Onity Group Inc. · NYSE:ONIT
Onity — Q2 2026 Earnings Presentation
48 slides from Onity's earnings presentation, Aug 6, 2026
Slide 1: Second Quarter 2026 Earnings Presentation
Second Quarter 2026 Earnings Presentation August 6, 2026 © 2026 Onity Group Inc. All rights reserved.
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS protect customers’ data, resulting in disruption to our operations, loss of supplemental financial measure as it enables an assessment of our This presentation contains forward-looking statements within the meaning income, reputational damage, costly litigation
Slide 3: Second quarter 2026 summary
Second quarter 2026 summary Sound strategy and strong operating fundamentals delivering record origination volume(a) and double-digit YoY revenue and servicing UPB growth Balanced business working with rising interest rates driving higher servicing adjusted PTI(b), offsetting lower origination adjus
Slide 4: Driving growth and increasing scale
Driving growth and increasing scale Net loss reflects FAR transaction and legacy subservicing transfer costs, market-driven unfavorable asset fair value changes YoY = Q2’26 vs Q2’25 Solid Revenue Growth Strong Originations Increasing Servicing Scale Adjusted Revenue(a) $281M Originations Volume $15.
Slide 5: Implementing focused and deliberate actions to improve ROE long-term
Implementing focused and deliberate actions to improve ROE long-term Increasing Servicing Portfolio Technology-Driven Servicing Scale Optimization Productivity Scale drives fixed cost Exit reverse owned servicing Expenses $400M less than 2018(e) productivity • Yield 2 pts lower than forward(d) • Ded
Slide 6: Built on competitive strength, positioned for sustainable growth
Built on competitive strength, positioned for sustainable growth We have built a strong foundation and a resilient, growing, customer-focused business by consistently delivering positive, differentiated outcomes COMPETITIVE ADVANTAGES GROWING FROM A POSITION OF STRENGTH Top 10 Market Balanced and St
Slide 7: Originations and Servicing complement each other through an annual cycle
Originations and Servicing complement each other through an annual cycle Balanced business is resilient in Elevated rate environment impact the long term on business Adjusted pre-tax income(a) 193 189 • Rates remain elevated and ~30 bps higher than Q1(c); seasonal demand supported originations 36 an
Slide 8: Record originations volume and strong recapture performance
Record originations volume(a) and strong recapture performance deliver growth above industry averages Originations volume up 64% YoY, Improving platform scalability to exceeding industry growth of 12%(b) address higher payoff volume Originations UPB(c) Q2’26 vs Q2’25: 15 ~3x Refinance payoff volume
Slide 9: Scaling performance through AI-powered lending
Scaling performance through AI-powered lending Embedding AI, analytics, and automation directly into lending workflows to improve conversion, recapture, customer support, and sales execution Audience Workflow Sales Conversion AI Tools Σ Signals AI Voice, monitoring, ◎ Intelligence Customer intent ✓
Slide 10: Strong subservicing growth continues with diversification of servicing solutions
Strong subservicing growth continues with diversification of servicing solutions Subservicing additions(a) at Robust pipeline of subservicing 70% of full-year guidance opportunities UPB in $B ✓ Q2 wins with a strong active pipeline(b): > 50 • Capital partners(c) contributed ~$10B 45 • Mid-size bank
Slide 11: Servicing portfolio up 10% YoY even with Rithm transfer
Servicing portfolio up 10% YoY even with Rithm transfer Strong owned MSR growth expanding MSR growth and subservicing client wins more recapture-ready portfolio than offset runoff and deboardings Total Servicing Ending UPB(a) Total Servicing Ending UPB 341 310 76 341 159 310 154 (22) 183 (22) 155 ($
Slide 12: Strategic repositioning resulted in Q2 reduction in pre-tax income
