Onity Group Announces Second Quarter 2025 Results
Onity Group (NYSE: ONIT) reported strong Q2 2025 financial results, with net income of $20 million and diluted EPS of $2.40. The company achieved a 17% ROE and maintained robust growth with originations volume reaching $9.4 billion, up 35% year-over-year.
Key highlights include a book value per share increase to $60, average servicing UPB of $307 billion, and total liquidity of $218 million. The company confirmed its 2025 adjusted ROE guidance range of 16-18% and noted potential release of $180 million in deferred tax valuation allowance by year-end 2025.
The company demonstrated strong performance in both Servicing and Originations segments, with funded recapture volume up 2.4x year-over-year and refinance recapture rate at 1.5x the industry average.Onity Group (NYSE: ONIT) ha riportato solidi risultati finanziari nel secondo trimestre 2025, con un utile netto di 20 milioni di dollari e un EPS diluito di 2,40 dollari. L'azienda ha raggiunto un ROE del 17% e ha mantenuto una crescita robusta con un volume di originazioni pari a 9,4 miliardi di dollari, in aumento del 35% su base annua.
I punti salienti includono un aumento del valore contabile per azione a 60 dollari, un UPB medio di servicing di 307 miliardi di dollari e una liquidit脿 totale di 218 milioni di dollari. L'azienda ha confermato la guidance per il ROE rettificato 2025 nella fascia 16-18% e ha segnalato la possibile liberazione di 180 milioni di dollari di riserva fiscale differita entro la fine del 2025.
L'azienda ha mostrato una forte performance sia nel segmento Servicing che in quello delle Originazioni, con un volume di recapture finanziato aumentato di 2,4 volte rispetto all'anno precedente e un tasso di recapture per rifinanziamenti pari a 1,5 volte la media del settore.
Onity Group (NYSE: ONIT) report贸 s贸lidos resultados financieros en el segundo trimestre de 2025, con un ingreso neto de 20 millones de d贸lares y un EPS diluido de 2,40 d贸lares. La compa帽铆a logr贸 un ROE del 17% y mantuvo un crecimiento robusto con un volumen de originaciones que alcanz贸 9,4 mil millones de d贸lares, un aumento del 35% interanual.
Los aspectos destacados incluyen un aumento del valor contable por acci贸n a 60 d贸lares, un UPB promedio de servicing de 307 mil millones de d贸lares y una liquidez total de 218 millones de d贸lares. La empresa confirm贸 su gu铆a ajustada de ROE para 2025 en un rango del 16-18% y se帽al贸 una posible liberaci贸n de 180 millones de d贸lares en provisiones fiscales diferidas para finales de 2025.
La compa帽铆a demostr贸 un s贸lido desempe帽o en los segmentos de Servicing y Originaciones, con un volumen de recaptura financiada que aument贸 2.4 veces interanual y una tasa de recaptura de refinanciamiento de 1.5 veces el promedio de la industria.
Onity Group (NYSE: ONIT)電� 2025雲� 2攵勱赴 臧曤牓頃� 鞛 鞁れ爜鞚� 氤搓碃頄堨溂氅�, 靾滌澊鞚� 2觳滊 雼煬鞕赌 頋劃 欤茧嫻靾滌澊鞚�(EPS) 2.40雼煬毳� 旮半頄堨姷雼堧嫟. 須岇偓電� ROE 17%毳� 雼劚頄堨溂氅�, 旮办洂 攴滊臧� 鞝勲厔 雽�牍� 35% 歃濌皜頃� 94鞏� 雼煬鞐� 雼晿電� 瓴碃頃� 靹膘灔鞚� 鞙犾頄堨姷雼堧嫟.
