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Farmer Mac Reports Second Quarter 2026 Results

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3 months ago

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– Outstanding Business Volume of $37.2 Billion –

WASHINGTON, July 30, 2026 /PRNewswire/ — The Federal Agricultural Mortgage Corporation (Farmer Mac; NYSE: AGM and AGM.A) today announced its results for the fiscal quarter ended June 30, 2026.

Second Quarter 2026 Highlights

Record outstanding business volume of $37.2 billion, reflecting 22% growth year-over-yearProvided $4.0 billion in liquidity and lending capacity to lenders serving rural AmericaNet interest income grew 22% year-over-year to $118.1 millionNet effective spread1 increased 25% from the prior-year period to a record $117.4 millionNet income attributable to common stockholders was $58.9 million, or $5.41 per diluted shareRecord core earnings1 of $58.8 million, or $5.40 per diluted share, reflecting 24% growth year-over-yearTotal core capital of $1.9 billion and a Tier 1 Capital Ratio of 13.2% as of June 30, 2026Issued $100.0 million of Tier 1 capital through the public offering of 6.875% Series I non-cumulative preferred stock

“Farmer Mac delivered record second quarter results, with business volume, revenue, and core earnings all reaching all-time highs, a testament to the strength of our mission-driven franchise and the disciplined execution of our strategy across every part of our business,” said Zachary Carpenter, President and Chief Executive Officer. “Broad-based volume growth carried us past $37 billion in outstanding business volume, reinforcing our role as a vital source of liquidity for American agriculture and rural infrastructure. We also strengthened our already robust capital base through a successful preferred stock issuance and maintained our expense efficiency ratio below our 30% strategic target, while continuing to invest for future growth.”

$ in millions, except per share amounts

Quarter Ended

June 30,
2026

March 31,
2026

June 30,
2025

QoQ %

Change2

YoY %

Change2

Net Change in

Business Volume

$2,351.1

$1,494.5

$831.9

N/A

N/A

Net Interest Income (GAAP)

$118.1

$101.4

$96.8

16 %

22 %

Net Effective Spread

(Non-GAAP)

$117.4

$102.0

$93.9

15 %

25 %

Diluted EPS (GAAP)

$5.41

$4.75

$4.48

14 %

21 %

Diluted Core EPS (Non-GAAP)

$5.40

$4.74

$4.32

14 %

25 %

____________________________

1Non-GAAP (Generally Accepted Accounting Principles) Measure
2Percentage changes may not compute directly as shown due to rounding of amounts presented above

“Our commitment to innovation reached an important milestone this week with the launch of Farmer Mac Loan Exchange, or FLX, our new Farm & Ranch loan platform, a significant step in modernizing our technology to deliver liquidity more efficiently and at scale, and a strong example of the innovation that will continue to differentiate Farmer Mac and transform the agricultural mortgage market,” Mr. Carpenter continued. “As we look to the balance of 2026, we remain well positioned to navigate an evolving macro environment through our diversified portfolio, strong capital position, and disciplined underwriting. We are excited about the significant opportunities ahead and remain focused on deepening our impact in the markets we serve while delivering durable, high-quality earnings and long-term value for our shareholders.”

Second Quarter 2026 Income Statement Highlights

Net interest income grew $21.3 million year-over-year and $16.7 million quarter-over-quarterNet effective spread3 increased $23.5 million year-over-year, and $15.4 million quarter-over-quarter, primarily due to robust net volume growth and the collection of $7.4 million of recovery of interest on a delinquent permanent planting exposureCredit provisions primarily related to new volume growth across all segments and portfolio credit migration trendsPurchased $21.4 million of tax credits, resulting in a benefit of $2.0 millionNet income increased $9.7 million year-over-year and $7.0 million quarter-over-quarterCore earnings3 increased $11.4 million year-over-year and $7.0 million quarter-over-quarter to $58.8 millionCore return on equity was 19% in the second quarter, reflecting strong profitability and efficient capital deployment

$ in billions

Quarter Ended June 30, 2026

% of
Outstanding
Business
Volume

Segment

Business
Volume

Net Effective
Spread

YoY Volume
Growth

Agricultural Finance

65 %

Farm & Ranch

$22.0

1.01 %

21 %

Corporate AgFinance

$2.1

3.76 %

7 %

Infrastructure Finance

35 %

Power & Utilities

$8.3

0.36 %

13 %

Renewable Energy

$3.0

1.72 %

55 %

Broadband Infrastructure

$1.9

2.30 %

58 %

Second Quarter 2026 Portfolio Highlights

Broad-based, net portfolio growth of $2.4 billion reflective of strong customer demand across all segmentsFarm & Ranch portfolio grew by $1.7 billion, primarily due to $1.1 billion of net growth in AgVantage securities, including a $0.8 billion AgVantage security from a new counterparty, and net loan purchase volume of $483.4 millionCorporate AgFinance portfolio grew modestly by $30.5 million due to loan purchases and AgVantage securities activity with several counterpartiesStrong business volume in Power & Utilities resulted in net growth of $291.0 million, which included the purchase of a $197 million pool of loans from a single customerRenewable Energy business volume increased $120.2 million due to strong deal flow and continued project finance momentumBroadband Infrastructure business volume grew $161.8 million, reflecting steady demand for rural telecommunications and data connectivity

 _____________

3Non-GAAP Measure

Earnings Conference Call Information

The conference call to discuss Farmer Mac’s second quarter 2026 financial results will be held beginning at 4:30 p.m. eastern time on Thursday, July 30, 2026, and can be accessed by telephone or live webcast as follows:

Telephone (Domestic): (888) 880-3330
Telephone (International): (646) 357-8766
Webcast: https://www.farmermac.com/investors/events-presentations/   

When dialing in to the call, please ask for the “Farmer Mac Earnings Conference Call.” The call can be heard live and will also be available for replay on Farmer Mac’s website for one week following the conclusion of the call.

More complete information about Farmer Mac’s performance for second quarter 2026 is in Farmer Mac’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, filed today with the Securities and Exchange Commission (“SEC”).

Use of Non-GAAP Measures

We use “non-GAAP measures” in our analysis of financial information. Non-GAAP measures represent measures of financial performance that are not presented in accordance with GAAP. Specifically, we use the following non-GAAP measures: (1) “core earnings,” (2) “core earnings per common share,” and (3) “net effective spread,” in both dollars and percentage yield. In our view, these non-GAAP measures are useful alternative measures in understanding our economic performance, transaction economics, and business trends. Our non-GAAP financial measures may not be comparable to similarly labeled non-GAAP financial measures disclosed by other companies. Our disclosure of non-GAAP measures is intended to be supplemental in nature and is not meant to be considered in isolation from, as a substitute for, or as more important than, the related financial information prepared in accordance with GAAP.

