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Onity Group (ONIT) investor relations material
Onity Group Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved record net income of $185 million and diluted EPS of $21.46 for FY 2025, with Q4 net income of $126 million and EPS of $14.24, driven by strong originations, balanced execution, and effective MSR hedging.
Released $120 million deferred tax valuation allowance, significantly increasing book value per share and equity.
Maintained 13 consecutive quarters of positive adjusted pre-tax income, demonstrating consistent profitability.
Announced a $10 million share repurchase program and continued business simplification, including the sale of reverse assets.
Continued investment in technology, AI, and process optimization to enhance customer experience and operational efficiency.
Financial highlights
Total GAAP revenue increased 9% to $1.1 billion year-over-year; Q4 revenue up 25% year-over-year and 6% sequentially.
Adjusted revenue up 11% YoY to $993 million in FY 2025.
Book value per share rose to $74 at Q4 2025, up over $17 year-over-year.
Adjusted pre-tax income for FY 2025 was $82 million; Q4 2025 adjusted pre-tax income was $8.8 million.
Originations volume up 44% year-over-year, outpacing industry growth of 18%.
Outlook and guidance
2026 adjusted ROE guidance is 13%-15% (16%-18% excluding valuation allowance release).
Servicing UPB growth expected between 5%-15% in 2026, despite non-renewal of the Rithm contract.
Effective tax rate for 2026 expected to be 28%-30%.
Anticipates continued strong MSR hedge effectiveness and expense control aligned with revenue growth.
Raised new capital to support growth and deleveraging.
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