欤检殧 靹标臣搿滊姅 欤茧嫻 鞛ル秬臧�旃橁皜 60雼煬搿� 靸侅姽頄堦碃, 韽夑窢 靹滊箘鞀� 雽�於� 鞛旍暋(UPB)鞚� 3,070鞏� 雼煬, 齑� 鞙犽彊靹膘潃 2鞏� 1,800毵� 雼煬鞐� 雼枅鞀惦媹雼�. 須岇偓電� 2025雲� 臁办爼 ROE 臧�鞚措崢鞀� 氩旍渼鞚� 16-18%毳� 頇曥澑頄堨溂氅�, 2025雲� 毵愱箤歆� 1鞏� 8觳滊 雼煬鞚� 鞚挫棸 氩曥澑靹� 韽夑皜於╇嫻旮� 頃挫牅 臧�電レ劚鞚� 鞏戈笁頄堨姷雼堧嫟.
須岇偓電� 靹滊箘鞀� 氚� 旮办洂 攵�氍� 氇憪鞐愳劀 臧曤牓頃� 靹标臣毳� 氤挫榾鞙茧┌, 鞛愱笀 歆�鞗� 鞛殟霌� 攴滊電� 鞝勲厔 雽�牍� 2.4氚� 歃濌皜頄堦碃, 鞛湹鞛� 鞛殟霌濍鞚� 鞐呹硠 韽夑窢鞚� 1.5氚办棎 雼枅鞀惦媹雼�.
Onity Group (NYSE : ONIT) a annonc茅 de solides r茅sultats financiers pour le deuxi猫me trimestre 2025, avec un revenu net de 20 millions de dollars et un BPA dilu茅 de 2,40 dollars. La soci茅t茅 a r茅alis茅 un ROE de 17% et a maintenu une croissance robuste avec un volume d'originations atteignant 9,4 milliards de dollars, en hausse de 35 % d'une ann茅e sur l'autre.
Les points cl茅s incluent une augmentation de la valeur comptable par action 脿 60 dollars, un UPB moyen de service de 307 milliards de dollars et une liquidit茅 totale de 218 millions de dollars. La soci茅t茅 a confirm茅 sa pr茅vision de ROE ajust茅 pour 2025 dans une fourchette de 16-18 % et a not茅 une possible lib茅ration de 180 millions de dollars de provision pour 茅valuation d'imp么t diff茅r茅 d'ici la fin de 2025.
La soci茅t茅 a d茅montr茅 une forte performance dans les segments Servicing et Originations, avec un volume de recapture financ茅 multipli茅 par 2,4 d'une ann茅e sur l'autre et un taux de recapture de refinancement 1,5 fois sup茅rieur 脿 la moyenne du secteur.
Onity Group (NYSE: ONIT) meldete starke Finanzergebnisse f眉r das zweite Quartal 2025 mit einem Nettoeinkommen von 20 Millionen US-Dollar und einem verw盲sserten Ergebnis je Aktie (EPS) von 2,40 US-Dollar. Das Unternehmen erzielte eine Eigenkapitalrendite (ROE) von 17% und verzeichnete ein robustes Wachstum mit einem Volumen der Neuabschl眉sse von 9,4 Milliarden US-Dollar, was einem Anstieg von 35 % im Jahresvergleich entspricht.
Zu den wichtigsten Highlights z盲hlen ein Anstieg des Buchwerts je Aktie auf 60 US-Dollar, ein durchschnittliches Service-UPB von 307 Milliarden US-Dollar und eine Gesamtl liquidit盲t von 218 Millionen US-Dollar. Das Unternehmen best盲tigte seine Prognose f眉r die bereinigte Eigenkapitalrendite 2025 im Bereich von 16-18 % und wies auf eine m枚gliche Freisetzung von 180 Millionen US-Dollar an latenten Steuerwertberichtigungen bis Ende 2025 hin.
Das Unternehmen zeigte eine starke Leistung sowohl im Servicing- als auch im Originationssegment, mit einem finanzierten R眉ckgewinnungsvolumen, das im Jahresvergleich um das 2,4-fache zunahm, und einer Refinanzierungs-R眉ckgewinnungsquote, die das 1,5-fache des Branchendurchschnitts betr盲gt.
