Overview

• Non-bank financial services firm's Q4 net income was $126 mln, diluted EPS $14.24

• Company announced $10 mln share repurchase program

• Full year revenue increased 9% to $1.1 bln compared to FY 2024

Outlook

• Onity Group expects 2026 adjusted ROE between 13% and 15%

• Company forecasts servicing UPB growth of 5% to 15% in 2026

• Onity Group announces $10 mln share repurchase program

Result Drivers

• ORIGINATIONS GROWTH - Originations volume increased 43% to $43 bln in 2025, supporting revenue growth

• DEFERRED TAX ALLOWANCE - Released $120 mln deferred tax valuation allowance, aiding profitability

• MSR RUNOFF IMPACT - FHA modification changes and government shutdown increased MSR runoff by $14 mln

Key Details

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"

• Wall Street's median 12-month price target for Onity Group Inc is $55.00, about 33.7% above its February 11 closing price of $41.15

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

Press Release: ID:nGNXsmCCZ

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)