Group 1 - UWM Holdings Corporation reported $560.21 million in revenue for the quarter ended December 2024, reflecting a year-over-year decline of 588.9% [1] - The EPS for the same period was $0.00, compared to -$0.23 a year ago, indicating a significant improvement [1] - The reported revenue fell short of the Zacks Consensus Estimate of $647.08 million, resulting in a surprise of -13.43% [1] Group 2 - Key metrics indicate that UWM's loan production income was $407.23 million, exceeding the average estimate of $401.42 million by four analysts, representing an increase of +80.6% year-over-year [4] - Interest income was reported at $140.07 million, slightly above the average estimate of $139.13 million, with a year-over-year change of +59.4% [4] - Loan servicing income was $173.30 million, compared to the average estimate of $152.47 million, showing a year-over-year decline of -16.1% [4] - The change in fair value of mortgage servicing rights was reported at $309.15 million, significantly higher than the average estimate of -$92.58 million, reflecting a year-over-year change of -148.7% [4] Group 3 - UWM shares have returned +4.8% over the past month, outperforming the Zacks S&P 500 composite, which saw a decline of -2.3% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

Core Viewpoint - UWM Holdings Corporation reported break-even quarterly earnings per share, missing the Zacks Consensus Estimate of $0.07, and showing a significant improvement from a loss of $0.23 per share a year ago, indicating a challenging earnings environment despite some recovery [1][2] Financial Performance - UWM reported revenues of $560.21 million for the quarter ended December 2024, which was 13.43% below the Zacks Consensus Estimate, contrasting with revenues of -$114.58 million from the previous year [2] - Over the last four quarters, the company has not surpassed consensus EPS estimates, indicating ongoing challenges in meeting market expectations [2] Stock Performance - UWM shares have increased by approximately 12.1% since the beginning of the year, outperforming the S&P 500's gain of 1.3%, suggesting a positive market sentiment towards the stock despite recent earnings challenges [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.08 for the upcoming quarter and $0.46 for the current fiscal year, alongside projected revenues of $591.11 million and $2.8 billion respectively [7] - The estimate revisions trend for UWM is currently favorable, leading to a Zacks Rank 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Financial - Mortgage & Related Services industry, to which UWM belongs, is currently ranked in the bottom 47% of over 250 Zacks industries, suggesting potential headwinds for stock performance based on industry trends [8]

Financial Performance - Full Year 2024 loan origination volume reached $139.4 billion, a 28.8% increase from $108.3 billion in 2023[4] - Fourth Quarter 2024 net income was $40.6 million, compared to a net loss of $461.0 million in Q4 2023[4] - Adjusted net income for Q4 2024 was $33,040,000, compared to $23,334,000 in Q3 2024 and a loss of $361,002,000 in Q4 2023[25] - Net income for the year ended December 31, 2024, was $329,375,000, compared to a net loss of $69,782,000 in the previous year[36] - The company reported a diluted adjusted EPS of $0.01 for Q4 2024, compared to a loss of $0.23 in Q4 2023[25] - Basic earnings per share for Class A common stock was $0.06, recovering from a loss of $0.06 in the previous quarter[42] Revenue and Income - Total revenue for the three months ended December 31, 2024, was $560,207,000, an increase from $526,434,000 in the previous quarter[36] - Loan production income for the three months ended December 31, 2024, was $407,229,000, up from $225,436,000 in the same period last year[36] - Loan production income reached $407,229, up from $465,548 in the prior quarter, while loan servicing income increased to $173,300 from $134,753[42] Assets and Liabilities - Total assets as of December 31, 2024, reached $15,671,116,000, an increase from $11,871,854,000 a year earlier[40] - Total liabilities increased to $13,617,268,000 as of December 31, 2024, from $9,397,183,000 a year prior[40] - The company's total assets grew to $15,671,116,000 as of December 31, 2024, compared to $11,871,854,000 a year earlier[34] Liquidity and Debt - The Company ended Q4 2024 with approximately $2.5 billion in available liquidity, including $507.3 million in cash[4] - Total non-funding debt increased to $3,401,066,000 in Q4 2024 from $2,410,714,000 in Q3 2024, with a debt-to-equity ratio of 1.66[28] - The company’s cash and cash equivalents, including restricted cash, were $507,339,000 as of December 31, 2024, compared to $497,468,000 a year earlier[40] Customer Satisfaction and Product Development - The Company achieved a Net Promoter Score (NPS) of +82.5, indicating strong customer satisfaction[12] - New product TRAC Lite was introduced to offer a low-cost title option, potentially saving borrowers thousands of dollars per loan[9] Future Outlook - The Company anticipates first quarter 2025 production to be in the range of $28 to $35 billion, with gain margin between 90 to 115 basis points[16] - UWM Holdings Corporation anticipates growth opportunities in 2025, particularly in the broker channel and operational profitability[29] - The company plans to continue investing in technology and innovation to enhance client experience and maintain market leadership[29] - UWM remains the largest home mortgage lender in the U.S., focusing on conforming and government loans across all states[31] - The company has a strong commitment to maintaining its position in the market despite potential risks from macroeconomic conditions and regulatory changes[29] Expenses - Salaries, commissions, and benefits expenses for the three months ended December 31, 2024, were $193,155,000, compared to $142,515,000 in the same period last year[36] - Total expenses for the quarter were $517,875, an increase from $494,145 in the prior quarter[42]

