| Revenue of $452.69M (105.80% Y/Y) misses by $61.50M
Annaly Capital Management, Inc. (NLY) Q1 2026 Earnings Call April 22, 2026 9:00 AM EDT
Company Participants
Sean Kensil David Finkelstein – CEO, Co-Chief investment Officer & Director Serena Wolfe – Chief Financial Officer Michael Fania – Co-Chief Investment Officer & Head of Residential Credit
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Conference Call Participants
Crispin Love – Piper Sandler & Co., Research Division Bose George – Keefe, Bruyette, & Woods, Inc., Research Division Ameeta Lobo Nelson – UBS Investment Bank, Research Division Richard Shane – JPMorgan Chase & Co, Research Division Harsh Hemnani – Green Street Advisors, LLC, Research Division Jason Weaver – JonesTrading Institutional Services, LLC, Research Division Trevor Cranston – Citizens JMP Securities, LLC, Research Division
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Presentation
Operator
Good day, and welcome to the First Quarter 2026 Annaly Capital Management Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Sean Kensil, Director Investor Relations. Please go ahead.
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Sean Kensil
Good morning, and welcome to the First Quarter 2026 Earnings Call for Annaly Capital Management.
Any forward-looking statements made during today’s call are subject to certain risks and uncertainties, which are outlined in the Risk Factors section in our most recent annual and quarterly SEC filings. Actual events and results may differ materially from these forward-looking statements. We encourage you to read the disclaimer in our earnings release in addition to our quarterly and annual filings.
Additionally, the content of this conference call may contain time-sensitive information that is accurate only as of the date hereof. We do not undertake and specifically disclaim any obligation to update or revise this information.
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During this call, we may present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our earnings release. Content referenced in today’s call can be found in our first quarter 2026 Investor Presentation
A Southwest Airlines Boeing 737 airplane lands at Los Angeles International Airport after arriving from Chicago on March 7, 2026 in Los Angeles, California.
Kevin Carter | Getty Images
Southwest Airlines forecast second-quarter earnings below analyst estimates, citing higher fuel prices, while holding off on updating its full-year 2026 forecast.
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Southwest expects to earn between 35 cents and 65 cents a share in the current quarter, while analysts polled by LSEG expected 55 cents a share.
The airline in January forecast earnings per share of $4 this year, saying that it expected its new initiatives would pay off. Southwest has sought to increase revenue with checked bag fees and seat assignment fees.
“Achieving this outcome would require lower fuel prices and/or stronger revenue performance to offset higher fuel expense. The Company expects to provide updates to this guidance as appropriate,” Southwest said in an earnings release Wednesday.
Airlines have been either cutting their full-year forecasts or holding off on further forecasts because of volatile prices for jet fuel, generally their biggest expense after labor. They are also pulling back on their capacity growth plans to cut costs, which can drive up airfare when fewer seats are for sale.
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Southwest said it expects its capacity to be flat to up no more than 1% in the second quarter, and unit revenues to rise by 16.5% to as much as 18.5% over last year.
“Demand continues to be strong, and we remain focused on controlling what we can control by managing costs, optimizing revenue initiatives, and directing capacity toward higher‑return opportunities,” CEO Bob Jordan said in the earnings release.
Here’s what the company reported for first quarter compared with Wall Street expectations, according to consensus estimates from LSEG:
Earnings per share: 45 cents vs. 47 cents cents expected
Revenue: $7.25 billion vs. $7.27 billion expected
Southwest swung to a profit of $227 million, or 45 cents a share in the first quarter, compared with a $149 million loss, or a loss of 26 cents per share, a year earlier.
Revenue rose nearly 13% to $7.25 billion compared with $6.43 billion in the year-earlier period.
A severe environmental and public health crisis is unfolding across Thailand, Laos, and Myanmar as widespread forest fires and agricultural burning create dangerous levels of air pollution. The recurring smog, exacerbated by the region’s dry season and persistent slash-and-burn farming practices, has led to a significant surge in respiratory illnesses and sparked urgent calls for structural legislative reform, as current government efforts remain hampered by weak enforcement and a lack of regional cooperation.
Key Points
The northern provinces of Thailand, including Chiang Mai and Chiang Rai, have been subjected to critical, long-term exposure to PM2.5 pollution, which has persisted for over two months.
Fires are driven by a combination of natural dry-season conditions and widespread agricultural practices, particularly slash-and-burn land clearing for crops and animal feedstock.
