Onity Group (ONIT) Q2 2026 earnings summary

Executive summary

• Achieved record origination volume and double-digit year-over-year revenue and servicing UPB growth, driven by a balanced business model and strong operating fundamentals.

• Completed the reverse asset sale to Finance of America and transferred most legacy subservicing back to Rithm, simplifying the business and increasing strategic flexibility.

• Net loss attributable to common stockholders was $13 million ($1.53 per share) for Q2 2026, impacted by $9 million in restructuring costs and $24 million in unfavorable asset fair value changes.

• Maintained a top 10 market position as a non-bank mortgage servicer and originator, with a diversified and resilient business model.

Financial highlights

• Total revenue reached $283 million, up 15% year-over-year; adjusted revenue was $281 million, up 24% year-over-year.

• Record origination funded volume of $15.5 billion in Q2, up 64% year-over-year; servicing UPB ended at $341 billion, up 10% year-over-year.

• Servicing and subservicing fee revenue reached $229 million in Q2 2026.

• Book value per share increased by about $13 year-over-year to $72.55.

• Servicing advances declined 33% over two years, despite portfolio growth.

Outlook and guidance

• Full-year 2026 adjusted ROE expected at the low end of the 10%-15% range due to ongoing market volatility and macroeconomic headwinds.

• Total servicing UPB projected to grow 5%-15% for 2026; high hedge effectiveness and efficiency ratio to be maintained.

• Anticipate a reduction in fee revenue in 2026 due to the Rithm subservicing termination.

• Ongoing share buyback program with $10 million completed and $20 million authorized.

• Net income and equity growth expected in 2026 and 2027, barring adverse market or regulatory events.