Mortgage company Onity's Q3 originations up 39% YoY

Onity

06/11/2025 11:56

Overview

Onity Q3 net income at $18 mln, diluted EPS at $2.03

Originations volume up 39% YoY, exceeding industry growth rate

Termination of Rithm subservicing agreements expected to have minimal financial impact

Outlook

Onity expects to exceed 2025 adjusted ROE guidance range of 16% - 18%

Company plans to release significant portion of $180 mln deferred tax asset valuation allowance by year-end 2025

Termination of Rithm subservicing agreements not expected to materially impact 2026 results

Result Drivers

ORIGINATIONS GROWTH - Originations volume increased 39% YoY, exceeding industry growth rate

SERVICING VOLUME - Average servicing UPB rose by $7 bln YoY, supported by MSR growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
$2.03
Q3 Net Income
$18 mln
Q3 Adjusted Pretax Profit
$31 mln


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "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 $52.50, about 24.5% above its November 5 closing price of $39.65

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

Press Release: ID:nGNX74xWDP

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(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.)