Core Earnings and Core Earnings Per Share

The main difference between core earnings and core earnings per common share, which are non-GAAP measures, and net income attributable to common stockholders and earnings per common share, which are GAAP measures, is that those non-GAAP measures exclude the effects of fair value fluctuations. These fluctuations are not expected to have a cumulative net impact on our financial condition or results of operations reported in accordance with GAAP if the related financial instruments are held to maturity, as is expected. Additionally, these two non-GAAP measures exclude specified infrequent or unusual transactions that we believe are not indicative of future operating results and that may not reflect the trends and economic financial performance of our core business.

Net Effective Spread

We use Net Effective Spread (“NES”) to measure the net spread earned between interest-earning assets and the related net funding costs, including any associated derivatives, whether or not they are designated in a hedge accounting relationship.

NES excludes the following:

Interest income and interest expense associated with single-class consolidated trusts with beneficial interests owned by third parties and for which we guarantees all classes of securities issued (“single-class consolidated trusts”) and reclassifies that activity to guarantee and commitment fees in determining our core earnings. This reclassification reflects our view that the net interest income earned on single-class consolidated trusts is effectively a guarantee fee.Fair value changes of financial derivatives and corresponding financial assets or liabilities designated in fair value hedge accounting relationships because they are not expected to have an economic effect on our financial performance, as we expect to hold the financial derivatives and corresponding hedged items to maturity.The amortization of premiums and discounts on assets consolidated at fair value.

NES includes the following:

Income and expense related to the contractual amounts due on financial derivatives that are not designated in hedge accounting relationships (“undesignated financial derivatives”). For undesignated financial derivatives, we record the income or expense related to the accrual of the contractual amounts due in “Gains/(losses) on financial derivatives” on the Consolidated Statements of Operations.The net effects of terminations or net settlements on undesignated financial derivatives, which consist of: (1) the net effects of cash settlements on agency forward contracts on the debt of other government-sponsored enterprises and U.S. Treasury security futures that we use as short-term economic hedges on the issuance of debt; and (2) the net effects of initial cash payments that we receive upon the inception of certain swaps. For GAAP purposes, realized gains or losses on settlements of these contracts are reported in the Consolidated Statements of Operations in the period in which they occur. For NES, these realized gains or losses are deferred and amortized as net yield adjustments over the term of the related debt, which generally ranges from 3 to 15 years.

More information about Farmer Mac’s use of non-GAAP measures is available in “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations” in Farmer Mac’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, filed today with the SEC. For a reconciliation of Farmer Mac’s net income attributable to common stockholders to core earnings and of earnings per common share to core earnings per share, and net interest income and net interest yield to net effective spread, see “Reconciliations” below.

Forward-Looking Statements

Management’s expectations for Farmer Mac’s future necessarily involve assumptions, estimates, and the evaluation of risks and uncertainties. Various factors or events, both known and unknown, could cause our actual results to differ materially from the expectations as expressed or implied by the forward-looking statements in this release, including uncertainties about:

the availability to Farmer Mac of debt and equity financing and, if available, the reasonableness of rates and terms;legislative, regulatory, or current or future political developments that could affect Farmer Mac, its sources of business, or agricultural or infrastructure industries;fluctuations in the fair value of assets held by Farmer Mac and its subsidiaries;the level of lender interest in Farmer Mac’s products and the secondary market provided by Farmer Mac;the general rate of growth in agricultural mortgage and infrastructure indebtedness;the effect of economic conditions stemming from disruptive global events or otherwise on agricultural mortgage or infrastructure lending, borrower repayment capacity, or collateral values, including inflation, fluctuations in interest rates, changes in U.S. trade policies (including tariffs and trade restrictions), fluctuations in export demand for U.S. agricultural products and foreign currency exchange rates, supply chain disruptions, increases in input costs, labor availability, and volatility in commodity prices;the degree to which Farmer Mac is exposed to interest rate risk resulting from fluctuations in Farmer Mac’s borrowing costs relative to market indices;developments in the financial markets, including possible investor, analyst, and rating agency reactions to events involving GSEs, including Farmer Mac;the effects of the Federal Reserve’s efforts to achieve monetary policy normalization to respond to inflation and employment levels; andother factors that could hinder agricultural mortgage lending or borrower repayment capacity, including the effects of severe weather, flooding and drought, or fluctuations in agricultural real estate values.

Other risk factors are discussed in “Risk Factors” in Part I, Item 1A in Farmer Mac’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 19, 2026. Considering these potential risks and uncertainties, no undue reliance should be placed on any forward-looking statements expressed in this release. The forward-looking statements contained in this release represent management’s expectations as of the date of this release. Farmer Mac undertakes no obligation to release publicly the results of revisions to any forward-looking statements included in this release to reflect new information or any future events or circumstances, except as otherwise required by applicable law. The information in this release is not necessarily indicative of future results.

About Farmer Mac

Farmer Mac is driven by its mission to increase the accessibility of financing to provide vital liquidity for American agriculture and rural infrastructure. The secondary market served by Farmer Mac provides liquidity to our nation’s agricultural and infrastructure businesses, supporting a vibrant and strong rural America. We offer a wide range of solutions to help meet financial institutions’ growth, liquidity, risk management, and capital relief needs across diverse markets, including agriculture, agribusiness, broadband infrastructure, power and utilities, and renewable energy. We are uniquely positioned to facilitate competitive access to financing that fuels growth, innovation, and prosperity in America’s rural and agricultural communities. Additional information about Farmer Mac is available on our website at www.farmermac.com. 

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited)

As of

June 30, 2026

December 31, 2025

(in thousands)

Assets:

Cash and cash equivalents (includes restricted cash of $26,984 and $24,475, respectively)

$           1,038,091

$            931,067

Investment securities:

Available-for-sale, at fair value (amortized cost of $15,249,174 and $13,813,551, respectively)

14,891,506

13,580,285

Held-to-maturity, at amortized cost

4,514,893

3,954,223

Other investments

18,763

15,871

Total Investment Securities

19,425,162

17,550,379

Loans:

Loans held for investment, at amortized cost

15,902,213

13,877,051

Loans held for investment in consolidated trusts, at amortized cost

2,325,798

2,482,010

Allowance for losses

(47,167)

(37,785)

Total loans, net of allowance

18,180,844

16,321,276

Financial derivatives, at fair value

42,411

44,875

Accrued interest receivable (includes $37,189 and $40,945, respectively, related to consolidated trusts)

374,120

357,155

Guarantee and commitment fees receivable

58,476

57,214

Deferred tax asset, net

10,599

173

Prepaid expenses and other assets

160,489

108,018

Total Assets

$         39,290,192

$         35,370,157

Liabilities and Equity:

Liabilities:

Notes payable

$         34,693,922

$         30,822,570

Debt securities of consolidated trusts held by third parties

2,217,532

2,365,435

Financial derivatives, at fair value

69,282

21,618

Accrued interest payable (includes $14,696 and $15,795, respectively, related to consolidated trusts)

