
18. SEGMENTS

The Company operates in three reportable segments further described in the Description of Business Note. The accounting policies applied to the segments are the same as those described in the summary of significant accounting policies, with the exception of allocations between segments related to net interest income and other comprehensive income (loss), which are reflected in Other income (loss), and allocations between segments related to investment balances, which are presented net of associated financings in Total Assets. These allocations are made to reflect the economic hedging relationship between investments within different operating segments. Activities that are not directly attributable or not allocated to any of the three current operating segments (such as investments in commercial mortgage-backed securities, preferred stock dividends and corporate existence costs) are reported under Corporate and Other as reconciling items to the Company’s consolidated financial statements. The tables below summarize the result of operations and total assets by segment that are provided to the Chief Operating Decision Maker (CODM), which is the Company’s Operating Committee. Comprehensive income is the measure of segment profit or loss that is determined in accordance with the measurement principles used in measuring the corresponding amounts in the consolidated financial statements and is a key determinant of the Company’s economic return (computed as the change in stockholders’ equity attributable to common stockholders plus common stock dividends declared divided by the prior period’s stockholders’ equity attributable to common stockholders), a measure which is used by the CODM to evaluate segment results and is one of the factors considered in determining capital allocation among the segments.

The following tables present the reportable operating segments related to the Company’s results of operations for the years ended December 31, 2025, 2024 and 2023:


December 31, 2025
	Agency		Residential Credit		MSR		Corporate & Other		Consolidated
	(dollars in thousands)
Interest income	$	3,860,554	$	2,097,433	$	—	$	1,218	$	5,959,205
Interest expense	3,105,686		1,717,154		—		865		4,823,705
Net interest income	754,868		380,279		—		353		1,135,500
Servicing and related income	—		—		579,592		—		579,592
Servicing and related expense	—		—		60,273		—		60,273
Net servicing income	—		—		519,319		—		519,319
Other income (loss)	677,429		11,516		(101,581)		2,266		589,630
Less: Total general and administrative expenses	69,862		65,241		37,545		26,981		199,629
Income (loss) before income taxes	1,362,435		326,554		380,193		(24,362)		2,044,820
Income taxes	494		(27,396)		18,423		1,609		(6,870)
Net income (loss)	1,361,941		353,950		361,770		(25,971)		2,051,690
Less: Net income (loss) attributable to noncontrolling interest	—		24,428		—		—		24,428
Net income (loss) attributable to Annaly	1,361,941		329,522		361,770		(25,971)		2,027,262
Dividends on preferred stock	—		—		—		157,931		157,931
Net income (loss) available (related) to common stockholders	1,361,941		329,522		361,770		(183,902)		1,869,331
Unrealized gains (losses) on available-for-sale securities	386,709		—		—		—		386,709
Reclassification adjustment for net (gains) losses included in net income (loss)	142,407		—		—		—		142,407
Other comprehensive income (loss)	529,116		—		—		—		529,116
Comprehensive income (loss)	1,891,057		353,950		361,770		(25,971)		2,580,806
Comprehensive income (loss) attributable to noncontrolling interests	—		24,428		—		—		24,428
Comprehensive income (loss) attributable to Annaly	$	1,891,057	$	329,522	$	361,770	$	(25,971)	$	2,556,378
Noncash investing and financing activities:
Receivable for unsettled trades	846		—		185		—		1,031
Payable for unsettled trades	1,938,963		—		120,423		—		2,059,386
Net change in unrealized gains (losses) on available-for-sale securities, net of reclassification adjustment	529,116		—		—		—		529,116
Dividends declared, not yet paid	—		—		—		494,881		494,881
Total assets
Total assets	$	91,816,874	$	39,310,418	$	4,388,619	$	93,927	$	135,609,838