- Net income of $20 million with diluted EPS of $2.40
- Originations volume up 35% YoY to $9.4 billion, exceeding industry growth of 23%
- Book value per share increased by $2.94 YoY to $60
- Fitch Ratings upgraded residential primary servicer ratings
- Strong liquidity position with $218 million in total liquidity
- Refinance recapture rate 1.5x industry average
- Adjusted ROE declined to 14% from 17% ROE
- Average servicing UPB growth limited to $2 billion YoY
Insights
Onity reports strong Q2 2025 with $2.40 EPS, 35% originations growth, and maintains 16-18% adjusted ROE guidance despite market challenges.
Onity Group delivered solid Q2 2025 results with
The company's originations volume was particularly impressive at
Management maintained its 2025 adjusted ROE guidance range of
Notably, Onity's recapture performance stands out, with funded recapture volume increasing 2.4x year-over-year and a refinance recapture rate 1.5x the industry average. The company's owned servicing UPB grew
WEST PALM BEACH, Fla., Aug. 05, 2025 (GLOBE NEWSWIRE) -- (NYSE: ONIT) (鈥淥nity鈥� or the 鈥淐ompany鈥�) today announced its second quarter 2025 results and provided a business update.
Second Quarter 2025:
- Net income attributable to common stockholders of
$20 million ; diluted EPS of$2.40 ; ROE of17% - Adjusted pre-tax income* of
$16 million , resulting in annualized adjusted ROE* of14% - Book value per share improved to
$60 as of June 30, 2025, up$2.94 YoY - Originations volume of
$9.4 billion , up35% YoY, exceeding23% industry growth - Average servicing UPB of
$307 billion , up$2 billion YoY
2025 Outlook:
- Confirmed previous guidance including 2025 adjusted ROE* range of
16% -18% (ROE and adjusted ROE* at18% for first half of 2025) - Some or all of
$180 million deferred tax valuation allowance (US) as of December 31, 2024, could be released by year-end 2025
听听听听听听听听听* See 鈥淣ote Regarding Non-GAAP Financial Measures鈥� below
"We reported another strong quarter with sustained profitability and steady growth, demonstrating the resilience of our business model, sound strategy and high-caliber execution,鈥� said Onity Group Chair, President and CEO Glen Messina. 鈥淒espite market challenges, we continue to achieve results in Servicing and Originations, with a growing servicing portfolio, originations volume that is exceeding the industry growth rate, and a high-performing recapture platform. We remain committed to delivering strong shareholder returns as we navigate the future with agility. We believe our balanced and diversified business is built to perform through market cycles, driven by our technology-enabled, low-cost, award-winning platform."
Additional Second Quarter 2025 Operating and Business Highlights
- Funded recapture volume up 2.4x YoY; refinance recapture rate is 1.5x industry average based on ICE Mortgage Monitor report as of June 2025
- Average owned servicing UPB of
$153 billion , up16% YoY - Effective MSR hedge strategy resulting in minimal MSR fair value volatility in the quarter and continued alignment with operating and financial performance
- Fitch Ratings upgraded all of the Company鈥檚 residential primary servicer ratings and affirmed its commercial small balance servicer ratings
- Total liquidity (unrestricted cash plus available credit) at
$218 million as of June 30, 2025
Webcast and Conference Call
Onity will hold a conference call on Tuesday, August 5, 2025, at 8:30 a.m. (ET) to review the Company鈥檚 second quarter 2025 operating results and to provide a business update. All interested parties are welcome to participate. You can access the conference call by dialing (800) 245-3047 or (203) 518-9765 approximately 10 minutes prior to the call; please reference the conference ID 鈥淥nity.鈥� Participants can also access the conference call through a live audio webcast available from the Shareholder Relations page at under Events and Presentations. An investor presentation will accompany the conference call and be available by visiting the Shareholder Relations page at听听prior to the call. A replay of the conference call will be available via the website approximately two hours after the conclusion of the call. A telephonic replay will also be available approximately three hours following the call鈥檚 completion through August 19, 2025, by dialing (844) 512-2921 or (412) 317-6671; please reference access code 11159308.
