The lowered adjusted ROE guidance and swing to adjusted pre-tax loss signal near-term earnings pressure from rate volatility and delinquencies, but the $70-80M reverse mortgage sale and $200M debt raise improve liquidity. Watch for Ginnie Mae approval on the FAR transaction and Q2 2026 earnings for stabilization in adjusted ROE.
Price Chart
Executive Summary
Onity Group reported Q1 2026 GAAP net income of $7M (diluted EPS $0.74) on total revenue of $294M, up 18% YoY, but adjusted pre-tax loss of $6M and lowered adjusted ROE guidance to 10%-15% from 13%-15% due to mortgage rate volatility and elevated FHA delinquencies. Concurrently, the company amended its reverse mortgage sale to Finance of America Reverse, agreeing to sell $5.1B UPB in HECM loans for estimated net proceeds of $70-80M, subject to Ginnie Mae approval and expected to close in Q3 2026.
Key Financial Metrics
Key Facts
- Q1 2026 GAAP net income attributable to common stockholders of $7M vs $21M in Q1 2025; diluted EPS $0.74 vs $2.50 YoY
- Total revenue $294M, up 18% YoY from $250M; adjusted revenue $278M, up 26% YoY from $220M
- Adjusted pre-tax loss of $6M vs adjusted pre-tax income of $25M in Q1 2025
- Adjusted ROE guidance lowered to 10%-15% from 13%-15% due to rate volatility and elevated FHA delinquencies
- Amended reverse mortgage sale to FAR: selling ~20,000 HECM loans with $5.1B UPB for estimated net proceeds of $70-80M
- Raised $200M from high yield debt offering in Q1 2026
- Repurchased ~154,000 shares for $6.1M under $10M buyback authorization
- Originations volume up 2x to $14B vs Q1 2025; servicing UPB up 11% to $338B
Financial Impact
Q1 2026 net income of $7M (down 67% YoY from $21M); adjusted pre-tax loss of $6M vs $25M income YoY; $70-80M net proceeds expected from reverse mortgage sale
Risk Factors
- Ginnie Mae approval for reverse mortgage sale may be delayed or denied
- Continued mortgage rate volatility and elevated FHA delinquencies could further pressure adjusted ROE
- High leverage from $200M debt raise increases interest expense burden
- Execution risk in transitioning reverse origination employees and winding down reverse business
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-021221 |
| Document: form8-k.htm | 0001493152-26-021221 |
| Document: 0001493152-26-021221-index-headers.html | 0001493152-26-021221 |
| Document: 0001493152-26-021221-index.html | 0001493152-26-021221 |
| Document: 0001493152-26-021221.txt | 0001493152-26-021221 |
| 8-K Data (Synthetic) | 0001493152-26-021221 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 20, 2026 5d ago | 8-K | $25.24 | awaiting T+60 | — | $26.26 (+4.04%) |
Jul 28, 2026 12w ago | Press Release | $40.54 | awaiting T+60 | — | $26.26 (−35.22%) |
Jun 2, 2026 20w ago | 8-K | $36.57 $34.52 | ▼ −5.61% | ▼ −6.72% | $26.26 (−28.19%) |
Jun 2, 2026 20w ago | Press Release | $36.57 $34.52 | ▼ −5.61% | ▼ −6.72% | $26.26 (−28.19%) |
May 5, 2026 24w ago | 8-K | $38.74 $37.41 | ▼ −3.43% | ▼ −6.17% | $26.26 (−32.21%) |
May 5, 2026 24w ago | Press Release | $38.74 $37.41 | ▼ −3.43% | ▼ −6.17% | $26.26 (−32.21%) |
Apr 23, 2026 26w ago | Press Release | $46.26 | awaiting T+60 | — | $26.26 (−43.23%) |
Feb 24, 2026 34w ago | 8-K | $42.35 $34.60 | ▼ −18.30% | ▼ −25.25% | $26.26 (−37.99%) |
US Market Status
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