UWM (UWMC) - 2025 Q2 - Quarterly Results

Executive Summary & Company Overview Second Quarter 2025 Overview UWM Holdings Corporation reported strong Q2 2025 results, driven by increased loan volume and the successful deployment of new AI technologies - UWM Holdings Corporation announced Q2 2025 net income of $314.5 million and loan origination volume of $39.7 billion, marking an 18% increase year-over-year[2] - The company's CEO attributed the strong performance to strategic decisions and new AI technologies, Mia and LEO, which are showing measurable results[3] Key Financial and Operational Highlights The second quarter of 2025 demonstrated significant improvements across key financial metrics, with substantial increases in originations and a return to net income Second Quarter 2025 Key Highlights (QoQ & YoY Comparison) | Metric | 2Q25 | 1Q25 | 2Q24 | | :------------------------------------------ | :---------- | :---------- | :---------- | | Originations | $39.7 billion | $32.4 billion | $33.6 billion | | Purchase originations | $27.3 billion | $21.7 billion | $27.2 billion | | Total gain margin | 113 bps | 94 bps | 106 bps | | Total revenue | $758.7 million | $613.4 million | $622.4 million | | Net income (loss) | $314.5 million | $(247.0) million | $76.3 million | | Adjusted EBITDA | $195.7 million | $57.8 million | $133.1 million | | Total equity (as of period-end) | $1.7 billion | $1.6 billion | $2.3 billion | | Unpaid principal balance of MSRs (as of period-end) | $211.2 billion | $214.6 billion | $189.5 billion | | Available liquidity (as of period-end) | $2.2 billion | N/A | N/A | Business and Strategic Initiatives Second Quarter Business and Product Highlights UWM launched two significant AI-powered tools to enhance broker efficiency and hosted its large annual UWM LIVE! event for the mortgage broker community - Launched LE Optimizer (LEO), an innovative tool for detailed analysis of competitors' Loan Estimates to help independent mortgage brokers secure better deals for borrowers[9] - Released Mia, an AI-powered virtual assistant developed in-house to manage client engagement, including inbound/outbound calls, Q&A, and appointment scheduling[10] - Hosted the 4th annual UWM LIVE! event, the largest mortgage broker event in the country, attracting nearly 6,000 partners to its Pontiac, Michigan campus[11] Product and Investor Mix Total originations increased significantly quarter-over-quarter and year-over-year, driven by strong growth in both purchase and refinance segments Product and Investor Mix - Unpaid Principal Balance of Originations (in thousands) | Category | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------- | :---------- | :---------- | :---------- | | Purchase: | | | | | Conventional | $16,825,147 | $13,179,468 | $15,650,022 | | Government | $8,358,290 | $6,673,499 | $8,298,147 | | Jumbo and other | $2,115,964 | $1,894,070 | $3,224,482 | | Total Purchase | $27,299,401 | $21,747,037 | $27,172,651 | | Refinance: | | | | | Conventional | $5,082,559 | $4,339,327 | $2,506,853 | | Government | $5,688,192 | $4,699,294 | $2,573,514 | | Jumbo and other | $1,674,362 | $1,566,118 | $1,375,975 | | Total Refinance | $12,445,113 | $10,604,739 | $6,456,342 | | Total Originations | $39,744,514 | $32,351,776 | $33,628,993 | Third Quarter 2025 Outlook For Q3 2025, UWM anticipates loan production volume between $33 billion and $40 billion with a gain margin of 100 to 125 basis points - Anticipated Q3 2025 production volume: $33 billion to $40 billion[13] - Anticipated Q3 2025 gain margin: 100 to 125 basis points[13] Dividend Declaration UWM's Board of Directors declared a cash dividend of $0.10 per share on Class A common stock for the nineteenth consecutive quarter - Cash dividend of $0.10 per share on outstanding Class A common stock declared for the nineteenth consecutive quarter[14] - Dividend payable on October 9, 2025, to stockholders of record as of September 18, 2025[14] Detailed Financial Performance Production and Income Statement Highlights UWM demonstrated strong financial recovery in Q2 2025, reporting significant increases in loan origination volume, total revenue, and net income Production and Income Statement Highlights (dollars in thousands, except per share amounts) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--------------------------------- | :---------- | :---------- | :---------- | | Loan origination volume | $39,744,514 | $32,351,776 | $33,628,993 | | Total gain margin | 1.13% | 0.94% | 1.06% | | Total revenue | $758,700 | $613,370 | $622,413 | | Net income (loss) | $314,479 | $(247,028) | $76,286 | | Diluted earnings (loss) per share | 0.11 | (0.12) | 0.03 | | Adjusted diluted earnings (loss) per share | 0.16 | N/A | 0.04 | | Adjusted net income (loss) | $249,429 | $(195,300) | $59,809 | | Adjusted EBITDA | $195,683 | $57,803 | $133,146 | Balance Sheet Highlights The company's balance sheet shows sequential growth in total equity, though total assets slightly decreased from the prior quarter Balance Sheet Highlights as of Period-end (dollars in thousands) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------------- | :---------- | :---------- | :---------- | | Cash and cash equivalents | $489,984 | $485,024 | $680,513 | | Mortgage loans at fair value | $8,040,310 | $8,402,211 | $8,236,183 | | Mortgage servicing rights | $3,445,195 | $3,321,457 | $2,650,090 | | Total assets | $13,886,889 | $14,048,433 | $12,921,641 | | Non-funding debt | $3,323,565 | $3,149,687 | $2,108,426 | | Total equity | $1,747,982 | $1,635,349 | $2,329,012 | | Non-funding debt to equity | 1.90 | 1.93 | 0.91 | Mortgage Servicing Rights (MSRs) The unpaid principal balance of MSRs slightly decreased quarter-over-quarter while the weighted average interest rate continued to rise Mortgage Servicing Rights (dollars in thousands) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------------- | :---------- | :---------- | :---------- | | Unpaid principal balance | $211,237,964 | $214,615,072 | $189,482,798 | | Weighted average interest rate | 5.51% | 5.44% | 4.31% | | Weighted average age (months) | 19 | 19 | 26 | Non-GAAP Financial Measures & Definitions Key Operational Metrics Definitions This section defines key operational metrics used by management, including 'Loan origination volume' and 'Total gain margin' - Loan origination volume is defined as the aggregate principal of residential mortgage loans originated by the Company during a period[16] - Total gain margin is defined as total loan production income divided by loan origination volume for the applicable periods[16] Non-GAAP Metrics Definitions and Reconciliations The company provides definitions and reconciliations for non-GAAP metrics to offer a more comparable view of its performance - Adjusted net income (loss) is pre-tax income (loss) with an adjusted income tax provision (benefit) to reflect 100% economic interest in UWM[17] - Adjusted diluted EPS is Adjusted net income (loss) divided by the weighted average number of Class A common stock outstanding, assuming conversion of Class D shares[17] - Adjusted EBITDA is earnings before interest expense on non-funding debt, income taxes, depreciation, and amortization, adjusted for various non-cash and non-operating items[18][19] - Non-funding debt includes senior notes, lines of credit, borrowings against investment securities, and finance leases, with the Non-funding debt-to-equity ratio calculated as total non-funding debt divided by total equity[20] Adjusted Net Income Reconciliation (dollars in thousands) | Adjusted net income | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------------------- | :---------- | :---------- | :---------- | | Earnings (loss) before income taxes | $329,418 | $(260,816) | $77,072 | | Adjusted income tax (provision) benefit | $(79,989) | $65,516 | $(17,263) | | Adjusted net income (loss) | $249,429 | $(195,300) | $59,809 | Adjusted Diluted EPS Reconciliation | Adjusted Diluted EPS | Q2 2025 | Q2 2024 | | :------------------------------------------ | :---------- | :---------- | | Diluted weighted average Class A Common shares outstanding | 202,133,122 | 95,387,609 | | Assumed pro forma conversion of Class D shares | 1,396,892,510 | 1,502,069,787 | | Adjusted diluted weighted average shares outstanding | 1,599,025,632 | 1,597,457,396 | | Adjusted Net Income (in thousands) | $249,429 | $59,809 | | Adjusted Diluted EPS | 0.16 | 0.04 | Adjusted EBITDA Reconciliation (dollars in thousands) | Adjusted EBITDA | Q2 2025 | Q1 2025 | Q2 2024 | | :------------------------------------------ | :---------- | :---------- | :---------- | | Net income (loss) | $314,479 | $(247,028) | $76,286 | | Interest expense on non-funding debt | $50,775 | $50,081 | $31,951 | | Provision (benefit) for income taxes | $14,939 | $(13,788) | $786 | | Depreciation and amortization | $12,200 | $11,340 | $11,404 | | Stock-based compensation expense | $11,729 | $8,310 | $3,937 | | Change in fair value of MSRs due to valuation inputs or assumptions | $(3,154) | $250,821 | $38,222 | | Gain on other interest rate derivatives | $(208,904) | — | $(27,166) | | Deferred compensation, net | $1,773 | $914 | $(1,169) | | Change in fair value of Public and Private Warrants | $(1,309) | $(685) | $(1,739) | | Change