268,428

233,714

Guarantee and commitment obligation

55,555

54,770

Other liabilities

131,039

153,101

Total Liabilities

37,435,758

33,651,208

Commitments and Contingencies

Equity:

Preferred stock:

Series D, par value $25 per share, 4,000,000 shares authorized, issued and outstanding

96,659

96,659

Series E, par value $25 per share, 3,180,000 shares authorized, issued and outstanding

77,003

77,003

Series F, par value $25 per share, 4,800,000 shares authorized, issued and outstanding

116,160

116,160

Series G, par value $25 per share, 5,000,000 shares authorized, issued and outstanding

121,327

121,327

Series H, par value $25 per share, 4,000,000 shares authorized, issued and outstanding

96,844

96,844

Series I, par value $25 per share, 4,000,000 shares authorized, issued and outstanding

96,764

—

Common stock:

Class A Voting, $1 par value, no maximum authorization, 1,030,780 shares outstanding

1,031

1,031

Class B Voting, $1 par value, no maximum authorization, 500,301 shares outstanding

500

500

Class C Non-Voting, $1 par value, no maximum authorization, 9,318,708 shares and 9,325,556 shares
outstanding, respectively

9,319

9,326

Additional paid-in capital

140,836

139,370

Accumulated other comprehensive (loss)/income, net of tax

(18,234)

13,382

Retained earnings

1,116,225

1,047,347

Total Equity

1,854,434

1,718,949

Total Liabilities and Equity

$         39,290,192

$         35,370,157

 

FEDERAL AGRICULTURAL MORTGAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

For the Three Months Ended

For the Six Months Ended

June 30, 2026

June 30, 2025

June 30, 2026

June 30, 2025

(in thousands, except per share amounts)

Interest income:

Investment securities and cash equivalents

$      215,222

$      213,983

$      418,631

$      423,633

Loans

235,038

185,039

447,590

356,803

Total interest income

450,260

399,022

866,221

780,436

Total interest expense

332,185

302,225

646,750

592,700

Net interest income

118,075

96,797

219,471

187,736

Provision for losses

(7,017)

(7,713)

(11,325)

(9,397)

Net interest income after provision for losses

111,058

89,084

208,146

178,339

Non-interest income/(expense):

Guarantee and commitment fees

6,079

4,816

11,916

9,295

Gains/(losses) on financial derivatives

224

80

1,364

(2,556)

Other income

634

941

1,386

2,478

Non-interest income

6,937

5,837

14,666

9,217

Operating expenses:

Compensation and employee benefits

23,706

17,631

44,963

35,383

General and administrative

11,591

10,859

22,853

21,617

Regulatory fees

862

1,000

1,725

2,000

Operating expenses

36,159

29,490

69,541

59,000

Income before income taxes

81,836

65,431

153,271

128,556

Income tax expense

14,885

10,594

27,197

24,068

Net income

66,951

54,837

126,074

104,488

Preferred stock dividends

(8,074)

(5,667)

(15,365)

(11,333)

Net income attributable to common stockholders

$       58,877

$       49,170

$      110,709

$       93,155

Earnings per common share:

Basic earnings per common share

$           5.43

$           4.50

$         10.21

$           8.53

Diluted earnings per common share

$           5.41

$           4.48

$         10.15

$           8.49

Reconciliations

Reconciliations of Farmer Mac’s net income attributable to common stockholders to core earnings and core earnings per share are presented in the following tables along with information about the composition of core earnings for the periods indicated: 

Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings

For the Three Months Ended

June 30, 2026

March 31, 2026

June 30, 2025

(in thousands, except per share amounts)

Net income attributable to common stockholders

$            58,877

$            51,832

$            49,170

Less reconciling items:

Gains/(losses) on undesignated financial derivatives due to fair
value changes

184

(679)

(639)

Gains on hedging activities due to fair value changes

889

362

2,709

Unrealized gains/(losses) on trading assets

59

53

(65)

Net effects of amortization of premiums/discounts and deferred
gains on assets consolidated at fair value(1)

26

44

25

Net effects of terminations or net settlements on financial derivatives

(1,017)

335

255

Income tax effect related to reconciling items

(30)

(24)

(480)

Sub-total

111

91

1,805

Core earnings

$            58,766

$            51,741

$            47,365

Composition of Core Earnings:

Revenues:

Net effective spread(2)

$           117,438

$           101,999

$            93,893

Guarantee and commitment fees(3)

7,044

6,715

5,874

Other(4)

742

1,185

742

Total revenues

125,224

109,899

100,509

Credit related expense/(income) (GAAP):

Provision for losses

7,017

4,308

7,713

Other credit related expense/(income)

352

889

160

Total credit related expense/(income)

7,369

5,197

7,873

Operating expenses (GAAP):

Compensation and employee benefits

23,706

21,257

17,631

General and administrative

11,591

11,262

10,859

Regulatory fees

862

863

1,000

Total operating expenses

36,159

33,382

29,490

Net earnings

81,696

71,320

63,146

Income tax expense(5)

14,856

12,288

10,114

Preferred stock dividends (GAAP)

8,074

7,291

5,667

Core earnings

$            58,766

$            51,741

$            47,365

Core earnings per share:

  Basic

$                5.42

$                4.77

$                4.33

  Diluted

$                5.40

$                4.74

$                4.32

(1)

Reflects the amortization recorded during the reporting period on those assets for which the premium, discount, or deferred gain was a result of consolidation accounting rather than a cash transaction.

(2)

Net effective spread is a non-GAAP measure. See “Use of Non-GAAP Measures” above for an explanation of net effective spread. See below for a reconciliation of net interest income to net effective spread.

(3)

Includes net interest income of $1.0 million and $1.0 million for the three months ended June 30, 2026 and 2025, respectively, related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees.

(4)

Reflects reconciling adjustments for the reclassification to exclude expenses related to undesignated financial derivatives and terminations or net settlements on financial derivatives, and reconciling adjustments to exclude fair value adjustments on financial derivatives and trading assets and the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.

(5)

Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings.