About Onity Group
Onity Group Inc. (NYSE: ONIT) is a leading non-bank financial services company providing mortgage servicing and originations solutions through its primary brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the largest servicers in the country, focused on delivering a variety of servicing and lending programs to consumers and business clients. Liberty is one of the nation鈥檚 largest reverse mortgage lenders dedicated to providing loans that help customers meet their personal and financial needs. We are headquartered in West Palm Beach, Florida, with offices and operations in the United States, the U.S. Virgin Islands, India and the Philippines, and have been serving our customers since 1988. For additional information, please visit .
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by a reference to a future period or by the use of forward-looking terminology. Forward-looking statements are typically identified by words such as 鈥渆xpect鈥�, 鈥渂elieve鈥�, 鈥渇oresee鈥�, 鈥渁nticipate鈥�, 鈥渋ntend鈥�, 鈥渆stimate鈥�, 鈥済oal鈥�, 鈥渟trategy鈥�, 鈥減lan鈥� 鈥渢arget鈥� and 鈥減roject鈥� or conditional verbs such as 鈥渨ill鈥�, 鈥渕ay鈥�, 鈥渟hould鈥�, 鈥渃ould鈥� or 鈥渨ould鈥� or the negative of these terms, although not all forward-looking statements contain these words, and includes statements in this press release regarding our 2025 outlook and guidance, our expectation of releasing our deferred tax valuation allowance by year-end 2025, our ability to drive growth, and navigate interest volatility and economic uncertainties. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Readers should bear these factors in mind when considering such statements and should not place undue reliance on such statements.
Forward-looking statements involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. In the past, actual results have differed from those suggested by forward looking statements and this may happen again. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the potential for ongoing disruption in the financial markets and in commercial activity generally as a result of U.S. and global political events, changes in monetary and fiscal policy, and other sources of instability; the impacts of inflation, employment disruption, and other financial difficulties facing our borrowers; whether we will release some or all of the valuation allowance offsetting our net U.S. deferred tax asset, and the timing and amount of such release; the adequacy of our financial resources, including our sources of liquidity and ability to sell, fund and recover servicing advances, forward and reverse whole loans, future draws on existing reverse loans, and HECM and forward loan buyouts and put backs, as well as repay, renew and extend borrowings, borrow additional amounts as and when required, meet our MSR or other asset investment objectives and comply with our debt agreements, including the financial and other covenants contained in them; our ability to interpret correctly and comply with current or future liquidity, net worth and other financial and other requirements of regulators, the Federal National Mortgage Association (Fannie Mae), and Federal Home Loan Mortgage Corporation (Freddie Mac) (together, the GSEs), and the Government National Mortgage Association (Ginnie Mae); the impact of cost-reduction initiatives on our business and operations; the impact of our rebranding initiative; the amount of senior debt or common stock that we may repurchase under any repurchase programs, the timing of such repurchases, and the long-term impact, if any, of repurchases on the trading price of our securities or our financial condition; breach or failure of Onity鈥檚, our contractual counterparties鈥�, or our vendors鈥� information technology or other security systems or privacy protections, including any failure to protect customers鈥� data, resulting in disruption to our operations, loss of income, reputational damage, costly litigation and regulatory penalties; our reliance on our technology vendors to adequately maintain and support our systems, including our servicing systems, loan originations and financial reporting systems, and uncertainty relating to our ability to transition to alternative vendors, if necessary, without incurring significant cost or disruption to our operations; the future of our long-term relationship with Rithm Capital Corp. (Rithm); the extent to which MSR Asset Vehicle LLC (MAV) will exercise its rights to sell MSRs subserviced by PHH and the impact to our subservicing portfolio; our ability to close acquisitions of MSRs and other transactions, including the ability to obtain regulatory approvals; our ability to grow our reverse servicing business; our ability to retain clients and employees of acquired businesses, and the extent to which acquisitions and our other strategic initiatives will contribute to achieving our growth objectives; increased servicing costs based on increased borrower delinquency levels or other factors; uncertainty related to past, present or future claims, litigation, cease and desist orders and investigations regarding our servicing, foreclosure, modification, origination and other practices brought by government agencies and private