Onity Group (NYSE:ONIT) Releases Earnings Results, Misses Expectations By $1.44 EPS

by · The Markets Daily

Onity Group (NYSE:ONIT – Get Free Report) posted its quarterly earnings data on Thursday. The company reported $1.02 earnings per share for the quarter, missing the consensus estimate of $2.46 by ($1.44), Zacks reports. Onity Group had a return on equity of 17.81% and a net margin of 3.41%.

Here are the key takeaways from Onity Group’s conference call:

  • Onity reported record earnings and in Q4 released $120 million of its deferred tax valuation allowance, which boosted book value per share by over $11 quarter-over-quarter and materially strengthened equity (though it reduces adjusted ROE guidance due to a larger equity base).
  • Originations were a standout—44% year-over-year volume growth and the company’s highest-ever funded quarter—driving significant revenue and adjusted pre-tax income across both Consumer Direct and B2B channels.
  • Servicing profitability was pressured by about $14 million of incremental MSR runoff in Q4 driven by FHA modification rule changes and a government shutdown, raising delinquencies; management expects stabilization by Q2 2026 but near-term MSR returns are impaired.
  • Subservicing momentum accelerated with $33 billion of H2 additions and a projected $28 billion to board in H1 2026 (eight clients boarding, eight more in negotiation); exiting the low-margin Rithm portfolio should improve mix without a material 2026 impact.
  • Liquidity and capital moves include ~$181 million unrestricted cash ( ~$205M total liquidity), an opportunistic $200 million high-yield note at 8.5%, a pending ~$100 million MSR sale to Finance of America Reverse, and a $10M buyback authorization to de-risk financing and fund growth options.

Onity Group Trading Up 5.8%

NYSE ONIT traded up $2.38 on Thursday, reaching $43.53. The company had a trading volume of 71,152 shares, compared to its average volume of 84,714. Onity Group has a 52 week low of $25.50 and a 52 week high of $54.10. The stock’s 50 day moving average is $46.19 and its 200-day moving average is $42.45. The company has a quick ratio of 38.90, a current ratio of 38.90 and a debt-to-equity ratio of 22.41. The stock has a market cap of $350.81 million, a price-to-earnings ratio of 13.19 and a beta of 1.56.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the company. Keefe, Bruyette & Woods reissued an “outperform” rating on shares of Onity Group in a research note on Thursday, December 18th. BTIG Research lifted their price objective on Onity Group from $50.00 to $60.00 and gave the stock a “buy” rating in a research report on Thursday. Weiss Ratings reissued a “hold (c)” rating on shares of Onity Group in a report on Thursday, January 22nd. Finally, Wall Street Zen upgraded shares of Onity Group from a “hold” rating to a “buy” rating in a research report on Saturday, January 17th. Three equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $58.33.

View Our Latest Stock Report on ONIT

Institutional Trading of Onity Group

A number of institutional investors and hedge funds have recently modified their holdings of ONIT. State of Wyoming bought a new position in Onity Group during the 2nd quarter worth approximately $119,000. BNP Paribas Financial Markets raised its holdings in Onity Group by 367.2% in the second quarter. BNP Paribas Financial Markets now owns 3,163 shares of the company’s stock worth $121,000 after purchasing an additional 2,486 shares during the period. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main acquired a new stake in Onity Group in the second quarter worth $184,000. Bank of America Corp DE boosted its position in shares of Onity Group by 23.2% during the third quarter. Bank of America Corp DE now owns 5,027 shares of the company’s stock worth $201,000 after purchasing an additional 945 shares in the last quarter. Finally, Brandywine Global Investment Management LLC acquired a new position in shares of Onity Group in the 4th quarter valued at $209,000. 70.16% of the stock is owned by institutional investors.

Onity Group Company Profile

(Get Free Report)

Onity Group, listed on the New York Stock Exchange under the ticker ONIT, is a technology company specializing in enterprise operations management software. Its platform is designed to help legal, finance, human resources and corporate services teams automate and streamline mission-critical workflows. Leveraging artificial intelligence and no-code automation tools, Onity’s solutions aim to reduce manual processes, improve visibility and ensure compliance across complex organizational structures.

The company’s flagship offerings include contract lifecycle management, matter management, e-billing and spend management, as well as enterprise deal management.

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