UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from: ____________________ to ____________________ Commission File No. 1-13219 Onity Group Inc. (Exact name of registrant as specified in its charter) Florida 65-0039856 (State or ot ...

Messina added that the company delivered “record earnings” driven by growth and profitability that enabled a “significant partial release” of its deferred tax valuation allowance. He said Onity’s fourth-quarter results were impacted by approximately $14 million of incremental MSR runoff tied to higher delinquencies, which management attributed to changes in FHA loan modification rules and the timing of a government shutdown. Messina said the company believes this will stabilize in the second quarter of 2026 ...

Core Insights - Onity Group Inc. has demonstrated strong financial performance with an EPS of $14.24, significantly exceeding the estimated $2.60, and revenue of $290 million, slightly above the estimated $288.8 million [1][6] Financial Performance - The company reported a record net income and EPS for the full year and fourth quarter of 2025, reflecting profitable growth through a multi-year transformation, with a book value per share of $74 [2] - Onity has a P/E ratio of approximately 10.55, indicating investors are willing to pay $10.55 for every dollar of earnings, and a price-to-sales ratio of about 0.32, suggesting the market values the company's sales at 32% of its stock price [3] - The enterprise value to sales ratio is around 0.17, showing a relatively low valuation compared to its sales [3] Challenges - The enterprise value to operating cash flow ratio is negative at approximately -0.26, indicating potential concerns in cash flow generation relative to its enterprise value [4] - Despite this, the company's earnings yield is approximately 9.48%, reflecting the earnings generated per dollar invested in its stock [4] Shareholder Value Initiatives - Onity announced a $10 million share repurchase program, indicating its strong financial position and commitment to enhancing shareholder value by potentially increasing the value of remaining shares [5][6]

Financial Data and Key Metrics Changes - Revenue increased by 25% year-over-year in Q4 and 6% sequentially, despite typically being a weaker quarter for originations [19] - Adjusted return on equity (ROE) was 7% for the quarter and 17% when adjusted for governmental impacts [19] - Book value per share increased by more than $11 quarter-over-quarter and $17 year-over-year due to ongoing profitable operations and a $120 million release of the valuation allowance [19][27] Business Line Data and Key Metrics Changes - The origination segment saw significant year-over-year and sequential growth in adjusted pre-tax income, driven by record levels of origination volume in both Consumer Direct and B2B channels [20] - Consumer Direct volume increased sharply, reflecting strong recapture performance and improved revenue per loan [21] - Servicing was profitable but impacted by higher than expected MSR runoff expenses, primarily due to government actions and higher delinquencies [22] Market Data and Key Metrics Changes - The owned MSR portfolio increased by 15% year-over-year, while total industry servicing growth was only 2% [12] - The servicing UPB at the end of 2025 was up 9% over the prior year, with $49 billion in servicing additions net of runoff [12] - The subservicing additions in the second half of 2025 were $33 billion, over 2.5 times the first half level, indicating strong market interest [10] Company Strategy and Development Direction - The company executed a strategic partnership with Finance of America Reverse to simplify its participation in the reverse mortgage market, aiming for future earnings growth [5] - The focus for 2026 includes executing a proven strategy, simplifying operations, and investing in technology to drive profitable growth [17] - The company is targeting an adjusted ROE range of 13%-15% for 2026, reflecting a commitment to maximizing shareholder value [21] Management's Comments on Operating Environment and Future Outlook - The macro environment is viewed as largely favorable for housing and housing finance, with projected 15% year-over-year growth in total industry origination volume [15] - Potential headwinds include the impact of FHA modification rule changes and increased competition in subservicing [16] - Management remains optimistic about the business potential, emphasizing a balanced business model that can perform well in varying interest rate environments [32] Other Important Information - The company has a liquidity position of $205 million at year-end 2025, with plans for a $10 million share buyback program [28][29] - The release of the valuation allowance is seen as a significant indicator of recent profitability improvements and strategic execution [27] Q&A Session Summary Question: Impact of FHA on MSR - Management noted a $14 million impact in Q4 due to FHA changes and expects stabilization by Q2 2026, but quantifying future impacts is challenging [36][38] Question: Government Shutdown Impact on Originations - Management indicated that the government shutdown did not materially impact refinance performance, with a record-setting quarter for refinances [39] Question: Subservicing Business and Interest Rates - Management stated that subservicing opportunities are not solely dependent on interest rates, with recent market disruptions creating growth potential [46][48] Question: Capital Availability from Rithm Portfolio Transfer - The transfer of the Rithm portfolio will not free up capital, but the sale of the reverse mortgage business is expected to release approximately $100 million [50]

