Revenue expansion to $229.4 million in 2026Q1 appears disconnected from operational performance, as NOI margins contracted sharply from 100% in early 2024 to 33.4% by 2025Q2.
| 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 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Revenue | 716.02M | 875.24M | 279.61M | 234.05M | -67.62M | 337.22M | -555.87M | 433.33M | 347.88M | 373.06M | 358.76M | 355.98M | 358.79M | 340.68M | 349.11M | 358.16M | 296.09M | 277.72M | 64.68M | 43.4M | 16.42M | 41.07M | 91.57M | 66.34M | 62M | 24.13M | 10.32M | 10.3M | 4.6M |
| Revenue Growth % | 161.78% | 213.02% | 19.47% | 446.11% | -120.05% | 160.67% | -228.28% | 24.57% | -6.75% | 3.98% | 0.78% | -0.79% | 5.32% | -2.41% | -2.53% | 20.97% | 6.61% | 329.36% | 49.04% | 164.29% | -60.02% | -55.15% | 38.03% | 7% | 156.93% | 133.75% | 0.23% | 123.91% | - |
| Property Operating Expenses | 275.05M | 33.45M | 35.31M | 34.14M | 42.89M | 37.47M | 0 | 0 | 113.25M | 94.17M | 74.36M | 62.81M | 48.67M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Operating Income (NOI) | 440.97M | 841.79M | 244.3M | 199.91M | -110.52M | 299.75M | -555.87M | 433.33M | 234.63M | 278.89M | 284.41M | 293.16M | 310.12M | 340.68M | 349.11M | 358.16M | 296.09M | 277.72M | 64.68M | 43.4M | 16.42M | 41.07M | 91.57M | 66.34M | 62M | 24.13M | 10.32M | 10.3M | 4.6M |
| NOI Margin % | 61.59% | 96.18% | 87.37% | 85.41% | 163.43% | 88.89% | 100% | 100% | 67.45% | 74.76% | 79.27% | 82.35% | 86.43% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Operating Expenses | 171.29M | 151.76M | 132.71M | 130.75M | 113.52M | -8.35M | -555.87M | 433.33M | 79M | 50M | 46M | 42M | 41M | 34M | 34M | 31M | 26M | 23M | 111M | 14M | 11M | 11M | 3.33M | 49.2M | 57.59M | 14.73M | 27.65M | 15.8M | 2.9M |
| G&A Expenses | 98.02M | 41.74M | 131.91M | 129.95M | 112.72M | 85.55M | 56.71M | 52.65M | 46.08M | 49.63M | 45.61M | 42.05M | 40.74M | 33.69M | 33.57M | 30.21M | 24.66M | 23.05M | 15.94M | 11.68M | 9.57M | 5.5M | 5.6M | 4.45M | 2.93M | 5.36M | 2.46M | 2.7M | 1.7M |
| EBITDA | 271.38M | 692.23M | 114.79M | 73.36M | -214.83M | 390.78M | 0 | 3.32M | 855.54M | 309.58M | 312.21M | 88.69M | 29.39M | 472.55M | 482.04M | 468.49M | 415.62M | 498.11M | 64.58M | 57.66M | 36.87M | 249.47M | 217.89M | 161.43M | 147.68M | 44.41M | 39.86M | 27.5M | 7.8M |
| EBITDA Margin % | 37.9% | 79.09% | 41.06% | 31.35% | 317.7% | 115.88% | 0% | 0.77% | 245.93% | 82.98% | 87.02% | 24.91% | 8.19% | 138.71% | 138.08% | 130.8% | 140.37% | 179.36% | 99.85% | 132.86% | 224.53% | 607.43% | 237.95% | 243.33% | 238.2% | 184.05% | 386.13% | 266.99% | 169.57% |
| Depreciation & Amortization | 1.7M | 2.2M | 3.2M | 4.2M | 9.2M | 61.91M | 0 | 3.32M | 321.55M | 235.43M | 219.16M | 860K | 1.19M | 5.83M | 3.53M | 2.66M | 730K | 512K | 18.79M | 27.71M | 31.63M | 58.93M | 50.93M | 45.88M | 28.09M | 5.55M | 1.89M | 1.4M | 300K |
| D&A / Revenue % | 0.24% | 0.25% | 1.14% | 1.79% | -13.61% | 18.36% | 0% | 0.77% | 92.43% | 63.11% | 61.09% | 0.24% | 0.33% | 1.71% | 1.01% | 0.74% | 0.25% | 0.18% | 29.05% | 63.84% | 192.64% | 143.49% | 55.62% | 69.16% | 45.31% | 23.02% | 18.33% | 13.59% | 6.52% |
