Onity Group Q1 Net Income $7M; Revenue Up 18% to $294M
Onity Group Inc. announced its first quarter 2026 results, reporting net income attributable to common stockholders of $7 million and diluted EPS of $0.74. The company achieved significant revenue growth, with total revenue up 18% to $294 million and adjusted revenue up 26% to $278 million compared to Q1 2025. However, it recorded an adjusted pre-tax loss of $6 million, leading to an annualized adjusted ROE of (4%), impacted by mortgage interest rate volatility and elevated FHA delinquencies. Onity updated its adjusted ROE guidance range to 10%-15% from 13%-15% due to ongoing rate volatility but reaffirmed other guidance. The company also highlighted strong business momentum, including a doubling of originations volume, $200 million raised from a high yield debt offering, and the repurchase of 154,000 shares.
Key Highlights
- Net income attributable to common stockholders was $7 million, with diluted EPS of $0.74.
- Total revenue reached $294 million, up 18% year-over-year from Q1 2025.
- Adjusted revenue was $278 million, a 26% increase compared to Q1 2025.
- Ending servicing UPB grew 11% year-over-year to $338 billion.
- Adjusted pre-tax loss was $6 million, resulting in an annualized adjusted ROE of (4%).
- Updated adjusted ROE guidance range to 10%-15% from 13%-15% due to rate volatility.
- Repurchased approximately 154,000 shares for $6.1 million in Q1 2026.
- Raised an additional $200 million from a high yield debt offering.
- Originations volume doubled to $14 billion compared to Q1 2025.
- Revised transaction with Finance of America Reverse LLC submitted to Ginnie Mae for approval.