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NLY-PF

Annaly Capital Management, Inc.

NLY-PF

Annaly Capital Management, Inc. • NYSE
$25.62 ▼ -0.31% (-0.08)
Market Cap $13.36 B
52w High $26.34
52w Low $21.75
Dividend Yield 2.41%
P/E 14.49
Volume 108.32K
Outstanding Shares 521.50M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $2.157B ▲ $61.933M ▲ $832.445M ▲ 38.585% ▲ $1.27 ▲ $2.074B ▲
Q2-2025 $1.789B ▲ $50.018M ▲ $57.099M ▼ 3.192% ▼ $0.032 ▼ $1.216B ▲
Q1-2025 $244.538M ▼ $48.064M ▲ $124.224M ▼ 50.799% ▼ $0.148 ▼ $0
Q4-2024 $539.105M ▲ $43.974M ▲ $482.052M ▲ 89.417% ▲ $0.779 ▲ $0
Q3-2024 $133.125M $43.921M $66.445M 49.912% $0.048 $0

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $320.347M ▲ $125.862B ▲ $110.865B ▲ $14.911B ▲
Q2-2025 $267.077M ▼ $112.142B ▲ $98.668B ▲ $13.381B ▲
Q1-2025 $296.938M ▼ $105.115B ▲ $92.031B ▲ $12.995B ▲
Q4-2024 $2.35B ▲ $103.556B ▲ $90.859B ▲ $12.609B ▲
Q3-2024 $324.217M $101.516B $88.976B $12.443B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $843.063M ▲ $24.094M ▼ $-11.82B ▼ $11.834B ▲ $37.851M ▼ $-292.198M ▼
Q2-2025 $60.371M ▼ $180.74M ▲ $-7.313B ▼ $7.357B ▲ $225.317M ▼ $141.919M ▲
Q1-2025 $130.305M ▼ $-156.266M ▼ $1.663B ▲ $-1.161B ▼ $345.501M ▲ $-543.413M ▼
Q4-2024 $473.076M ▲ $2.808B ▲ $-6.25B ▼ $3.369B ▼ $-72.132M ▼ $2.647B ▲
Q3-2024 $82.351M $-1.673B $-4.429B $6.075B $-26.949M $-1.738B

Revenue by Products

Product Q3-2020Q1-2021Q2-2021Q3-2021
Bank Servicing
Bank Servicing
 $20.00M ▲$10.00M ▼$10.00M ▲$10.00M ▲
Interests In Mortgage Servicing Rights
Interests In Mortgage Servicing Rights
 $0 ▲$0 ▲$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Annaly’s income statement shows a business that is profitable over time but very volatile from year to year, which is typical for a mortgage REIT. Revenue and reported earnings swing sharply as interest rates move and as the company revalues its large portfolio of mortgage assets. After a sizable loss two years ago, the company has returned to profitability, though at a more modest level than its strongest years. Underneath the noise, operating performance has generally been positive, but headline earnings can change quickly with market conditions. For a preferred security like NLY‑PF, that volatility is important context, because it highlights reliance on Annaly’s risk management rather than on stable, utility‑like earnings.

Balance Sheet

Balance Sheet The balance sheet is large and highly leveraged, which is standard for this type of mortgage REIT. Assets have grown over time, suggesting that Annaly continues to operate at significant scale in the mortgage market. Debt funding is very heavy relative to equity, reflecting the use of borrowing to amplify returns on mortgage securities; this boosts income potential but also magnifies sensitivity to interest rates and funding markets. Equity has held roughly steady but not grown meaningfully, indicating that market swings, dividends, and portfolio adjustments have offset each other. Cash on hand is small compared with the overall balance sheet, so ongoing access to wholesale funding and repo markets is critical for stability.

Cash Flow

Cash Flow Despite the ups and downs in earnings, Annaly has generally produced solid operating cash flow in recent years, showing that its portfolio continues to generate real cash income. Free cash flow has also been positive in most years, with only one notably weak year earlier in the period when portfolio repositioning and investments weighed on cash outflows. The business itself is not capital‑intensive in the traditional sense—spending on physical assets is low—so most cash decisions relate to portfolio size, funding mix, and shareholder distributions. For preferred holders, the key takeaway is that cash generation has usually been sufficient to support obligations, but it remains closely tied to broader interest‑rate and mortgage‑market conditions.

Competitive Edge

Competitive Edge Annaly holds a leading position in the mortgage REIT space, helped by its large scale and broad reach across the housing finance market. It operates through multiple segments—agency mortgage securities, residential credit, and mortgage servicing rights—which gives it diversification and some natural hedging across different parts of the mortgage cycle. Its size can translate into better financing terms, more access to deal flow, and the ability to execute larger, more complex transactions than many smaller peers. The company’s shared capital model, which shifts capital among strategies as conditions change, is a core part of its competitive edge. That said, the overall industry remains crowded and heavily exposed to interest‑rate policy and housing trends, so even strong players like Annaly cannot fully control the external environment.

Innovation and R&D

Innovation and R&D Annaly is not a traditional R&D‑driven company, but it invests meaningfully in analytical tools, data infrastructure, and partnerships to improve decision‑making. It uses proprietary portfolio and risk‑management models, along with robust data‑management systems, to monitor a complex mortgage portfolio in real time. Strategic technology partnerships—such as with real estate tech investors and data‑management providers—give it early access to new tools and ideas that can streamline operations or sharpen risk analysis. The company is also innovating in how it builds and scales its residential credit and mortgage‑servicing‑rights businesses, including through joint ventures and servicing partnerships. Overall, its “innovation” is more about better information, smarter capital allocation, and selective alliances than about new physical products.

Summary

Overall, Annaly presents as a large, sophisticated mortgage REIT with meaningful strengths but also material structural risks. Financially, it has a history of positive operating performance and generally healthy cash flow, offset by very volatile reported earnings tied to interest‑rate movements and asset revaluations. Its balance sheet is heavily leveraged, which is normal for the model but increases sensitivity to funding costs and market stress—an important consideration for all capital providers, including preferred shareholders like NLY‑PF. On the positive side, Annaly’s scale, diversified mortgage platform, and advanced analytics give it tools to navigate a complex market, and it continues to expand in areas like residential credit and servicing rights through strategic partnerships. The central trade‑off is clear: strong positioning and capabilities in a specialized niche, balanced against ongoing exposure to macro conditions and the inherent risks of a highly levered, interest‑rate‑driven business.