| Operating Income | 269.68M | 690.03M | 111.59M | 69.16M | -224.03M | 328.87M | 0 | 0 | 533.99M | 74.16M | 93.04M | 87.83M | 28.19M | 466.72M | 478.51M | 465.82M | 414.89M | 497.6M | 45.8M | 29.95M | 5.24M | 190.54M | 166.96M | 115.54M | 119.58M | 38.86M | 37.97M | 26.1M | 7.5M |
| Operating Margin % | 37.66% | 78.84% | 39.91% | 29.55% | 331.31% | 97.52% | 0% | 0% | 153.5% | 19.88% | 25.93% | 24.67% | 7.86% | 137% | 137.07% | 130.06% | 140.12% | 179.17% | 70.8% | 69.02% | 31.89% | 463.94% | 182.34% | 174.17% | 192.88% | 161.03% | 367.8% | 253.4% | 163.04% |
| Interest Expense | 4M | 513.98M | 521.23M | 429.12M | 258.84M | 120.39M | 268.76M | 0 | 232.19M | 197.14M | 193.35M | 176.95M | 159.81M | 164.01M | 171.67M | 149.41M | 145.13M | 229.41M | 342.69M | 321.31M | 181.92M | 183.83M | 88.89M | 57.69M | 63.49M | 35.07M | 30.1M | 18.5M | 4.6M |
| Interest Coverage | - | 1.34x | 0.23x | -0.01x | -0.90x | 3.54x | - | - | 1.30x | 1.64x | 1.62x | 1.77x | -0.01x | 1.83x | 1.76x | 2.19x | 2.13x | 1.25x | 1.42x | -0.09x | -0.17x | -0.32x | 0.88x | -0.80x | -0.44x | -0.16x | -0.06x | -0.08x | -0.07x |
| Non-Operating Income | 59.11M | 0 | 111.59M | 73.36M | -224.03M | -91.35M | 0 | 0 | -207.03M | -1.03M | 3.81M | -781K | 316.36M | 6.12M | 11.39M | 2.66M | 730K | 512K | 0 | 57.66M | 219.47M | 249.03M | 0 | 161.43M | 28.09M | 5.55M | 1.89M | 1.4M | 300K |
| Pretax Income | 134.76M | 176.05M | 119.69M | 80.16M | -232.43M | 328.87M | -679.39M | 378.12M | 301.8M | 322.39M | 312.67M | 313.23M | 313.5M | 302.71M | 306.84M | 316.41M | 269.76M | 268.19M | 45.8M | 22.05M | 8.76M | 6.71M | 78.07M | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Margin % | 18.82% | 20.11% | 42.81% | 34.25% | 343.73% | 97.52% | 122.22% | 87.26% | 86.76% | 86.42% | 87.15% | 87.99% | 87.38% | 88.85% | 87.89% | 88.34% | 91.11% | 96.57% | 70.8% | 50.81% | 53.33% | 16.33% | 85.26% | 0% | 0% | 0% | 0% | 0% | 0% |
| Income Tax | 137K | -735K | 443K | 0 | -851K | 0 | 0 | 0 | 1.66M | 445.38M | 412.98M | 402.35M | 445.12M | 2.25M | 7.5M | 0 | 0 | 0 | 342.69M | 313.4M | 185.44M | 0 | 0 | -57.69M | 63.49M | 35.07M | 30.1M | 18.5M | 4.6M |
| Effective Tax Rate % | 0.1% | -0.42% | 0.37% | 0% | 0.37% | 0% | 0% | 0% | 0.55% | 138.15% | 132.08% | 128.45% | 141.98% | 0.74% | 2.44% | 0% | 0% | 0% | 748.28% | 1421.32% | 2117.42% | 0% | 0% | - | - | - | - | - | - |
| Net Income | 134.62M | 176.78M | 119.25M | 80.16M | -231.58M | 328.87M | -679.39M | 378.12M | 301.8M | 322.39M | 312.67M | 313.23M | 313.5M | 302.71M | 306.84M | 316.41M | 269.76M | 268.19M | 45.8M | 30.21M | 8.76M | 6.71M | 78.07M | 57.85M | 56.09M | 3.78M | 7.87M | 7.6M | 2.9M |
| Net Margin % | 18.8% | 20.2% | 42.65% | 34.25% | 342.47% | 97.52% | 122.22% | 87.26% | 86.76% | 86.42% | 87.15% | 87.99% | 87.38% | 88.85% | 87.89% | 88.34% | 91.11% | 96.57% | 70.8% | 69.61% | 53.33% | 16.33% | 85.26% | 87.2% | 90.48% | 15.68% | 76.2% | 73.79% | 63.04% |