parties, including state regulators, the Consumer Financial Protection Bureau (CFPB), State Attorneys General, the Securities and Exchange Commission (SEC), the Department of Justice or the Department of Housing and Urban Development (HUD); the reactions of key counterparties, including lenders, the GSEs and Ginnie Mae, to our regulatory engagements and litigation matters; increased regulatory scrutiny and media attention; any adverse developments in existing legal proceedings or the initiation of new legal proceedings; our ability to effectively manage our regulatory and contractual compliance obligations; our ability to comply with our servicing agreements, including our ability to comply with the requirements of the GSEs and Ginnie Mae and maintain our seller/servicer and other statuses with them; our ability to fund future draws on existing loans in our reverse mortgage portfolio; our servicer and credit ratings as well as other actions from various rating agencies, including any future downgrades; as well as other risks and uncertainties detailed in our reports and filings with the SEC, including our annual report on Form 10-K for the year ended December 31, 2024. Anyone wishing to understand Onity鈥檚 business should review our SEC filings. Our forward-looking statements speak only as of the date they are made and, we disclaim any obligation to update or revise forward-looking statements whether as a result of new information, future events or otherwise.
Note Regarding Non-GAAP Financial Measures
This press release contains references to adjusted pre-tax income (loss) and adjusted ROE, both non-GAAP financial measures.
We believe these non-GAAP financial measures provide a useful supplement to discussions and analysis of our financial condition, because they are measures that management uses to assess the financial performance of our operations and allocate resources. In addition, management believes that this presentation may assist investors with understanding and evaluating our initiatives to drive improved financial performance. Management believes, specifically, that the removal of fair value changes of our net MSR exposure due to changes in market interest rates and assumptions provides a useful, supplemental financial measure as it enables an assessment of our ability to generate earnings regardless of market conditions and the trends in our underlying businesses by removing the impact of fair value changes due to market interest rates and assumptions, which can vary significantly between periods. However, these measures should not be analyzed in isolation or as a substitute to analysis of our GAAP pre-tax income (loss) or GAAP pre-tax ROE nor a substitute for cash flows from operations. There are certain limitations to the analytical usefulness of the adjustments we make to GAAP pre-tax income (loss) and GAAP pre-tax ROE and, accordingly, we use these adjustments only for purposes of supplemental analysis. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Onity鈥檚 reported results under accounting principles generally accepted in the United States. Other companies may use non-GAAP financial measures with the same or similar titles that are calculated differently to our non-GAAP financial measures. As a result, comparability may be limited. Readers are cautioned not to place undue reliance on analysis of the adjustments we make to GAAP pre-tax income (loss) and GAAP pre-tax ROE.
The Company has not provided reconciliations of guidance for adjusted ROE, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures. These items include the change in fair value of our net MSR exposure due to changes in market interest rates and assumptions which can vary significantly between periods and are difficult to predict in advance in order to include in a GAAP estimate.
Notables
In the table below, we adjust GAAP pre-tax income for the following factors: MSR valuation adjustments, expense notables, and other income statement notables. MSR valuation adjustments are comprised of changes to Forward MSR and Reverse mortgage valuations due to rates and assumption changes. Expense notables include significant legal and regulatory settlement expenses, severance and retention costs, LTIP stock price changes, consolidation of office facilities and other expenses (such as costs associated with strategic transactions). Other income statement notables include non-routine transactions that are not categorized in the above.
Beginning with the three months ended December 31, 2024, for purposes of calculating Income Statement Notables and Adjusted Pre-Tax Income, we changed the methodology used to calculate Other Income Statement Notables to include change in fair value due to interest rates for reverse loan buyouts (previously reported in gain/loss on loans held for sale, at fair value). We made this change to align with the change to our risk management approach to include changes in fair value of reverse loan buyouts due to interest rates in our MSR hedge strategy, consistent with other notables, such as Forward MSR Valuation Adjustments due to rates and assumption changes, net and Reverse Mortgage Fair Value Change due to rates and assumption changes.
