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FEDERAL HOME LOAN MORTGAGE CORP (FMCC)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 net revenues were $5.74B and net income was $2.77B; net income fell 11% YoY on a reserve build vs. a reserve release in the prior year, but rose 16% QoQ as credit provisions normalized and NII continued to grow . Versus SPGI consensus, “Revenue (SPGI basis)” beat by ~$0.41B (+8%): $5.56B actual vs. $5.15B estimate; EPS was $0.00 and in line due to capital structure mechanics (senior preferred) (values from S&P Global)*.
  • Single-Family delivered $4.90B of net revenues and $2.35B of net income (down YoY on non-interest losses and a reserve build), while Multifamily posted $0.84B of net revenues and $0.43B of net income (up QoQ, down YoY) .
  • Credit remained resilient but mixed: Single-Family serious delinquency was 0.57% (vs. 0.55% in Q2 and 0.54% in Q3’24) and Multifamily delinquency rose to 0.51% (0.39% in Q3’24), driven by delinquent floating-rate and small balance loans .
  • Strategic focus on affordability and supply: 54% of eligible Single-Family loans were affordable to low- to moderate-income families; 50% of purchase borrowers were first-time homebuyers; 195K rental units financed with 92% of eligible units affordable to LMI households . A CHOICEHome expansion (Aug 6) to modern single‑section factory-built homes aims to increase supply .
  • Potential stock catalysts: revenue/NII outperformance vs. consensus; clarity on credit normalization; Multifamily delinquency path; policy/capital updates under conservatorship (net worth $67.6B; Treasury commitment $140.2B; no senior preferred dividends until capital buffers are met) .

What Went Well and What Went Wrong

  • What Went Well

    • Revenue beat (SPGI basis): Actual $5.56B vs. $5.15B estimate (+8%); continued NII strength on portfolio growth and lower funding costs (SPGI values; management commentary on NII) (S&P Global)*.
    • QoQ earnings re-acceleration: Net income rose to $2.77B from $2.39B in Q2 on smaller provisions and stable expenses .
    • Affordability and mission delivery: 483K households served; 54% of eligible Single-Family loans affordable; 50% first-time homebuyers; 92% of eligible Multifamily units affordable .
    • Management quote: “We earned $2.8 billion of net income on $5.7 billion of revenue… we helped 483,000 Americans buy, refinance or rent a home… we are looking closely at ways to help drive more homebuilding in both the multifamily and single-family markets.” – William J. Pulte, Chair .

  • What Went Wrong

    • YoY earnings decline: Net income down 11% YoY and net revenues down 2% YoY, primarily due to a reserve build and lower non‑interest income (notably Single‑Family) .
    • Non‑interest income weakness: Consolidated non‑interest income fell to $0.28B (down 66% YoY); Single‑Family posted a $0.14B non‑interest loss, driven by interest rate/spread moves .
    • Credit mixed: Single‑Family serious delinquency edged to 0.57% (from 0.55% in Q2), and Multifamily delinquency increased to 0.51%, driven by delinquent floating‑rate and small balance loans .
    • Segment YoY pressure: Single‑Family net income down 9% YoY; Multifamily net income down 20% YoY amid higher provisions and lower non‑interest income .

Financial Results

  • Consolidated P&L (oldest → newest)
MetricQ3 2024Q2 2025Q3 2025
Net revenues ($B)$5.84 $5.92 $5.74
Net interest income ($B)$5.00 $5.30 $5.46
Non‑interest income ($B)$0.84 $0.62 $0.28
(Provision) benefit for credit losses ($B)$0.19 benefit $(0.78) $(0.18)
Non‑interest expense ($B)$(2.18) $(2.16) $(2.12)
Net income ($B)$3.11 $2.39 $2.77
Net income (loss) per common share ($)($0.02) ($0.01) $0.00
  • Segment results (oldest → newest)
SegmentMetricQ3 2024Q2 2025Q3 2025
Single‑FamilyNet revenues ($B)$5.06 $5.14 $4.90
Net income ($B)$2.57 $2.09 $2.35
MultifamilyNet revenues ($B)$0.78 $0.78 $0.84
Net income ($B)$0.53 $0.30 $0.43
  • Consensus vs. Actual (SPGI basis)
MetricQ3 2025 ConsensusQ3 2025 Actual (SPGI)Surprise
Revenue ($B)$5.15*$5.56*+$0.41B / +8.0% (S&P Global)*
EPS ($)$0.00*$0.00*In line (S&P Global)*
Net income normalized ($B)$0.00*$2.77*NA coverage; not meaningful (S&P Global)*
  • Key KPIs (oldest → newest)
KPIQ1 2025Q2 2025Q3 2025
Households served (000s)313 363 483
New business activity – Single‑Family ($B)78 94 99
New business activity – Multifamily ($B)10 12 25
Single‑Family serious delinquency (%)0.59 0.55 0.57
Multifamily delinquency (%)0.46 0.47 0.51
First‑time homebuyers (% of purchase)52 53 50
Affordable to LMI – SF eligible loans (%)51 53 54
Avg g‑fee on new acquisitions (bps)54 54 54
Avg g‑fee on portfolio (bps)49 49 50
Net worth ($B)$62.4 $64.8 $67.6

Note: All estimate values marked with “*” are values retrieved from S&P Global.

