Mr Cooper Group (COOP) Q4 2024 earnings summary

Executive summary

• Pre-tax operating income reached $235 million in Q4 2024, with net income of $204 million and operating ROTCE at 15.8%.

• Tangible book value per share grew 12% year-over-year to $71.61; book value per share rose to $75.70.

• Closed the Flagstar mortgage banking acquisition, onboarding 1.1 million customers and marking the largest acquisition in company history.

• Repurchased 0.4 million shares for $38 million in Q4.

• Received Freddie Mac SHARP Gold Award and other industry recognitions.

Financial highlights

• Servicing pretax operating income grew 39% year-over-year to $318 million, with the servicing portfolio up 57% year-over-year to $1.56 trillion.

• Originations delivered $47 million in EBT, with funded volumes up 38% sequentially to $9.3 billion.

• Net income for Q4 was $204 million, including a $92 million positive mark net of hedge.

• Liquidity ended at $3.4 billion, with $753 million in unrestricted cash.

• Adjustments included $22 million in facility shutdown costs and $18 million legal accrual.

Outlook and guidance

• Operating ROTCE guidance for 2025-26 is 16%-20%, driven by scale, cost leadership, originations, fee revenues, and technology investments.

• Q1 2025 EBT guidance: $315-$335 million for servicing, $30-$50 million for originations.

• Management expects continued strong cash flows from low prepayments and high home equity levels.

• Focus on customer base growth, technology-driven efficiencies, and further expansion.