Cross-border pollution remains a major obstacle, as Thai officials struggle to mitigate smoke originating from Myanmar and Laos, where enforcement of burning bans is minimal.
Medical professionals report an alarming increase in severe respiratory issues and lung cancer cases among non-smokers, attributing these health trends directly to the poor air quality.
Volunteer firefighters in countries like Laos are currently tasked with managing large-scale blazes while relying on inadequate, basic equipment.
Lawmakers and health advocates are pushing for the enactment of a comprehensive Clean Air Act in Thailand, arguing that the crisis is a systemic issue that cannot be solved with short-term, superficial measures.
The Rising Impact of Seasonal Forest Fires Across Thailand and the Mekong Region
The Mekong region, encompassing Thailand and its neighboring nations, is currently grappling with a severe surge in forest fires. This seasonal phenomenon has escalated into a significant environmental and public health concern, drawing attention from meteorologists, government officials, and international environmental organizations. As the dry season persists, the proliferation of uncontrolled blazes continues to threaten biodiversity, regional air quality, and the stability of local economies.
Northern Thailand is currently facing a severe environmental crisis as persistent forest fires continue to blanket the region in hazardous levels of PM2.5 pollutants. With thousands of hotspots detected across conservation and national forest areas, residents are suffering from significant health complications, while government officials and emergency responders struggle to contain the blazes. Despite ongoing firefighting efforts and proposed infrastructure improvements, the situation remains dire, prompting urgent calls for stronger legislative action to address the recurring annual air quality disaster.
The primary drivers of these forest fires are a combination of extreme climatic conditions and traditional agricultural practices. The onset of the dry season often leads to parched vegetation, creating highly combustible landscapes. Simultaneously, the persistent reliance on slash-and-burn farming techniques to clear land for seasonal crops remains a major catalyst for ignition. While many of these fires originate as managed agricultural clearing, they frequently escape containment due to high winds and prolonged drought, rapidly evolving into widespread wildfires that transcend provincial and national borders.
The environmental consequences of these fires are profound. Beyond the immediate destruction of forest cover and wildlife habitats, the blazes release substantial amounts of carbon dioxide and particulate matter into the atmosphere. This has resulted in a critical decline in air quality across several provinces in Northern Thailand, Laos, and Myanmar. The presence of hazardous levels of PM2.5 pollutants poses a significant risk to public health, leading to increased respiratory illnesses and creating long-term challenges for healthcare infrastructure in the affected regions.
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Regional authorities are increasingly aware of the transboundary nature of this crisis. Because smoke and pollutants do not respect national boundaries, isolated efforts by single governments often yield limited results. In response, there is a growing emphasis on regional cooperation within the ASEAN framework. Current strategies focus on strengthening satellite monitoring systems to identify fire hotspots in real-time, enforcing stricter regulations against unauthorized burning, and incentivizing farmers to adopt more sustainable agricultural methods that do not rely on fire.
Economic activity is also significantly impacted. The tourism sector, a cornerstone of the regional economy, faces disruptions as visibility drops and air quality concerns deter travelers. Furthermore, the agricultural sector faces long-term risks, as repeated burning can deplete soil nutrients and contribute to increased land degradation, ultimately undermining the productivity of the land.
Addressing this recurring crisis requires a multifaceted approach. While immediate emergency response teams remain essential for suppressing active fires, a sustainable long-term solution must address the root socio-economic causes. Transitioning toward modern, fire-free farming technologies and enhancing public education regarding the environmental impacts of burning are critical steps toward mitigation. As the Mekong region navigates the remainder of the current dry season, the focus remains on coordinating regional resources to minimize the damage and developing robust frameworks to prevent such extensive fire activity in future seasons.
While market regulator Securities and Exchange Board of India (Sebi) has been taking steps to curb speculative trading in the domestic futures & options (F&O) markets, Zerodha founder and CEO Nithin Kamath on Wednesday highlighted the highly skewed nature of India’s derivatives market, noting that despite widespread perception, the F&O segment remains relatively small.
Kamath said that in March, only about 30 lakh individuals traded F&O contracts, while across FY26, roughly 20 lakh traded exclusively in derivatives. Even after combining equity and F&O participants, the number rises to just around 64 lakh, a fraction of India’s nearly 13 crore investor base.
He pointed out that only 3.8 crore investors were active across segments, implying that just 30% of investors actually traded, underlining limited participation in the markets.
