ONITY GROUP INC. (ONIT) Form 10-Q — Aug 6, 2026

$ONITForm 10-QFiled Aug 6, 2026, 4:50 PM ET0001628280-26-054426Original filing

Onity Group swung to a second-quarter 2026 net loss of $11.9 million (EPS -$1.53) from net income of $21.5 million (EPS $2.55) a year earlier, even as total revenue grew 14.7% to $282.9 million. The loss was driven by $70.5 million of negative MSR valuation adjustments and interest expense that rose 36% year over year to $103.1 million. Servicing fundamentals remained strong: servicing and subservicing fees rose to $229.3 million, and Onity added $42.2 billion of new servicing and subservicing UPB in the quarter, lifting the total portfolio to $341.4 billion across 1.3 million loans as of June 30, 2026. Two structural shifts dominated the quarter.

Key figures

Eps: -$1.53 Q2 2026 basic/diluted (vs $2.55/$2.40 Q2 2025); -$0.74 H1 2026 (vs $5.23/$4.90 H1 2025)
Revenue: $282.9M Q2 2026 (vs $246.6M Q2 2025); $577.2M H1 2026 (vs $496.4M H1 2025)
Net Income: -$11.9M Q2 2026 (vs +$21.5M Q2 2025); -$4.2M H1 2026 (vs +$43.6M H1 2025)
Total Debt: Senior notes $693.2M net; HMBS-related borrowings $3,610.9M; mortgage warehouse facilities $2,061.7M; reverse mortgage securitization notes $1,925.0M; MSR financing facilities $1,566.1M
Revenue Yoy: +14.7% Q2 2026; +16.3% H1 2026
Total Assets: $12,350.3M at June 30, 2026 (vs $16,170.6M at Dec 31, 2025)
Cash Position: $196.6M cash and cash equivalents at June 30, 2026 (vs $180.5M at Dec 31, 2025)
Shares Outstanding: 8,354,520 as of August 3, 2026
Q2 new volume: $42.2B of new servicing and subservicing UPB added in Q2 2026
Msr fair value: $3,208.8M at June 30, 2026 (vs $2,825.3M at Dec 31, 2025)
Buyback new program: $20.0M authorized June 1, 2026 through June 2027, $2.0M monthly cap; $2.0M repurchased in June (53,034 shares at avg $37.10) and $2.0M in July (51,527 shares at avg $39.39)
Interest expense q2: $103.1M (vs $75.6M Q2 2025)
Rithm remaining upb: $6.8B RMSR UPB remaining; ~$3.4B not expected to receive transfer consents, terms being negotiated
Stockholders equity: $609.9M at June 30, 2026
Effective tax rate q2: 20.9%
Operating cash flow h1: -$2,106.0M net cash used in operating activities
Far transaction net cash: $93.9M net cash received from HECM MSR sale closing June 30, 2026
Legal regulatory accrual: $13.7M
Buyback completed program: $10.0M program completed May 1, 2026 (242,753 shares at avg $41.16)
Msr valuation adjustments q2: -$70.5M (vs -$27.3M Q2 2025)
Rithm upb transferred q2 2026: $21.2B of subservicing UPB transferred to Rithm's platform in Q2 2026
Rithm upb transferred aug 2026: $3.2B additional UPB transferred on August 3, 2026 ($2.6B RMSR + $0.6B subservicing)
Servicing subservicing fees q2: $229.3M (vs $211.3M Q2 2025)
Total servicing subservicing UPB: $341.4B across 1.3 million loans as of June 30, 2026

Price after filing

1 day: -0.2%7 days: +3.6%30 days: -7.0%

Close on the filing date to close N calendar days later (from $38.11). Historical, not a forecast.

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