Mr. Cooper Group Inc. (NASDAQ: COOP) saw its stock surge 5.25% in pre-market trading on Wednesday following the release of its second-quarter 2025 financial results and the announcement of a new MSR fund launch. The company, which is approaching a merger with Rocket, demonstrated resilience in its core businesses despite a slight miss on earnings per share.

The mortgage servicing and originations company reported a net income of $198 million for Q2 2025, with earnings per share (EPS) of $3.04, slightly below analysts' expectations of $3.13. However, operational revenue reached $681 million, showing a significant increase from $608 million in the same quarter last year. This revenue boost, coupled with strong performance in servicing and originations, seems to have overshadowed the minor EPS shortfall.

Adding to investor optimism, Mr. Cooper Group announced the launch of an MSR (Mortgage Servicing Rights) fund with a $200 million commitment. This strategic move, along with the company's consistent performance and momentum as it approaches the merger with Rocket, appears to be driving the pre-market rally. The company's ability to navigate the challenging mortgage market environment and its forward-looking initiatives have clearly resonated with investors, setting a positive tone for the trading day ahead.