Overview

* Onity ( ONIT ) Q2 revenue of $246.6 mln missed analyst expectations, per LSEG data

* Adjusted pre-tax profit of $16 mln missed analyst expectations, per LSEG data

* Originations volume up 35% YoY, exceeding industry growth rate

Outlook

* Company confirms 2025 adjusted ROE guidance of 16% - 18%

* Onity ( ONIT ) may release $180 mln deferred tax valuation allowance by year-end 2025

Result Drivers

* ORIGINATIONS GROWTH - Originations volume increased by 35% YoY, surpassing industry growth rate of 23%

* SERVICING PORTFOLIO - Average servicing UPB rose by $2 bln YoY, contributing to overall growth

* RECAPTURE PLATFORM - Funded recapture volume up 2.4x YoY, with refinance recapture rate 1.5x industry average

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $246.60 $252.90

Revenue mln mln (3

Analysts

)

Q2 EPS $2.4

Q2 Net $20 mln

Income

Q2 Miss $16 mln $19.40

Adjusted mln (3

Pretax Analysts

Profit )

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 ( ONIT ) is $50.00, about 24.9% above its August 4 closing price of $37.53

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

Press Release:

(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.)