Q2 Rundown: Farmer Mac (NYSE:AGM) Vs Other Specialty Finance Stocks

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the specialty finance industry, including Farmer Mac (NYSE:AGM) and its peers.

Specialty finance companies provide targeted lending or financial services for specific industries or needs. They benefit from expertise in particular sectors, often reduced competition in specialized niches, and tailored underwriting that can yield higher margins. Challenges include concentration risk in specific industries, difficulty achieving scale efficiencies, and potential vulnerability during sector-specific downturns affecting their specialized markets.

The 12 specialty finance stocks we track reported a satisfactory Q2. As a group, revenues missed analysts’ consensus estimates by 4.1%.

Thankfully, share prices of the companies have been resilient as they are up 5.5% on average since the latest earnings results.

Farmer Mac (NYSE:AGM)

Created by Congress in 1987 to build a bridge between Wall Street and rural America, Farmer Mac (NYSE:AGM) provides a secondary market for agricultural and rural loans, helping lenders increase their liquidity and lending capacity to serve rural America.

Farmer Mac reported revenues of $93.98 million, up 13.1% year on year. This print fell short of analysts’ expectations by 2.6%. Overall, it was a slower quarter for the company with some shareholders anticipating a better outcome.

"I'm very pleased to report that we delivered record results across the board in second quarter 2025, growing core earnings and net effective spread by 19% and 12% year-over-year, respectively, and surpassing $30 billion in total outstanding business volume for the first time," said Brad Nordholm, President and Chief Executive Officer.

Interestingly, the stock is up 5% since reporting and currently trades at $180.65.

Is now the time to buy Farmer Mac? Access our full analysis of the earnings results here, it’s free.

Best Q2: Encore Capital Group (NASDAQ:ECPG)

Operating in the often misunderstood world of debt collection since 1999, Encore Capital Group (NASDAQ:ECPG) purchases portfolios of defaulted consumer debt at deep discounts and works with individuals to recover these obligations while helping them toward financial recovery.

Encore Capital Group reported revenues of $442.1 million, up 24.4% year on year, outperforming analysts’ expectations by 15.3%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

Encore Capital Group scored the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 21.5% since reporting. It currently trades at $45.46.

Is now the time to buy Encore Capital Group? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Oaktree Specialty Lending (NASDAQ:OCSL)

Managed by Oaktree Capital Management, one of the world's premier alternative investment firms, Oaktree Specialty Lending (NASDAQ:OCSL) is a business development company that provides customized financing solutions to mid-market companies across various industries.

Oaktree Specialty Lending reported revenues of $75.27 million, down 20.7% year on year, falling short of analysts’ expectations by 4.6%. It was a disappointing quarter as it posted a significant miss of analysts’ AUM and EPS estimates.

As expected, the stock is down 2.5% since the results and currently trades at $13.17.

Read our full analysis of Oaktree Specialty Lending’s results here.

Capital Southwest (NASDAQ:CSWC)

Originally founded in 1961 as a venture capital investor that helped launch Texas Instruments, Capital Southwest (NASDAQ:CSWC) is a business development company that provides debt and equity financing to middle-market companies primarily in the United States.

Capital Southwest reported revenues of $55.95 million, up 8.9% year on year. This number surpassed analysts’ expectations by 2.4%. Overall, it was a satisfactory quarter as it also produced EPS in line with analysts’ estimates.

The stock is up 1.2% since reporting and currently trades at $22.93.

Read our full, actionable report on Capital Southwest here, it’s free.

HA Sustainable Infrastructure Capital (NYSE:HASI)

With a proprietary "CarbonCount" metric that quantifies the environmental impact of each dollar invested, HA Sustainable Infrastructure Capital (NYSE:HASI) is an investment firm that finances and develops climate-positive infrastructure projects across renewable energy, energy efficiency, and ecological restoration.

HA Sustainable Infrastructure Capital reported revenues of $103.6 million, up 4.2% year on year. This print beat analysts’ expectations by 32.1%. Overall, it was a strong quarter for the company.

HA Sustainable Infrastructure Capital scored the biggest analyst estimates beat among its peers. The stock is up 18.2% since reporting and currently trades at $28.85.

Read our full, actionable report on HA Sustainable Infrastructure Capital here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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