'The current environment presents us with serious challenges, but we remain committed to maintaining our disciplined investment strategy focused on stable yields.'
— AGNC Management
03Detailed Report
0H6E.L
AGNC Investment Corp
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 27, 2026
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Executive Summary
AGNC Investment Corp reported a turbulent second quarter of 2024, characterized by a significant revenue decline to $967 million, down 41% from the previous quarter. The company faced increased operational challenges, resulting in a net loss of $48 million. High interest expenses totaling $698 million subdued profitability, along with a continuously shrinking gross profit margin, which fell to -2.48%. As management emphasized during the earnings call, these results highlight the impact of changing market conditions and macroeconomic headwinds. Despite these difficulties, AGNC remains focused on its real estate investment strategy while closely monitoring interest rate fluctuations and market demands.
For investors, the potential for recovery hinges on improvements in net interest margins and a favorable interest rate environment. The company’s ongoing strategy of maintaining robust capital reserves and investing wisely in mortgage-backed securities could position it favorably once market conditions stabilize.
Key Performance Indicators
Revenue
Increasing
967.00M
QoQ: -41.22% | YoY: 212.94%
Gross Profit
Decreasing
-24.00M
-2.48% margin
QoQ: -101.48% | YoY: -107.77%
Operating Income
Decreasing
286.00M
QoQ: -75.13% | YoY: -3.05%
Net Income
Decreasing
-48.00M
QoQ: -110.84% | YoY: -116.78%
EPS
Decreasing
-0.11
QoQ: -118.64% | YoY: -125.58%
Revenue Trend
Margin Analysis
Financial Highlights
### Revenue Performance
- Q2 2024 Revenue: $967 million, a decline of 41.22% YoY compared to Q1 2024, reflecting adverse market conditions.
- YoY Revenue Growth: Increased by 212.94% compared to Q2 2023 driven by fluctuations in asset management and growth in investment yield.
### Profitability
- Operating Loss: $286 million in Q2 2024 versus $1.15 billion in Q1, illustrating a strain on operational efficiency.
- Net Income: $-48 million showing a decline of over 116% year-over-year, underlining the impacts of interest expenses on earnings.
- EPS: Reported at -$0.11, which is a 118.64% decrease from Q1 2024.
### Balance Sheet Health
- Total Assets: $79.685 billion, with a debt-to-equity ratio of 6.60 indicating high leverage.
- Cash Reserves: $1.906 billion in cash at the end of the quarter shows a minimal increase, substantiating liquidity but potentially indicating insufficient cash flow generation.
- Total Debt: $70.266 billion demonstrating reliance on borrowed funds to fuel operations.
### Cash Flow Analysis
- Net Cash from Operating Activities: $(20) million reveals cash flow constraints linking to operational profitability and high interest costs.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
967.00M
212.94%
-41.22%
Gross Profit
-24.00M
-107.77%
-101.48%
Operating Income
286.00M
-3.05%
-75.13%
Net Income
-48.00M
-116.78%
-110.84%
EPS
-0.11
-125.58%
-118.64%
Key Financial Ratios
Gross Profit Margin
Weak
1.00%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
1.63%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
2.00%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.00%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.01%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.22
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
6.60
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Negative
-21.39x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
0.48x
Trading below book value, potential value opportunity or distressed
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