The lowered adjusted ROE guidance and adjusted pre-tax loss are near-term negatives, but strong revenue growth and servicing UPB expansion support the long-term thesis. Watch for Ginnie Mae approval of the reverse mortgage transaction and Q2 2026 results for confirmation of stabilization.
Price Chart
Executive Summary
Onity Group reported Q1 2026 GAAP diluted EPS of $0.74 on total revenue of $294M, up 18% YoY. However, adjusted pre-tax loss of $6M and a lowered adjusted ROE guidance range (10%-15% from 13%-15%) signal near-term headwinds from mortgage rate volatility and elevated FHA delinquencies, offsetting solid top-line growth.
Key Financial Metrics
Key Facts
- Q1 2026 GAAP diluted EPS $0.74 vs $2.50 in Q1 2025 (down 70% YoY)
- Total revenue $294M, up 18% YoY from $250M
- Adjusted pre-tax loss of $6M vs adjusted pre-tax income of $9M in Q1 2025
- Adjusted ROE guidance lowered to 10%-15% from 13%-15%
- Servicing UPB $338B, up 11% YoY
- Originations volume doubled to $14B YoY
- Book value per share $75, up $17 YoY
- Repurchased ~154,000 shares for $6.1M during Q1
- Raised $200M from high yield debt offering
- Revised reverse mortgage transaction with Finance of America Reverse submitted for Ginnie Mae approval
Financial Impact
GAAP net income attributable to common stockholders fell to $6.6M from $21.1M YoY; adjusted pre-tax swung to a $6M loss from $9M income; guidance lowered on adjusted ROE
Risk Factors
- Continued mortgage rate volatility pressuring adjusted profitability
- Elevated FHA delinquencies increasing servicing costs
- Execution risk on reverse mortgage transaction with Finance of America Reverse
- High leverage from $200M debt offering increases interest expense
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3287465 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 20, 2026 7d ago | 8-K | $25.24 | awaiting T+60 | — | $26.19 (+3.76%) |
Jul 28, 2026 13w ago | Press Release | $40.54 | awaiting T+60 | — | $26.19 (−35.40%) |
Jun 2, 2026 21w ago | 8-K | $36.57 $34.52 | ▼ −5.61% | ▼ −6.72% | $26.19 (−28.38%) |
Jun 2, 2026 21w ago | Press Release | $36.57 $34.52 | ▼ −5.61% | ▼ −6.72% | $26.19 (−28.38%) |
May 5, 2026 25w ago | 8-K | $38.74 $37.41 | ▼ −3.43% | ▼ −6.17% | $26.19 (−32.40%) |
May 5, 2026 25w ago | Press Release | $38.74 $37.41 | ▼ −3.43% | ▼ −6.17% | $26.19 (−32.40%) |
Apr 23, 2026 26w ago | Press Release | $46.26 | awaiting T+60 | — | $26.19 (−43.39%) |
Feb 24, 2026 35w ago | 8-K | $42.35 $34.60 | ▼ −18.30% | ▼ −25.25% | $26.19 (−38.16%) |
US Market Status
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