Overview

* Onity ( ONIT ) Q3 net income at $18 mln, diluted EPS at $2.03

* Originations volume up 39% YoY, exceeding industry growth rate

* Termination of Rithm subservicing agreements expected to have minimal financial impact

Outlook

* Onity ( ONIT ) expects to exceed 2025 adjusted ROE guidance range of 16% - 18%

* Company plans to release significant portion of $180 mln deferred tax asset valuation allowance by year-end 2025

* Termination of Rithm subservicing agreements not expected to materially impact 2026 results

Result Drivers

* ORIGINATIONS GROWTH - Originations volume increased 39% YoY, exceeding industry growth rate

* SERVICING VOLUME - Average servicing UPB rose by $7 bln YoY, supported by MSR growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 EPS $2.03

Q3 Net $18 mln

Income

Q3 $31 mln

Adjusted

Pretax

Profit

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 ( ONIT ) is $52.50, about 24.5% above its November 5 closing price of $39.65

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

Press Release:

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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.)