Core Insights - UWM Holdings Corporation (NYSE: UWMC) is identified as the largest home mortgage lender in the U.S. operating exclusively through the wholesale channel [1] Group 1: Company Overview - UWM Holdings leverages an independent network of mortgage brokers to enhance its operations [1] Group 2: Investment Insights - The company is focused on financials, deep value, special situations, and financial arbitrage, indicating a strategic approach to investment opportunities [1]

Loan Origination and Production - For the three months ended September 30, 2024, the company originated $39.5 billion in loans, an increase of $9.8 billion, or 32.9%, from $29.7 billion during the same period in 2023[90]. - For the nine months ended September 30, 2024, the company originated $100.8 billion in loans, an increase of $16.9 billion, or 20.1%, from $83.9 billion during the same period in 2023[91]. - Total loan origination volume for Q3 2024 reached $39,509,521,000, up 32.9% from $29,721,633,000 in Q3 2023[103]. - 91% of the loans originated in the three months ended September 30, 2024, were sold to Fannie Mae or Freddie Mac, or transferred to Ginnie Mae pools in the secondary market[84]. - Loan production income for Q3 2024 was $465,548,000, a 61.1% increase from $288,930,000 in Q3 2023[100]. Financial Performance - The company reported net income of $31.9 million for the three months ended September 30, 2024, a decrease of $269.0 million compared to $301.0 million for the same period in 2023[90]. - For the nine months ended September 30, 2024, net income was $288.8 million, a decrease of $102.4 million compared to $391.2 million for the same period in 2023[91]. - Adjusted EBITDA for the three months ended September 30, 2024, was $107.2 million, compared to $112.1 million for the same period in 2023[90]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $341.8 million, down from $378.7 million for the same period in 2023[91]. - Net income for Q3 2024 was $31,945,000, a significant decrease from $300,993,000 in Q3 2023[98]. Expenses and Costs - The company’s operating expenses include salaries, commissions, direct loan production costs, and general administrative expenses, among others[89]. - Total expenses for Q3 2024 were $494,145,000, an increase from $375,389,000 in Q3 2023[98]. - Other costs for Q3 2024 increased to $328.0 million, an increase of $80.0 million or 32.3% compared to $248.0 million in Q3 2023[118]. - Loan servicing income for Q3 2024 was $134.8 million, a decrease of $65.7 million or 32.8% compared to $200.4 million in Q3 2023[106]. - Total interest expense for Q3 2024 was $141.1 million, an increase from $93.7 million in Q3 2023[113]. Mortgage Servicing Rights (MSRs) - The company retained the majority of the mortgage servicing rights (MSRs) associated with its production but intends to opportunistically sell MSRs depending on market conditions[84]. - Capitalization of mortgage servicing rights (MSRs) for Q3 2024 was $761,928,000, a 19.6% increase from $637,280,000 in Q3 2023[100]. - The weighted average servicing fee increased to 0.3150% as of September 30, 2024, compared to 0.3014% as of September 30, 2023[105]. - The company has entered into early funding programs with Fannie Mae and Freddie Mac, with $105 million outstanding under the Early Funding program as of September 30, 2024[140]. - UWM entered into a Loan and Security Agreement with Citibank, providing up to $1.5 billion of uncommitted borrowing capacity for mortgage servicing rights[150]. Cash Flow and Liquidity - Net cash used in operating activities was $5.7 billion for the nine months ended September 30, 2024, a significant decrease from $494.5 million in the same period of 2023[156]. - Net cash provided by investing activities increased to $2.6 billion for the nine months ended September 30, 2024, up from $1.7 billion in 2023[157]. - Net cash provided by financing activities was $3.3 billion for the nine months ended September 30, 2024, compared to cash used of $2.1 billion in 2023[158]. - The company expects its cash on hand and liquidity sources to be sufficient to maintain operations and fund loan originations for the next twelve months[131]. - As of September 30, 2024, total advanced against warehouse facilities was approximately $6.5 billion, with significant amounts in various master repurchase agreements[138]. Market and Risk Factors - The company