Onity Group — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income attributable to common stockholders was $3 million, compared to a net loss of $12.9 million in Q2 2026 and net income of $17.7 million in Q3 2025.
• Diluted EPS was $0.41, compared to $(1.53) in Q2 2026 and $2.03 in Q3 2025.
• GAAP ROE was 2%, compared to (8)% in Q2 2026 and 14% in Q3 2025.
• Adjusted pre-tax income was $30 million, up from $14 million in Q2 2026 and down from $34 million in Q3 2025.
• Annualized adjusted ROE was 19%, up from 9% in Q2 2026 and down from 27% in Q3 2025.
• Net income included an $11 million pre-tax unfavorable impact from market volatility on hedge costs and Agency loan sales versus Q2 2026.
• Total revenue was $278.1 million, down from $282.9 million in Q2 2026 and slightly up from $280.3 million in Q3 2025.
• Operating expenses were $117.9 million, down from $139.0 million in Q2 2026 and down from $125.8 million in Q3 2025.
• The operating efficiency ratio was 51% for the quarter and 52% over the last 12 months.
• Total assets were $11,320.9 million as of September 30, 2026, down from $12,350.3 million as of June 30, 2026, and down from $16,107.4 million as of September 30, 2025.
• Stockholders' equity was $608.6 million as of September 30, 2026, up from $609.9 million in June 2026 and up from $501.4 million in September 2025.
• Book value per share was $74, up $12 compared to Q3 2025.

Guidance and Future Outlook:

• The Company reaffirmed previous guidance on adjusted ROE range, servicing UPB growth, MSR hedge effectiveness, and operating efficiency.
• Management expressed confidence in the Company's ability to perform through the interest rate cycle and navigate market challenges.

Business Segments and Product Lines:

• Servicing segment pre-tax income was $7 million; adjusted pre-tax income was $29 million, up more than 2.4x versus Q2 2026.
• Originations segment pre-tax income was $24 million; adjusted pre-tax income was $24 million, down 15% versus Q2 2026.
• Servicing profitability improved sequentially, more than offsetting declining Originations profitability.
• Total servicing additions were $24.7 billion; servicing UPB was $343 billion at quarter end, up 9% versus Q3 2025.
• Subservicing additions were $53 billion as of September 30, 2026, exceeding the full-year target.
• Servicing advances decreased 28% versus Q3 2024 to $375 million.
• Owned forward servicing UPB increased 49% versus Q3 2024 to $179 billion.
• Refinance recapture rate was 57%, up 18 percentage points versus Q3 2025.
• Reverse loans held for investment pooled into HMBS were $3,362.6 million as of September 30, 2026.

Market and Competitive Landscape:

• The market environment is described as increasingly favorable for Servicing and more challenging for Originations.
• The Company is positioned to capitalize on attractive opportunities within the current interest rate cycle.

Risks and Challenges:

• Risks include ongoing disruption in financial markets, changes in monetary and fiscal policy, inflation, and employment disruption.
• Challenges involve the adequacy of financial resources to fund and recover servicing advances, loans, and reverse loan draws.
• Risks include the ability to comply with GSE and Ginnie Mae requirements, regulatory scrutiny, and potential litigation or investigations.
• Risks include reliance on technology vendors and potential breaches of information technology or security systems.
• Risks include the ability to close MSR transactions, grow the reverse servicing business, and manage servicer ratings.

Management Commentary and Tone:

• Glen A. Messina, Chair, President and CEO, stated that results demonstrate the resilience of the balanced business and progress in improving returns on a sequential basis.
• Management noted that the complementary businesses returned the Company to profitability and more than doubled adjusted return on equity from the prior quarter.
• The tone was confident regarding the Company's strategy, execution track record, and ability to create value for shareholders.

Other Key Points:

• The Company repurchased 457,971 shares of Onity common stock through September 30, 2026, representing 6% of shares outstanding, improving book value per share by $1.82.
• A conference call and webcast were held on November 5, 2026, to review results.
• The Company changed the methodology for calculating MSR Valuation Adjustments effective Q2 2026 to include non-UPB collateral changes such as delinquency status and loan aging.
• The Company changed the methodology for calculating adjusted average equity effective Q4 2025 to a monthly average.
• The Company did not provide a reconciliation of guidance for adjusted ROE due to the unreasonable efforts exception under Regulation S-K.