Mr. Cooper Group (COOP 0.23%), a leader in mortgage servicing and a major originator, released its second-quarter 2025 earnings on July 23, 2025. The results revealed both earnings per share and revenue coming in below analyst estimates. Earnings per share (GAAP) stood at $3.04, below the $3.18 consensus, Revenue was $608 million, nearly 10% short of the $674.24 million expectation. Despite falling short on top-line and bottom-line GAAP targets, the quarter showcased continued growth in its core servicing b ...

For the quarter ended June 2025, Mr Cooper (COOP) reported revenue of $608 million, up 4.3% over the same period last year. EPS came in at $3.13, compared to $2.52 in the year-ago quarter. Here is how Mr Cooper performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: View all Key Company Metrics for Mr Cooper here>>> Shares of Mr Cooper have returned +8.4% over the past month versus the Zacks S&P 500 composite's +5.9% change. The stock curre ...

Mr. CooperGroup® 2Q'25 EARNINGS REVIEW July 23, 2025 IMPORTANT INFORMATION This presentation contains summarized information concerning Mr. Cooper Group Inc. ("Mr. Cooper" or the "Company") and the Company's business, operations, financial performance and trends. No representation is made that the information in this presentation is complete. For additional financial, statistical and business related information, as well as information reqarding business and segment trends, see the Company's most recent Ann ...

Financial Data and Key Metrics Changes - The company reported a total service revenue of $40.9 million for Q1 2025, an 11% increase compared to Q1 2024 [6][7] - Adjusted EBITDA for Q1 2025 was $5.3 million, reflecting a 14% increase year-over-year [6][7] - The company ended the quarter with $30.8 million in unrestricted cash [6] Business Segment Data and Key Metrics Changes - The servicer and real estate segment generated service revenue of $32.9 million, a 13% increase from Q1 2024, with adjusted EBITDA of $12 million, up 15% [11] - The origination segment reported service revenue of $8 million, a 3% increase year-over-year, with adjusted EBITDA remaining flat at $500,000 [13] - The corporate segment's adjusted EBITDA loss increased by $900,000 to $7.2 million, primarily due to nonrecurring benefits in the previous year [15] Market Data and Key Metrics Changes - The 90+ day mortgage delinquency rate was 1.3% in March 2025, slightly higher than the historical low of 1.1% in May 2024 [15] - Foreclosure starts increased by 25% in Q1 2025 compared to the same period in 2024, although they were 18% lower than in Q1 2019 [16] - The origination market faced challenges, with industry-wide origination volume decreasing by 1% year-over-year [20] Company Strategy and Development Direction - The company aims to diversify its revenue base and ramp up business won while maintaining cost discipline [21] - Focus is on accelerating growth in certain businesses that are expected to benefit from market tailwinds [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the first quarter results and the company's positioning to benefit from potential increases in mortgage delinquencies and foreclosure activity [21] - Concerns were raised about the potential weakening of the U.S. economy, which could lead to higher loan delinquencies and foreclosure starts [19][21] Other Important Information - The company successfully closed a transaction on February 19 that significantly strengthened its balance sheet and reduced interest expenses, lowering long-term debt from $232.8 million to $172.5 million [9][10] Q&A Session Summary - No questions were asked during the Q&A session, and the call concluded with management expressing satisfaction with the first quarter performance [22][23]

Financial Data and Key Metrics Changes - Adjusted pretax income for Q1 2025 was $25 million, with an annualized adjusted ROE of 22%, exceeding guidance [6][24] - GAAP net income attributable to common shareholders was $21 million, or $2.5 per share fully diluted, reflecting an annualized return on equity of 19% [7] - Average servicing UPB for the quarter was $5 billion, up $13 billion compared to Q1 2024 [7] - Book value per share increased approximately 4% year-over-year and 2% compared to year-end 2024 [7] Business Line Data and Key Metrics Changes - The origination and servicing segments both reported profitability, with adjusted pretax income of $48 million for Q1 2025 [12] - Servicing segment adjusted pretax income grew due to increased fee generation, up 6% year-over-year [26] - Originations volume grew by 50% year-over-year, with the high-margin consumer direct channel growing by about 165% [28] Market Data and Key Metrics Changes - Industry origination volumes are expected to increase by 17% year-over-year, driven by a 9% increase in home purchase volume and a 39% increase in refinancing volume [8] - The company noted that the probability of a recession has increased, but mortgage delinquencies have not yet deteriorated [9] Company Strategy and Development Direction - The company aims to accelerate growth in originations volume and total servicing UPB as part of its 2025 operating priority [6] - The balanced business model is designed to perform well in both high and low interest rate environments [11] - The company is focused on product development, with new product launches expected to expand market opportunities [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic and unpredictable year, maintaining full-year guidance despite market volatility [10] - The company believes its servicing portfolio mix and special servicing skills will help minimize delinquencies in a recession [10] - Management highlighted the importance of maintaining flexibility to evaluate options for creating shareholder value [11] Other Important Information - The company reached a settlement on a nearly two-decade-old class action litigation matter, allowing it to move forward [50] - The valuation allowance on U.S. deferred tax assets could potentially increase book value by approximately $22 per share if lifted [32] Q&A Session Summary Question: Inquiry about the valuation allowance and its implications - Management confirmed that lifting the valuation allowance would directly impact net income and book value, with ongoing analysis to determine the extent of the allowance [40][42] Question: Timing for utilizing deferred tax assets - The majority of the deferred tax assets are indefinite and not limited by a timeframe, allowing for flexibility in utilization [49] Question: Legal expenses and regulatory matters - Management discussed a settlement of a legacy class action lawsuit and noted ongoing compliance with legal matters in the mortgage industry [50][52] Question: Impact of Rocket Coupe merger on the subservicing market - Management indicated that the merger could lead to clients exploring alternatives, creating opportunities for growth in the subservicing business [56][58] Question: Advantages of being a flow buyer versus a bulk buyer - The company highlighted its flexibility in sourcing MSRs through various channels, allowing it to maximize returns based on market conditions [60] Question: Operating efficiency objectives - Management stated that while there is no specific target for operating efficiency, the goal is to continue increasing pretax income across segments [62]

