Onity Group (ONIT) Q2 2026 earnings summary

Executive summary

• Achieved record origination volume and double-digit year-over-year revenue and servicing UPB growth, driven by a balanced business model and strong operating fundamentals.

• Completed the reverse asset sale to Finance of America and transferred most legacy subservicing back to Rithm, simplifying the business and increasing strategic flexibility.

• Net loss attributable to common stockholders was $13 million ($1.53 per share) for Q2 2026, impacted by $9 million in restructuring costs and $24 million in unfavorable asset fair value changes.

• Q2 net income was impacted by costs related to the reverse sale, subservicing transfer, and unfavorable market-driven asset fair value changes.

• Maintained a top 10 market position as a non-bank mortgage servicer and originator, with a diversified and resilient business model.

Financial highlights

• Q2 2026 originations volume reached $15.5 billion, up 64% year-over-year; servicing UPB ended at $341 billion, up 10% year-over-year.

• Adjusted revenue grew 24% year-over-year to $281 million; total revenue reached $283 million, up 15% year-over-year.

• Book value per share increased by about $13 year-over-year to $72.55.

• Servicing advances declined 33% over two years while UPB grew 44%.

• Adjusted pre-tax income was $14 million, with annualized adjusted ROE of 9%.

Outlook and guidance

• Full-year 2026 adjusted ROE expected at the low end of the 10%-15% range due to ongoing market volatility and geopolitical instability.

• Total servicing UPB projected to grow 5%-15% for 2026; high hedge effectiveness and efficiency ratio to be maintained.

• Continued focus on growing the servicing book, improving operating efficiency, and maintaining strong hedging performance.

• Net income and equity growth expected in 2026 and 2027, barring adverse market or regulatory events.

• Gain on sale of loans expected to be driven by origination volume and margin, with industry origination volume forecasted to increase 11% in 2026.