Onity Group (ONIT) Sidoti Small-Cap Virtual Conference summary

Market Positioning and Business Model

• Ranks as a top 10 mortgage originator and servicer, with a balanced focus on both originations and servicing for stability across rate cycles.

• Holds leading positions in non-bank servicing, correspondent originations, and reverse mortgages.

• Maintains a low-cost structure, outperforming larger peers due to multi-year technology investments and automation.

• Recognized for top-tier servicing by major agencies and industry groups for several consecutive years, with servicing NPS up 24% year-over-year.

• Growth strategy centers on organic client acquisition, dynamic asset management, and product expansion.

Growth, Performance, and Financial Highlights

• Achieved 11-year high in GAAP net income and record adjusted pre-tax income since 2018 acquisition, with $33M GAAP net income and $90M adjusted pre-tax income in FY'24.

• Grew servicing portfolio by over 50% from 2020 to 2024, adding 56 new subservicing clients and increasing servicing UPB by 51% since 2021.

• Consumer direct platform volume grew 2.5x in 2024, with refinance recapture rate 1.6x the industry average.

• Book value per share increased by $4 in 2024 to $56, with leverage ratio reduced by 24% year-over-year and corporate debt reduced by $145M.

• Delivered a 20% adjusted pre-tax ROE in 2024, with 2025 guidance targeting 16-18% adjusted ROE and Q1 expected to exceed targets.

Technology and Operational Innovation

• Replatformed to the cloud in 2019, enabling advanced AI and automation across 150 processes.

• AI-driven automation covers document processing, customer service (88% digital resolution), and predictive analytics for lead targeting.

• Launched LoanSpan, a generative AI client service tool for sub-servicing clients.

• Investing in advanced technology, predictive analytics, and digital workforce expansion to enhance efficiency and customer experience.

• Ongoing technology roadshows ensure operational teams are aligned with IT advancements.