Onity Group posts Q2 net loss due to restructuring costs

Onity

06/08/2026 12:02

Overview
U.S. mortgage servicer's Q2 revenue rose 15% yr/yr, driven by record origination volume
Company reported Q2 net loss due to restructuring costs and unfavorable asset fair value changes
Completed sale of reverse assets, generating $77 mln in net proceeds

Outlook
Onity maintains 2026 adjusted ROE guidance at 10%-15%, expects results at lower end of range
Company reaffirms guidance on servicing UPB growth, MSR hedge effectiveness, and operating efficiency

Result Drivers
ORIGINATION VOLUME - Record originations and significant subservicing additions drove double-digit revenue and servicing UPB growth
PORTFOLIO RESTRUCTURING COSTS - Net loss was impacted by reverse asset sale and transfer of legacy subservicing

Company press release: ID:nGNX3dpdFN

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Loss Per Share
 
$1.53
 

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 31.4% above its August 5 closing price of $38.05
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 5 three months ago

Reuters Recommended Reads
Aug 5 - UWM Holdings Q2 swings to net loss, EPS misses estimates
Aug 4 - LoanDepot Q2 adjusted net loss narrows from prior quarter but misses profit expectations
Aug 4 - Finance of America Q2 adjusted EPS misses estimates as revenue falls

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)