 

Reconciliation of Net Income Attributable to Common Stockholders to Core Earnings

For the Six Months Ended

June 30, 2026

June 30, 2025

(in thousands, except per share amounts)

Net income attributable to common stockholders

$        110,709

$         93,155

Less reconciling items:

Losses on undesignated financial derivatives due to fair value changes (see Table 11)

(495)

(3,212)

Gains on hedging activities due to fair value changes

1,251

3,808

Unrealized gains/(losses) on trading securities

112

(56)

Net effects of amortization of premiums/discounts and deferred gains on assets consolidated at
fair value(1)

70

53

Net effects of terminations or net settlements on financial derivatives

(682)

(815)

Income tax effect related to reconciling items

(54)

46

Sub-total

202

(176)

Core earnings

$        110,507

$         93,331

Composition of Core Earnings:

Revenues:

Net effective spread(2)

$        219,437

$        183,883

Guarantee and commitment fees(3)

13,759

11,362

Other(4)

1,927

2,057

Total revenues

235,123

197,302

Credit related expense (GAAP):

Provision for losses

11,325

9,397

Other credit related expense/(income)

1,241

127

Total credit related expense

12,566

9,524

Operating expenses (GAAP):

Compensation and employee benefits

44,963

35,383

General and administrative

22,853

21,617

Regulatory fees

1,725

2,000

Total operating expenses

69,541

59,000

Net earnings

153,016

128,778

Income tax expense(5)

27,144

24,114

Preferred stock dividends (GAAP)

15,365

11,333

Core earnings

$        110,507

$         93,331

Core EPS:

Basic

$            10.19

$             8.55

Diluted

$            10.14

$             8.51

(1)

Reflects the amortization recorded during the reporting period on those assets for which the premium, discount, or deferred gain was a result of consolidation accounting rather than a cash transaction.

(2)

Net effective spread is a non-GAAP measure. See “Use of Non-GAAP Measures” above for an explanation of net effective spread. See below for a reconciliation of net interest income to net effective spread.

(3)

Includes net interest income of $2.0 million and $2.0 million for the six months ended June 30, 2026 and 2025, respectively, related to consolidated trusts owned by third parties reclassified from net interest income to guarantee and commitment fees.

(4)

Reflects reconciling adjustments for the reclassification to exclude expenses related to undesignated financial derivatives and terminations or net settlements on financial derivatives, and reconciling adjustments to exclude fair value adjustments on financial derivatives and trading assets and the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.

(5)

Includes the tax impact of non-GAAP reconciling items between net income attributable to common stockholders and core earnings.

 

Reconciliation of GAAP Basic Earnings Per Share to Core Earnings Basic Earnings Per Share

For the Three Months Ended

For the Six Months Ended

June 30, 2026

March 31, 2026

June 30, 2025

June 30, 2026

June 30, 2025

(in thousands, except per share amounts)

GAAP – Basic EPS

$          5.43

$          4.78

$          4.50

$         10.21

$          8.53

Less reconciling items:

Gains/(losses) on undesignated financial
derivatives due to fair value changes

0.02

(0.06)

(0.06)

(0.05)

(0.29)

Gains on hedging activities due to fair value
changes

0.07

0.03

0.25

0.12

0.35

Unrealized gains/(losses) on trading securities

0.01

0.01

(0.01)

0.01

(0.01)

Net effects of amortization of
premiums/discounts and deferred gains on
assets consolidated at fair value

—

—

—

0.01

0.01

Net effects of terminations or net settlements on
financial derivatives

(0.09)

0.03

0.03

(0.06)

(0.08)

Income tax effect related to reconciling items

—

—

(0.04)

(0.01)

—

Sub-total

0.01

0.01

0.17

0.02

(0.02)

Core Earnings – Basic EPS

$          5.42

$          4.77

$          4.33

$         10.19

$          8.55

Shares used in per share calculation (GAAP and
Core Earnings)

10,849

10,844

10,933

10,847

10,915

 

Reconciliation of GAAP Diluted Earnings Per Share to Core Earnings Diluted Earnings Per Share

For the Three Months Ended

For the Six Months Ended

June 30, 2026

March 31, 2026

June 30, 2025

June 30, 2026

June 30, 2025

(in thousands, except per share amounts)

GAAP – Diluted EPS

$          5.41

$          4.75

$          4.48

$         10.15

$          8.49

Less reconciling items:

Gains/(losses) on undesignated financial
derivatives due to fair value changes

0.02

(0.06)

(0.06)

(0.05)

(0.29)

Gains on hedging activities due to fair value
changes

0.07

0.03

0.25

0.11

0.35

Unrealized gains/(losses) on trading securities

0.01

0.01

(0.01)

0.01

(0.01)

Net effects of amortization of
premiums/discounts and deferred gains on
assets consolidated at fair value

—

—

—

0.01

—

Net effects of terminations or net settlements
on financial derivatives

(0.09)

0.03

0.02

(0.06)

(0.07)

Income tax effect related to reconciling items

—

—

(0.04)

(0.01)

—

Sub-total

0.01

0.01

0.16

0.01

(0.02)

Core Earnings – Diluted EPS

$          5.40

$          4.74

$          4.32

$         10.14

$          8.51

Shares used in per share calculation (GAAP and
Core Earnings)

10,882

10.922

10,963

10,902

10,973

 

The following table presents a reconciliation of net interest income and net yield to net effective spread for the periods indicated:

Reconciliation of GAAP Net Interest Income/Yield to Net Effective Spread

For the Three Months Ended

For the Six Months Ended

June 30, 2026

March 31, 2026

June 30, 2025

June 30, 2026

June 30, 2025

Dollars

Yield

Dollars

Yield

Dollars

Yield

Dollars

Yield

Dollars

Yield

(dollars in thousands)

Net interest income

$         118,075

1.24 %

$         101,396

1.13 %

$ 96,797

1.20 %

$         219,471

1.18 %

$         187,736

1.17 %

Net effects of consolidated
trusts

(1,023)

0.02 %

(930)

0.02 %

(987)

0.02 %

(1,953)

0.02 %

(1,998)

0.02 %

Expense related to
undesignated financial
derivatives

556

— %

969

0.01 %

(208)

— %

1,525

0.01 %

110

— %

Amortization of
premiums/discounts on
assets consolidated at fair
value

(24)

— %

(41)

— %

(22)

— %

(65)

— %

(47)

— %

Amortization of losses due
to terminations or net
settlements on financial
derivatives

743

0.01 %

967

0.01 %

1,022

0.01 %

1,710

0.01 %

1,890

0.01 %

Fair value changes on fair
value hedge relationships

(889)

(0.01) %

(362)

(0.01) %

(2,709)

(0.04) %

(1,251)

(0.01) %

(3,808)

(0.02) %

Net effective spread

$         117,438

1.26 %

$         101,999

1.16 %

$ 93,893

1.19 %

$         219,437

1.21 %

$         183,883

1.18 %

The following table presents core earnings for Farmer Mac’s reportable operating segments and a reconciliation to consolidated net income for the three months ended June 30, 2026:

Core Earnings by Business Segment

For the Three Months Ended June 30, 2026

Agricultural Finance

Infrastructure Finance

Treasury

Farm &
Ranch

Corporate
AgFinance

Power &

Utilities

Broadband
Infrastructure

Renewable
Energy

Funding

Investments

Total

(in thousands)

Interest income

$          186,369

$          33,344

$          76,362

$         18,006

$         35,893

$   17,968

$   82,318

$      450,260

(Interest expense)/benefit(1)

