Onity Group Inc. has just released its full-year and fourth-quarter 2025 results, showcasing impressive growth and profitability.
In the full year of 2025, the company reported a net income attributable to common stockholders of $185 million, with diluted earnings per share (EPS) of $21.46. This resulted in a return on equity (ROE) of 35%. Additionally, the company achieved $85 billion in total servicing additions, including $45 billion in subservicing additions, and saw its book value per share increase to $74, marking a $17 year-over-year rise as of December 31, 2025. On the revenue front, Onity experienced a 9% increase in total GAAP revenue, reaching $1.1 billion compared to the previous fiscal year.
Moving to the fourth quarter of 2025, the company continued its strong performance with a net income attributable to common stockholders of $126 million and a diluted EPS of $14.24, resulting in an ROE of 89%. The quarter also saw $29 billion in total servicing additions, including $22 billion in subservicing additions. Notably, Onity released a $120 million deferred tax valuation allowance due to its growth and sustained profitability.
Looking ahead to 2026, Onity provided an adjusted ROE guidance range of 13% * 15%, reflecting its commitment to continued strong execution and profitable growth. The company also aims for servicing UPB (unpaid principal balance) growth of 5% * 15%, supported by increased liquidity for investments in higher growth assets. To fuel its growth and deleveraging efforts, Onity raised new capital.
Furthermore, Onity announced a $10 million share repurchase program, signaling its confidence in the company's future performance.
Glen Messina, Chair, President, and CEO of Onity Group, expressed his satisfaction with the company's performance in 2025, highlighting the record net income and earnings per share, strengthened book value, and double-digit adjusted ROE for the third consecutive year. He emphasized the company's resilience and effective strategy in navigating changing market conditions.
In terms of specific business highlights, the company reported a 2.1x increase in funded recapture volume for the full year 2025 compared to the previous year, and a 43% rise in originations volume to $43 billion. The total servicing UPB reached $328 billion as of December 31, 2025, with owned MSR (mortgage servicing rights) up 15% or $22 billion over the previous fiscal year. On the liquidity front, Onity had total liquidity of $205 million as of December 31, 2025.
The press release also mentioned the planned sale of reverse assets, the transition of a deeply delinquent loan portfolio, and the successful settlement of warrants as part of the company's efforts to simplify its business.
Following these announcements, the company's shares moved -1.26%, and are now trading at a price of $52.68. For the full picture, make sure to review ONITY GROUP INC.'s 8-K report.
