UWM (US:UWMC)2025-05-06 12:43Financial Performance - Total revenue for Q1 2025 was $613.4 million, down from $720.6 million in Q4 2024 and up from $585.5 million in Q1 2024[4] - The company reported a net loss of $247.0 million in Q1 2025, compared to a net income of $40.6 million in Q4 2024 and $180.5 million in Q1 2024[4] - Adjusted EBITDA for Q1 2025 was $57.8 million, down from $118.2 million in Q4 2024 and $101.5 million in Q1 2024[4] - Adjusted net income for Q1 2025 was $(260,816) thousand, compared to $42,332 thousand in Q4 2024 and $184,264 thousand in Q1 2024[22] - Loan production income decreased to $304,751,000 in Q1 2025 from $407,229,000 in Q4 2024, a decline of 25.2%[30] - Total expenses for Q1 2025 were $485,601,000, down from $517,875,000 in Q4 2024, a reduction of 6.2%[30] - The change in fair value of mortgage servicing rights resulted in a loss of $388,585,000 in Q1 2025, compared to a gain of $309,149,000 in Q4 2024[30] - Basic earnings per share for Class A common stock was $(0.08) in Q1 2025, compared to $0.06 in Q4 2024[34] Loan Origination and Production - First quarter 2025 loan origination volume was $32.4 billion, a 17% increase year over year, marking the highest Q1 originations since 2022[2] - The company anticipates second quarter production to be in the range of $38 to $45 billion, with a gain margin of 90 to 115 basis points[13] Equity and Assets - Total equity decreased to $1.6 billion at March 31, 2025, from $2.1 billion at December 31, 2024[4] - UWM's total equity decreased to $1,635,349 thousand as of March 31, 2025, from $2,053,848 thousand at the end of 2024[28] - Total assets decreased to $14,048,433 thousand as of March 31, 2025, from $15,671,116 thousand at the end of 2024[28] - Total liabilities decreased to $12,413,084,000 as of March 31, 2025, from $13,617,268,000 as of December 31, 2024[32] Debt and Financial Ratios - Total non-funding debt as of March 31, 2025, was $3,149,687 thousand, a decrease from $3,401,066 thousand at the end of Q4 2024[22] - The company reported a non-funding debt to equity ratio of 1.93 in Q1 2025, up from 1.66 in Q4 2024[22] Cash and Dividends - A cash dividend of $0.10 per share was declared for the eighteenth consecutive quarter, payable on July 10, 2025[14] - Cash and cash equivalents decreased to $485,024,000 as of March 31, 2025, from $507,339,000 as of December 31, 2024[32] Market Position and Strategy - UWM remains the largest wholesale mortgage lender for ten consecutive years and the largest purchase lender in the nation[25] - The company is focused on technological innovation and enhancing client experience to maintain market leadership[25] - The company anticipates growth opportunities in 2025, particularly in the broker channel and operational profitability[23][24] Product and Service Expansion - The partnership with Sphere LOS provides brokers with a free all-in-one workflow platform for two years to enhance software adoption[9] - TRAC Lite, a cost-effective title option, has been expanded to 14 states, offered at a flat fee between $375 and $475[10] Mortgage Servicing Rights - The unpaid principal balance of mortgage servicing rights (MSRs) was $214.6 billion with a weighted average coupon (WAC) of 5.44% at March 31, 2025[4] - Mortgage loans at fair value decreased to $8,402,211 thousand in Q1 2025 from $9,516,537 thousand in Q4 2024[28]