Strategic repositioning resulted in ~($24M) Q2 reduction in pre-tax income, the majority of which is non-recurring or diminishing Strategic repositioning to simplify business Non-recurring or 6 diminishing (9) 8 ($M) (15) mark-to- market (15) (2) (4) Q1'26 Operations FAR Transaction Reverse Market F
Slide 13: Forward owned MSR market driven quarterly volatility diminishes over time
Forward owned MSR market driven quarterly volatility diminishes over time MSR FV Changes(a) Forward Servicing Runoff (fair value of UPB) Rates, net of hedge Inputs and Assumptions 40 refinance 20 surge ($M) 0 (20) (40) +/- 3 bps (avg) (b) +/- 3 bps (avg) (b) (60) (80) Q3’24 Q2’26 Q3’24 Q2’26 Q3’24 Q
Slide 14: Reverse MSR has higher volatility than forward MSR
Reverse MSR has higher volatility from non-runoff drivers than forward MSR MSR FV Changes(a) Reverse Servicing Runoff Rates, net of hedge Inputs and Assumptions 15 10 5 ($M) 0 (5) (10) +/- 22 bps (avg) (b) +/- 12 bps (avg) (b) (15) (20) Q3’24 Q2’26 Q3’24 Q2’26 Q3’24 Q2’26 © 2026 Onity Group Inc. All
Slide 15: Strong year-over-year top-line revenue and book value growth
Strong year-over-year top-line revenue and book value growth Adjusted revenue(a) Operating efficiency(b) Book value per share up 24% YoY improving up ~$13 YoY 56% 278 281 $74.81 53% $72.55 52% 227 67 63 35 $59.82 211 218 192 ($M) Q2'25 Q1'26 Q2'26 Q2'25 Q1'26 Q2'26 Q2'25 Q1'26 Q2'26 LTM LTM LTM Shar
Slide 16: Originations profitability driven by strong B2B volume and margins
Originations profitability driven by strong B2B volume and margins Originations adjusted pre-tax B2B originations volume Consumer Direct originations income(a) up 3.1x YoY up 61% YoY volume up 3.1x YoY 34 $14.2B $1.2B $1.2B $13.0B 28 15 3 $8.9B 26 321 23 9 25 $0.4B 17 261 18 243 3 6 ($M) Q2'25 Q1'26
Slide 17: Strong owned MSR UPB growth drives revenue and adjusted pre-tax income
Strong owned MSR UPB growth drives revenue and adjusted pre-tax income Servicing adjusted revenue(a) Forward owned servicing(c) Servicing adjusted PTI(d) up QoQ due driven by growth in owned MSR average UPB up 21% YoY to improved MSR runoff and float 171 31 218 211 160 ▲ +$6M MSR Runoff ▲ +$6M Float
Slide 18: Servicing advances lower over last 2 years while UPB has grown
Servicing advances 33% lower over last 2 years while UPB has grown 44%(a) Servicing Advances Effective strategy reducing advances… End of Period 551 461 • Digital engagement improved modification process, 105 96 369 increasing FHA modification conversion ~15%(c) 103 445 • Reduced default timelines w
Slide 19: Capital allocation strategy focused on growth and optimizing shareholder return
Capital allocation strategy focused on growth and optimizing shareholder return ❖ Expanding products and services Prioritize ❖ Retaining more mortgage servicing rights (MSRs), targeting Organic Growth 50/50 mix of owned and subservicing ❖ Investing in advanced technology (Gen AI, machine learning) D
Slide 20: 2026 outlook reflects continued higher rate environment
2026 outlook reflects continued higher rate environment Financial objectives Full-year 2026 outlook(b) ❖ Drive revenue growth Low end of 10%-15% adjusted ROE range(c) ❖ Sustain Adjusted PTI performance(a) Total servicing UPB growth of 5%-15%(d) ❖ Maintain earnings stability High hedge effectiveness
Slide 21: Maintaining agility to capitalize on all opportunities to create value
© 2 0 2 4 Maintaining agility to capitalize on all opportunities to create value for shareholders O n i t y G r o ❑ Top 10 Market Position(a) u p I n c . A l ❑ Strong Foundation for Growth l r i g h t s ❑ Simplified Business Enables Flexibility r e s e r v e ❑ Award-Winning Technology(b) d . ❑ Attra
Slide 22: Appendix
Appendix © 2026 Onity Group Inc. All rights reserved. 22
Slide 23: Onity is a non-bank mortgage servicer and originator
Onity is a non-bank mortgage servicer and originator NYSE: ONIT Focused on creating positive outcomes for clients, homeowners, investors and communities Services Offered Balanced Portfolio Mix Industry Rank(b) Servicing Originations Total Servicing #7 Owned Servicing and Consumer Direct, Bulk, Subse
