Onity Group Q1 revenue rises 18%

Onity

05/05/2026 11:57

Overview

US mortgage servicer's Q1 revenue rose 18% yr/yr; adjusted revenue up 26%

Company posted Q1 net income of $7 mln and diluted EPS of $0.74

Adjusted pre-tax loss of $6 mln driven by rate volatility, refinancing, and FHA delinquencies

Outlook

Onity Group lowers 2026 adjusted ROE guidance to 10%-15% from 13%-15%

Company reaffirms guidance on servicing UPB growth, MSR hedge effectiveness, and operating efficiency

Onity says mortgage rate volatility and refinancing activity remain key challenges for 2026

Result Drivers

RATE VOLATILITY - Mortgage interest rate volatility negatively impacted Q1 adjusted pre-tax profit, per CEO Glen Messina

REFINANCING ACTIVITY - Higher than expected refinancing activity weighed on near-term performance, according to CEO Glen Messina

FHA DELINQUENCIES - Elevated FHA delinquencies pressured results, per CEO Glen Messina

Company press release: ID:nGNXbhGKVr

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
$0.74
Q1 Net Income
$7 mln
Q1 Adjusted Pretax Profit
-$6 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 $60.00, about 26.9% above its May 4 closing price of $47.29

The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 4 three months ago

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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.)