More importantly, Kamath emphasized that brokerage industry revenues are heavily dependent on a small set of active traders, with a disproportionate share of activity concentrated at the top. Around 60–70% of F&O volumes are generated by just 1–2% of traders, reflecting a sharply imbalanced market structure.
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According to him, the data suggests that while retail participation has expanded, trading intensity—and consequently revenues—are driven by a very narrow base of investors.
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“Despite what people think about F&O trading in India and all its problems, it is still a very, very small market compared to almost anything else. In fact, in the month of March, only about 30 lakh people traded an F&O contract. Across FY26 as a whole, only about 20 lakh people traded only in F&O. If you combine people who traded in equities and F&O, that number goes up to roughly 64 lakh. So this is still a very small market. Altogether, out of nearly 13 crore unique investors, only around 3.8 crore investors were active across cash and F&O. That means only about 30% of investors traded anything at all,” Kamath tweeted. “And yet, the only reason broker revenues have held up is that a small number of people are trading more. Pretty much the entire revenue pool of the broking industry comes from this relatively small pool of traders. If you look at F&O turnover, around 60–70% of trading volumes come from a tiny set of investors, roughly just 1–2%. That is the lopsided structure of the Indian markets,” he added.
Despite what people think about F&O trading in India and all its problems, it is still a very, very small market compared to almost anything else. In fact, in the month of March, only about 30 lakh people traded an F&O contract. Across FY26 as a whole, only about 20 lakh people… https://t.co/aZbzItQb4P“>pic.twitter.com/aZbzItQb4P
The Port of Cebu is a major potential SAF export hub for ASEAN, fueled by strong underlying drivers in the Philippines.
The Port of Cebu has been recognized as a key hub for potential Sustainable Aviation Fuel (SAF) exports within ASEAN. This strategic positioning highlights the Philippines’ burgeoning role in the global shift towards greener aviation fuels. The identification of Cebu underscores its existing infrastructure and logistical advantages, making it an attractive gateway for the region’s SAF trade.
This recognition is bolstered by strong underlying drivers within the Philippines that support SAF development and export. These factors likely include a growing commitment to renewable energy, favorable government policies, and the potential for robust domestic production of feedstocks necessary for SAF creation. The nation is increasingly investing in technologies and partnerships to capitalize on these strengths.
By leveraging the Port of Cebu, the Philippines is poised to not only meet its own sustainability goals but also to become a significant supplier of SAF to other ASEAN nations. This initiative represents a forward-thinking approach to aviation, aiming to reduce carbon footprints and foster a more environmentally responsible air travel industry across Southeast Asia.
BMW wants to keep making sedans in spite of U.S. tariff pressures on German imports and the far higher sales of sport utility vehicles, said Sebastian Mackensen, the company’s North America chief.
Mackensen made the comments in an interview on Tuesday, a day before BMW unveiled an updated version of its full-size 7 Series sedan, which includes a slew of design and technology features BMW had originally developed for its electric vehicles.
The 7 Series vehicles will be the first without electric powertrains to come equipped with the new tech, which includes a panoramic heads-up display in the windshield and a voice assistant that uses artificial intelligence. Other upgrades include an enlarged drop-down screen that, along with a 36-speaker array, can essentially turn the rear seats into a small movie theater.
Called “neue klasse” — German for “new class” — BMW had intended its EVs to meld futuristic designs with a software-driven vehicle platform, following EV makers such as Tesla, Rivian, Lucid and Chinese brands.
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“Already so many innovations have come to life that the company decided we need to bring those innovations into our entire lineup,” Mackensen said.
The 7 Series currently starts above $99,000 for the base model and runs up through a $168,000 starting price for the high-performance i7 M70 EV.
“I would say it is really on the top of our product portfolio,” Mackensen said. “It is the pinnacle of what we produce when it comes to luxury, but obviously always, always performance.”
However, since 2018, another full-size BMW, the X7, has rocketed past the 7 Series in the U.S. in terms of sales. In 2025 BMW sold nearly about twice as many full-size X7 SUVs as it did full-size sedans, if you combine sales of both the 7-Series with the similar, two-door, 8-Series.
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This reflects an industry-wide trend, as SUV sales have overtaken sedans by a wide margin.
The X7, meanwhile, is made in Spartanburg, South Carolina, while the 7 Series, like all BMW sedans, is imported. Vehicles shipped to the U.S. from Germany carry a 15% tariff.
“This is definitely going to come into play,” said Robby DeGraff, manager of product and consumer insights at AutoPacific. “I can’t see BMW ever reallocating production of the 7 Series stateside, so the automaker is going to have to carefully keep tabs on demand and actual sales, to see how long it will be worth it to import the 7 Series.”