is subject to credit risk, with repurchase and indemnification obligations for breaches under loan sale agreements, despite selling loans into the secondary market without recourse[178]. - The company utilizes forward agency or Ginnie Mae To Be Announced (TBA) securities as its primary hedge instrument to manage interest rate risk[175]. - The fair value of mortgage servicing rights (MSRs) is primarily driven by interest rates, with expected prepayments decreasing in rising interest rate environments[174]. - The company assesses market risk based on changes in interest rates using a sensitivity analysis, which measures potential impacts on fair values[176]. - The company has established relationships with a variety of well-established counterparties to mitigate financing risks associated with its borrowing agreements[181].

Financial Data and Key Metrics Changes - The company reported total production of $39.5 billion for Q3 2024, marking the largest quarter in three years and exceeding guidance [9] - Year-to-date total production volume reached $100.8 billion, a 20% increase from the same period in 2023 [15] - Net income for the quarter was nearly $32 million, despite a $446 million decline in the fair value of mortgage servicing rights (MSRs) [10] - Gain margin was reported at 118 basis points, significantly above guidance [9][15] Business Line Data and Key Metrics Changes - The company achieved over $26 billion in purchase production, indicating strong performance in the purchase market [9] - Refinance production reached $13.3 billion, the highest in a couple of years, suggesting readiness for a potential refi boom [9] Market Data and Key Metrics Changes - The broker channel has achieved its highest market share since 2009, attributed to the company's focus on supporting brokers [20] - The company anticipates that 2024 will be the lowest year for existing home sales since 1995, yet it has delivered nearly $75 billion in purchase production through three quarters [22] Company Strategy and Development Direction - The company aims to dominate the broker channel, targeting a market share of over 50% [23] - Investments in technology and training are ongoing to prepare for future market cycles, with a focus on efficiency and operational readiness [51] - The company is positioned to capitalize on future market opportunities with over $600 million in cash and $2.5 billion in total accessible liquidity [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning and ability to adapt to market changes, emphasizing preparation for a potential refi boom [7][24] - The CEO highlighted the importance of maintaining operational profitability while investing in growth [15][51] - The company is optimistic about future performance, particularly in 2025, when it expects to benefit from lower rates and increased inventory [22][26] Other Important Information - The company has seen increased adoption of its technology tools, which are designed to enhance broker efficiency and consumer savings [11][12] - The company has maintained a consistent leadership team, which is viewed as a competitive advantage in the industry [21] Q&A Session Summary Question: Is the line-item gain on other interest rate derivatives related to hedging the MSR? - Management clarified that they do not hedge MSRs and that interest rate derivatives are analyzed for market trends [29] Question: What were the drivers behind the higher gain on sale margins in the quarter? - Management indicated that the gain on sale margin was positively impacted by market conditions and the company's ability to capitalize on volume increases [30] Question: What are the expectations for gain on sale margins in the fourth quarter? - Management provided guidance of 85 to 110 basis points, acknowledging the impact of recent rate movements [41] Question: How is the uptake of the new cash-out product? - Management noted that while the product has been well-received, its volume has been limited due to rising rates [47] Question: What is the company's strategy regarding MSR sales moving forward? - Management stated that MSR sales will be opportunistic, based on market conditions and cash needs [57] Question: How does the company view competition within the broker channel? - Management expressed confidence in their dominance of the broker channel, emphasizing their commitment to supporting brokers [56]