(145,286)

(16,575)

(69,377)

(11,428)

(25,120)

16,855

(81,254)

(332,185)

Less: reconciling adjustments(2)(3)

(1,020)

—

(23)

—

—

406

—

(637)

Net effective spread

40,063

16,769

6,962

6,578

10,773

35,229

1,064

117,438

Guarantee and commitment fees(3)

4,968

243

196

1,081

556

—

—

7,044

Other income/(expense)

928

15

—

(25)

(22)

—

—

896

Provision for losses

(3,333)

(524)

(368)

(1,987)

(1,157)

—

—

(7,369)

Operating expenses(1)

(9,286)

(2,356)

(1,258)

(1,881)

(2,221)

(2,969)

(1,013)

(20,984)

Income tax expense

(7,001)

(2,971)

(1,162)

(790)

(1,665)

(6,776)

(11)

(20,376)

Segment core earnings

$            26,339

$          11,176

$            4,370

$           2,976

$           6,264

$   25,484

$         40

$        76,649

Reconciliation to net income:

Net effects of derivatives and
trading securities

$             115

Unallocated (expenses)/income

(15,304)

Income tax effect related to
reconciling items

5,491

Net income

$        66,951

Total Assets:

Total on- and off-balance sheet
segment assets at principal balance

$     21,987,822

$     2,082,762

$     8,266,639

$     1,851,902

$     3,008,013

$         —

$         —

$ 37,197,138

Off-balance sheet assets under
management

(6,026,228)

Unallocated assets

8,119,282

Total assets on the Consolidated
Balance Sheets

$ 39,290,192

(1)

The significant expense categories and amounts align with the segment-level information that is regularly provided to the Chief Operating Decision Maker.

(2)

Includes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts; the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in “Gains/(losses) on financial derivatives” on the consolidated financial statements, to determine the effective funding cost for each operating segment; and excludes the fair value changes of financial derivatives and the corresponding assets or liabilities designated in fair value hedge accounting relationships.

(3)

Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management’s view that the net interest income Farmer Mac earns is effectively a guarantee fee. 

Supplemental Information

The following table sets forth information about outstanding volume in each of Farmer Mac’s lines of business as of the dates indicated:

Outstanding Business Volume

As of June 30, 2026

As of December 31, 2025

(in thousands)

Agricultural Finance:

Farm & Ranch:

Loans and other securities

$               9,360,003

$               8,492,788

AgVantage Securities

5,740,000

4,270,000

USDA Securities

2,530,360

2,443,432

Unfunded commitments & guarantees

4,003,709

3,977,136

Loans serviced for others

353,750

381,560

Total Farm & Ranch

$             21,987,822

$             19,564,916

Corporate AgFinance:

Loans and other securities

$               1,512,959

$               1,460,691

AgVantage Securities

303,613

190,977

Unfunded commitments & guarantees

266,190

298,868

Total Corporate AgFinance

$               2,082,762

$               1,950,536

Total Agricultural Finance

$             24,070,584

$             21,515,452

Infrastructure Finance:

Power & Utilities:

Loans and other securities

$               4,026,622

$               3,548,523

AgVantage Securities

3,905,103

3,967,154

Unfunded commitments & guarantees

334,914

344,945

Total Power & Utilities

$               8,266,639

$               7,860,622

Broadband Infrastructure:

Loans and other securities

$               1,227,227

$               1,009,890

Unfunded commitments & guarantees

624,675

522,316

Total Broadband Infrastructure

$               1,851,902

$               1,532,206

Renewable Energy:

Loans and other securities

$               2,565,023

$               2,202,668

Unfunded commitments & guarantees

442,990

240,621

Total Renewable Energy

$               3,008,013

$               2,443,289

Total Infrastructure Finance

$             13,126,554

$             11,836,117

Total

$             37,197,138

$             33,351,569

The following table presents the quarterly net effective spread by segment:

Net Effective Spread

Agricultural Finance

Infrastructure Finance

Treasury

Farm &
Ranch

Corporate
AgFinance

Power &
Utilities

Broadband
Infrastructure

Renewable
Energy

Funding

Investments

Net Effective
Spread

Dollars

Yield

Dollars

Yield

Dollars

Yield

Dollars

Yield

Dollars

Yield

Dollars

Yield

Dollars

Yield

Dollars

Yield

(dollars in thousands)

For the quarter ended:

June 30, 2026

$   40,063

$   16,769

$    6,962

$    6,578

$   10,773

$   35,229

$    1,064

$  117,438

1.01 %

3.76 %

0.36 %

2.30 %

1.72 %

0.38 %

0.05 %

1.26 %

March 31, 2026

37,673

8,939

6,491

5,828

9,079

32,647

1,342

101,999

1.03 %

2.05 %

0.35 %

2.27 %

1.59 %

0.37 %

0.07 %

1.16 %

December 31, 2025

36,180

8,601

6,159

5,610

8,995

33,694

2,150

101,389

1.06 %

2.07 %

0.34 %

2.42 %

1.74 %

0.41 %

0.11 %

1.22 %

September 30, 2025

34,840

9,047

5,910

4,379

7,730

34,777

1,086

97,769

1.04 %

2.16 %

0.34 %

2.30 %

1.75 %

0.43 %

0.05 %

1.20 %

June 30, 2025

35,710

8,609

5,636

3,932

6,227

31,668

2,111

93,893

1.07 %

2.07 %

0.33 %

2.24 %

1.68 %

0.40 %

0.11 %

1.19 %

March 31, 2025

33,885

8,640

5,329

3,566

5,112

31,604

1,854

89,990

1.01 %

2.09 %

0.32 %

2.27 %

1.55 %

0.41 %

0.10 %

1.17 %

December 31, 2024

32,556

7,891

5,059

3,414

4,859

31,242

2,507

87,528

0.96 %

1.95 %

0.32 %

2.34 %

1.76 %

0.42 %

0.15 %

1.16 %

September 30, 2024

35,755

6,397

4,785

2,794

3,810

30,912

943

85,396

1.05 %

1.56 %

0.30 %

2.21 %

1.78 %

0.42 %

0.05 %

1.16 %

June 30, 2024

34,156

7,866

5,253

2,393

2,999

30,268

661

83,596

0.98 %

1.91 %

0.32 %

2.16 %

1.86 %

0.41 %

0.04 %

1.14 %

The following table presents quarterly core earnings reconciled to net income attributable to common stockholders (in thousands):

Core Earnings by Quarter Ended

June
2026

March
2026

December
2025

September
2025

June
2025

March
2025

December
2024

September
2024

June
2024

Revenues:

Net effective spread

$      117,438

$     101,999

$     101,389

$    97,769

$       93,893

$ 89,990

$  87,528

$   85,396

$ 83,596

Guarantee and commitment fees

7,044

6,715

6,298

6,132

5,874

5,488

5,086

4,997

5,256

Other

742

1,185

224

1,185

742

1,315

(491)

