UWM (UWMC) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In 2025, the company reported $163.4 billion in originations, a 17% increase from 2024, with net income of $244 million, which was down from $329 million in 2024 [3][9] - For Q4 2025, the company achieved $49.6 billion in originations, a 28% year-over-year increase, with net income of $164.5 million, significantly up from $12.1 million in Q3 [4][8] - Adjusted EBITDA for the full year was over $697 million, while Q4 adjusted EBITDA was $232.8 million [4][9] Business Line Data and Key Metrics Changes - The servicing income for 2025 was $725 million, up from $637 million in 2024, indicating growth in this segment [9] - The company maintained a mortgage servicing rights (MSR) portfolio with a UPB of approximately $241 billion and a fair value of $4.1 billion [8] Market Data and Key Metrics Changes - The company continues to capitalize on the growing broker channel, driven by consumer preferences for rate shopping and the guidance provided by mortgage brokers [6][12] - The company is positioned uniquely in the market with a 100% broker model, which is seen as a significant competitive advantage [7] Company Strategy and Development Direction - The company is focused on bringing servicing in-house and completing the acquisition of Two Harbors, which are viewed as strategic inflection points for growth [5][10] - The company aims to enhance its operational capacity through disciplined investments in people, processes, and technology [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the mortgage and housing industry, citing potential benefits from government initiatives aimed at improving affordability and lowering rates [12] - The company anticipates maintaining its number one position in the market and is excited about the potential of AI to drive efficiency and production [12][14] Other Important Information - The company reported total revenue of $3.2 billion for 2025, up from $2.7 billion in 2024, reflecting strong overall performance [9] - The total equity at the end of Q4 was $1.6 billion, with total available liquidity of $1.8 billion [10] Summary of Q&A Session - The management did not conduct a traditional Q&A session but encouraged stakeholders to refer to SEC filings for more detailed information about the business and strategy [13]