| Net Income Growth % | -1.89% | 48.24% | 48.76% | 134.62% | -170.42% | 148.41% | -279.68% | 25.29% | -6.39% | 3.11% | -0.18% | -0.09% | 3.57% | -1.35% | -3.03% | 17.29% | 0.59% | 485.6% | 51.6% | 244.94% | 30.56% | -91.41% | 34.96% | 3.13% | 1382.4% | -51.89% | 3.5% | 162.07% | - |
| Funds From Operations (FFO) | 136.32M | 178.98M | 122.45M | 84.36M | -222.38M | 390.78M | -679.39M | 381.44M | 623.35M | 557.82M | 531.83M | 314.09M | 314.69M | 308.54M | 310.37M | 319.08M | 270.49M | 268.7M | 64.58M | 57.92M | 40.39M | 65.64M | 129M | 103.73M | 84.19M | 9.34M | 9.76M | 9M | 3.2M |
| FFO Margin % | 19.04% | 20.45% | 43.79% | 36.05% | 328.86% | 115.88% | 122.22% | 88.02% | 179.19% | 149.53% | 148.24% | 88.23% | 87.71% | 90.57% | 88.9% | 89.09% | 91.36% | 96.75% | 99.85% | 133.45% | 245.98% | 159.82% | 140.88% | 156.36% | 135.79% | 38.7% | 94.53% | 87.38% | 69.57% |
| FFO Growth % | 590.81% | 46.17% | 45.15% | 137.94% | -156.91% | - | - | -38.81% | 11.75% | 4.89% | 69.33% | -0.19% | 1.99% | -0.59% | -2.73% | 17.96% | 0.67% | 316.04% | 11.51% | 43.39% | -38.46% | -49.12% | 24.36% | 23.21% | 801.47% | -4.3% | 8.43% | 181.25% | - |
| FFO per Share | 1.29 | 1.70 | 1.17 | 0.81 | -2.16 | 3.30 | -6.01 | 3.26 | 5.91 | 5.73 | 5.72 | 3.38 | 3.41 | 3.41 | 3.48 | 3.74 | 3.85 | 4.38 | 1.43 | 2.52 | 2.70 | 3.62 | 6.77 | 7.68 | 8.11 | 2.44 | 1.42 | 1.31 | 0.46 |
| FFO Payout Ratio % | 118.75% | 105.32% | 117.49% | 169.63% | -82.76% | 39.96% | -16.71% | 94.79% | 52.9% | 55.32% | 56.01% | 94.68% | 93.64% | 192.79% | 109.94% | 103.19% | 96.21% | 82.43% | 202.59% | 65.14% | 60.01% | 85.02% | 59.99% | 58.06% | 56.51% | 114.96% | 54.51% | 81.11% | 175% |
| EPS (Diluted) | 1.28 | 1.68 | 0.82 | 0.46 | -2.40 | 2.63 | -6.01 | 3.17 | 2.86 | 3.16 | 3.20 | 3.20 | 3.24 | 3.12 | 3.32 | 3.60 | 3.72 | 4.24 | 0.84 | 0.96 | 0.04 | -0.08 | 3.92 | 4.28 | 5.40 | 1.00 | 1.14 | 1.10 | 0.42 |
| EPS Growth % | 9.26% | 104.88% | 78.26% | 119.17% | -191.25% | 143.76% | -289.59% | 10.84% | -9.49% | -1.25% | 0% | -1.23% | 3.85% | -6.02% | -7.78% | -3.23% | -12.26% | 404.76% | -12.5% | 2300% | 150% | -102.04% | -8.41% | -20.74% | 440% | -12.28% | 3.64% | 161.9% | - |
| EPS (Basic) | - | 1.71 | 0.83 | 0.46 | -2.40 | 2.66 | -6.01 | 3.21 | 2.88 | 3.16 | 3.20 | 3.20 | 3.24 | 3.12 | 3.32 | 3.60 | 3.72 | 4.24 | 0.84 | 0.96 | 0.04 | -0.08 | 3.92 | 4.28 | 5.40 | 1.00 | 1.14 | 1.10 | 0.42 |
| Diluted Shares Outstanding | 105.31M | 105.31M | 105.1M | 103.58M | 103.15M | 118.47M | 113.01M | 116.94M | 105.44M | 97.28M | 93.02M | 93.03M | 92.26M | 90.6M | 89.19M | 85.41M | 70.29M | 61.33M | 45.01M | 22.97M | 14.95M | 18.15M | 19.05M | 13.52M | 10.38M | 3.83M | 6.89M | 6.89M | 6.89M |
Earnings volatility and leverage
As indicated by the quarterly financial data, MFA Financial experienced significant revenue fluctuations, peaking at $229.4 million in 2026Q1, yet this top-line growth appears disconnected from operational stability, as evidenced by the sharp decline in FFO to negative $684,000 during the same period.