in Tax Receivable Agreement liability | $3,557 | $(442) | — | | Change in fair value of investment securities | $(402) | $(1,721) | $634 | | Adjusted EBITDA | $195,683 | $57,803 | $133,146 | Non-funding Debt and Non-funding Debt to Equity Reconciliation (dollars in thousands) | Non-funding debt and non-funding debt to equity | Q2 2025 | Q1 2025 | Q2 2024 | | :-------------------------------------------- | :---------- | :---------- | :---------- | | Senior notes | $2,787,797 | $2,786,467 | $1,990,233 | | Secured lines of credit | $425,000 | $250,000 | — | | Borrowings against investment securities | $86,896 | $88,775 | $91,406 | | Finance lease liability | $23,872 | $24,445 | $26,787 | | Total non-funding debt | $3,323,565 | $3,149,687 | $2,108,426 | | Total equity | $1,747,982 | $1,635,349 | $2,329,012 | | Non-funding debt to equity | 1.90 | 1.93 | 0.91 | Corporate Information & Disclosures Earnings Conference Call Details UWM will host a conference call on August 7, 2025, to review Q2 2025 results, with webcast details available online - Conference call for financial analysts and investors scheduled for Thursday, August 7, 2025, at 10:00 a.m. ET[15] - Purpose is to review Q2 2025 results and answer questions[15] - Registration for a toll-free dial-in number is available, with audio webcast, taped replay, transcript, and supporting materials on the investor relations website[15] Cautionary Note Regarding Forward-Looking Statements This section warns that forward-looking statements are subject to risks and uncertainties and that actual results may differ materially - The press release includes forward-looking statements regarding future events, strategies, and financial performance[23] - These statements are subject to risks and uncertainties, many outside of the company's control, which could cause future events or results to differ materially[23] - The company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date of the release[23] About UWM Holdings Corporation UWM Holdings Corporation is the parent of United Wholesale Mortgage, the nation's largest wholesale and purchase mortgage lender - UWM Holdings Corporation is the publicly traded indirect parent of United Wholesale Mortgage (UWM)[24] - UWM is the nation's largest home mortgage lender, exclusively originating loans through the wholesale channel, and has been the largest wholesale mortgage lender for ten consecutive years[24] - The company emphasizes continuous innovation of technology, enhanced client experience, proprietary platforms, superior service, and focused partnership with independent mortgage brokers[24] Investor and Media Contacts Contact information for investor relations and media inquiries is provided for UWM Holdings Corporation - Investor Contact: Blake Kolo at InvestorRelations@uwm.com[25] - Media Contact: Nicole Roberts at Media@uwm.com[25] Consolidated Financial Statements Consolidated Balance Sheets (Q2 2025 vs Dec 31, 2024) The consolidated balance sheets detail assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :-------------- | :---------------- | | Assets | | | | Cash and cash equivalents | $489,984 | $507,339 | | Mortgage loans at fair value | $8,040,310 | $9,516,537 | | Mortgage servicing rights | $3,445,195 | $3,969,881 | | Total assets | $13,886,889 | $15,671,116 | | Liabilities and Equity | | | | Warehouse lines of credit | $7,254,526 | $8,697,744 | | Senior notes | $2,787,797 | $2,785,326 | | Total liabilities | $12,138,907 | $13,617,268 | | Total equity | $1,747,982 | $2,053,848 | Consolidated Statements of Operations (Q2 2025 vs Q1 2025 vs Q2 2024) The statements of operations show a significant increase in total revenue and a return to net income compared to the prior quarter Consolidated Statements of Operations (in thousands, except per share amounts) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :------------------------------------------ | :---------- | :---------- | :---------- | | Revenue | | | | | Loan production income | $447,882 | $304,751 | $357,109 | | Loan servicing income | $178,813 | $190,517 | $143,910 | | Interest income | $132,005 | $118,102 | $121,394 | | Total revenue | $758,700 | $613,370 | $622,413 | | Other gains (losses) | | | | | Change in fair value of mortgage servicing rights | $(111,421) | $(388,585) | $(142,485) | | Gain on other interest rate derivatives | $208,904 | — | $27,166 | | Other gains (losses), net | $97,483 | $(388,585) | $(115,319) | | Expenses | | | | | Salaries, commissions and benefits | $211,461 | $192,800 | $160,311 | | Direct loan production costs | $46,330 | $43,127 | $45,485 | | Marketing, travel, and