Onity Group Announces First Quarter 2025 Results

Core Insights - Onity Group Inc. reported strong first quarter 2025 results, highlighting growth in revenue, adjusted pre-tax income, adjusted ROE, and book value per share compared to the previous year [2][5][6] - The company anticipates continued growth driven by a balanced business strategy, customer focus, and an award-winning servicing platform, despite economic uncertainties and interest rate volatility [2][6] Financial Performance - Net income attributable to common stockholders was $21 million, with diluted EPS of $2.50 and ROE of 19% [5][23] - Adjusted pre-tax income was $25 million, resulting in an annualized adjusted ROE of 22% [5][20] - Book value per share increased to $58, up $2.15 year-over-year [5][20] - Total servicing additions reached $17 billion, with an average servicing UPB of $305 billion, up $13 billion year-over-year [5][6] Operational Highlights - Funded recapture volume increased 2.7 times year-over-year, with a refinance recapture rate 1.6 times the industry average [6] - Originations volume was $7 billion, a 53% increase year-over-year, surpassing the industry growth rate of 8% [6] - MSR additions (bulk purchases and originations) totaled $12 billion, more than doubling year-over-year [6] - The company launched enhanced high-margin products, including home equity and proprietary reverse mortgage loans [6] Liquidity and Financial Position - Total liquidity, comprising unrestricted cash and available credit, stood at $239 million as of March 31, 2025 [6] - The company confirmed its previous guidance for 2025, maintaining an adjusted ROE range of 16% to 18% [5][6] Balance Sheet Overview - Total assets amounted to $16.26 billion as of March 31, 2025, compared to $13.09 billion a year earlier [21][22] - Cash and cash equivalents were $178 million, while mortgage servicing rights (MSRs) at fair value were $2.55 billion [21][22] - Total liabilities were $15.75 billion, reflecting a significant increase from $12.66 billion year-over-year [21][22]