Onity Group (NYSE:ONIT) Q4 2025 Earnings call February 12, 2026 08:30 AM ET Company ParticipantsBose George - Managing DirectorGlen Messina - Chair, President, and CEOSean O'Neil - CFOValerie Haertel - VP of Investor RelationsConference Call ParticipantsNone - AnalystOperatorHello, and welcome everyone joining today's Onity Group's full year and fourth quarter earnings and business update conference call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask q ...

Financial Data and Key Metrics Changes - The company reported a 25% year-over-year increase in revenue for the fourth quarter and a 6% sequential increase [20] - Adjusted return on equity (ROE) was 7% for the quarter and 17% when adjusted for governmental impacts [21] - Book value per share increased by more than $11 quarter-over-quarter and $17 year-over-year due to ongoing profitable operations and the release of a $120 million valuation allowance [22][29] Business Line Data and Key Metrics Changes - The origination segment saw significant growth, with record levels of origination volume in both Consumer Direct and B2B channels [22] - B2B volume continued to exceed previous records, supported by a strong enterprise sales force and improved margins [23] - Consumer Direct volume increased sharply, reflecting strong recapture performance and improved revenue per loan [23] Market Data and Key Metrics Changes - The owned MSR portfolio increased by 15% year-over-year, while total industry servicing growth was only 2% [13] - The servicing UPB at the end of 2025 was up 9% over the prior year, with $49 billion in servicing additions net of runoff [13] - The company expects a 5%-15% increase in servicing book UPB growth for 2026, despite the non-renewal of the Rithm contract [32] Company Strategy and Development Direction - The company executed a strategic partnership with Finance of America Reverse to simplify its participation in the reverse mortgage market, aiming for future earnings growth [5] - The focus for 2026 includes executing a proven strategy, simplifying operations, and investing in technology to drive profitable growth [19] - The company plans to evaluate opportunistic bulk acquisitions if the economics are compelling [19] Management's Comments on Operating Environment and Future Outlook - The macro environment is viewed as largely favorable for housing and housing finance, with projected 15% year-over-year growth in total industry origination volume [16] - Potential headwinds include the impact of FHA modification rule changes and increased competition in forward residential subservicing [17] - The company remains optimistic about its balanced business model and its attractiveness to investors in the mortgage sector [18] Other Important Information - The company has a liquidity position of $205 million at year-end 2025, with $181 million in unrestricted cash [30] - A $10 million share buyback program has been approved, which can be funded with liquidity as of year-end 2025 [31] Q&A Session Summary Question: Impact of FHA changes on MSR - Management noted a $14 million impact in Q4 and indicated that quantifying future impacts is challenging but expects stabilization by Q2 2026 [38][40] Question: Government shutdown impact on origination - Management reported no material impact on refinance performance during the government shutdown, with a record-setting quarter for refinances [41] Question: Guidance on adjusted ROE - The guidance of 13%-15% for adjusted ROE is pre-tax and considers the $120 million increase in equity from earnings [42][44] Question: Ideal interest rate environment for subservicing - Management indicated that subservicing opportunities are not solely dependent on interest rates and highlighted recent market disruptions as catalysts for growth [49][50] Question: Capital availability from Rithm portfolio transfer - The transfer of the Rithm portfolio itself will not free up capital, but the closing of the reverse mortgage business sale is expected to free up approximately $100 million [53]

Full Year and Fourth Quarter 2025 Business Update February 12, 2026 © 2026 Onity Group Inc. All rights reserved. Disclaimer FORWARD-LOOKING STATEMENTS This presentation 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 ...

