Annaly Capital Management Inc 8-K, filed Oct 20, 2026

Annaly Capital Management Inc (NLY)

8-K 2026-10-20 For: 2026-10-20

Added on October 21, 2026

About this 8-K

Annaly Capital Management Inc filed this 8-K on October 20, 2026.

Annaly Capital Management, Inc. reported a GAAP net loss of ($1.36) per average common share for the quarter ended September 30, 2026, EAD of $0.80, and a $0.75 per-share common dividend. GAAP leverage was 8.0x and economic leverage was 5.9x. AI summary

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Maryland		1-13447	22-3479661
(State or other jurisdiction of incorporation or organization)		(Commission File Number)	(IRS Employer Identification No.)

1211 Avenue of the Americas
New York,	New York		10036
(Address of principal executive offices)			(Zip Code)


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered

Common Stock, par value $0.01 per share	NLY	New York Stock Exchange




6.95% Series F Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock	NLY.F	New York Stock Exchange
6.50% Series G Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock	NLY.G	New York Stock Exchange


8.875% Series J Fixed-Rate Cumulative Redeemable Preferred Stock	NLY.J	New York Stock Exchange


	September 30, 2026			June 30, 2026			September 30, 2025
Book value per common share	$	17.86		$	20.15		$	19.25
GAAP net income per average common share (1)	$	(1.36)		$	1.06		$	1.21
Annualized GAAP return on average equity (2)	(24.35		%)	19.88		%	23.69		%
GAAP leverage at period-end (3)	8.0:1			7.4:1			7.1:1
Net interest margin (4)	1.54		%	1.47		%	0.97		%
Average yield on interest earning assets (5)	5.58		%	5.44		%	5.40		%
Average GAAP cost of interest bearing liabilities (6)	4.34		%	4.28		%	4.73		%
Net interest spread	1.24		%	1.16		%	0.67		%
Non-GAAP metrics *
Earnings available for distribution per average common share (1)	$	0.80		$	0.79		$	0.73

Annualized EAD return on average equity	15.86		%	15.12		%	14.70		%
Economic leverage at period-end (3)	5.9:1			5.6:1			5.7:1
Net interest margin (excluding PAA) (4)	1.69		%	1.76		%	1.70		%
Average yield on interest earning assets (excluding PAA) (5)	5.45		%	5.46		%	5.46		%
Average economic cost of interest bearing liabilities (6)	4.03		%	3.96		%	3.96		%
Net interest spread (excluding PAA)	1.42		%	1.50		%	1.50		%
* Represents a non-GAAP financial measure. Please refer to the "Non-GAAP Financial Measures" section for additional information. (1) Net of dividends on preferred stock. The quarter ended September 30, 2025 includes cumulative and undeclared dividends of $3.7 million on the Company's 8.875% Series J Fixed-Rate Cumulative Redeemable Preferred Stock (the "Series J Preferred Stock") as of September 30, 2025. (2) Annualized GAAP return on average equity annualizes realized and unrealized gains and (losses) which may not be indicative of full year performance, unannualized GAAP return on average equity is (6.09%), 4.97%, and 5.92% for the quarters ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively. (3) GAAP leverage is computed as the sum of repurchase agreements, other secured financing, debt issued by securitization vehicles, participations issued, and U.S. Treasury securities sold, not yet purchased divided by total equity. Economic leverage is computed as the sum of recourse debt, cost basis of to-be-announced ("TBA") derivatives outstanding, and net forward purchases (sales) of investments divided by total equity. Recourse debt consists of repurchase agreements, other secured financing, structured repurchase transactions (included within Debt issued by securitization vehicles) and U.S. Treasury securities sold, not yet purchased. Debt issued by securitization vehicles (excluding structured repurchase transactions) and participations issued are non-recourse to us and are excluded from economic leverage. (4) Net interest margin represents interest income less interest expense divided by average Interest Earning Assets. Net interest margin does not include net interest component of interest rate swaps. Net interest margin (excluding PAA) represents the sum of interest income (excluding PAA) plus TBA dollar roll income and less economic interest expense divided by the sum of average Interest Earning Assets plus average outstanding TBA contract balances. PAA represents the cumulative impact on prior periods, but not the current period, of quarter-over-quarter changes in estimated long-term prepayment speeds related to the Company’s Agency mortgage-backed securities. (5) Average yield on interest earning assets represents annualized interest income divided by average interest earning assets. Average interest earning assets reflects the average amortized cost of our investments during the period. Average yield on interest earning assets (excluding PAA) is calculated using annualized interest income (excluding PAA). (6) Average GAAP cost of interest bearing liabilities represents annualized interest expense divided by average interest bearing liabilities. Average interest bearing liabilities reflects the average balances during the period. Average economic cost of interest bearing liabilities represents annualized economic interest expense divided by average interest bearing liabilities. Economic interest expense is comprised of GAAP interest expense, the net interest component of interest rate swaps, and net interest on initial margin related to interest rate swaps, which is reported in Other, net in the Company’s Consolidated Statements of Comprehensive Income (Loss). Net interest on variation margin related to interest rate swaps is included in the Net interest component of interest rate swaps in the Company’s Consolidated Statements of Comprehensive Income (Loss).


