MFA Financial, Inc. (NYSE:MFA) has reported its financial results for the fourth quarter and full year ended December 31, 2025. The specialty finance real estate investment trust posted distributable earnings that came in slightly below analyst expectations, while revenue exceeded forecasts. The market's initial reaction appeared muted, with the stock showing modest pre-market movement.
Earnings and Revenue Versus Estimates
For the fourth quarter of 2025, MFA reported distributable earnings, a key non-GAAP metric for the company, of $27.8 million, or $0.27 per basic common share. This figure fell just short of the consensus analyst estimate of $0.2744 per share. On the top line, the company's performance was stronger relative to expectations.
- Q4 2025 Distributable EPS: Reported $0.27 vs. Estimate of $0.2744
- Q4 2025 Revenue: Reported $55.48 million vs. Estimate of $54.82 million
For the full year 2025, GAAP net income to common stockholders rose significantly to $136.5 million, or $1.31 per basic share, up from $86.4 million, or $0.83 per share, in 2024. Full-year distributable earnings were $104.0 million, or $1.00 per common share.
Market Reaction and Price Action
Following the earnings release, MFA's stock showed limited directional movement in pre-market trading, indicating a neutral to cautiously optimistic initial reception from investors. The slight earnings miss appears to have been offset by the revenue beat and other positive elements within the detailed report. This tepid reaction follows a period of relative stability for the stock, which has seen minimal change over the past month.
Key Highlights from the Quarterly Report
The earnings release detailed a quarter of strategic execution and portfolio growth for MFA. Management highlighted several core achievements:
- Portfolio Expansion and Activity: The company's residential investment portfolio grew to $12.3 billion, up from $11.2 billion at the end of the previous quarter. Significant acquisitions included $1.2 billion of Agency mortgage-backed securities (MBS) and $443.5 million of Non-QM loans.
- Strong Full-Year Investment: Throughout 2025, MFA made approximately $4.8 billion of investments in its target asset classes, significantly growing its Non-QM and Agency MBS portfolios.
- Credit Metrics: The company noted that 60+ day delinquencies in its residential loan portfolio increased slightly to 7.1% at quarter-end, up from 6.8% in the prior quarter, but declined from 7.5% at the end of 2024.
- Capital Management: MFA repurchased over 1 million shares of common stock during 2025. Notably, the Board of Directors authorized a new $200 million stock repurchase program effective through the end of 2028.
- Dividend and Returns: MFA paid a regular quarterly cash dividend of $0.36 per common share in January 2026. The company reported a total economic return of 3.1% for the fourth quarter and 9.0% for the full year 2025.
Looking Ahead
While the press release did not provide specific quantitative financial guidance for the coming quarters, management expressed confidence in the positioning of its investment portfolio. President and Chief Investment Officer Bryan Wulfsohn stated, "we believe our investment portfolio is well-positioned to deliver strong returns moving forward."
Analysts currently estimate revenue of approximately $57.1 million and earnings per share of $0.311 for the first quarter of 2026. For the full 2026 year, the consensus estimates project sales of around $241.95 million and revenue of $1.36 per share.
For a detailed breakdown of future earnings estimates and past performance, you can review the analysis on MFA's earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, an endorsement, or a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