Though some of BMW’s closest rivals — such as Mercedes-Benz and Porsche — still have full-size sedans, several premium and luxury automakers have pulled theirs from the U.S. market in recent years.
Swedish maker Volvo stopped importing its S60 and S90 sedans in 2025. Lexus will discontinue the LS full-size sedan in the U.S. after the 2026 model year. German rival Audi said it will stop making the A8. It has been several years since American brand Lincoln made a sedan of any size.
Mackensen said that means the 7 Series sedan has a lot of potential.
“We obviously have a successful SUV lineup,” he said. “But we have always been a very successful sedan brand. We have a healthy share of sedans in our overall sales. And we like sedans. A lot of BMW customers like sedans, and we have no intention to stop offering sedans also in the future.”
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By some metrics, sedans don’t have as strong a business case as SUVs do, said Stuart Pearson, head of automotive and mobility research at Oxcap Analytics.
“If you were being just purely economical about it and not thinking about image and brand, just saying, ‘Well, is this model worth the return?’ You might say no,” Pearson said.
Pearson added that BMW does sell many lower-priced sedans. The 7 Series shares underpinnings with some of them, such as the smaller 5 Series, so the cost of producing it is incremental, And, he added, the 7 Series is a technological flagship.
“I think they build these, these days, more to prove that they can than anything else,” said Sean Tucker, managing editor of Kelley Blue Book. “The fastest version of the 7 Series right now has a 0 to 60 time of 3.5 seconds. That is absurd for a car this large. The rear seats are as luxurious as the front seats. … This is everything BMW can build. It’s a showpiece.”
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A substantial share of customers are still considering sedans overall. According to an AutoPacific survey of 18,000 Americans who plan to buy or lease a vehicle in the next three years, 45% of prospective BMW customers said they were most likely to get a four-door sedan. That percentage is very similar, if not identical, to that of Mercedes-Benz and Audi.
“I don’t think we’re going to see BMW pull the plug on its 7 Series soon, or Mercedes-Benz kill the S-Class anytime in the near future,” DeGraffsaid. “That, to me, would be a shocker. Those two brands really know their target audiences. Again, consumer choice is king in the luxury space.”
The U.S. alone accounts for about 30% of BMW’s profits, Pearson said, and that’s only grown as automakers have faced increasing pressure from Chinese automakers.
“The U.S. is a critical market to BMW,” Pearson said. “It’s always been one of its more profitable markets.”
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The brand has set “ambitious” overall sales targets in the U.S. for 2026, Mackensen said — though he wouldn’t share specific numbers. In 2025, BMW was the top-selling luxury brand in the U.S., according to according to Kelley Blue Book.
“We are bullish on BMW performance in the United States,” he said.
NEW YORK — GameStop Corp. shares jumped more than 4.7% in midday trading Wednesday, climbing to $25.61 as renewed retail investor enthusiasm and speculation around CEO Ryan Cohen’s ambitious turnaround plans fueled the latest surge in the iconic meme stock.
GameStop Shares Surge 4.7% to $25.61 as Meme Stock Momentum Returns Amid Ryan Cohen Transformation Bets
The video game retailer’s stock rose $1.15, or 4.70%, from Tuesday’s close of $24.46, with volume exceeding 3.5 million shares by late morning on the New York Stock Exchange. The move extended recent gains, pushing the stock up roughly 21% year-to-date in 2026 despite ongoing challenges in its core brick-and-mortar business.
Analysts and traders pointed to a combination of factors driving the uptick, including persistent short interest, options activity and lingering optimism that Cohen could execute a “transformational” acquisition using the company’s substantial cash reserves, estimated near $9 billion. Cohen has repeatedly signaled interest in a major deal involving a larger consumer-facing company that could dramatically reshape GameStop beyond traditional gaming retail.
The rally comes weeks after GameStop reported stronger-than-expected fourth-quarter results in late March, posting adjusted earnings per share of 49 cents versus expectations of around 30 cents. While revenue continued to decline amid industry shifts toward digital downloads, the company demonstrated improved profitability and gross margins, largely driven by its growing collectibles segment.
Cohen, who took the helm as chairman and later CEO after his activist push in 2020-2021, has focused on cost-cutting, including store closures, while building a war chest through conservative cash management and earlier capital raises. His vision includes pivoting toward higher-margin areas such as trading cards, collectibles and potentially e-commerce expansions or outright acquisitions.
