Operational cash flow remains disconnected from reported earnings, with 2025Q4 FFO of $936.0 million significantly outpacing the $128.0 million in operating cash flow, highlighting the impact of non-cash accounting distortions.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 |
|---|
| Cash from Operations | 848M | 653M | 86M | -118M | 1.01B | 1.54B | 1.75B | 1.18B | 1.11B | 1.26B | 1.35B | 1.43B | 1.62B | 2.5B | 2.32B | 1.02B | -19.61M | 93.23M | 30.68M |
| Operating CF Growth % | 3249.3% | 659.3% | 172.88% | -111.65% | -34.22% | -11.85% | 48.05% | 6.02% | -11.67% | -6.8% | -5.32% | -11.96% | -35.15% | 7.76% | 128.44% | 5280.4% | -121.04% | 203.86% | - |
| Operating CF / Revenue % | 25.12% | 34.15% | 1.76% | -11.73% | 30.66% | 63.79% | 512.32% | 109.06% | 57.97% | 79.2% | -12290.91% | 154.88% | 98.6% | 375.53% | 83.37% | 75.74% | -5.43% | 52.42% | 55.58% |
| Net Income | 1.47B | 1.67B | 863M | 155M | -1.19B | 749M | -266M | 688M | 129M | 771M | 623M | 215M | -233M | 1.26B | 1.28B | 770.48M | 288.12M | 118.61M | 35.35M |
| Depreciation & Amortization | 108M | 177M | 0 | 0 | 13M | 369M | 1.08B | 601M | 25M | 3M | 2M | 509M | 628M | 706M | 872M | 360.68M | 105.39M | 26.08M | 10.76M |
| Stock-Based Compensation | 24M | 26M | 18M | 11M | 2M | 19M | 18M | 13M | 6M | 4M | 1M | 704K | 540K | 383K | 282K | 176K | 94K | 45K | 0 |
| Other Non-Cash Items | -846M | -1.12B | -832M | -296M | 2.08B | 818M | 2.1B | 523M | 932M | 319M | 646M | 786M | 1.19B | 235M | 162M | 334.33M | -247.1M | -633K | -11.82M |
| Working Capital Changes | 90M | -98M | 37M | 12M | 107M | -46M | -105M | -44M | 21M | 163M | 80M | -82M | 37M | 301M | 10M | -88.96M | -30.41M | -16.15M | -3.61M |
| Cash from Investing | -22.13B | -25.86B | -11.17B | -14.67B | 11.19B | 3.84B | 36.52B | -14.22B | -27.94B | -11.33B | 4.45B | 4.09B | 12.35B | 8.88B | -31.18B | -39.26B | -8.75B | -2.57B | -1.57B |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -555M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -91.85B | -45.65B | -42.01B | -32.58B | -55.51B | -69.43B | -83.62B | -75.78B | -54.99B | -48.78B | -25.55B | -82.62B | -78.09B | -146.36B | -133.9B | -103.43B | -22.65B | -9.15B | -2.65B |
| Sale of Investments | 79.82B | 25.55B | 23.3B | 51.96B | 62.7B | 72B | 121.67B | 49.6B | 37.59B | 40.88B | 35.2B | 83.81B | 94.74B | 145B | 113.84B | 64.9B | 13.64B | 6.6B | 1.07B |
| Other Investing | -10.1B | -5.77B | 7.54B | -34.06B | 4B | 1.27B | -1.53B | 11.96B | -10.54B | -3.43B | 1.35B | 2.91B | -4.3B | 10.23B | -11.12B | -727.34M | 255.85M | -9.55M | 11.76M |
| Cash from Financing | 21.92B | 25.18B | 11.08B | 14.23B | -11.39B | -6.17B | -37.23B | 12.8B | 26.98B | 9.88B | -5.7B | -6.13B | -14.39B | -11.66B | 29.92B | 39.44B | 8.74B | 2.62B | 1.59B |
| Dividends Paid | -1.69B | -1.6B | -1.24B | -1B | -869M | -860M | -970M | -1.14B | -974M | -795M | -799M | -902M | -1.09B | -1.66B | -1.42B | -663.51M | -173.19M | -80.32M | -19.66M |
| Common Dividends | -1.69B | -1.6B | -1.24B | -1B | -869M | -860M | -970M | -1.14B | -974M | -795M | -799M | -902M | -1.09B | -1.66B | -1.42B | -664M | -173M | -80.32M | -19.66M |
| Debt Issuance (Net) | -4M | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 0 | 1000K |
| Share Repurchases | 0 | 0 | 0 | 0 | -51M | -281M | -378M | -278M | 0 | -173M | -116M | -285M | -74M | -856M | -77M | 0 | 0 | 0 | 0 |
| Other Financing | 20.02B | 24.82B | 10.37B | 14.16B | -11.12B | -4.99B | -36.82B | 0 | 0 | 0 | -3.93B | 0 | -13.24B | -10.95B | 26.8B | -259.81M | 7.78B | 2.48B | -18.97M |
| Net Change in Cash | 639M | -29M | 0 | -563M | 809M | -799M | 1.04B | -238M | 157M | -162M | 98M | -610M | -423M | -287M | 1.06B | 1.19B | -29.55M | 146.79M | 56.01M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 1.74B | 1.77B | 1.77B | 2.33B | 1.52B | 2.32B | 1.28B | 1.52B | 1.36B | 1.21B | 1.11B | 1.72B | 2.14B | 2.43B | 1.37B | 173.26M | 202.8M | 56.01M | 0 |