	September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025 (1)		September 30, 2025
	(unaudited)		(unaudited)		(unaudited)				(unaudited)
Assets
Cash and cash equivalents	$	2,180,894	$	2,912,086	$	1,912,444	$	2,037,838	$	2,096,696
Securities	86,897,746		89,515,485		88,473,681		91,287,630		85,062,725
Loans, net	6,869,820		7,280,979		7,230,876		5,020,784		4,008,299
Mortgage servicing rights	4,199,823		4,089,485		4,115,999		3,645,865		3,476,181
Interests in MSR	110,350		106,775		27,212		28,626		35,833
Assets transferred or pledged to securitization vehicles	42,459,566		38,256,690		34,207,738		32,067,433		29,512,309




Derivative assets	1,204,812		81,784		395,099		115,533		47,899
Reverse repurchase agreements	32,425		33,047		33,524		34,389		35,004

Receivable for unsettled trades	705,160		104,722		891,293		1,031		185,916
Principal and interest receivable	882,299		846,548		806,484		926,660		959,435


Intangible assets, net	4,708		5,380		6,053		6,726		7,398
Other assets	599,871		508,195		437,188		437,323		433,877



Total assets	$	146,147,474	$	143,741,176	$	138,537,591	$	135,609,838	$	125,861,572
Liabilities and stockholders’ equity
Liabilities
Repurchase agreements	$	85,525,065	$	86,895,874	$	85,068,102	$	81,865,723	$	75,118,963
Other secured financing	1,125,000		1,125,000		1,125,000		1,075,000		1,025,000

Debt issued by securitization vehicles	38,380,269		34,366,098		30,719,417		28,918,753		26,601,790
Participations issued	2,200,562		2,553,709		2,484,018		1,932,655		1,831,657
U.S. Treasury securities sold, not yet purchased	—		—		—		2,396,724		2,442,570



Derivative liabilities	302,774		247,968		207,369		53,755		199,100
Payable for unsettled trades	1,108,206		331,586		1,522,750		2,059,386		2,604,278
Interest payable	319,589		420,764		347,607		380,688		285,080

Dividends payable	588,505		562,931		511,203		494,881		476,737
Other liabilities	703,118		258,870		226,314		272,362		279,818
Total liabilities	130,253,088		126,762,800		122,211,780		119,449,927		110,864,993
Stockholders’ equity







Preferred stock, par value $0.01 per share (2)	1,802,480		1,802,480		1,802,480		1,802,480		1,802,480
Common stock, par value $0.01 per share (3)	7,847		7,506		7,303		7,070		6,811
Additional paid-in capital	29,654,134		28,886,263		28,427,555		27,927,113		27,352,976
Accumulated other comprehensive income (loss)	(795,806)		(557,014)		(533,614)		(488,566)		(624,387)
Accumulated deficit	(14,848,732)		(13,213,859)		(13,429,615)		(13,157,325)		(13,626,983)
Total stockholders’ equity	15,819,923		16,925,376		16,274,109		16,090,772		14,910,897
Noncontrolling interests	74,463		53,000		51,702		69,139		85,682
Total equity	15,894,386		16,978,376		16,325,811		16,159,911		14,996,579
Total liabilities and equity	$	146,147,474	$	143,741,176	$	138,537,591	$	135,609,838	$	125,861,572

