Ellington Financial (EFC) Q1 2025 Earnings Call May 08, 2025 11:00 AM ET Company Participants Alaael-Deen Shilleh - Associate General Counsel & SecretaryLaurence Penn - CEO, President & DirectorJR Herlihy - Chief Financial OfficerMark Tecotzky - Co-Chief Investment OfficerCrispin Love - DirectorTrevor Cranston - Managing DirectorRandy Binner - Managing DirectorFrancesco Labetti - Equity Research Associate Operator Good morning, ladies and gentlemen, thank you for standing by. Welcome to the Ellington Financ ...

Financial Data and Key Metrics Changes - The company reported funded volume of $561 million in Q1 2025, exceeding guidance and marking a 32% increase from Q1 2024 [5][15] - GAAP net income for Q1 2025 was $80 million, or $3.17 per share, compared to a net loss of $16 million, or $0.58 per share in Q1 2024 [6][16] - Adjusted net income improved to $13 million, or $0.52 per share, a $20 million improvement year-over-year [7][17] - Adjusted EBITDA totaled $29 million, representing a significant increase from breakeven in Q1 2024 [17] Business Line Data and Key Metrics Changes - The wholesale channel exceeded volume expectations, contributing to overall guidance being surpassed, although it carries lower margins [18] - The company saw a 40% increase in initial thirty-day sales conversion rates and a 12% reduction in cost per opportunity [12][19] Market Data and Key Metrics Changes - The company benefited from a lower rate environment, with the ten-year treasury falling approximately 35 basis points [6] - April 2025 was noted as the best month for submission and funded volume in the last two years, indicating strong market performance [26] Company Strategy and Development Direction - The company launched the "A Better Way with FOA" campaign to reposition reverse mortgages as a mainstream financial planning tool for homeowners aged 55 and up [8][10] - The strategic focus is on enhancing customer engagement and optimizing the customer journey, with a goal of improving lead conversion metrics [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its strategy, highlighting the increasing awareness among older homeowners regarding home equity [22] - The company reaffirmed its full-year guidance for funded volume between $2.4 billion and $2.7 billion and adjusted EPS between $2.6 and $3 [20] Other Important Information - The company has seen a 25% year-over-year reduction in general and administrative expenses, with a notable 35% decrease in communication and data processing expenses [19] - The leadership change with John Scarpatti being promoted to Chief Production Officer is expected to unlock growth potential [13] Q&A Session Summary Question: How did rate volatility in April impact volumes? - Management noted that April was the best month for submission and funded volume in the last two years, indicating strong performance despite rate volatility [26][27] Question: What is the outlook for expenses going forward? - Management indicated that the fixed cost base is relatively stable, with opportunities for cost reductions as contracts renew, while variable expenses may increase with production [28][29]

Finance Of America Companies (FOA) Q1 2025 Earnings Call May 06, 2025 05:00 PM ET Speaker0 Thank you for standing by. My name is Celine, and I will be your conference operator today. At this time, I would like to welcome everyone to the Finance of America First Quarter twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker remarks, there will be a question and answer session. Thank you. I would now like to turn the call over to Michael Font, S ...

© 2025 Finance of America Companies 2 3 "A Better Way with FOA" Launch Campaign Our goal is to bring home equity for retirement mainstream. By placing our offering among other home equity solutions, reverse mortgages will join the product consideration set alongside more common financing options. We believe that by elevating our brand and offering a customer-centric experience that builds confidence, we will break the adoption barrier and dramatically increase the number of customers we serve. 3 4 1Moderniz ...

Onity Group (ONIT) Q1 2025 Earnings Call April 30, 2025 08:30 AM ET Company Participants Valerie Haertel - Vice President of Investor RelationsGlen Messina - CEO, President & Chair of the BoardSean O'Neil - Executive VP & CFORandy Binner - Managing DirectorBose George - Managing DirectorEric Hagen - Managing Director Operator Good day, everyone, and welcome to the Onity Group's First Quarter Earnings and Business Update Conference Call. At this time, all participants are in a listen only mode. Later, will h ...

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 ...

WEST PALM BEACH, Fla., April 30, 2025 (GLOBE NEWSWIRE) -- Onity Group Inc. (NYSE: ONIT) (“Onity” or the “Company”) today announced its first quarter 2025 results and provided a business update. First Quarter 2025: Net income attributable to common stockholders of $21 million; diluted EPS of $2.50; ROE of 19%Adjusted pre-tax income* of $25 million, resulting in annualized adjusted ROE* of 22%Book value per share improved to $58 as of March 31, 2025, up $2.15 year-over-year$17 billion in total servicing addit ...