--- title: "Onity | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 294.3 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285189644.md" datetime: "2026-05-05T10:47:44.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285189644.md) - [en](https://longbridge.com/en/news/285189644.md) - [zh-HK](https://longbridge.com/zh-HK/news/285189644.md) --- # Onity | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 294.3 M Revenue: As of FY2026 Q1, the actual value is USD 294.3 M, beating the estimate of USD 290.1 M. EPS: As of FY2026 Q1, the actual value is USD 0.74, missing the estimate of USD 2.345. EBIT: As of FY2026 Q1, the actual value is USD 134.8 M. Onity Group Inc. announced double-digit year-over-year growth in revenue, origination volume, and total servicing UPB for Q1 2026, though profitability was partially offset by higher MSR runoff . #### Asset Sale Details On April 30, 2026, Onity Group Inc., through its wholly-owned subsidiary Onity Mortgage Corporation (OMC), entered into an amendment with Finance of America Reverse LLC (FAR) for the sale of its reverse mortgage servicing portfolio and certain reverse originations assets . OMC agreed to sell reverse mortgage servicing rights (MSRs) consisting of approximately 20,000 Ginnie Mae home equity conversion mortgage (HECM) loans . The unpaid principal balance (UPB) of these loans was $5.1 billion as of March 31, 2026 . FAR will also acquire OMC’s pipeline of reverse mortgage loans as of the transaction closing date . #### Estimated Proceeds from Asset Sale Based on the UPB as of March 31, 2026, the estimated cash proceeds from the transaction are approximately $105-115 million, before transaction costs, repayment of warehouse financings, and related adjustments . Following these payments and adjustments, the expected net proceeds are $70 to $80 million . #### Revenue - Total revenue was $294 million for Q1 2026, marking an 18% increase compared to Q1 2025 . - Adjusted revenue for Q1 2026 reached $278 million, a 26% increase from Q1 2025 . - Servicing and subservicing fees were $222.4 million in Q1 2026, up from $203.3 million in Q1 2025 . - Gain on reverse loans and HMBS-related borrowings, net, was $18.7 million in Q1 2026, compared to $23.8 million in Q1 2025 . - Gain on loans held for sale, net, significantly increased to $34.1 million in Q1 2026 from $11.8 million in Q1 2025 . - Other revenue, net, was $19.1 million in Q1 2026, up from $10.9 million in Q1 2025 . #### Profitability - Net income attributable to common stockholders was $7 million in Q1 2026 . - The company reported an adjusted pre-tax loss of -$6 million for Q1 2026 . - Return on Equity (ROE) was 4% . - The annualized adjusted ROE was -4% . - Income before income taxes for Q1 2026 was $7.9 million, down from $9.1 million in Q1 2025 . - Net Income for Q1 2026 was $7.6 million, a decrease from $22.1 million in Q1 2025 . - Net Income attributable to common stockholders decreased to $6.6 million in Q1 2026 from $21.1 million in Q1 2025 . #### Operating Costs - Total operating expenses for Q1 2026 were $132.2 million, an increase from $119.9 million in Q1 2025 . - Compensation and benefits increased to $69.7 million in Q1 2026 from $57.4 million in Q1 2025 . - Servicing and origination expenses rose to $18.5 million in Q1 2026 from $13.0 million in Q1 2025 . - Technology and communications expenses were $17.5 million in Q1 2026, up from $15.0 million in Q1 2025 . - Professional services decreased to $14.8 million in Q1 2026 from $22.6 million in Q1 2025 . - MSR valuation adjustments, net, were -$69.0 million in Q1 2026, compared to -$38.9 million in Q1 2025 . #### Balance Sheet Highlights - Total Assets were $17,735.2 million as of March 31, 2026, up from $16,259.3 million as of March 31, 2025 . - Mortgage servicing rights (MSRs), at fair value, increased to $3,025.9 million as of March 31, 2026, from $2,547.4 million as of March 31, 2025 . - Loans held for sale, at fair value, grew significantly to $3,150.2 million as of March 31, 2026, from $1,402.2 million in Q1 2025 . - Stockholders’ Equity increased to $629.2 million as of March 31, 2026, from $460.2 million as of March 31, 2025 . - Book value per share was $75, an increase of $17 compared to Q1 2025 . #### Operational Metrics - Total servicing additions reached $28 billion, including $20 billion in MSR additions . - Ending servicing UPB was $338 billion, an 11% increase year-over-year . - Originations volume doubled to $14 billion compared to Q1 2025 . - Funded recapture volume was up 4x compared to Q1 2025 . - Servicing advances were $431 million on owned forward servicing UPB of $165 billion, representing a 28% reduction in advances while UPB has grown 32% since Q1 2024 . - Onity Group Inc. repurchased approximately 154,000 shares of common stock, utilizing $6.1 million of a $10 million authorization . - The company raised an additional $200 million from a high yield debt offering . - PHH Mortgage Corporation, a subsidiary, officially changed its name to Onity Mortgage Corporation on March 23, 2026 . #### Outlook The reverse mortgage servicing portfolio transaction is expected to close in the third quarter of 2026, subject to regulatory approval and customary closing conditions . Onity Group Inc. updated its adjusted ROE guidance range to 10% - 15% from the previous 13% - 15%, citing ongoing rate volatility due to geopolitical events, while reaffirming previous guidance on servicing UPB growth, MSR hedge effectiveness, and operating efficiency . 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