1,133

386

Total revenues

125,224

109,899

107,911

105,086

100,509

96,793

92,123

91,526

89,238

Credit related expense/(income):

Provision for/(release of) losses

7,017

4,308

15,986

7,477

7,713

1,684

3,773

3,428

6,179

Other credit related expense/(income)

352

889

1,267

(44)

160

(33)

99

26

51

Total credit related expense/(income)

7,369

5,197

17,253

7,433

7,873

1,651

3,872

3,454

6,230

Operating expenses:

Compensation and employee benefits

23,706

21,257

18,199

17,743

17,631

17,752

15,641

15,237

14,840

General and administrative

11,591

11,262

11,944

11,052

10,859

10,758

12,452

8,625

8,904

Regulatory fees

862

863

863

1,000

1,000

1,000

1,000

725

725

Total operating expenses

36,159

33,382

31,006

29,795

29,490

29,510

29,093

24,587

24,469

Net earnings

81,696

71,320

59,652

67,858

63,146

65,632

59,158

63,485

58,539

Income tax expense

14,856

12,288

12,370

11,933

10,114

14,000

9,938

12,681

11,970

Preferred stock dividends

8,074

7,291

7,286

6,303

5,667

5,666

5,666

5,897

6,792

Core earnings

$       58,766

$      51,741

$       39,996

$     49,622

$       47,365

$ 45,966

$  43,554

$   44,907

$ 39,777

Reconciling items:

Gains/(losses) on undesignated financial
derivatives due to fair value changes

$            184

$          (679)

$            447

$          882

$          (639)

$ (2,573)

$    3,084

$   (1,064)

$    (359)

Gains/(losses) on hedging activities due
to fair value changes

889

362

3,107

(137)

2,709

1,099

5,737

205

2,604

Unrealized gains/(losses) on trading
assets

59

53

(66)

(4)

(65)

9

(83)

99

(87)

Net effects of amortization of
premiums/discounts and deferred gains
on assets consolidated at fair value

26

44

24

26

25

28

(39)

27

26

Net effects of terminations or net
settlements on financial derivatives

(1,017)

335

(2,699)

(1,934)

255

(1,070)

534

(503)

(1,505)

Issuance costs on the retirement of
preferred stock

—

—

—

—

—

—

—

(1,619)

—

Income tax effect related to reconciling
items

(30)

(24)

(171)

245

(480)

526

(1,939)

260

(143)

Net income attributable to common
stockholders

$      58,877

$      51,832

$       40,638

$     48,700

$       49,170

$ 43,985

$  50,848

$  42,312

$ 40,313

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/farmer-mac-reports-second-quarter-2026-results-302839410.html

SOURCE Farmer Mac

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Korean Buyers Invited to Connect with Chinese Suppliers at C-TOUCH & DISPLAY and FILM & TAPE EXPO 2026

Published

23 minutes ago

on

October 20, 2026

By

SHENZHEN, China, Oct. 20, 2026 /PRNewswire/ — Featuring Korea Day business matchmaking, next-generation display technologies and advanced functional materials, the October exhibitions offer Korean industry professionals new opportunities to explore suppliers and strengthen cross-border partnerships.

As demand grows for advanced displays, semiconductor technologies and high-performance materials, C-TOUCH & DISPLAY SHENZHEN 2026 and FILM & TAPE EXPO 2026 will welcome Korean buyers and industry professionals to Shenzhen, China, from October 27–29. The exhibitions will provide opportunities to discover new technologies, meet Chinese manufacturers and explore business partnerships across the electronics, display, automotive and advanced materials supply chains.

C-TOUCH: Exploring Next-Generation Display and Semiconductor Technologies

C-TOUCH & DISPLAY SHENZHEN 2026 will showcase technologies spanning OLED, Micro LED, flexible displays, touch panels, e-paper, commercial displays, automotive displays and AI+AR smart glasses. As display technologies converge with AI computing, optical communications and semiconductor packaging, the exhibition will connect Korean visitors with suppliers developing materials, components, manufacturing equipment and integrated solutions.

A key highlight is the TGV Glass Substrate Advanced Packaging Zone, where visitors can explore eight major process stages, including laser induction, etching, chemical vapor deposition (CVD), physical vapor deposition (PVD), electroplating, chemical mechanical planarization (CMP), coating and photolithography.

FILM & TAPE EXPO: Functional Materials for Electronics and Advanced Manufacturing

FILM & TAPE EXPO 2026 will bring together suppliers of functional films, optical films, protective and release films, polyimide (PI) films, adhesive tapes, optical clear adhesives (OCA), thermal-management materials and precision converting equipment.

The exhibition will also cover coating, laminating, slitting, rewinding, inspection and die-cutting technologies. These solutions support applications across consumer electronics, semiconductors, automotive electronics, batteries and energy storage, PCB/FPC and industrial manufacturing.

Korea Day: Connecting Korean Buyers with Chinese Suppliers

A major opportunity for Korean visitors will be Korea Day, a dedicated buyer–supplier matchmaking initiative designed to facilitate business connections between Korean industry professionals and Chinese suppliers.

The program will provide a focused setting for buyers to communicate their sourcing needs, explore relevant products and technologies, and discuss potential cooperation directly with suppliers. For companies seeking new sourcing options, manufacturing partners or materials for product development, Korea Day can help make exhibition visits more targeted and productive.

Easier Travel: China’s 30-Day Visa-Free Policy for South Korean Citizens

Travel planning has also become more convenient for eligible Korean visitors. Under China’s current unilateral visa-free policy, South Korean citizens holding ordinary passports may enter China without a visa for stays of up to 30 days for business, tourism, family or friends visits, exchange visits and transit.

The policy has been extended through December 31, 2026. Visitors should consult the Chinese Embassy in the Republic of Korea for the latest official guidance.

Register to Visit Shenzhen This October

C-TOUCH & DISPLAY SHENZHEN 2026 and FILM & TAPE EXPO 2026 will take place October 27–29 at Shenzhen World Exhibition & Convention Center in Bao’an, Shenzhen, China.

C-TOUCH & DISPLAY SHENZHEN 2026: Pre-register here

FILM & TAPE EXPO 2026: Pre-register here

About RX Kuozhan

RX Kuozhan is a joint venture between Reed Exhibitions and Kuozhan Exhibition Services (Shanghai) Co., Ltd., established in 2015. The company organizes a portfolio of industry-leading exhibitions serving the display, touch technology, functional films, adhesive materials, commercial display and advanced materials sectors. Through its exhibitions and industry engagement initiatives, RX Kuozhan connects manufacturers, technology providers, buyers and industry professionals, facilitating business partnerships, technology exchange and cross-industry collaboration in China and international markets.

