Reported operating margins remain highly erratic, swinging between -116.4% and 119.0% due to the accounting treatment of mark-to-market fluctuations in the underlying municipal bond portfolio.
BNY Mellon Strategic Municipals, Inc. (LEO) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Net Interest Income | 29.28M | 21.98M | 20.15M | 22.3M | 27.87M | 30.18M | 31.12M | 32.71M | 36.13M | 37.11M | 0 | 0 | -44.65M | -592.08K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| NII Growth % | 601.5% | 9.06% | -9.63% | -19.98% | -7.65% | -3.04% | -4.86% | -9.45% | -2.64% | - | - | 100% | -7441.45% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Net Interest Margin % | 4.52% | 3.4% | 2.98% | 3.57% | 4.19% | 3.68% | 3.78% | 3.77% | 4.38% | 4.48% | 0% | 0% | -5.36% | -0.07% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Interest Income | 59.58M | 29.97M | 28.7M | 28.61M | 30.18M | 31.61M | 34.94M | 37.48M | 40.09M | 39.2M | 1.21M | 0 | 938.34K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 15.82M | 7.99M | 8.54M | 6.31M | 2.31M | 1.43M | 3.81M | 4.76M | 3.96M | 2.09M | 1.21M | 0 | 45.59M | 592.08K | 40K | -10.31M | -7.76M | -33.62M | -8.53M | 5.89M | 2.34M | 4.28M | -3.66M | -27.56M | -18.78M | -140K | -10.05M | 4.58M | 0 | 0 | 0 |
| Loan Loss Provision | -670.46K | 0 | 0 | 0 | 1.81M | 3.04M | 465.79K | -517.04K | 3 | 2 | 3.74M | 927.75K | -44.65M | -2.08K | 500K | 10.8M | 8.02M | 33.62M | 9.42M | -4.29M | -1.31M | -4.28M | 3.66M | 27.56M | 18.78M | 140K | 10.05M | -4.58M | 0 | 0 | 0 |
| Non-Interest Income | 3.71M | -35.15M | 44.76M | -12.83M | -9.42M | 15.68M | -11.65M | 15.74M | -34.72M | -35.46M | 43.21M | 40.05M | 38.88M | 39.77M | 42.09M | 42.86M | 44.16M | 46.93M | 48.85M | 50.39M | 48.16M | 46.69M | 45.97M | 50.26M | 55.48M | 55.96M | 48.58M | 37.6M | 38.83M | 42.37M | 43.37M |
| Non-Interest Income % | 11.24% | 266.82% | 68.95% | -135.5% | -51.05% | 34.19% | -59.84% | 32.49% | -2462.66% | -2154.24% | 100% | 100% | -673.63% | 101.51% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Total Net Revenue | 32.99M | -13.18M | 64.92M | 9.47M | 18.45M | 45.86M | 19.47M | 48.46M | 1.41M | 1.65M | 43.21M | 40.05M | -5.77M | 39.18M | 42.09M | 42.86M | 44.16M | 46.93M | 48.85M | 50.39M | 48.16M | 46.69M | 45.97M | 50.26M | 55.48M | 55.96M | 48.58M | 37.6M | 38.83M | 42.37M | 43.37M |
| Revenue Growth % | - | -120.3% | 585.55% | -48.68% | -59.77% | 135.51% | -59.82% | 3337.36% | -14.36% | -96.19% | 7.89% | 793.94% | -114.73% | -6.92% | -1.8% | -2.94% | -5.9% | -3.93% | -3.06% | 4.63% | 3.15% | 1.57% | -8.54% | -9.41% | -0.86% | 15.19% | 29.2% | -3.17% | -8.36% | -2.31% | -2.58% |
| Non-Interest Expense | 33.84M | -76.51K | -54.57K | 36.48K | 4.31M | 4.65M | 4.44M | -38.62K | 146.09K | 132.29K | 17.5M | 7.3M | 40.45M | 78.63M | 5.78M | 5.63M | 6.08M | 6.03M | 6.65M | 6.82M | 6.88M | 6.98M | 7.59M | 7.6M | 7.65M | 7.86M | 6.65M | 4.9M | 4.97M | 4.81M | 4.79M |
| Efficiency Ratio | 102.57% | 0.58% | -0.08% | 0.39% | 23.33% | 10.13% | 22.81% | -0.08% | 10.36% | 8.04% | 40.5% | 18.22% | -700.91% | 200.72% | 13.73% | 13.14% | 13.77% | 12.85% | 13.61% | 13.53% | 14.29% | 14.95% | 16.51% | 15.12% | 13.79% | 14.05% | 13.69% | 13.03% | 12.8% | 11.35% | 11.04% |
| Operating Income | 16.1M | -13.1M | 73.51M | 11.45M | -108.95M | 48.73M | 11.76M | 53.26M | 31.25M | 31.89M | 33.75M | 34.84M | 34.68M | 33.91M | 35.77M | 36.73M | 37.82M | 40.9M | 41.31M | 41.97M | 40.26M | 39.71M | 38.39M | 42.65M | 47.82M | 48.1M | 41.93M | 32.7M | 33.86M | 37.56M | 38.59M |
