Revenue growth reached 118.9% in 2026Q1, yet NOI margins compressed to 37.4% in 2025Q3, suggesting that the firm's aggressive asset accumulation strategy is struggling to maintain consistent property-level profitability.
| 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 | 650.38M | 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 % | 137.78% | 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 | 264.53M | 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) | 385.85M | 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 % | 59.33% | 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 | 119.15M | 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 | 85.86M | 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 | 267.8M | 690.03M | 111.59M | 73.36M | -224.03M | 390.78M | 0 | 0 | 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 % | 41.18% | 78.84% | 39.91% | 31.35% | 331.31% | 115.88% | 0% | 0% | 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 | 1.1M | 0 | 0 | 4.2M | 0 | 61.91M | 0 | 0 | 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 % | 0.17% | 0% | 0% | 1.79% | 0% | 18.36% | 0% | 0% | 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 | 266.7M | 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 % | 41.01% | 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 | 0.21x | -0.01x | -0.87x | 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 | 53.52M | 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 % | 20.72% | 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 % | 20.7% | 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) | 181.21M | 176.78M | 119.25M | 84.36M | -258.89M | 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 % | 27.86% | 20.2% | 42.65% | 36.05% | 382.86% | 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 % | -21.68% | - | - | 132.59% | -166.25% | - | - | -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 | 1.72 | 1.68 | 1.13 | 0.81 | -2.51 | 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 % | 67.88% | 106.63% | 120.65% | 169.63% | -71.08% | 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 |
High Financial Leverage Exposure
According to quarterly financial data, MFAO experienced significant revenue fluctuations, peaking at $206.5M in 2025Q3 before retreating, while NOI margins compressed to 37.4% during the same period, suggesting that the company's aggressive asset accumulation strategy is struggling to maintain consistent property-level profitability across its diverse portfolio.
The sharp divergence between revenue growth and NOI margins indicates that the company's expansion into business purpose loans may be incurring higher operational costs than traditional mortgage investments. Investors should monitor whether the recent revenue volatility reflects a sustainable scaling of the Lima One platform or merely temporary fluctuations in fair value adjustments.
As reported in recent filings, FFO per share exhibited notable volatility, dropping from $0.51 in 2025Q4 to $0.32 in 2025Q2, which raises questions regarding the consistency of core earnings and the long-term sustainability of the dividend payout in a fluctuating interest rate environment.
The erratic FFO trajectory suggests that the company's earnings are highly sensitive to market-driven valuation changes rather than stable interest income. This lack of predictability in core earnings warrants further investigation into how much of the reported FFO is derived from recurring operations versus non-recurring gains.
Based on reported figures, the company maintains a 6.01x debt-to-equity ratio, which appears to amplify earnings volatility and suggests that the firm's reliance on repo financing may expose shareholders to significant liquidity risks if credit spreads widen or asset values experience a sudden, sharp correction.
The high leverage profile may mask underlying weaknesses in the credit quality of the loan portfolio, particularly within the BPL segment. Analysts should be cautious, as the current earnings structure appears to prioritize growth at the expense of a more conservative, risk-adjusted capital structure.
Financial statements indicate that the 2021 acquisition of Lima One has fundamentally altered the company's revenue composition, shifting the business model toward a hybrid of interest income and origination fees, which appears to be the primary driver behind the recent 213% year-over-year revenue growth observed.
This transition suggests that MFAO is attempting to capture higher margins by controlling the asset lifecycle, though this strategy introduces operational risks not present in passive mortgage REITs. The success of this pivot remains contingent on the company's ability to maintain underwriting discipline while scaling its origination volume.
Quick answers to the most common questions about buying MFAO stock.
For fiscal year 2025, MFA Financial, Inc. 9.000% Senior Notes (MFAO) reported total revenue of $875.2M. This represents a 18926.9% increase compared to $4.6M in 1998.
MFA Financial, Inc. 9.000% Senior Notes (MFAO) 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. 9.000% Senior Notes (MFAO) 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. 9.000% Senior Notes (MFAO) 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.