Onity Group (ONIT) Q3 2026 earnings summary

Executive summary

• Q3 returned to profitability: adjusted pre-tax income was $29.6M and adjusted ROE was 19.3%; net income attributable to common stockholders was $3.5M, or $0.41 diluted EPS.

• Servicing strength offset weaker sequential Originations results amid rising rates and market volatility.

Financial highlights

• Revenue was $278.1M; GAAP net income was $4.5M and reported pre-tax income was $9.3M.

• Q3 results included an $11M unfavorable pre-tax impact, or $0.95 per share after tax, from volatility affecting hedge costs and Agency loan sales versus Q2.

• Operating expenses were $117.9M, down from $139.0M in Q2 and $125.8M in Q3 2025.

• Ending book value was $73.82 per share and available liquidity was $283.9M.

Outlook and guidance

• FY2026 adjusted ROE guidance remains at the low end of 10%–15%; servicing UPB growth target is 5%–15%, with effective MSR hedging and maintained efficiency targeted.

• Total operating expenses are targeted to decline by more than $50M, or ~10%, in 2027 versus projected 2026 expenses; most reductions are expected by the end of Q1.

• Elevated rates are expected to make Servicing the principal earnings driver; Originations capacity is being adjusted for the rate environment.

• MSR purchases and holdings will be selective, with capital directed toward assets expected to offer stronger returns.