Core Insights - UWM Holdings Corporation (UWMC) reported a revenue of $526.43 million for Q3 2024, reflecting a year-over-year decline of 22.3% and an EPS of $0.01 compared to $0.29 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $517.02 million by 1.82%, while the EPS fell short of the consensus estimate of $0.08 by 87.50% [1] Revenue Breakdown - Loan production income was reported at $465.55 million, surpassing the average estimate of $389.24 million by four analysts, marking a year-over-year increase of 61.1% [3] - Interest income reached $145.30 million, exceeding the average estimate of $121.12 million, with a year-over-year growth of 53.2% [3] - Loan servicing income was $134.75 million, slightly below the estimated $140.80 million, representing a decline of 32.8% year-over-year [3] - The change in fair value of mortgage servicing rights was reported at -$446.10 million, significantly worse than the average estimate of -$120.25 million, indicating a year-over-year change of -580.2% [3] Stock Performance - UWM shares have declined by 9.6% over the past month, contrasting with the Zacks S&P 500 composite's increase of 3.2% [4] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [4]

Group 1 - UWM Holdings Corporation (UWMC) reported quarterly earnings of $0.01 per share, missing the Zacks Consensus Estimate of $0.08 per share, and down from $0.29 per share a year ago, representing an earnings surprise of -87.50% [1] - The company posted revenues of $526.43 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.82%, but down from year-ago revenues of $677.12 million [2] - UWM shares have lost about 7.3% since the beginning of the year, while the S&P 500 has gained 24.3% [3] Group 2 - The current consensus EPS estimate for the coming quarter is $0.08 on revenues of $571.82 million, and for the current fiscal year, it is $0.26 on revenues of $2.18 billion [7] - The Zacks Industry Rank for Financial - Mortgage & Related Services is currently in the top 8% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Exhibit 99.1 UWM Holdings Corporation Announces Third Quarter 2024 Results Third Quarter Net Income of $31.9 Million. Loan Origination Volume of $39.5 Billion, Including Purchase Volume of $26.2 Billion. PONTIAC, MI, November 7, 2024 - UWM Holdings Corporation (NYSE: UWMC) (the "Company"), the publicly traded indirect parent of United Wholesale Mortgage ("UWM"), today announced its results for the third quarter ended September 30, 2024. Total loan origination volume for the third quarter 2024 was $39.5 bill ...

In January this year I wrote an article on UWM Holdings Corporation (NYSE: UWMC ) UWM Holdings: Poised For Continued Dominance In 2024 Despite Cyclical Economics and since then, UWM has done just that. I believe the company has set I am a dividend growth & income investor with the goal of eliminating my emergency fund by generating income I own, continuously improving cash flow, and eliminating debt. I require high conviction in my portfolio of dividend-paying stocks and ETFs, which I select based on their ...