Guidance Changes

Freddie Mac does not provide quantitative financial guidance in its Q3 2025 press release/8‑K; no revenue, margin, expense, tax, or dividend guidance updates were issued .

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue, EPS, margins, OpEx, OI&E, tax, segment KPIsFY/QuarterlyNone providedNone providedMaintained: No formal guidance

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was available in the document set; the company webcasted results at 9:00 a.m. ET on Oct. 30, 2025; transcript not found in our search . The themes below reflect management’s press release commentary and the results supplements across Q1–Q3.

TopicPrevious Mentions (Q1 2025)Previous Mentions (Q2 2025)Current Period (Q3 2025)Trend
Credit provisioning$0.28B provision; SF reserve build tied to new acquisitions $0.78B provision; SF reserve build on lower estimated market values and lower HPA forecasts $0.18B provision; SF reserve build on new acquisitions; prior year had reserve release Elevated but easing QoQ
Non‑interest income$0.75B; down YoY on MF investment gains decline $0.62B; down YoY on MF factors $0.28B; down sharply YoY, driven by SF interest‑rate/spread changes Weaker through Q3
Net interest income$5.10B; +7% YoY on portfolio growth/lower funding costs $5.30B; +8% YoY same drivers $5.46B; +9% YoY same drivers Steadily rising
Multifamily credit0.46% delinquency; floating‑rate/small balance pressure 0.47% delinquency; similar drivers 0.51% delinquency; continued pressure Deteriorating modestly
CRT/credit enhancementSF CRT issuance $63B; coverage 62% SF CRT issuance $41B; coverage 62% SF CRT issuance $31B; coverage 62% Issuance lower; coverage steady
Affordability & first‑time buyers51% LMI; 52% FTB 53% LMI; 53% FTB 54% LMI; 50% FTB Affordability up; FTB mixed
Conservatorship/capitalNet worth $62.4B; no senior preferred dividends under ERCF until capital built Net worth $64.8B; same framework Net worth $67.6B; liquidation pref. to $140.2B on 12/31/25 Capital building

Management Commentary

  • Strategic focus: “We helped 483,000 Americans buy, refinance or rent a home… The country needs more supply, and we are looking closely at ways to help drive more homebuilding in both the multifamily and single‑family markets.” – William J. Pulte, Chair .
  • NII driver: Management cited continued mortgage portfolio growth and lower funding costs (partially offset by lower yields on short‑term investments) as key NII tailwinds .
  • Multifamily strategy: Higher NII YoY linked partly to a shift toward fully guaranteed securitizations; non‑interest income down YoY from lower held‑for‑sale and securitization revenues, partially offset by IR risk management .
  • Conservatorship/capital: No senior preferred dividends until ERCF capital buffers are met; liquidation preference increases with net worth accretion (to $140.2B at 12/31/25) .

Q&A Highlights

  • A Q3 2025 transcript was not available in our document set; results were presented via a webcast at 9:00 a.m. ET on Oct. 30, 2025, but we found no posted transcript to extract Q&A detail . We will update this section if/when a transcript becomes available.

Estimates Context

  • SPGI consensus indicated Revenue (SPGI basis) of $5.15B vs. actual $5.56B, a beat of ~$0.41B (+8.0%); EPS was $0.00 both estimated and actual (reflecting capital structure dynamics) (values from S&P Global)*.
  • Net income normalized consensus appeared unavailable/not meaningful (estimate $0.00 vs. actual $2.77B), suggesting limited analyst coverage of quarterly normalized earnings (values from S&P Global)*.
  • Implications: Given the revenue/NII beat and lower‑than‑Q2 provisioning, Street models may nudge up NII run‑rate and temper non‑interest income outlooks; Multifamily credit assumptions may drift more conservative given the rise in delinquencies (S&P Global for estimates)*.

Note: All estimate values marked with “*” are values retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue/NII outperformance vs. consensus was the key positive; continued NII growth from portfolio expansion and funding cost tailwinds offset non‑interest income pressure (S&P Global for estimates)*.
  • QoQ earnings improved meaningfully as provisions normalized; watch the sustainability of lower provisioning amid modestly higher Single‑Family delinquency and rising Multifamily delinquencies .
  • Multifamily remains a swing factor: delinquency increased to 0.51% on floating‑rate/small balance loans; segment income improved QoQ but is still down YoY .
  • Capital build continues under conservatorship (net worth $67.6B), with no senior preferred dividends until ERCF capital targets are met; liquidation preference to rise with earnings .
  • Mission delivery scaling: 483K households served; affordability mix strong; policy initiatives like CHOICEHome expansion for factory‑built homes could support volumes and supply over time .
  • Estimate dispersion likely to increase: Street models may lift NII but haircut non‑interest income assumptions; Multifamily credit assumptions may be tightened (S&P Global for estimates)*.
  • Near‑term trading lens: positive revenue beat and QoQ earnings inflection vs. caution on Multifamily credit trajectory and ongoing non‑interest income volatility .

SOURCES

  • Q3 2025 8‑K press release and supplement:
  • Q2 2025 8‑K press release and supplement:
  • Q1 2025 8‑K press release and supplement:
  • Additional press (supply initiative):

Note: All estimate values marked with “*” are values retrieved from S&P Global.