Slide 24: Onity Group's multi-year transformation
Onity Group’s multi-year transformation – select accomplishments From an opportunistic special servicer... … to a top 10 non-bank mortgage servicer(a) 2018 2026+ Strategic financial and Acquired reverse servicing Formalized AI strategy Debt refinancing, removed legacy operating transformation and co
Slide 25: Sound strategy and strong execution are delivering results
Sound strategy and strong execution are delivering results Strategy Balance and Diversification | Prudent Capital-Light Growth | Industry-Leading Cost Structure(a) Top-Tier Operating Performance and Capabilities(b) | Dynamic Asset Management Operating Priorities Differentiate Operating Elevate the C
Slide 26: Increasing scale and diligent cost management improving operating efficiency
Increasing scale and diligent cost management improving operating efficiency Operating Efficiency by Segment Originations Servicing 70 200 60 175 150 50 61% 125 40 56% 51% 100 45% 44% 44% 30 34% 34% 75 32% 32% 32% 31% 20 50 10 25 0 0 ($M) Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 ($M) Q1'25 Q2'25 Q3'25 Q4
Slide 27: Finance of America Reverse transaction complete
Finance of America Reverse transaction complete, simplifying our business and cementing our position as a leading Reverse subservicer Transaction highlights Transaction benefits ✓ ~80% of reverse MSR fair value, sold at a slight ✓ Generated cash to support growth objectives discount to book; $77M in
Slide 28: Top-tier servicing performance delivers value for customers and investors
Top-tier servicing performance delivers value for customers and investors Top-Tier Investor Performance(a) Customer Experience(c) 4.7 3.9 Positive Experience Positive Experience Call Center Loan Boarding Competitive Cost Structure(b) 70 90 Performing Loans Non-Performing Loans 23%+ 46%+ Lower Lower
Slide 29: Diversified servicing portfolio mitigates risk
Diversified servicing portfolio mitigates risk % of Servicing UPB Servicing portfolio by note rate(b) end of Q2’26 end of Q2’26 Fannie + Freddie 100% (GSE) MSR Subservicing ~38% Fannie ~47% 80% Other Subservicing 60% Freddie 40% MAV Owned 20% PLS Servicing(a) Ginnie ~53% 0% $341B Reverse Agency tota
Slide 30: Managing owned MSRs to a targeted investment range
Managing owned MSRs to a targeted investment range Raised MSR investment (Dollars in billions) Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 range for 2026 Forward Owned 123 124 135 141 148 151 160 171 • $115-135B including ESS Reverse Owned 9 11 12 12 11 11 11 10 prior to Q1’25 Total Owned MSR Se
Slide 31: MSR hedge strategy continues to cost-effectively manage interest rate risk
MSR hedge strategy continues to cost-effectively manage interest rate risk MSR valuation adjustments due to rates and Effective hedge strategy assumption changes, net(a) and execution 60 • Hedge strategy has offset interest rate 40 changes effectively since Q1’24 Effective hedging strategy 20 • Our
Slide 32: Significant increase in book value per share and servicing portfolio year-over-year
Significant increase in book value per share and servicing portfolio year-over-year (Dollars in millions, except per share metrics) Q2’25 Q1’26 Q2’26 Adjusted pre-tax income(a) 15.9 13.7 13.8 MSR valuation adjustments due to rates 6.8 (0.1) (18.5) and assumption changes, net(b) Other notables 0.2 (5
Slide 33: Successfully settled warrants in Q4'25, eliminating related dilution risk
Successfully settled warrants in Q4’25, eliminating related dilution risk Q2’25 Q1’26 Q2’26 Book Value Share Book Value Share Book Value Share in $M Count in $M Count in $M Count I Equity and Outstanding Shares 481.9 8,055,222 629.2 8,410,618 609.8 8,406,047 II Gross Settlement Dilution of Warrants
Slide 34: MSR Valuation
MSR(a) Valuation as of 6/30/2025 as of 3/31/2026 as of 6/30/2026 (Dollars in millions) Total GSE Gov’t(b) Non-Agency GSE Gov’t(b) Non-Agency Total GSE Gov’t(b) Non-Agency Total Retained UPB 109,176 21,579 11,694 142,448 120,373 31,764 10,742 162,879 129,660 34,245 10,436 174,341 Loan Count (000s) 42