Other Income Statement Notables (a component of Other Notables) for the first three quarters of 2024 have been revised from prior presentations to reflect the methodology we adopted during the fourth quarter of 2024.
| (Dollars in millions) | 听1贬鈥�25 | 蚕2鈥�25 | 蚕1鈥�25 | 蚕2鈥�24 | |
| I | Net Income (Loss) Attributable to Common Stockholders | 42 | 20 | 21 | 11 |
| 听 | A. Preferred Stock Dividend | (2) | (1) | (1) | - |
| II | Reported Net Income (Loss) [I 鈥� A] | 44 | 22 | 22 | 11 |
| 听 | B. Income Tax Benefit (Expense) | 12 | (1) | 13 | (3) |
| III | Reported Pre-Tax Income (Loss) [II 鈥� B] | 32 | 23 | 9 | 14 |
| 听 | Forward MSR Valuation Adjustments due to rates and assumption changes, net (a)(b) | (7) | 6 | (12) | (13) |
| 听 | Reverse Mortgage Fair Value Change due to rates and assumption changes (b)(c) | 11 | 1 | 10 | (4) |
| IV | Total MSR Valuation Adjustments due to rates and assumption changes, net | 4 | 6 | (2) | (17) |
| 听 | Significant legal and regulatory settlement expenses | (12) | 2 | (14) | 2 |
| 听 | Severance and retention (d) | (0) | (0) | (0) | (1) |
| 听 | LTIP stock price changes (e) | (1) | (2) | 0 | 1 |
| 听 | Office facilities consolidation | (0) | (0) | (0) | 0 |
| 听 | Other expense notables (f) | 1 | 1 | 1 | (1) |
| 听 | C. Total Expense Notables | (12) | 1 | (14) | 1 |
| 听 | D. Gain (loss) on extinguishment of debt | - | - | - | 0 |
| 听 | E. Other Income Statement Notables (g) | (1) | (1) | (0) | (3) |
| V | Total Other Notables [C + D + E] | (14) | 0 | (14) | (2) |
| VI | Total Notables (h) [IV + V] | (10) | 6 | (16) | (19) |
| VII | Adjusted Pre-Tax Income (i) [III 鈥� VI] | 42 | 16 | 25 | 32 |
听听听听
| a) | MSR valuation adjustments that are due to changes in market interest rates, valuation inputs or other assumptions, net of overall fair value gains / (losses) on MSR hedge, including FV changes of Pledged MSR liabilities associated with MSR transferred to MAV, Rithm and others and ESS financing liabilities that are due to changes in market interest rates, valuation inputs or other assumptions, a component of MSR valuation adjustments, net |
| b) | The changes in fair value due to market interest rates were measured by isolating the impact of market interest rate changes on the valuation model output as provided by our third-party valuation expert |
| c) | FV changes of loans HFI and HMBS related borrowings due to market interest rates and assumptions, a component of gain on reverse loans held for investment and HMBS-related borrowings, net |
| d) | Severance and retention due to organizational rightsizing or reorganization |
| e) | Long-term incentive program (LTIP) compensation expense changes attributable to stock price changes during the period |
| f) | Contains costs associated with but not limited to rebranding and other strategic initiatives and transactions |
| g) | Contains other non-routine transactions |
| h) | Certain previously presented notable categories with nil numbers for each period shown have been omitted |
