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Onity Group Inc.(ONIT) - 2025 Q1 - Quarterly Results
ONITOnity Group Inc.(ONIT)2025-04-30 10:45

Financial Performance - Net income attributable to common stockholders was 21million,withdilutedEPSof21 million, with diluted EPS of 2.50 and ROE of 19%[6] - Adjusted pre-tax income was 25million,resultinginanannualizedadjustedROEof2225 million, resulting in an annualized adjusted ROE of 22%[6] - Net income attributable to common stockholders for Q1'25 was 21 million, a recovery from a loss of 29millioninQ4′24,butdownfrom29 million in Q4'24, but down from 30 million in Q1'24[20] - Adjusted pre-tax income for Q1'25 was 25million,comparedto25 million, compared to 11 million in Q4'24 and 15millioninQ1′24[20]−TotalrevenueforQ1′25increasedto15 million in Q1'24[20] - Total revenue for Q1'25 increased to 249.8 million, up from 224.8millioninQ4′24and224.8 million in Q4'24 and 239.1 million in Q1'24[23] - GAAP return on equity (ROE) for Q1'25 was 19%, recovering from a negative 25% in Q4'24, but down from 29% in Q1'24[21] - Basic earnings per share (EPS) for Q1'25 was 2.68,comparedtoalossof2.68, compared to a loss of 3.63 in Q4'24 and earnings of 3.91inQ1′24[23]AssetandLiabilityManagement−Totalassetsdecreasedto3.91 in Q1'24[23] Asset and Liability Management - Total assets decreased to 16,259.3 million in Q1'25 from 16,435.4millioninQ4′24,whiletotalliabilitiesalsodecreasedto16,435.4 million in Q4'24, while total liabilities also decreased to 15,749.2 million[22] - The company’s cash and cash equivalents decreased to 178millioninQ1′25from178 million in Q1'25 from 184.8 million in Q4'24[22] Mortgage Servicing Rights and Originations - Total servicing additions reached 17billion,withaverageservicingUPBof17 billion, with average servicing UPB of 305 billion, up 13billionyear−over−year[6]−Fundedrecapturevolumeincreased2.7timesyear−over−year,witharefinancerecapturerateof1.6timestheindustryaverage[7]−Originationsvolumewas13 billion year-over-year[6] - Funded recapture volume increased 2.7 times year-over-year, with a refinance recapture rate of 1.6 times the industry average[7] - Originations volume was 7 billion, up 53% year-over-year, exceeding the industry growth rate of 8%[7] - MSR additions (bulk purchases and originations) totaled 12billion,morethandoublingyear−over−year[7]−Mortgageservicingrights(MSRs)atfairvalueroseto12 billion, more than doubling year-over-year[7] - Mortgage servicing rights (MSRs) at fair value rose to 2,547.4 million in Q1'25 from 2,466.3millioninQ4′24and2,466.3 million in Q4'24 and 2,374.7 million in Q1'24[22] Guidance and Future Plans - The company confirmed previous guidance for 2025 adjusted ROE in the range of 16% - 18%[6] - The company plans to release some or all of the 180milliondeferredtaxvaluationallowancebyyear−end2025[6]LegalandRegulatoryMatters−Thecompanyreportedasignificantlegalandregulatorysettlementexpenseof180 million deferred tax valuation allowance by year-end 2025[6] Legal and Regulatory Matters - The company reported a significant legal and regulatory settlement expense of 14 million in Q1'25, compared to 2millioninQ4′24and2 million in Q4'24 and 2 million in Q1'24[20]