| Operating Margin % | 48.81% | 99.42% | 113.24% | 120.87% | -590.46% | 106.27% | 60.41% | 109.91% | 2216.9% | 1937.53% | 78.09% | 86.98% | -600.91% | 86.56% | 84.98% | 85.7% | 85.64% | 87.15% | 84.56% | 83.29% | 83.6% | 85.05% | 83.51% | 84.86% | 86.19% | 85.95% | 86.31% | 86.97% | 87.2% | 88.65% | 88.98% |
| Operating Income Growth % | - | -117.82% | 542.29% | 110.51% | -323.55% | 314.32% | -77.91% | 70.42% | -2.01% | -5.49% | -3.13% | 0.44% | 2.27% | -5.19% | -2.61% | -2.88% | -7.53% | -0.99% | -1.57% | 4.25% | 1.39% | 3.44% | -9.99% | -10.81% | -0.58% | 14.71% | 28.23% | -3.43% | -9.85% | -2.67% | -2.99% |
| Pretax Income | 14.95M | -13.1M | 73.51M | 5.12M | -111.26M | 47.3M | 7.95M | 53.26M | 5.23M | 3.6M | 55.36M | 31.83M | 79.33M | -39.46M | 91.67M | 22.21M | 46.94M | 70.49M | -34.73M | 19.79M | 45.56M | 52.45M | 45.59M | 33.54M | 26.53M | 59.23M | 42.6M | -13.85M | 48.37M | 46.61M | 33.27M |
| Pretax Margin % | 45.32% | 99.42% | 113.24% | 54.08% | -603% | 103.15% | 40.83% | 109.91% | 370.89% | 218.97% | 128.12% | 79.46% | -1374.53% | -100.72% | 217.8% | 51.82% | 106.3% | 150.2% | -71.1% | 39.27% | 94.6% | 112.34% | 99.17% | 66.73% | 47.82% | 105.84% | 87.69% | -36.84% | 124.57% | 110.01% | 76.71% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -52.21M | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | -998.52% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | 14.95M | -13.1M | 73.51M | 5.12M | -111.26M | 47.3M | 7.95M | 53.26M | 5.23M | 3.6M | 39.1M | 31.64M | 79.16M | -39.88M | 91.67M | 22.21M | 46.94M | 70.49M | -34.73M | 19.79M | 45.56M | 52.45M | 45.59M | 33.54M | 26.53M | 59.23M | 42.6M | -13.85M | 48.37M | 46.61M | 33.27M |
| Net Margin % | 45.32% | 99.42% | 113.24% | 54.08% | -603% | 103.15% | 40.83% | 109.91% | 370.89% | 218.97% | 90.47% | 79.01% | -1371.54% | -101.79% | 217.8% | 51.82% | 106.3% | 150.2% | -71.1% | 39.27% | 94.6% | 112.34% | 99.17% | 66.73% | 47.82% | 105.84% | 87.69% | -36.84% | 124.57% | 110.01% | 76.71% |
| Net Income Growth % | - | -117.82% | 1335.51% | 104.6% | -335.2% | 494.9% | -85.07% | 918.64% | 45.06% | -90.78% | 23.55% | -60.03% | 298.52% | -143.5% | 312.74% | -52.68% | -33.41% | 302.97% | -275.49% | -56.56% | -13.14% | 15.05% | 35.93% | 26.42% | -55.21% | 39.04% | 407.58% | -128.63% | 3.78% | 40.1% | -37.25% |
| Net Income (Continuing) | 14.95M | -13.1M | 73.51M | 5.12M | -111.26M | 47.3M | 7.95M | 53.26M | 5.23M | 3.6M | 55.36M | 31.83M | 79.33M | -39.46M | 91.67M | 22.21M | 46.94M | 70.49M | -34.73M | 19.79M | 45.56M | 52.45M | 45.59M | 33.54M | 26.53M | 59.23M | 42.6M | -13.85M | 48.37M | 46.61M | 33.27M |
| EPS (Diluted) | - | -0.21 | 1.18 | 0.03 | -1.79 | 0.76 | 0.11 | 0.82 | 0.08 | 0.03 | 999999.00 | 0.51 | 1.28 | -0.64 | 1.49 | 0.36 | 0.77 | 1.16 | -0.57 | 0.33 | 0.75 | 0.87 | 0.75 | 0.56 | 0.45 | 1.01 | 0.73 | -0.24 | 0.83 | 0.81 | 0.59 |
| EPS Growth % | - | -117.8% | 3983.05% | 101.61% | -335.53% | 590.91% | -86.59% | 884.39% | 177.67% | -100% | - | -60.16% | 300% | -142.95% | 313.89% | -53.25% | -33.62% | 303.51% | -272.73% | -56% | -13.79% | 16% | 33.93% | 24.44% | -55.45% | 38.36% | 404.17% | -128.92% | 2.47% | 37.29% | -37.23% |
| EPS (Basic) | - | -0.21 | 1.18 | 0.03 | -1.79 | 0.76 | 0.11 | 0.82 | 0.08 | 0.03 | 0.72 | 0.51 | 1.28 | -0.64 | 1.49 | 0.36 | 0.77 | 1.16 | -0.57 | 0.33 | 0.75 | 0.87 | 0.75 | 0.56 | 0.45 | 1.01 | 0.73 | -0.24 | 0.83 | 0.81 | 0.59 |
| Diluted Shares Outstanding | 62.29M | 62.29M | 62.29M | 62.29M | 62.29M | 62.28M | 62.21M | 62.2M | 62.77M | 60.05M | 54.65M | 61.85M | 61.85M | 61.85M | 61.68M | 61.28M | 61.11M | 60.77M | 60.77M | 60.72M | 60.59M | 60.59M | 60.59M | 60.17M | 59.23M | 58.55M | 58.55M | 58.55M | 58.31M | 57.62M | 56.68M |
Quick answers to the most common questions about buying LEO stock.
