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 included a $435 million MSR write-down [5][9] - For Q4 2025, the company achieved $49.6 billion in originations, up 28% year-over-year, with a net income of $164.5 million, including a $28.8 million MSR write-down [5][9] - Adjusted EBITDA for the full year was over $697 million, while Q4 adjusted EBITDA was $232.8 million [5][9] Business Line Data and Key Metrics Changes - The servicing income for 2025 was $725 million, an increase from $637 million in 2024 [10] - The company maintained a MSR portfolio with a UPB of approximately $241 billion and a fair value of $4.1 billion [9][10] Market Data and Key Metrics Changes - The company noted a growing trend of consumers entering the broker channel, driven by factors such as rate shopping and the ability of mortgage brokers to guide consumers [8] Company Strategy and Development Direction - The company is focused on bringing servicing in-house and has a strategic partnership with Bilt, which is expected to enhance lead flow and consumer engagement [6][7] - The pending acquisition of Two Harbors is viewed as a strategic inflection point that will enhance operational capabilities and market position [7][12] 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 [13] - The company anticipates maintaining its number one position in the market and is excited about the potential of AI to reduce expenses while increasing production [13][14] Other Important Information - The company reported total revenue of $3.2 billion for 2025, up from $2.7 billion in 2024 [9][10] - The total equity at the end of Q4 was $1.6 billion, with total available liquidity of $1.8 billion [10][11] Summary of Q&A Session Questions and Answers - The management did not engage in a traditional Q&A session but encouraged stakeholders to refer to SEC filings for more detailed information about the business and strategy [15][16]