Lender Onity's Q2 revenue misses estimates

Onity

05/08/2025 11:55

Overview

Onity Q2 revenue of $246.6 mln missed analyst expectations, per LSEG data

Adjusted pre-tax profit of $16 mln missed analyst expectations, per LSEG data

Originations volume up 35% YoY, exceeding industry growth rate

Outlook

Company confirms 2025 adjusted ROE guidance of 16% - 18%

Onity may release $180 mln deferred tax valuation allowance by year-end 2025

Result Drivers

ORIGINATIONS GROWTH - Originations volume increased by 35% YoY, surpassing industry growth rate of 23%

SERVICING PORTFOLIO - Average servicing UPB rose by $2 bln YoY, contributing to overall growth

RECAPTURE PLATFORM - Funded recapture volume up 2.4x YoY, with refinance recapture rate 1.5x industry average

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$246.60 mln
$252.90 mln (3 Analysts)
Q2 EPS
$2.4
Q2 Net Income
$20 mln
Q2 Adjusted Pretax Profit
Miss
$16 mln
$19.40 mln (3 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy"

Wall Street's median 12-month price target for Onity Group Inc is $50.00, about 24.9% above its August 4 closing price of $37.53

The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release: ID:nGNX1bQBNJ

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)