Guild Company (GHLD) Q1 2025 earnings summary

Executive summary

• Originated $5.2 billion in loans in Q1 2025, up 35% year-over-year, with 88% from purchase loans, outpacing industry trends.

• Reported net loss of $23.9 million, reversing from net income in prior quarters, mainly due to a $69.9 million negative MSR valuation adjustment.

• Adjusted net income was $21.6 million and adjusted EBITDA was $36.4 million, both up significantly year-over-year.

• Servicing portfolio expanded to $94.0 billion UPB, up 8.9% year-over-year, supporting a customer-for-life strategy.

• Maintained a focus on purchase and distributed retail, leveraging a balanced business model to perform across market cycles.

Financial highlights

• Net revenue for Q1 2025 was $198.5 million, down from $231.8 million year-over-year and $373.0 million sequentially.

• Gain on sale margin was 376 bps, up from 364 bps year-over-year and 317 bps sequentially.

• Origination segment net loss improved to $2.9 million from $24.2 million loss in the prior year.

• Servicing segment reported a net loss of $4.6 million, primarily due to negative MSR valuation adjustments.

• Adjusted EPS was $0.35, up from $0.13 in Q1 2024; book value per share was $19.39, tangible net book value per share $15.77.

Outlook and guidance

• Management expects continued market volatility but remains confident in the balanced business model and ability to outperform the industry.

• Gain-on-sale margins expected to remain in the $330–$340 range, consistent with historical averages.

• Cautiously optimistic for the peak spring and summer home purchase market, with ongoing investments in technology and product innovation.

• Industry origination volume forecasted to rise 16.7% to $2.1 trillion in 2025, with Guild aiming to outpace market growth.

• MSR values may decrease if rates fall, but origination segment provides a natural hedge.