For more information, please visit C-TOUCH & DISPLAY SHENZHEN and FILM & TAPE EXPO.

View original content:https://www.prnewswire.com/apac/news-releases/korean-buyers-invited-to-connect-with-chinese-suppliers-at-c-touch–display-and-film–tape-expo-2026-302912105.html

SOURCE RX Kuozhan

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What’s Next for Webull Corporation Shareholders After 19.09% Stock Drop? Glancy Prongay Wolke & Rotter LLP Explains Securities Fraud Class Action Lead Plaintiff Deadline

Published

23 minutes ago

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October 20, 2026

By

Complaint alleges Webull Corporation misled investors between April 26, 2025 and October 6, 2026; investors may seek lead plaintiff role by December 7, 2026

LOS ANGELES, Oct. 19, 2026 /PRNewswire/ — Glancy Prongay Wolke & Rotter LLP (“Glancy”) announced today that the class action lawsuit covers investors who bought Webull Corporation (“Webull” or the “Company”) (NASDAQ: BULL) securities between April 26, 2025 and October 6, 2026. The Webull Corporation case, Ward v. Webull Corporation et al., was filed on October 8, 2026 in the U.S. District Court Middle District of Florida (Tampa) (Case No. 8:26-cv-03052).

Investors who suffered losses on Webull Corporation investments can submit their Webull Corporation loss information here before the December 7, 2026 lead plaintiff deadline.

Key dates in the Webull Corporation case

Class period: April 26, 2025 to October 6, 2026Complaint filed: October 8, 2026Lead plaintiff deadline: December 7, 2026

What happened?

On October 7, 2026, the bipartisan House Select Committee on China issued a report which found “a profound gap” between Webull’s public marketing as “an American company” and actual control of the alleged St. Petersburg, Florida-based firm. The committee reportedly found “Webull’s ownership architecture, technical workforce, technology infrastructure, cross-border data routing, corporate financing, and compliance frameworks are tied in structural ways to the People’s Republic of China.” The Select Committee also reportedly found that Webull initially told the Select Committee that it had no offices or employees in China, while Webull’s mainland China subsidiary in fact employed approximately 863 employees, or 62% of Webull’s global workforce.

Webull Corporation stock fell $1.39 or 19.09%, to close at $5.89 on October 7, 2026, thereby injuring investors.

What is the Webull Corporation lawsuit about?

The Webull Corporation securities lawsuit alleges that, between April 26, 2025 and October 6, 2026, defendants made materially false and/or misleading statements and failed to disclose material adverse facts about Webull Corporation’s business, operations, and prospects. Specifically, the complaint alleges defendants failed to disclose that: (1) Webull’s mainland China operations were not limited to research and development and technical support functions, but rather Webull’s software development, data pipelines, and core engineering depended on PRC-based personnel and on infrastructure subject to Chinese law; (2) Webull’s ownership structure, technical workforce, technology infrastructure, cross-border data routing, financing, and compliance structure were structurally tied to China; (3) as a result, Webull’s representations that its principal business operations were based in the U.S. and that its U.S. customer data was insulated from non-U.S. access materially overstated Webull’s independence from the PRC; and (4) as a result, defendants’ positive statements about Webull Corporation’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

“The complaint filed against Webull Corporation alleges that, among other things, the Company failed to disclose that Webull’s mainland China operations were not limited to research and development and technical support functions, but rather Webull’s software development, data pipelines, and core engineering depended on PRC-based personnel and on infrastructure subject to Chinese law. For investors who bought during the class period, the December 7, 2026 deadline is the first major step in this case,” said Charles H. Linehan, Partner at Glancy Prongay Wolke & Rotter LLP.

What’s the next step?

Glancy Prongay Wolke & Rotter LLP is a leading national shareholder rights law firm, ready to assist Webull Corporation investors in potentially pursuing claims to recover their losses.

If you wish to serve as lead plaintiff in the Webull Corporation class action, you must move the Court no later than December 7, 2026. To learn more about your rights, visit the Webull Corporation case page, email shareholders@glancylaw.com, or call 310-201-9150 (toll-free: 888-773-9224).

You may retain counsel of your choice. If you bought Webull Corporation securities during the class period, you may take no action and remain an absent class member. No class has been certified yet in the Webull Corporation case.

Frequently Asked Questions

Who is eligible? Investors who purchased or otherwise acquired Webull Corporation securities between April 26, 2025 and October 6, 2026 and suffered losses may be members of the proposed class in the Webull Corporation shareholder lawsuit. Any class member may ask the court to appoint them lead plaintiff by December 7, 2026.

What is a lead plaintiff? In the Webull Corporation class action, the lead plaintiff is the investor, or group of investors, that the court appoints to represent all class members and oversee the case. Under the Private Securities Litigation Reform Act, courts generally presume the movant with the largest financial interest is the most adequate lead plaintiff.

Do I have to be lead plaintiff to recover? No. A Webull Corporation investor’s ability to share in any future recovery does not depend on serving as lead plaintiff. Webull Corporation investors may take no action and remain absent class members.

What is the deadline? Motions to serve as lead plaintiff in the Webull Corporation class action must be filed by December 7, 2026.

Does it cost anything to contact Glancy or participate in this action? Glancy represents Webull Corporation investors on a contingency fee basis, which means investors pay no attorneys’ fees unless there is a recovery. Any fees are subject to court approval and are paid from the recovery.

Can I choose my own lawyer? Yes. Webull Corporation investors may retain counsel of their choice.

Why work with Glancy on the Webull Corporation lawsuit? Glancy Prongay Wolke & Rotter LLP is a premier law firm with decades of experience representing investors and consumers in securities litigation and other complex class action litigation. Contact Glancy about the Webull Corporation lawsuit. Prior results do not guarantee a similar outcome.

About Glancy Prongay Wolke & Rotter LLP

Glancy was named one of Law360’s Securities Groups of the Year and ranked second in total investor recoveries by ISS Securities Class Action Services in 2025.

Glancy’s successes have been widely covered by leading news and industry publications, including The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money.

Prior results do not guarantee a similar outcome.

Related links

Webull Corporation case page, Glancy Prongay Wolke & Rotter LLPComplaint: Ward v. Webull Corporation et al., U.S. District Court Middle District of Florida (Tampa)Webull Corporation SEC filings index, EDGARGlancy Prongay Wolke & Rotter LLP

CONTACT:
Charles H. Linehan
Glancy Prongay Wolke & Rotter LLP
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
Email: shareholders@glancylaw.com
Telephone: 310-201-9150 | Toll-free: 888-773-9224
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NetDragon Partners with Jiuzhou Culture to Establish Joint Venture

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23 minutes ago

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October 20, 2026

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Takes Controlling Stake in AI Harness Business to Advance a Third Growth Engine

HONG KONG, Oct. 19, 2026 /PRNewswire/ — NetDragon Websoft Holdings Limited (“NetDragon” or the “Company”; Hong Kong Stock Code: 0777), a global leader in building internet communities, is pleased to announce that it has entered into a legally binding memorandum of understanding (“MOU”) with Jiuzhou Culture (“Jiuzhou”), a leading AIGC short drama production and distribution company in China, to establish a joint venture (“JV”) in which NetDragon will hold a 51% controlling interest. The partnership will focus on artificial intelligence technologies, AIGC-powered content creation and digital technology services, further expanding NetDragon’s AI application scenarios and commercialisation opportunities while accelerating the development of a new growth engine.