First Quarter 2025 Business Update on our business and operations; the impact of our rebranding initiative; the amount of senior debt or common stock that we may repurchase under any repurchase programs, the timing of such repurchases, and the long-term impact, if any, of repurchases on the trading price of our securities or our financial condition; breach or failure of Onity's, our contractual counterparties', or our vendors' information technology or other security systems or privacy protections, includin ...

Mr Cooper Group (COOP) Q1 2025 Earnings Call April 23, 2025 07:00 AM ET Company Participants Kenneth Posner - Senior Vice President of Strategic Planning & Investor RelationsJay Bray - Chairman & CEOMike Weinbach - PresidentKurt Johnson - Executive VP & CFO Kenneth Posner Good morning. My name is Ken Poster, and I'm SVP of Strategic Planning and Investor Relations at Mr. Cooper Group. With me today are Jay Bray, Chairman and CEO Mike Weinbach, President and Curt Johnson, Executive Vice President and CFO. Th ...

Financial Performance Highlights - Altisource's service revenue increased by 10% to $150.4 million in 2024 compared to $136.6 million in 2023[14, 49] - Adjusted EBITDA improved by $18.3 million to $17.4 million in 2024, compared to a loss of $0.9 million in 2023[9, 14, 49] - Business Segments generated $44.6 million of Adjusted EBITDA at 29.7% Adjusted EBITDA margins, representing a $10.4 million improvement and a 462-basis points margin improvement[14] - Corporate Adjusted EBITDA loss declined by $7.9 million, or 22%, to $27.2 million, primarily from efficiency initiatives[14] - Q4 2024 service revenue reached $38.4 million, the highest since Q3 2021, with Adjusted EBITDA at $4.7 million, the strongest quarter since Q3 2020[16] Debt Restructuring - Altisource executed a Term Loan Exchange Transaction, reducing debt by over $60 million from $232.8 million to $172.5 million[9, 18] - The Term Loan Exchange Transaction reduced annual cash and payment-in-kind interest by approximately $18 million to $13.4 million[18] - The company also closed on a $12.5 million super senior credit facility to fund transaction costs and for general corporate purposes[18, 21] Segment Performance - Servicer and Real Estate segment service revenue increased by 11% to $119.9 million in 2024 compared to $107.8 million in 2023[23] - Servicer and Real Estate segment Adjusted EBITDA increased by 14% to $42.1 million in 2024 compared to $37.1 million in 2023, with margins improving to 35.1% from 34.4%[23] - Origination segment service revenue grew by 6% to $30.4 million in 2024 compared to $28.8 million in 2023[29, 31] - Origination segment Adjusted EBITDA improved by $5.4 million to $2.5 million in 2024 compared to a loss of $2.9 million in 2023[29, 31] 2025 Financial Guidance - Altisource anticipates service revenue between $165 million and $185 million and Adjusted EBITDA between $18 million and $23 million in 2025[42] - The guidance midpoint represents 16% annual service revenue and 18% Adjusted EBITDA growth over 2024[42] - The company expects positive operating cash flow in 2025[41, 43]

Investment Overview - Leon Cooperman, a billionaire hedge fund manager, manages over $3 billion with 47 different stocks in his portfolio as of 2025 [2][3] Largest Stock Investments - The five largest stock investments by Cooperman are: - Mr. Cooper Group (COOP): $275 million investment, 4.47% ownership [3] - Energy Transfer LP (ET): $248 million investment, 0.37% ownership [3] - Vertiv Holdings (VRT): $239 million investment, 0.56% ownership [3] - Apollo Global Management (APO): $229 million investment, 0.25% ownership [3] - WillScot Mobile Mini Holdings (WSC): $135 million investment, 2.18% ownership [3] Portfolio Characteristics - Cooperman's portfolio is noted for lacking typical high-profile stocks, with only one of the "Magnificent Seven" stocks, Alphabet, included [4] - The portfolio features relatively few household names, indicating a unique investment strategy [4] Company Descriptions - Mr. Cooper Group is a major player in the mortgage servicing industry [5] - Energy Transfer is involved in natural gas transportation and energy storage, offering a 6.8% dividend yield and has a market capitalization of $65 billion [5] - Vertiv provides essential power, cooling, and IT infrastructure services [5] - Apollo Global Management is an alternative asset manager with over $500 billion in assets under management [5] - WillScot Mobile Mini offers mobile storage solutions and modular buildings primarily for businesses [5]