Freddie Mac (OTCMKTS:FMCC) Releases Quarterly Earnings Results

Freddie Mac (OTCMKTS:FMCC) announced its earnings results on Thursday. The company reported $0.01 earnings per share (EPS) for the quarter, Zacks reports. The business had revenue of $6.13 billion for the quarter, compared to analysts’ expectations of $5.61 billion. Freddie Mac had a negative return on equity of 60.00% and a net margin of 8.61%.

Here are the key takeaways from Freddie Mac’s conference call:

• Freddie Mac reported $3.6 billion in Q1 net income (up 27% year-over-year) and grew net worth to nearly $74 billion, underscoring strong earnings power.
• The total mortgage portfolio reached $3.7 trillion and the company provided $116 billion of liquidity, helping about 380,000 families—a majority in housing affordable to households at ?120% of AMI.
• Freddie Mac recorded a $320 million single-family credit reserve release driven by an upgraded house-price forecast (2.3% next 12 months), which reduced provisions but increases sensitivity to those forecasts.
• The multifamily business shifted toward fully guaranteed securitizations—securitizations more than doubled and guarantee-fee income rose, while non-interest income declined as the revenue mix changed.
• Despite capital gains, Freddie Mac still has a significant regulatory capital shortfall—about $105 billion excluding buffers—partly because $73 billion of senior preferred stock does not qualify as regulatory capital.

Freddie Mac Trading Up 0.4%

OTCMKTS FMCC traded up $0.03 on Friday, hitting $7.13. 2,460,050 shares of the company traded hands, compared to its average volume of 2,860,575. The company has a market capitalization of $4.63 billion, a price-to-earnings ratio of -356.30 and a beta of 1.79. The business’s 50 day moving average price is $6.04 and its 200-day moving average price is $8.18. Freddie Mac has a 52-week low of $3.40 and a 52-week high of $14.99.

Trending Headlines about Freddie Mac

Here are the key news stories impacting Freddie Mac this week:

• Positive Sentiment: Home?buyer demand described as “robust” in recent coverage, which partially offsets concerns about higher rates and supports mortgage originations and servicing flows. Mortgage Rates Tick Up To 6.30% But Buyer Demand Is Robust, Freddie Mac Says
• Neutral Sentiment: Freddie Mac reported Q1 2026 results showing $0.01 EPS and a revenue beat ($6.13B vs. ~$5.61B est.), providing near?term support but leaving profitability metrics mixed (net margin positive, ROE negative). Investors are weighing the top?line beat against weak EPS and ongoing capital/regulatory uncertainties. Freddie Mac Announces First-Quarter 2026 Financial Results
• Neutral Sentiment: Freddie Mac’s PMMS showed the 30?year fixed mortgage averaged 6.30%. Rising rates typically slow refinance volumes but can indicate stronger underlying demand when accompanied by healthy purchase activity; the net effect on FMCC depends on the balance between lower origination volumes and income from its retained portfolio and guarantee business. Mortgage Rates Average 6.30%
• Negative Sentiment: Analysts warn that Fannie Mae and Freddie Mac IPO plans remain “stalled,” prompting downgrades and pressuring valuation upside for FMCC; the uncertainty around restructuring/timing of any privatization limits investor enthusiasm and is a headwind for the stock. Fannie Mae and Freddie Mac IPOs ‘Stalled,’ Analysts Write. Why They Downgraded Fannie Mae Stock.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the company. BTIG Research assumed coverage on Freddie Mac in a research report on Monday, January 26th. They issued a “buy” rating and a $20.00 target price on the stock. Keefe, Bruyette & Woods dropped their target price on Freddie Mac from $9.00 to $8.50 and set an “underperform” rating on the stock in a research report on Monday, April 20th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Freddie Mac currently has an average rating of “Moderate Buy” and a consensus price target of $16.71.

Freddie Mac Company Profile

Freddie Mac (OTCMKTS:FMCC), officially the Federal Home Loan Mortgage Corporation, is a government-sponsored enterprise chartered by Congress in 1970 to enhance liquidity and stability in the U.S. housing finance system. Headquartered in McLean, Virginia, the company operates under the supervision of the Federal Housing Finance Agency (FHFA) and carries a congressional mandate to support affordable, sustainable homeownership and rental housing markets nationwide.

The company’s primary business activities involve purchasing mortgage loans from approved lenders, pooling them into mortgage-backed securities (MBS), and guaranteeing the timely payment of principal and interest to investors.