(1) Derived from the audited consolidated financial statements at December 31, 2025. (2) 6.95% Series F Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock - Includes 28,800,000 shares authorized, issued and outstanding. 6.50% Series G Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock - Includes 17,000,000 shares authorized, issued and outstanding. 6.75% Series I Preferred Stock - Includes 17,700,000 shares authorized, issued and outstanding. 8.875% Series J Fixed-Rate Cumulative Redeemable Preferred Stock - Includes 11,500,000 shares authorized, and 11,000,000 issued and outstanding. (3) Includes 1,456,750,000 shares authorized. Includes 784,673,349 shares issued and outstanding at September 30, 2026; 750,574,308 shares issued and outstanding at June 30, 2026; 730,290,500 shares issued and outstanding at March 31, 2026; 706,972,452 shares issued and outstanding at December 31, 2025; 681,052,317 shares issued and outstanding at September 30, 2025.


ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (dollars in thousands, except per share data) (Unaudited)
	For the quarters ended
	September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025
Net interest income
Interest income	$	1,970,425	$	1,812,198	$	1,724,930	$	1,690,707	$	1,532,497
Interest expense	1,426,813		1,324,005		1,272,239		1,324,128		1,256,747
Net interest income	543,612		488,193		452,691		366,579		275,750
Net servicing income
Servicing and related income	173,096		175,059		159,133		156,131		141,356
Servicing and related expense	17,087		17,835		16,580		16,485		15,104
Net servicing income	156,009		157,224		142,553		139,646		126,252
Other income (loss)
Net gains (losses) on investments and other	(4,721,745)		(318,503)		(672,119)		289,428		561,927
Net gains (losses) on derivatives	3,074,072		552,426		409,112		251,799		(92,308)




Other, net	16,895		13,521		9,323		13,952		13,959
Total other income (loss)	(1,630,778)		247,444		(253,684)		555,179		483,578
General and administrative expenses
Compensation expense	41,185		44,640		41,384		39,279		38,393
Other general and administrative expenses	12,021		13,549		11,180		11,928		11,947
Total general and administrative expenses	53,206		58,189		52,564		51,207		50,340
Income (loss) before income taxes	(984,363)		834,672		288,996		1,010,197		835,240
Income taxes	16,335		6,899		(1,519)		(7,754)		(7,823)
Net income (loss)	(1,000,698)		827,773		290,515		1,017,951		843,063
Net income (loss) attributable to noncontrolling interests	1,061		5,100		7,863		4,457		10,618
Net income (loss) attributable to Annaly	(1,001,759)		822,673		282,652		1,013,494		832,445
Dividends on preferred stock (1)	41,305		41,036		40,652		42,387		41,127
Net income (loss) available (related) to common stockholders	$	(1,043,064)	$	781,637	$	242,000	$	971,107	$	791,318
Net income (loss) per share available (related) to common stockholders
Basic	$	(1.36)	$	1.06	$	0.33	$	1.40	$	1.21
Diluted	$	(1.36)	$	1.06	$	0.33	$	1.40	$	1.20
Weighted average number of common shares outstanding
Basic	764,359,434		738,926,270		722,707,153		693,011,031		656,335,974
Diluted	764,359,434		740,256,247		724,364,897		695,034,348		657,856,427
Other comprehensive income (loss)
Net income (loss)	$	(1,000,698)	$	827,773	$	290,515	$	1,017,951	$	843,063
Unrealized gains (losses) on available-for-sale securities	(250,449)		(23,400)		(45,048)		74,992		113,281
Reclassification adjustment for net (gains) losses included in net income (loss)	11,657		—		—		60,829		2,378
Other comprehensive income (loss)	(238,792)		(23,400)		(45,048)		135,821		115,659
Comprehensive income (loss)	(1,239,490)		804,373		245,467		1,153,772		958,722
Comprehensive income (loss) attributable to noncontrolling interests	1,061		5,100		7,863		4,457		10,618
Comprehensive income (loss) attributable to Annaly	(1,240,551)		799,273		237,604		1,149,315		948,104
Dividends on preferred stock (1)	41,305		41,036		40,652		42,387		41,127
Comprehensive income (loss) attributable to common stockholders	$	(1,281,856)	$	758,237	$	196,952	$	1,106,928	$	906,977

(1) The quarter ended December 31, 2025 excludes, and the quarter ended September 30, 2025 includes, cumulative and undeclared dividends of $3.7 million on the Company's Series J Preferred Stock as of September 30, 2025.