| i) | Effective in Q4鈥�24, change in fair value due to interest rates for reverse loan buyouts is now recognized as a notable (previously reported in gain/loss on loans held for sale, at fair value); presentation of past periods has been conformed to the current presentation; without this change, adjusted PTI would still have been |
Adjusted ROE Calculation
| (Dollars in millions) | 1贬鈥�25 | 蚕2鈥�25 | 蚕1鈥�25 | 蚕2鈥�24 | |||||
| 听 | GAAP ROE (after tax) | 18% | 17% | 19% | 10% | ||||
| I | Reported Net Income (Loss) | 44 | 22 | 22 | 11 | ||||
| II | Notable Items | (10) | 6 | (16) | (19) | ||||
| III | Income Tax Benefit (Expense) | 12 | (1) | 13 | (3) | ||||
| IV | Adjusted Pre-Tax Income (Loss) [I 鈥� II 鈥� III] | 42 | 16 | 25 | 32 | ||||
| V | Annualized Adjusted Pre-tax Income [IV * 4for qtr.] | 84 | 66 | 102 | 128 | ||||
| 听 | Equity | 听 | 听 | 听 | 听 | ||||
| 听 | A听Beginning Period Equity | 443 | 460 | 443 | 432 | ||||
| 听 | C听Ending Period Equity | 482 | 482 | 460 | 446 | ||||
| 听 | D听Equity Impact of Notables | 10 | (6) | 16 | 19 | ||||
| 听 | B听Adjusted Ending Period Equity [C + D] | 492 | 475 | 477 | 465 | ||||
| VI | Average Adjusted Equity [(A + B) / 2] | 467 | 468 | 460 | 448 | ||||
| VII | Adjusted ROE(a)[V / VI] | 18% | 14% | 22% | 29% | ||||
| a) | Effective in Q4鈥�24, change in fair value due to interest rates for reverse loan buyouts is now recognized as a notable (previously reported in gain/loss on loans held for sale, at fair value); presentation of past periods has been conformed to the current presentation; without this change, adjusted pre-tax income would still have been |
Condensed Consolidated Balance Sheets (Unaudited)
| Assets(Dollars in millions) | June 30, 2025 | March 31, 2025 | June 30, 2024 |
| Cash and cash equivalents | 194.3 | 178.0 | 203.1 |
| Restricted cash | 62.3 | 58.9 | 46.3 |
| Mortgage servicing rights (MSRs), at fair value | 2,632.6 | 2,547.4 | 2,327.7 |
| Advances, net | 461.4 | 514.0 | 550.6 |
| Loans held for sale, at fair value | 2,048.3 | 1,402.2 | 1,107.0 |
| Loans held for investment, at fair value | 10,470.8 | 10,812.5 | 8,227.8 |
| Receivables, net | 204.6 | 222.3 | 153.4 |
| Investment in equity method investee | - | - | 31.3 |
| Premises and equipment, net | 9.7 | 10.8 | 12.3 |
| Other assets | 129.1 | 106.0 | 84.3 |
| Contingent loan repurchase asset | 318.2 | 407.2 | 341.0 |
| Total Assets | 16,531.3 | 16,259.3 | 13,084.7 |
| 听 | 听 | 听 | 听 |
| Liabilities, Mezzanine & Stockholders鈥� Equity (Dollars in millions) | June 30, 2025 | March 31, 2025 | June 30, 2024 |
| Home Equity Conversion Mortgage-Backed Securities (HMBS) related borrowings, at fair value | 10,253.1 | 10,587.6 | 8,035.4 |
| Other financing liabilities, at fair value | 818.1 | 835.5 | 845.9 |
| Advance match funded liabilities | 342.5 | 377.5 | 405.0 |
| Mortgage loan financing facilities, net | 2,195.5 | 1,577.4 | 1,190.5 |
| MSR financing facilities, net | 1,218.6 | 1,136.0 | 927.7 |
