UWM (UWMC) Q3 2024 earnings summary

Executive summary

• Q3 2024 originations were $39.5B, up 32.9% year over year; nine-month production reached $100.8B, up 20.1%.

• Net income was $31.945M, down 89.4% from $301.0M in Q3 2023; nine-month net income was $288.8M, down 26.2%.

• Adjusted EBITDA was $107.2M, versus $112.1M in Q3 2023; nine-month Adjusted EBITDA was $341.8M, versus $378.7M.

• Ranked first in U.S. residential mortgage lending by closed loan volume; 2Q24 market shares were 8.0% overall and 43.1% wholesale.

Financial highlights

• Q3 gain margin was 1.18%, versus 1.06% in Q2 2024 and 0.97% in Q3 2023; nine-month gain margin was 111 bps, versus 92 bps in 2023.

• MSR fair value declined $446.1M in Q3 2024, compared with a $92.9M increase in Q3 2023; other interest rate derivatives gained $226.9M.

• Q3 loan production revenue was $465.5M, servicing revenue $134.8M and interest income $145.3M; servicing income fell 32.8% year over year.

• Loan origination fees increased 62.9% year over year, driven by higher production volume.

• Net loss attributable to UWM Holdings Corp. was $6.3M, versus net income of $18.2M in Q3 2023.

Outlook and guidance

• Q4 2024 production guidance was $34B–$41B, with gain margin guidance of 85–110 bps.

• Purchase production was on track for a record annual level despite 2024 existing home sales expected to reach a 29-year low.

• Lower rates were viewed as an opportunity to increase refinances; positioning was described as stronger than in 2019.

• Liquidity and capital resources were expected to fund operations and loan originations for the next 12 months; refinancing 2025 Senior Notes will be considered opportunistically.