Onity Group (CH:OW0A)
:OW0A
Earnings Data
Report Date
Jul 30, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
1.64Last Year’s EPS
1.87Same Quarter Last Year
Moderate Buy
Based on 2 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Neutral
The call presented a mix of strong growth and strategic progress alongside notable short-term operational and market-driven headwinds. Highlights include robust origination volume (nearly 4x YoY), 26% revenue growth, 94% YoY subservicing additions, expansion of servicing UPB (+11% YoY), and measurable AI-driven improvements in lead conversion and scalability. Lowlights included a drop in net income to $7 million, an adjusted pretax loss of $6 million, a tripling of MSR runoff to $99 million, servicing income down $54 million YoY, and pressure from FHA delinquencies and hedge ineffectiveness due to market volatility. Management outlined specific remediation actions (staffing increases, AI investments, hedging and sales improvements) and quantified potential incremental adjusted pretax income of up to $27 million, but also lowered adjusted ROE guidance to 10%–15%. Overall, the company shows durable growth levers and a clear action plan to address the problems, while near-term results and guidance reflect meaningful volatility and execution challenges.Company Guidance
Double-Digit Revenue and Broad Growth
Revenue increased 26% year-over-year, driven by double-digit growth in adjusted revenue, origination volume, subservicing additions, and total servicing UPB.
Origination Volume Surge (Consumer Direct)
Consumer Direct origination volume increased nearly 4x year-over-year (4x), with originations revenue more than 2x year-over-year and +7% sequentially.
Origination Profitability Expansion
Originations adjusted pretax income was $34 million, up 3.5x versus prior year; originations pretax income grew 3.5x year-over-year and Consumer Direct adjusted PTI rose about sevenfold.
Subservicing Growth and Opportunity
First quarter subservicing additions rose 94% year-over-year; company signed 2 new clients, has 5 agreements under negotiation, expects H1 subservicing additions target of $28 billion and >$50 billion for the full year.
Servicing Portfolio Expansion
Total servicing UPB ended the quarter up 11% year-over-year (company) vs industry growth of 3%; servicing-owned UPB grew ~18% year-over-year; total servicing book reported at $338 billion (+11% YoY).
Technology and AI-Driven Performance Gains
Leads on payoffs that resulted in new loans are up 40% year-over-year; lead-to-lock conversion improved 60% year-over-year; engagement +34% and conventional loan conversion +8%; 25% improvement in digital contact rates; document-type extraction at 95% accuracy across >350 types.
Operational Investments and Capacity Increases
Consumer Direct staffing increased 34% since the end of Q4 and the company is investing in AI and enabling technology to increase origination scalability and recapture capabilities.
Improved Recapture and Competitive Position
Refinance recapture rate improved 3 percentage points versus the prior quarter and the last 12-month recapture rate outperforms the ICE industry average; originations team doubled volume YoY vs industry growth of 44%.
Hedging and Valuation Controls
MSR hedge strategy continued to perform effectively (9 consecutive quarters of intended performance) and the company insourced its MSR valuation process to increase agility and scenario analysis capabilities.
Transaction with Finance of America Reverse (Revised)
Revised transaction to sell ~57% of owned reverse servicing portfolio (~77% of reverse MSR investment) expected to generate $70–$80 million in proceeds (before holdbacks/pricing adjustments), reduce balance sheet exposure, and establish a subservicing relationship — transaction resubmitted to Ginnie Mae for approval.
CH:OW0A Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
FAQ
When does Onity Group (CH:OW0A) report earnings?
Onity Group (CH:OW0A) is schdueled to report earning on Jul 30, 2026, Before Open (Confirmed).
What is Onity Group (CH:OW0A) earnings time?
Onity Group (CH:OW0A) earnings time is at Jul 30, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is the P/E ratio of Onity Group stock?
The P/E ratio of Onity Group is N/A.
What is CH:OW0A EPS forecast?
CH:OW0A EPS forecast for the fiscal quarter 2026 (Q2) is 1.64.