Onity Group Inc.(ONIT) - 2025 Q1 - Quarterly Results

Financial Performance - Net income attributable to common stockholders was $21 million, with diluted EPS of $2.50 and ROE of 19%[6] - Adjusted pre-tax income was $25 million, resulting in an annualized adjusted ROE of 22%[6] - Net income attributable to common stockholders for Q1'25 was $21 million, a recovery from a loss of $29 million in Q4'24, but down from $30 million in Q1'24[20] - Adjusted pre-tax income for Q1'25 was $25 million, compared to $11 million in Q4'24 and $15 million in Q1'24[20] - Total revenue for Q1'25 increased to $249.8 million, up from $224.8 million in Q4'24 and $239.1 million in Q1'24[23] - GAAP return on equity (ROE) for Q1'25 was 19%, recovering from a negative 25% in Q4'24, but down from 29% in Q1'24[21] - Basic earnings per share (EPS) for Q1'25 was $2.68, compared to a loss of $3.63 in Q4'24 and earnings of $3.91 in Q1'24[23] Asset and Liability Management - Total assets decreased to $16,259.3 million in Q1'25 from $16,435.4 million in Q4'24, while total liabilities also decreased to $15,749.2 million[22] - The company’s cash and cash equivalents decreased to $178 million in Q1'25 from $184.8 million in Q4'24[22] Mortgage Servicing Rights and Originations - Total servicing additions reached $17 billion, with average servicing UPB of $305 billion, up $13 billion year-over-year[6] - Funded recapture volume increased 2.7 times year-over-year, with a refinance recapture rate of 1.6 times the industry average[7] - Originations volume was $7 billion, up 53% year-over-year, exceeding the industry growth rate of 8%[7] - MSR additions (bulk purchases and originations) totaled $12 billion, more than doubling year-over-year[7] - Mortgage servicing rights (MSRs) at fair value rose to $2,547.4 million in Q1'25 from $2,466.3 million in Q4'24 and $2,374.7 million in Q1'24[22] Guidance and Future Plans - The company confirmed previous guidance for 2025 adjusted ROE in the range of 16% - 18%[6] - The company plans to release some or all of the $180 million deferred tax valuation allowance by year-end 2025[6] Legal and Regulatory Matters - The company reported a significant legal and regulatory settlement expense of $14 million in Q1'25, compared to $2 million in Q4'24 and $2 million in Q1'24[20]