December 31, 2024
	Agency		Residential Credit		MSR		Corporate & Other		Consolidated
	(dollars in thousands)
Interest income	$	3,340,101	$	1,490,076	$	—	$	9,857	$	4,840,034
Interest expense	3,367,984		1,217,780		—		6,474		4,592,238
Net interest income	(27,883)		272,296		—		3,383		247,796
Servicing and related income	—		—		485,406		—		485,406
Servicing and related expense	—		—		49,469		—		49,469
Net servicing income	—		—		435,937		—		435,937
Other income (loss)	381,691		147,449		(19,330)		4,841		514,651
Less: Total general and administrative expenses	63,854		53,408		34,670		19,424		171,356
Income (loss) before income taxes	289,954		366,337		381,937		(11,200)		1,027,028
Income taxes	2,026		(15,705)		29,108		(169)		15,260
Net income (loss)	287,928		382,042		352,829		(11,031)		1,011,768
Less: Net income (loss) attributable to noncontrolling interest	—		9,862		—		—		9,862
Net income (loss) attributable to Annaly	287,928		372,180		352,829		(11,031)		1,001,906
Dividends on preferred stock	—		—		—		154,551		154,551
Net income (loss) available (related) to common stockholders	287,928		372,180		352,829		(165,582)		847,355
Unrealized gains (losses) on available-for-sale securities	(244,278)		—		—		—		(244,278)
Reclassification adjustment for net (gains) losses included in net income (loss)	561,996		—		—		—		561,996
Other comprehensive income (loss)	317,718		—		—		—		317,718
Comprehensive income (loss)	605,646		382,042		352,829		(11,031)		1,329,486
Comprehensive income (loss) attributable to noncontrolling interests	—		9,862		—		—		9,862
Comprehensive income (loss) attributable to Annaly	$	605,646	$	372,180	$	352,829	$	(11,031)	$	1,319,624
Noncash investing and financing activities:
Receivable for unsettled trades	2,142,357		—		59,090		—		2,201,447
Payable for unsettled trades	280,515		—		27,767		—		308,282
Net change in unrealized gains (losses) on available-for-sale securities, net of reclassification adjustment	317,718		—		—		—		317,718
Dividends declared, not yet paid	—		—		—		375,932		375,932
Total assets
Total assets	$	71,834,543	$	28,137,561	$	3,406,686	$	177,594	$	103,556,384


December 31, 2023
	Agency		Residential Credit		MSR		Corporate & Other		Consolidated
	(dollars in thousands)
Interest income	$	2,772,963	$	930,232	$	—	$	28,386	$	3,731,581
Interest expense	3,096,245		728,273		—		18,447		3,842,965
Net interest income	(323,282)		201,959		—		9,939		(111,384)
Servicing and related income	—		—		364,157		—		364,157
Servicing and related expense	—		—		37,652		—		37,652
Net servicing income	—		—		326,505		—		326,505
Other income (loss)	(1,824,323)		171,678		13,975		(12,921)		(1,651,591)
Less: Total general and administrative expenses	58,852		49,021		29,872		24,808		162,553
Income (loss) before income taxes	(2,206,457)		324,616		310,608		(27,790)		(1,599,023)
Income taxes	1,629		17,121		21,070		(386)		39,434
Net income (loss)	(2,208,086)		307,495		289,538		(27,404)		(1,638,457)
Less: Net income (loss) attributable to noncontrolling interest	—		4,714		—		—		4,714
Net income (loss) attributable to Annaly	(2,208,086)		302,781		289,538		(27,404)		(1,643,171)
Dividends on preferred stock	—		—		—		141,676		141,676
Net income (loss) available (related) to common stockholders	(2,208,086)		302,781		289,538		(169,080)		(1,784,847)
Unrealized gains (losses) on available-for-sale securities	580,680		—		—		—		580,680
Reclassification adjustment for net (gains) losses included in net income (loss)	1,792,816		—		—		—		1,792,816
Other comprehensive income (loss)	2,373,496		—		—		—		2,373,496
Comprehensive income (loss)	165,410		307,495		289,538		(27,404)		735,039
Comprehensive income (loss) attributable to noncontrolling interests	—		4,714		—		—		4,714
Comprehensive income (loss) attributable to Annaly	$	165,410	$	302,781	$	289,538	$	(27,404)	$	730,325
Noncash investing and financing activities:
Receivable for unsettled trades	2,709,398		—		826		—		2,710,224
Payable for unsettled trades	3,232,941		10		16,438		—		3,249,389
Net change in unrealized gains (losses) on available-for-sale securities, net of reclassification adjustment	2,373,496		—		—		—		2,373,496
Dividends declared, not yet paid	—		—		—		325,052		325,052
Total assets
Total assets	$	71,167,416	$	19,149,003	$	2,578,644	$	332,173	$	93,227,236

Historical Timeline

Fiscal Year	Filed
2025	Feb 12, 2026	Showing above
2024	Feb 13, 2025

2023	Feb 15, 2024

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

ANNALY CAPITAL MANAGEMENT INC Segments Disclosure

Historical Timeline

About Segments Disclosures

Other Available Disclosures