Deepening the Integration of AIGC and Content to Build a Diversified Digital Business Platform

Rapid advances in AIGC are continuing to reshape content creation, digital entertainment and software services. With the ongoing maturation of generative AI, large-scale AI models and AI agents, AI is evolving from a supporting tool into a productivity platform that can enhance the entire value chain, from content creation and production to operations and commercialisation. Through the JV Company, NetDragon and Jiuzhou will combine their complementary strengths in technology, IP, content and industry resources to accelerate the deployment of AIGC across real-world commercial applications.

Under the MOU, Jiuzhou will inject into the JV Company all intellectual property, technologies and assets relating to the AI Harness system business, laying a solid foundation for product development and commercialisation. NetDragon will contribute Hong Kong dollars cash equivalent to RMB 50 million to the JV Company, acquire a 51% shareholding interest and consolidate the JV Company’s financial results. The JV Company will focus on expanding foundational artificial intelligence software, large-scale AI models and the AI Harness system business. It is expected to serve as the first commercial validation platform in China for NetDragon’s “AI ecosystem co-creation” strategy, marking the launch of the Company’s third growth engine and laying the groundwork for the business model to be replicated and scaled across various sectors.

To accelerate the scalable commercialisation of the AI Harness business, the transaction also incorporates a multi-tiered, progressive performance-based incentive warrant scheme. NetDragon will issue 25 million unlisted warrants to Jiuzhou at an issue price of HK$0.10 per warrant share, to be granted in three tranches with initial exercise prices of HK$10, HK$12 and HK$15, respectively. The warrants will only become exercisable upon achievement of specified key performance indicators by the JV Company. Assuming full exercise of all warrants at the initial exercise prices, NetDragon will receive aggregate gross proceeds of approximately HK$314 million, which will supplement the Company’s development capital while achieving deep alignment of interests and shared equity upside with its strategic partner. 

Strengthening AI Ecosystem Synergies to Drive a Third Growth Engine

As generative AI becomes increasingly integrated into content production, digital services and global operations, NetDragon and Jiuzhou will take this collaboration as a new starting point to fully leverage their complementary strengths and accelerate the commercialisation of AI capabilities, translating technological innovation into tangible business value. In recent years, NetDragon has continued to advance its AI strategy across AI+gaming, AI+education and enterprise intelligence, while actively exploring emerging AI businesses with the potential to establish independent commercial models. Jiuzhou, meanwhile, has built deep expertise in micro-dramas and digital content, with an integrated value chain spanning copyright operations, content creation, co-production, paid distribution and official distribution. It has also continued to expand the use of AIGC across content production, creation and operations. The two parties will further explore the deep integration of AI technology with the content industry, accelerating the implementation of AI capabilities in scenarios such as content generation, AI model applications, translation and localisation, platform operations, and enterprise technology services, to build scalable and sustainable business models.

Following the launch of the MOYU AI platform in August 2026, NetDragon’s investment and controlling stake in the AI Harness business marks another important step in increasing resource allocation to its AI business and broadening its long-term growth pathways. The performance-linked equity incentive collaboration with Jiuzhou is expected to establish a new model of strategic collaboration for NetDragon, enabling the Company and its partners to grow the business together and share in the value created. Looking ahead, NetDragon will remain focused on its core AI business, deepen technological innovation and resource integration, and leverage its established strengths in gaming and education alongside the emerging growth engine of AI ecosystem co-creation. Under this three-pronged strategy, the Company aims to continuously strengthen its core competitiveness, enhance long-term investment value, and deliver sustainable returns to shareholders.

About NetDragon Websoft Holdings Limited

NetDragon Websoft Holdings Limited (HKSE: 777) is a global leader in building internet communities, with a long track record of developing and scaling multiple internet and mobile platforms that impact hundreds of millions of users. Over the desktop and mobile internet eras, NetDragon previously established China’s first online gaming portal, 17173.com, and China’s most influential smartphone app store platform, 91 Wireless.   

Established in 1999, NetDragon is one of the most reputable and well-known digital entertainment IP developers and operators in China with a history of successful flagship game titles deeply welcomed by users both at home and abroad. For more than a decade, NetDragon has also achieved success with its EdTech business both domestically and globally. Fully embracing the new AI era, NetDragon is driving its vision of “Infinite Growth” through AI-enabled digital entertainment and online learning, whilst building a systematic AI product methodology to create value growth.

NetDragon’s overseas edtech business entity, currently a U.S.-listed subsidiary named Mynd.ai, is a global leader in interactive technology and its award-winning interactive displays and software can be found in more than 2 million learning and training spaces across 126 countries. 

About Jiuzhou Culture

Founded in 2021, Jiuzhou is a leading player in the online micro-drama industry, with an integrated business model spanning copyright operations, content creation, co-production, paid distribution and official distribution. The company has established a comprehensive, end-to-end content ecosystem designed to enhance operational efficiency and unlock synergies across the value chain. Embracing technological innovation, Jiuzhou actively integrates cutting-edge technologies such as AIGC to enhance content quality and creative capabilities. Its self-developed Moss tool has accelerated AI adoption across the entire value chain, leveraging technology to advance the development of the global short drama ecosystem.

In terms of content creation, Jiuzhou has accumulated the rights to more than 4,000 short dramas and has successfully distributed over 1,000 productions. Its portfolio spans more than 20 popular genres, including contemporary drama, romance, campus life, fantasy, suspense and historical fiction, catering to the diverse entertainment preferences of audiences in China and worldwide. By combining paid content, free-to-view short dramas and international expansion, Jiuzhou has developed a distinctive business ecosystem that strengthens its competitive position and drives continued innovation in the micro-drama industry.

Internationally, the company leverages its strengths in content production, audience reach and distribution networks to bring Chinese micro-dramas to global audiences while tailoring its offerings to local tastes and cultural preferences. Its flagship international platform, ShortMax, focuses primarily on North American and European markets, offering a wide selection of localized Chinese dramas and original productions. ShortMax is now available in more than 200 countries and regions worldwide, having achieved peak monthly active users (MAU) of over 30 million, more than 90 million cumulative registered users and 200 million downloads.

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SOURCE NetDragon Websoft Holdings Limited

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