Mr. Cooper Q1 Earnings Surpass Estimates, Revenues Decline Y/Y

Core Viewpoint - Mr. Cooper Group Inc. reported strong adjusted earnings per share of $2.97 for Q1 2025, exceeding estimates by 5.7% and reflecting a 30.3% year-over-year increase, despite a significant decline in net income [1][2] Group 1: Financial Performance - Total revenues for Q1 2025 decreased by 0.7% year over year to $560 million, missing consensus estimates by 8.6% [2] - Total expenses rose by 35.6% year over year to $430 million, with interest income increasing by 19.6% to $189 million and interest expenses rising by 25.3% to $213 million [2] Group 2: Segment Performance - The Servicing segment achieved a pre-tax operating income of $332 million, up 21.6% year over year, despite total revenues falling by 10.4% to $403 million [3] - The Originations segment reported a pre-tax operating income of $53 million, a 65.6% increase from the previous year, with total revenues rising by 52.2% to $140 million and funded volume increasing to $8.3 billion from $2.9 billion [4] Group 3: Financial Position - As of March 31, 2025, total assets were $18.4 billion, down from $18.9 billion at the end of Q4 2024, while cash and cash equivalents increased to $784 million [5] - Total liabilities decreased to $13.6 billion from $14.1 billion, and total shareholders' equity rose to $4.9 billion from $4.8 billion [6] Group 4: Overall Assessment - The company ended Q1 2025 on a strong note, with solid performances in both the Originations and Servicing segments, supported by a robust balance sheet [7]