entertainment | $26,379 | $22,190 | $24,438 | | Depreciation and amortization | $12,200 | $11,340 | $11,404 | | General and administrative | $59,999 | $68,148 | $55,051 | | Servicing costs | $35,083 | $30,434 | $25,787 | | Interest expense | $133,467 | $120,410 | $108,651 | | Other expense (income) | $1,846 | $(2,848) | $(1,105) | | Total expenses | $526,765 | $485,601 | $430,022 | | Earnings (loss) before income taxes | $329,418 | $(260,816) | $77,072 | | Provision (benefit) for income taxes | $14,939 | $(13,788) | $786 | | Net income (loss) | $314,479 | $(247,028) | $76,286 | | Net income (loss) attributable to non-controlling interest | $291,570 | $(233,349) | $73,236 | | Net income (loss) attributable to UWMC | $22,909 | $(13,679) | $3,050 | | Earnings (loss) per share of Class A common stock: | | | | | Basic | $0.11 | $(0.08) | $0.03 | | Diluted | $0.11 | $(0.12) | $0.03 | Consolidated Balance Sheets (Five Quarters Trend) This section provides consolidated balance sheets for the past five quarters, offering a historical trend of the company's financial position Consolidated Balance Sheets (in thousands, except shares and per share amounts) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------------ | :-------------- | :--------------- | :---------------- | :----------------- | :-------------- | | Assets | | | | | | | Cash and cash equivalents, including restricted cash | $489,984 | $485,024 | $507,339 | $636,327 | $680,153 | | Mortgage loans at fair value | $8,040,310 | $8,402,211 | $9,516,537 | $10,141,683 | $8,236,183 | | Mortgage servicing rights | $3,445,195 | $3,321,457 | $3,969,881 | $2,800,054 | $2,650,090 | | Total assets | $13,886,889 | $14,048,433 | $15,671,116 | $15,119,798 | $12,921,641 | | Liabilities and Equity | | | | | | | Warehouse lines of credit | $7,254,526 | $7,573,139 | $8,697,744 | $9,207,746 | $7,429,591 | | Senior notes | $2,787,797 | $2,786,467 | $2,785,326 | $1,991,216 | $1,990,233 | | Total liabilities | $12,138,907 | $12,413,084 | $13,617,268 | $12,939,271 | $10,592,629 | | Total equity | $1,747,982 | $1,635,349 | $2,053,848 | $2,180,527 | $2,329,012 | Consolidated Statements of Operations (Five Quarters Trend) This section presents the consolidated statements of operations for the past five quarters, illustrating trends in financial performance Consolidated Statements of Operations (in thousands, except shares and per share amounts) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------------ | :-------------- | :--------------- | :---------------- | :----------------- | :-------------- | | Revenue | | | | | | | Loan production income | $447,882 | $304,751 | $407,229 | $465,548 | $357,109 | | Loan servicing income | $178,813 | $190,517 | $173,300 | $134,753 | $143,910 | | Interest income | $132,005 | $118,102 | $140,067 | $145,297 | $121,394 | | Total revenue | $758,700 | $613,370 | $720,596 | $745,598 | $622,413 | | Other gains (losses) | | | | | | | Change in fair value of mortgage servicing rights | $(111,421) | $(388,585) | $309,149 | $(446,100) | $(142,485) | | Gain (loss) on other interest rate derivatives | $208,904 | — | $(469,538) | $226,936 | $27,166 | | Other gains (losses), net | $97,483 | $(388,585) | $(160,389) | $(219,164) | $(115,319) | | Expenses | | | | | | | Salaries, commissions and benefits | $211,461 | $192,800 | $193,155 | $181,453 | $160,311 | | Direct loan production costs | $46,330 | $43,127 | $54,958 | $58,398 | $45,485 | | Marketing, travel, and entertainment | $26,379 | $22,190 | $30,771 | $22,462 | $24,438 | | Depreciation and amortization | $12,200 | $11,340 | $11,094 | $11,636 | $11,404 | | General and administrative | $59,999 | $68,148 | $60,314 | $53,664 | $55,051 | | Servicing costs | $35,083 | $30,434 | $29,866 | $25,009 | $25,787 | | Interest expense | $133,467 | $120,410 | $142,342 | $141,102 | $108,651 | | Other expense (income) | $1,846 | $(2,848) | $(4,625) | $421 | $(1,105) | | Total expenses | $526,765 | $485,601 | $517,875 | $494,145 | $430,022 | | Earnings (loss) before income taxes | $329,418 | $(260,816) | $42,332 | $32,289 | $77,072 | | Provision (benefit) for income taxes | $14,939 | $(13,788) | $1,719 | $344 | $786 | | Net income (loss) | $314,479 | $(247,028) | $40,613 | $31,945 | $76,286 | | Net income (loss) attributable to non-controlling interest | $291,570 | $(233,349) | $31,694 | $38,240 | $73,236 | | Net income (loss) attributable to UWMC | $22,909 | $(13,679) | $8,919 | $(6,295) | $3,050 | | Earnings (loss) per share of Class A common stock: | | | | | | | Basic | $0.11 | $(0.08) | $0.06 | $(0.06) | $0.03 | | Diluted | $0.11 | $(0.12) | $0.02 | $(0.06) | $0.03 |