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Onity Group (ONIT)
NYSE:ONIT
Earnings Data
Report Date
Apr 30, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
2.37Last Year’s EPS
2.5Same Quarter Last Year
Moderate Buy
Based on 2 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong operational execution and several material positives—record origination volumes (44% YoY), revenue growth (+25% YoY in Q4), effective MSR hedging, a $120M valuation allowance release that materially increased book value, robust subservicing growth, and improved liquidity actions. Key near-term challenges include elevated delinquencies and ~$14M incremental MSR runoff in Q4 driven by FHA rule changes and a government shutdown, transition costs and restructuring related to the Rithm portfolio (~$19M–$20M), and higher projected effective tax rates. On balance, the positive drivers (large origination growth, profitability improvements, capital and hedging actions, and technology investments) materially outweigh the manageable and largely identifiable near-term headwinds.Company Guidance
Record Origination Volume and Revenue Growth
Originations delivered record funded volume in Q4; originations volume grew 44% year-over-year in 2025 versus 18% for the overall industry. Company revenue was up 25% year-over-year in Q4 and 6% sequentially, and originations adjusted pretax income was significantly higher both YoY and sequentially.
Strong Subservicing Momentum
Second-half subservicing additions were $33,000,000,000 (over 2.5x first-half level), total subservicing additions of $48,000,000,000 in 2025, and projected subservicing additions of $28,000,000,000 for 2026. Company expects to board eight new clients in 2026 and has eight agreements under negotiation.
Servicing Portfolio Growth and MSR Positioning
Owned MSR UPB increased 15% year-over-year while total industry servicing grew ~2%. Servicing UPB at year-end 2025 was up 9% YoY with $49,000,000,000 in servicing additions net of runoff.
Effective MSR Hedging and Operational Efficiency
MSR hedge strategy performed effectively through rate moves in 2025. The company cites materially lower fully loaded servicing operating expenses versus large nonbank servicer average (MBA 2025 study) and top-tier servicing performance recognized by Fannie Mae, Freddie Mac and HUD.
Valuation Allowance Release and Book Value Improvement
Released $120,000,000 of deferred tax valuation allowance on 12/31/2025, which increased book value per share by more than $11 quarter-over-quarter and $17 year-over-year and improved the debt-to-equity ratio to ~2.6x.
Liquidity and Capital Actions
Year-end liquidity of $2.5 billion (including $181,000,000 unrestricted cash). Opportunistic $200,000,000 high-yield add-on completed in Jan at an effective yield of 8.5% (140 bps better than 2024 issuance). Finance of America Reverse MSR sale expected to provide ~ $100,000,000 when closed. Board approved a $10,000,000 share buyback program.
Technology and Product Investments Driving Recapture
Investments across AI (machine learning, NLP, LLMs, RPA, vision) improved refinance recapture, borrower experience, and dynamic capacity management; Consumer Direct showed sharp growth with improved revenue per loan and average loan metrics.
Guidance and Profitability Targets
Company targets adjusted ROE of 13%–15% for 2026 (pretax basis), equivalent to 16%–18% absent the valuation allowance release. Q4 adjusted ROE was 7% (17% when adjusted for governmental actions).
ONIT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
ONIT Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 12, 2026 | $41.15 | $43.67 | +6.12% |
Nov 06, 2025 | $39.65 | $38.51 | -2.88% |
Aug 05, 2025 | $37.53 | $38.81 | +3.41% |
Apr 30, 2025 | $35.53 | $37.51 | +5.57% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Onity Group (ONIT) report earnings?
Onity Group (ONIT) is schdueled to report earning on Apr 30, 2026, Before Open (Confirmed).
What is Onity Group (ONIT) earnings time?
Onity Group (ONIT) earnings time is at Apr 30, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ONIT EPS forecast?
ONIT EPS forecast for the fiscal quarter 2026 (Q1) is 2.37.