| Cash at End | 2.36B | 1.74B | 1.77B | 1.77B | 2.33B | 1.52B | 2.32B | 1.28B | 1.52B | 1.05B | 1.21B | 1.11B | 1.72B | 2.14B | 2.43B | 1.37B | 173.26M | 202.8M | 56.01M |
| Free Cash Flow | 848M | 653M | 86M | -118M | 1.01B | 1.54B | 1.75B | 1.18B | 1.11B | 1.26B | -4.65B | 1.43B | 1.62B | 2.5B | 2.32B | 1.02B | -19.61M | 93.23M | 30.68M |
| FCF Growth % | 228.68% | 659.3% | 172.88% | -111.65% | -34.22% | -11.85% | 48.05% | 6.02% | -11.67% | 127.09% | -425.7% | -11.96% | -35.15% | 7.76% | 128.44% | 5280.4% | -121.04% | 203.86% | - |
| FCF / Revenue % | 25.12% | 34.15% | 1.76% | -11.73% | 30.66% | 63.79% | 512.32% | 109.06% | 57.97% | 79.2% | 42281.82% | 154.88% | 98.6% | 375.53% | 83.37% | 75.74% | -5.43% | 52.42% | 55.58% |
Interest rate volatility exposure
As reported in financial statements, AGNC's FFO frequently decouples from GAAP operating cash flow, with FFO reaching $936.0 million in 2025Q4 while OCF remained significantly lower at $128.0 million, illustrating the profound impact of non-cash derivative adjustments on the company's reported earnings versus actual cash generation.
The wide variance between FFO and OCF suggests that GAAP metrics are largely uninformative for assessing the company's liquidity. Investors should monitor this gap, as it implies that the firm's ability to fund operations is heavily dependent on the mark-to-market valuation of its hedging instruments rather than pure interest income.
Based on AGNC's reported figures, the dividend payout ratio relative to AFFO is data unavailable for most periods, though the 2025Q4 payout of $428.0 million against an FFO of $936.0 million suggests a payout ratio that warrants further investigation into the sustainability of current distribution levels.
The lack of consistent AFFO reporting makes it difficult to determine if the dividend is truly covered by recurring cash flow. Given the volatility in net income and OCF, the dividend appears to be supported by capital recycling rather than stable, recurring earnings, which may pose a risk to long-term income-focused shareholders.
According to recent SEC filings, AGNC's GAAP net income is frequently disconnected from operational performance, evidenced by a $148.0 million net loss in 2026Q1 occurring alongside $387.0 million in operating cash flow, highlighting the extreme distortion caused by accounting for interest rate swaps and MBS price fluctuations.
This disconnect suggests that GAAP net income is an unreliable proxy for the company's economic health. Analysts should prioritize the net interest spread and dollar roll income over headline earnings to better understand the underlying profitability of the mortgage-backed securities portfolio.
As indicated by the provided financial data, the company's cash flow statement fails to capture the full extent of off-balance-sheet obligations, as evidenced by the persistent volatility in OCF which swung from $387.0 million in 2026Q1 to a negative $31.0 million in 2023Q4, suggesting significant underlying liquidity sensitivity.
The extreme swings in operating cash flow may indicate that the company is susceptible to margin calls on its repo financing during periods of market stress. Investors should monitor the company's leverage ratios and repo market access, as these factors likely dictate the true sustainability of the firm's cash position.
Quick answers to the most common questions about buying AGNC stock.
AGNC Investment Corp. (AGNC) generated $653.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
AGNC Investment Corp. (AGNC) generated $653.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
AGNC Investment Corp. (AGNC) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, AGNC Investment Corp. (AGNC) returned $1.60B to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.