| Senior notes, net | 488.5 | 488.0 | 555.2 |
| Other liabilities | 365.0 | 340.0 | 337.9 |
| Contingent loan repurchase liability | 318.2 | 407.2 | 341.0 |
| Total Liabilities | 15,999.5 | 15,749.2 | 12,638.4 |
| Mezzanine Equity | 49.9 | 49.9 | - |
| Stockholders鈥� Equity | 481.9 | 460.2 | 446.2 |
| Total Liabilities, Mezzanine and Stockholders鈥� Equity | 16,531.3 | 16,259.3 | 13,084.7 |
Condensed Consolidated Statements of Operations (Unaudited)
| 听 | For the Quarter Ending | ||||||||
| (Dollars in millions) | June 30, 2025 | March 31, 2025 | June 30, 2024 | ||||||
| Revenue | 听 | 听 | 听 | ||||||
| Servicing and subservicing fees | 听 | 211.3 | 听 | 听 | 203.3 | 听 | 听 | 210.8 | 听 |
| Gain on reverse loans held for investment and HMBS-related borrowings, net | 听 | 11.9 | 听 | 听 | 23.8 | 听 | 听 | 8.5 | 听 |
| Gain on loans held for sale, net | 听 | 10.4 | 听 | 听 | 11.8 | 听 | 听 | 16.5 | 听 |
| Other revenue, net | 听 | 13.0 | 听 | 听 | 10.9 | 听 | 听 | 10.6 | 听 |
| Total revenue | 听 | 246.6 | 听 | 听 | 249.8 | 听 | 听 | 246.4 | 听 |
| MSR valuation adjustments, net | 听 | (27.3) | 听 | 听 | (38.9) | 听 | 听 | (32.7) | 听 |
| Operating expenses | 听 | 听 | 听 | ||||||
| Compensation and benefits | 听 | 60.9 | 听 | 听 | 57.4 | 听 | 听 | 55.0 | 听 |
| Servicing and origination | 听 | 13.0 | 听 | 听 | 13.0 | 听 | 听 | 13.9 | 听 |
| Technology and communications | 听 | 15.5 | 听 | 听 | 15.0 | 听 | 听 | 13.0 | 听 |
| Professional services | 听 | 8.4 | 听 | 听 | 22.6 | 听 | 听 | 10.7 | 听 |
| Occupancy, equipment and mailing | 听 | 8.1 | 听 | 听 | 8.2 | 听 | 听 | 7.5 | 听 |
| Other expenses | 听 | 3.7 | 听 | 听 | 3.6 | 听 | 听 | 3.9 | 听 |
| Total operating expenses | 听 | 109.5 | 听 | 听 | 119.9 | 听 | 听 | 104.0 | 听 |
| Other income (expense) | 听 | 听 | 听 | ||||||
| Interest income | 听 | 32.1 | 听 | 听 | 26.2 | 听 | 听 | 22.5 | 听 |
| Interest expense | 听 | (75.6) | 听 | 听 | (67.0) | 听 | 听 | (73.1) | 听 |
| Pledged MSR liability expense | 听 | (43.0) | 听 | 听 | (41.9) | 听 | 听 | (46.1) | 听 |
| Gain (loss) on extinguishment of debt | 听 | - | 听 | 听 | - | 听 | 听 | - | 听 |
| Earnings of equity method investee | 听 | - | 听 | 听 | - | 听 | 听 | 3.1 | 听 |
| Other, net | 听 | (0.4) | 听 | 听 | 0.9 | 听 | 听 | (2.7) | 听 |
| Other income (expense), net | 听 | (87.0) | 听 | 听 | (81.9) | 听 | 听 | (96.2) | 听 |
| Income before income taxes | 听 | 22.8 | 听 | 听 | 9.1 | 听 | 听 | 13.5 | 听 |
| Income tax expense | 听 | 1.3 | 听 | 听 | (13.0) | 听 | 听 | 3.0 | 听 |
| Net Income (Loss) | 听 | 21.5 | 听 | 听 | 22.1 | 听 | 听 | 10.5 | 听 |
| Preferred stock dividend | 听 | (1.0) | 听 | 听 | (1.0) | 听 | 听 | - | 听 |
| Net Income (Loss) attributable to common stockholders | 听 | 20.5 | 听 | 听 | 21.1 | 听 | 听 | 10.5 | 听 |
| Basic EPS | 听 | 听 | 听 | 听 | 听 | 听 | |||
| Diluted EPS | 听 | 听 | 听 | 听 | 听 | 听 | |||
For Further Information Contact:
Investors:
Valerie Haertel, VP, Investor Relations
(561) 570-2969
Media:
Dico Akseraylian, SVP, Corporate Communications
(856) 917-0066
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