ONIT ONITY GROUP INC.
Price Chart
Executive Summary
Onity Group reported Q1 2026 GAAP net income of $7M (diluted EPS $0.74) on total revenue of $294M, up 18% YoY, but adjusted pre-tax loss of $6M and lowered adjusted ROE guidance to 10%-15% from 13%-15% due to mortgage rate volatility and elevated FHA delinquencies. Concurrently, the company amended its reverse mortgage sale to Finance of America Reverse, agreeing to sell $5.1B UPB in HECM loans for estimated net proceeds of $70-80M, subject to Ginnie Mae approval and expected to close in Q3 2026.
Key Financial Metrics
Actionable Insight
The lowered adjusted ROE guidance and swing to adjusted pre-tax loss signal near-term earnings pressure from rate volatility and delinquencies, but the $70-80M reverse mortgage sale and $200M debt raise improve liquidity. Watch for Ginnie Mae approval on the FAR transaction and Q2 2026 earnings for stabilization in adjusted ROE.
Key Facts
- Q1 2026 GAAP net income attributable to common stockholders of $7M vs $21M in Q1 2025; diluted EPS $0.74 vs $2.50 YoY
- Total revenue $294M, up 18% YoY from $250M; adjusted revenue $278M, up 26% YoY from $220M
- Adjusted pre-tax loss of $6M vs adjusted pre-tax income of $25M in Q1 2025
- Adjusted ROE guidance lowered to 10%-15% from 13%-15% due to rate volatility and elevated FHA delinquencies
- Amended reverse mortgage sale to FAR: selling ~20,000 HECM loans with $5.1B UPB for estimated net proceeds of $70-80M
- Raised $200M from high yield debt offering in Q1 2026
- Repurchased ~154,000 shares for $6.1M under $10M buyback authorization
- Originations volume up 2x to $14B vs Q1 2025; servicing UPB up 11% to $338B
Financial Impact
Q1 2026 net income of $7M (down 67% YoY from $21M); adjusted pre-tax loss of $6M vs $25M income YoY; $70-80M net proceeds expected from reverse mortgage sale
Risk Factors
- Ginnie Mae approval for reverse mortgage sale may be delayed or denied
- Continued mortgage rate volatility and elevated FHA delinquencies could further pressure adjusted ROE
- High leverage from $200M debt raise increases interest expense burden
- Execution risk in transitioning reverse origination employees and winding down reverse business
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-021221 |
| Document: form8-k.htm | 0001493152-26-021221 |
| Document: 0001493152-26-021221-index-headers.html | 0001493152-26-021221 |
| Document: 0001493152-26-021221-index.html | 0001493152-26-021221 |
| Document: 0001493152-26-021221.txt | 0001493152-26-021221 |
| 8-K Data (Synthetic) | 0001493152-26-021221 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
Jun 2, 2026
7d ago
|
8-K
| $36.57 $35.55 | ▼ −2.79% | ▼ −2.10% | $36.01 (−1.53%) |
|
Jun 2, 2026
7d ago
|
Press Release
| $36.57 $35.55 | ▼ −2.79% | ▼ −2.10% | $36.01 (−1.53%) |
|
May 5, 2026
5w ago
|
8-K
| $38.74 $38.68 | ▼ −0.15% | ▼ −1.54% | $36.01 (−7.05%) |
|
May 5, 2026
5w ago
|
Press Release
| $38.74 $38.68 | ▼ −0.15% | ▼ −1.54% | $36.01 (−7.05%) |
|
Apr 23, 2026
6w ago
|
Press Release
| $46.26 $45.87 | ▼ −0.84% | ▼ −1.01% | $36.01 (−22.16%) |
|
Feb 24, 2026
15w ago
|
8-K
| $42.35 $42.80 | ▲ +1.06% | ▲ +1.61% | $36.01 (−14.97%) |
US Market Status
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