For fiscal year 2025, BNY Mellon Strategic Municipals, Inc. (LEO) reported total revenue of $-13.2M. This represents a 130.4% decline compared to $43.4M in 1996.
BNY Mellon Strategic Municipals, Inc. (LEO) reported a net loss of $13.1M for the fiscal year ending 2025.
BNY Mellon Strategic Municipals, Inc. (LEO) reported an operating income of $-13.1M, resulting in an operating profit margin of 99.4%. This margin reflects the operational efficiency of the business before interest and taxes.
BNY Mellon Strategic Municipals, Inc. (LEO) generated $-13.2M in gross profit for the year, representing a gross profit margin of 100.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Interest rate volatility exposure
Revenue Volatility Masks Underlying Yield
As reported in financial statements, LEO's revenue trajectory remains highly erratic, with quarterly figures fluctuating between $7.2 million and $15.5 million, reflecting the inherent sensitivity of the fund's mark-to-market bond portfolio valuations rather than a consistent trend in the underlying interest income generated by municipal holdings.
The headline revenue figures are heavily distorted by unrealized gains and losses, which obscures the fund's ability to generate stable tax-exempt distributions. Investors should interpret these swings as a function of interest rate cycles rather than operational growth, as the fund's core business model relies on coupon collection rather than capital appreciation.
Accounting Artifacts Distort Margin Analysis
According to recent SEC filings, LEO's reported operating margins have swung wildly from -116.4% to 119.0%, a phenomenon driven by the accounting treatment of portfolio mark-to-market fluctuations which renders traditional margin analysis largely ineffective for assessing the fund's actual operational efficiency or cost management capabilities.
Because the fund lacks a traditional cost of goods sold, the reported margins are essentially a reflection of portfolio performance relative to interest income. Analysts should focus on the expense ratio rather than operating margins to determine if management is effectively controlling administrative costs during periods of NAV contraction.
Earnings Quality Impaired by Volatility
Based on LEO's reported figures, net income has experienced extreme variance, including a significant loss of $65.5 million in 2022Q4, suggesting that the fund's earnings quality is highly susceptible to external macroeconomic shifts that impact the valuation of the underlying municipal bond portfolio.
The disconnect between net income and cash-based investment income warrants further investigation into whether distributions are being supported by capital gains or return of capital. The volatility in EPS, ranging from -$1.05 to $0.81, indicates that shareholders are exposed to significant NAV risk that may not be fully captured by the nominal dividend yield.
Structural Risks in Leveraged Municipals
As noted in historical data, LEO's reliance on leverage to enhance yield creates a double-edged sword, where rising interest rates not only depress the value of the bond portfolio but also increase the cost of financing, potentially leading to a permanent impairment of the fund's net asset value.
Short-sellers would likely focus on the fund's sensitivity to the Sifma Swap Rate, as any sustained increase in borrowing costs could force a reduction in distributions. The persistent discount to NAV suggests that the market remains skeptical of the fund's ability to navigate a higher-for-longer interest rate environment without further eroding shareholder capital.