ANNALY CAPITAL MANAGEMENT, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (dollars in thousands, except per share data)
	For the nine months ended
	September 30, 2026		September 30, 2025
	(unaudited)		(unaudited)
Net interest income
Interest income	$	5,507,553	$	4,268,498
Interest expense	4,023,057		3,499,577
Net interest income	1,484,496		768,921
Net servicing income
Servicing and related income	507,288		423,461
Servicing and related expense	51,502		43,788
Net servicing income	455,786		379,673
Other income (loss)
Net gains (losses) on investments and other	(5,712,367)		1,456,242
Net gains (losses) on derivatives	4,035,610		(1,458,960)




Other, net	39,739		37,169
Total other income (loss)	(1,637,018)		34,451
General and administrative expenses
Compensation expense	127,209		112,273
Other general and administrative expenses	36,750		36,149
Total general and administrative expenses	163,959		148,422
Income (loss) before income taxes	139,305		1,034,623
Income taxes	21,715		884
Net income (loss)	117,590		1,033,739
Net income (loss) attributable to noncontrolling interests	14,024		19,971
Net income (loss) attributable to Annaly	103,566		1,013,768
Dividends on preferred stock (1)	122,993		115,544
Net income (loss) available (related) to common stockholders	$	(19,427)	$	898,224
Net income (loss) per share available (related) to common stockholders
Basic	$	(0.03)	$	1.45
Diluted	$	(0.03)	$	1.44
Weighted average number of common shares outstanding
Basic	742,107,269		621,484,893
Diluted	742,107,269		622,768,481
Other comprehensive income (loss)
Net income (loss)	$	117,590	$	1,033,739
Unrealized gains (losses) on available-for-sale securities	(318,897)		311,717
Reclassification adjustment for net (gains) losses included in net income (loss)	11,657		81,578
Other comprehensive income (loss)	(307,240)		393,295
Comprehensive income (loss)	(189,650)		1,427,034
Comprehensive income (loss) attributable to noncontrolling interests	14,024		19,971
Comprehensive income (loss) attributable to Annaly	(203,674)		1,407,063
Dividends on preferred stock (1)	122,993		115,544
Comprehensive income (loss) attributable to common stockholders	$	(326,667)	$	1,291,519



(1) The nine months ended September 30, 2025 includes cumulative and undeclared dividends of $3.7 million on the Company's Series J Preferred Stock as of September 30, 2025.


	As of
	September 30, 2026		June 30, 2026		September 30, 2025
Economic leverage ratio reconciliation	(dollars in thousands)
Repurchase agreements	$	85,525,065	$	86,895,874	$	75,118,963
Other secured financing	1,125,000		1,125,000		1,025,000
Debt issued by securitization vehicles	38,380,269		34,366,098		26,601,790
Participations issued	2,200,562		2,553,709		1,831,657
U.S Treasury securities sold, not yet purchased	—		—		2,442,570


Total GAAP debt	$	127,230,896	$	124,940,681	$	107,019,980
Less Non-recourse debt:

Debt issued by securitization vehicles (1)	$	(38,136,634)	$	(34,114,655)	$	(26,601,790)
Participations issued	(2,200,562)		(2,553,709)		(1,831,657)


Total recourse debt	$	86,893,700	$	88,272,317	$	78,586,533
Plus / (Less):
Cost basis of TBA derivatives	$	6,710,766	$	7,169,573	$	3,981,439
Payable for unsettled trades	1,108,206		331,586		2,604,278
Receivable for unsettled trades	(705,160)		(104,722)		(185,916)
Economic debt *	$	94,007,512	$	95,668,754	$	84,986,334
Total equity	$	15,894,386	$	16,978,376	$	14,996,579
Economic leverage ratio *	5.9:1		5.6:1		5.7:1

* Represents a non-GAAP financial measure. (1) Non-recourse debt excludes debt issued by securitization vehicles related to structured repurchase transactions.


Financial Highlights


Business Highlights


Financial Performance


Other Information