined risk management and continued access to reliable financing rather than on steady, traditional operating earnings.