Freddie Mac (FMCC) Q4 2025 earnings summary

Executive summary

• Net income for 2025 was $10.7 billion, down 10% year-over-year, with comprehensive income at $10.8 billion on net revenues of $23.3 billion, marking the third consecutive year above $10 billion in net income and $21 billion in revenue.

• Q4 2025 net income was $2.8 billion, down 14% year-over-year, mainly due to lower net revenues and higher credit loss provisions.

• Provided $465 billion in liquidity for the year and $147 billion in Q4, supporting over 1.7 million families, with a focus on affordable housing and first-time homebuyers.

• Continued investment in technology and operational efficiency to lower costs and improve service.

Financial highlights

• Net revenues for 2025 were $23.3 billion, down 3% year-over-year; Q4 net revenues were $5.8 billion, down 9% year-over-year.

• Net interest income rose 8% for the year to $21.4 billion, driven by mortgage portfolio growth and lower funding costs.

• Non-interest income fell 55% to $1.9 billion for the year, mainly due to net investment losses and lower revenues from loan purchase and securitization activities.

• Provision for credit losses increased to $1.3 billion for the year, up $814 million year-over-year, reflecting reserve builds and credit performance changes.

• Net worth increased to $70.4 billion at year-end, up 18% from 2024.

Outlook and guidance

• Forecasts house price growth of 0.5% over the next twelve months and 1.4% in the following twelve months, lower than previous forecasts.

• Management emphasized ongoing focus on efficiency, affordability, risk management, and continued investment in technology.

• Forward-looking statements highlight risks from economic, regulatory, and market changes.