Financial Projections - Estimated net income attributable to common stockholders for Q4 2025 is projected to be between $107 million and $131 million, while the full-year 2025 estimate ranges from $166 million to $190 million [5]. - Diluted earnings per share for Q4 2025 is expected to be between $12.2 and $15.0, with the full-year 2025 estimate ranging from $19.3 to $22.1 [5]. - Adjusted pre-tax income (non-GAAP) for Q4 2025 is estimated at $7 million to $11 million, and for the full year 2025, it is projected to be between $80 million and $84 million [5]. Origination and Servicing Volumes - Total origination funded volume (UPB) for Q4 2025 is approximately $14 billion, while the full-year 2025 total is around $43 billion [5]. - Consumer Direct funded volume (UPB) for Q4 2025 is estimated at $800 million, with a full-year estimate of $1.9 billion [5]. - Total servicing average UPB is projected to be approximately $323 billion for Q4 2025 and $312 billion for the full year 2025 [5]. Capital and Liquidity - The company plans to issue an additional $150 million of 9.875% Senior Notes due 2029, which will form a single series with previously issued notes [12]. - Total available liquidity at the end of the period is projected to be $205 million [5]. Return on Equity and Debt Ratios - The adjusted return on equity (non-GAAP, annualized) is expected to be between 5% and 8% for Q4 2025, and between 16% and 17% for the full year 2025 [8]. - The debt to equity ratio (including MSR and corporate debt) is estimated to be between 2.7:1 and 2.6:1 for both Q4 2025 and the full year 2025 [5].

Core Insights - Onity Group Inc. reported record net income and earnings per share (EPS) for the full year 2025, with a net income of $185 million and diluted EPS of $21.46, reflecting a strong financial performance [6][8] - The company achieved a book value per share of $74, an increase of $17 year-over-year, indicating solid growth in shareholder equity [6][8] - A new $10 million share repurchase program was announced, demonstrating the company's confidence in its future prospects [6][11] Full Year 2025 Highlights - Total GAAP revenue increased by 9% to $1.1 billion compared to FY 2024 [8] - Net income attributable to common stockholders was $185 million, with an adjusted return on equity (ROE) of 17% [8][28] - The company reported $85 billion in total servicing additions, including $45 billion in subservicing additions [8] Fourth Quarter 2025 Highlights - Net income attributable to common stockholders for Q4 2025 was $126 million, with a diluted EPS of $14.24 [8] - The company experienced a funded recapture volume increase of 2.1 times compared to FY 2024 [9] - Total servicing unpaid principal balance (UPB) grew by $26 billion to $328 billion as of December 31, 2025 [9] 2026 Outlook - The company plans to simplify its business model and invest in innovation while continuing to support growth and deleveraging [6] - Adjusted ROE guidance for 2026 is projected to be in the range of 13% to 15%, with a potential increase to 16% to 18% without the release of the deferred tax valuation allowance [8] - The company aims to accelerate profitable growth and create long-term value for stakeholders [6]

Core Viewpoint - Onity Group Inc. successfully closed a $200 million offering of 9.875% Senior Notes due 2029, aimed at strengthening its capital structure and enhancing financial flexibility [1][2]. Group 1: Debt Offering Details - The offering of the PHH Senior Notes was executed at attractive terms, with strong investor demand indicating confidence in Onity's strategy and financial results [2]. - The effective yield on this debt issuance is nearly 148 basis points lower than the original debt issuance in November 2024, which is expected to provide greater financial flexibility for managing leverage and investing in business growth [2]. - The PHH Senior Notes form a single series with the previously issued $500 million aggregate principal amount of the same notes [2]. Group 2: Use of Proceeds - The net proceeds from the offering will be utilized for general corporate purposes, including the repayment of mortgage servicing rights (MSR) indebtedness [3]. Group 3: Company Overview - Onity Group Inc. is a leading non-bank financial services company specializing in mortgage servicing and originations through its primary brands, PHH Mortgage and Liberty Reverse Mortgage [6]. - PHH Mortgage is one of the largest servicers in the U.S., providing a variety of servicing and lending programs [6]. - The company has been operational since 1988 and is headquartered in West Palm Beach, Florida, with additional offices in the U.S. Virgin Islands, India, and the Philippines [6].