Thu, May 8, 8:17 PM (45 days ago)
### Summary of Annaly Capital Management, Inc. (NLY) Q1 2025 Financial Performance **Revenue and Profit Margins:** - **Revenue:** $1.32 billion (up from $1.09 billion in Q1 2024) - **Net Income:** $130.3 million (down from $465.2 million in Q1 2024) - **Earnings per Share (EPS):** $0.15 (down from $0.85 in Q1 2024) - **Net Interest Income:** $220.0 million (up from -$6.5 million in Q1 2024) - **Net Servicing Income:** $126.3 million (up from $102.9 million in Q1 2024) - **Other Income (Loss):** -$159.7 million (down from $406.4 million in Q1 2024) **Cash Flow:** - **Net Cash Provided by (Used in) Operating Activities:** -$156.3 million (down from $1.7 billion in Q1 2024) - **Net Cash Provided by (Used in) Investing Activities:** $1.7 billion (up from -$166.5 million in Q1 2024) - **Net Cash Provided by (Used in) Financing Activities:** -$1.2 billion (down from -$1.3 billion in Q1 2024) **Earnings Changes:** - **Net Gains (Losses) on Investments and Other:** $810.8 million (up from -$994.1 million in Q1 2024) - **Net Gains (Losses) on Derivatives:** -$977.9 million (down from $1.4 billion in Q1 2024) **Quarterly Performance Discussion:** - **Economic Return:** 4.04% (down from 16.29% in Q1 2024) - **Economic Leverage:** 5.7:1 (up from 5.6:1 in Q1 2024) - **Economic Capital Ratio:** 14.6% (stable from Q1 2024) **Trends and Uncertainties:** - **Interest Rate Sensitivity:** The portfolio is sensitive to changes in interest rates, with potential impacts on net interest income and portfolio market value. - **Credit Risk:** Exposure to non-Agency mortgage-backed securities and CRT securities. - **Liquidity Risk:** Dependence on repurchase agreements and other secured financing. - **Operational Risk:** Dependence on third-party service providers and cybersecurity threats. **Future Operations Impact:** - **Capital Management:** Focus on maintaining a strong capital position and conservative leverage ratios. - **Risk Management:** Ongoing monitoring and management of liquidity, credit, and operational risks. - **Investment Strategy:** Continued focus on Agency MBS, Residential Credit, and MSR investments.