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In January, GameStop’s board approved a massive long-term performance award for Cohen tied to ambitious targets: achieving a $100 billion market capitalization and significant EBITDA milestones. The package, valued potentially at $35 billion in stock options and fully at-risk, requires shareholder approval at a special meeting expected in the coming months. Cohen has put his own money behind the effort, purchasing substantial blocks of shares earlier in the year.
Market watchers noted heightened options activity in recent sessions, with call volumes outpacing puts and strikes around $25 attracting particular interest. Such patterns often signal speculative bets on further upside among retail traders who helped propel GME to extraordinary heights during the 2021 short squeeze.
Short interest remains a key narrative for GME enthusiasts, though exact current figures fluctuate. The stock’s history of rapid, volatility-driven moves has kept it on watch lists for both momentum traders and skeptics who question the sustainability of a business still heavily tied to declining physical game sales.
GameStop has not held traditional earnings conference calls under Cohen’s leadership, instead releasing results with minimal forward guidance. The approach has frustrated some Wall Street analysts, who maintain cautious ratings and lower price targets around $13 to $22, citing structural headwinds in the gaming sector and execution risks on any major acquisition.
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Yet retail sentiment on platforms like Reddit’s r/Superstonk and r/GME continues to celebrate signs of strategic patience. Supporters highlight the company’s debt-free balance sheet, cash position and Cohen’s track record at other ventures, including his earlier success with Chewy.
Broader market context also played a role Wednesday. Technology and consumer discretionary stocks showed mixed performance, but meme names occasionally decoupled from fundamentals on social media buzz. GameStop’s 52-week range spans from about $19.93 to $35.81, illustrating the stock’s capacity for sharp swings even years after its headline-making 2021 peak above $400 pre-split.
Company officials have emphasized a long-term focus on value creation rather than short-term quarterly optics. Recent initiatives include expanded collectibles offerings, Power Packs for digital trading cards and promotional trade-in deals aimed at refreshing inventory and engaging customers.
Industry analysts remain divided on GameStop’s path forward. Some see potential in leveraging its brand and customer base for adjacent businesses, while others warn that physical retail faces existential threats as console makers and publishers push digital-first models. The rise of PC gaming and subscription services has further pressured traditional store-based revenue.
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Cohen has described potential deals as “very, very, very big,” fueling speculation around targets such as eBay or other e-commerce platforms that could complement GameStop’s ecosystem. Any such move would likely deploy a meaningful portion of the cash hoard, raising questions about integration risks and shareholder dilution concerns.
As of midday Wednesday, GameStop’s market capitalization hovered near $11 billion. The stock’s price-to-earnings ratio stood elevated compared with traditional retailers, reflecting the premium investors place on its unique meme status and Cohen’s vision.
Trading in GME remained subject to heightened volatility, with circuit breakers possible during extreme moves. The company has faced past scrutiny over rapid price swings and the role of social media coordination, though regulatory attention has eased since the 2021 events.
For long-term holders, the narrative centers on whether Cohen can deliver on transformation goals before cash reserves erode or competitive pressures intensify. Recent insider buying by Cohen and earlier mentions of investor Michael Burry adding positions have provided bullish signals, even if temporary.
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Critics argue the stock’s valuation already incorporates optimistic acquisition scenarios, leaving limited margin of safety if deals fail to materialize or underperform. Consensus forecasts for 2026 project a wide range of possible outcomes, from modest averages around $23 to highly bullish scenarios exceeding $80 in some technical models.
GameStop employs roughly 12,000 people across its global operations, though workforce reductions have accompanied store rationalization efforts. The company continues to operate hundreds of locations while testing new formats and online enhancements.
As trading progressed Wednesday, attention turned to whether the intraday gains could hold into the close or spark another wave of retail participation. Volume remained solid but below some of the heavier sessions seen earlier in April.
The latest move underscores GameStop’s enduring appeal as a high-beta play in an otherwise subdued market for certain consumer stocks. While fundamentals show a shrinking core business offset by cash and profitability improvements, the story remains dominated by bets on Cohen’s next strategic chapter.
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Investors should approach GME with caution given its history of extreme volatility. Those monitoring the name will watch closely for any updates on the performance award vote, acquisition developments or the next quarterly filing.
With the stock trading well off its 2021 highs but showing resilience in 2026, GameStop continues to captivate a dedicated following even as the broader retail landscape evolves rapidly around it.
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