The rapid revenue growth suggests an aggressive scaling of the loan portfolio, likely through the Lima One origination platform. However, the inability to translate this expansion into consistent FFO suggests that the cost of scaling or the interest rate environment may be eroding the net interest margin.
According to the reported income statements, the company's NOI margin experienced a dramatic contraction from 100% in early 2024 to 33.4% by 2025Q2, highlighting a fundamental shift in the cost structure associated with the company's transition toward an active mortgage origination model.
The erosion of NOI margins implies that the company is incurring significantly higher operating expenses to support its business-purpose loan platform. Investors should monitor whether these costs are temporary integration expenses or a permanent increase in the firm's operating leverage that could permanently lower profitability.
Based on the provided quarterly figures, FFO per share has demonstrated extreme volatility, swinging from a high of $0.84 in 2023Q4 to a negative $0.01 in 2026Q1, which raises significant questions regarding the long-term reliability of the company's earnings available for distribution.
The negative FFO in the most recent quarter suggests that the company's core earnings power is currently insufficient to cover its obligations. This trend warrants further investigation into whether the current dividend yield is supported by sustainable cash flows or if it relies on capital recycling.
Financial statements reveal that the company's net income is highly sensitive to non-cash fair value adjustments, as evidenced by the sharp divergence between revenue growth and bottom-line performance, suggesting that reported earnings may not accurately reflect the underlying cash-generating capacity of the mortgage portfolio.
The reliance on mark-to-market accounting for its mortgage assets creates a disconnect between GAAP net income and actual cash flow. Analysts should be cautious, as the current earnings profile appears to be heavily influenced by external market factors rather than consistent operational performance.
Quick answers to the most common questions about buying MFAN stock.
For fiscal year 2025, MFA Financial, Inc. 8.875% Senior Notes (MFAN) reported total revenue of $875.2M. This represents a 18926.9% increase compared to $4.6M in 1998.
MFA Financial, Inc. 8.875% Senior Notes (MFAN) is profitable, generating $176.8M in net income for the fiscal year ending 2025 with a net profit margin of 20.2%.
MFA Financial, Inc. 8.875% Senior Notes (MFAN) reported an operating income of $690.0M, resulting in an operating profit margin of 78.8%. This margin reflects the operational efficiency of the business before interest and taxes.
MFA Financial, Inc. 8.875% Senior Notes (MFAN) generated $841.8M in gross profit for the year, representing a gross profit margin of 96.2%. This demonstrates the company's core pricing power and production efficiency.