Slide 35: Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Operations (unaudited) Three months June 30, March 31, June 30, (Dollars in millions) ended 2025 2026 2026 Servicing and subservicing fees 211 222 229 Gain on reverse loans and HMBS-related borrowings, net 12 19 4 Gain on loans held for sale, net 10 34 29 Other r
Slide 36: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (unaudited) Assets June 30, March 31, June 30, (Dollars in millions) 2025 2026 2026 Cash and cash equivalents 194 182 197 Restricted cash 62 125 196 Mortgage servicing rights (MSRs), at fair value 2,633 3,026 3,209 Advances, net 461 431 369 Loans held for sale,
Slide 37: Condensed Balance Sheets Breakdown
Condensed Balance Sheets Breakdown Assets June 30, Rithm, MAV & other Reverse GNMA All (Dollars in millions) 2026 unaudited pledged MSR mortgages EBO others Cash and cash equivalents 197 197 Restricted cash 196 196 Mortgage servicing rights (MSRs), at fair value 3,209 458 2,751 Advances, net 369 369
Slide 38: Note Regarding Non-GAAP Financial Measures
Note Regarding Non-GAAP Financial Measures In the following slides, we present supplemental information (including reconciliations) relating to certain illustrative adjustments to GAAP pre-tax income (loss) and GAAP pre-tax return on equity. We believe these non- GAAP financial measures provide a us
Slide 39: Notables and Adjusted Pre-tax Income (Loss) Calculation
Notables and Adjusted Pre-tax Income (Loss) Calculation (Dollars in millions) Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 I Reported net income (loss) 30 11 21 (28) 22 22 19 127 8 (12) A Income tax benefit (expense) (2) (3) (6) 6 13 (1) (4) 119 (0) 3 II Reported pre-tax income (loss)
Slide 40: Notables and Adjusted Pre-tax Income (Loss) Calculation
Notables and Adjusted Pre-tax Income (Loss) Calculation (Dollars in millions) Q2’25 Q2’26 LTM LTM I Reported net income 37 142 A Income tax benefit (expense) 11 118 II Reported pre-tax income [ I – A ] 26 24 Forward MSR valuation adjustments due to (3) (38) rates and assumption changes, net(a)(b) Re
Slide 41: ROE Calculations
ROE Calculations Q2’26 (Dollars in millions) Q2’25 Q1’26 Q2’26 LTM I Reported net income (loss) 22 8 (12) 142 A Preferred stock dividend (1) (1) (1) (4) II Reported net income (loss) attributable to 20 7 (13) 138 common stockholders [ I + A ] III Annualized net income (loss) attributable to 82 26 (5
Slide 42: P&L GAAP to Adjusted Bridge
P&L GAAP to Adjusted Bridge Q2’26 Rithm, MAV & MSR FV Servicing Segment GAAP Reverse Other Inter-Segment Other Pledged Reclass Adjustments Notables Reclass Adjusted (Dollars in millions) unaudited MSR Reclass Notables Revenue 234 (26) 5 4 2 218 MSR Valuation Adjustments, net (83) (5) 14 (73) Operati
Slide 43: End Notes
End Notes SLIDE 3 SLIDE 5 cont. SLIDE 7 cont. a) Q2’26 originations volume of $15.5B was highest by quarter since e) Q2’26 annualized adjusted operating expenses of ~$520M is over c) 30yr fixed mortgage avg rate QoQ using blend of data from FHLMC originations segment (then known as our lending segme
Slide 44: End Notes
End Notes SLIDE 13 SLIDE 17 cont. SLIDE 20 cont. a) See slides 38-42 for discussion of non-GAAP measures including MSR c) Forward owned servicing UPB in chart includes owned MSRs and b) Assumes we achieve our objectives and there are no adverse changes runoff, a component of adjusted PTI; effective
Slide 45: End Notes
End Notes SLIDE 23 cont. SLIDE 28 cont. SLIDE 31 c) See slide titled “Top-tier servicing performance delivers value for b) Cost per loan (CPL) comparison of Onity to large banks/nonbanks (excl. a) MSR valuation adjustments due to changes in market interest rates and customers and investors” for serv
Slide 46: End Notes
End Notes SLIDE 32 cont. SLIDE 39 & 40 cont. SLIDE 39 & 40 cont. b) MSR valuation adjustments due to changes in market interest rates and c) FV changes of reverse loans and HMBS-related borrowings due to j) Effective in Q4’24, change in fair value due to interest rates for reverse assumptions, net o
Slide 47: Abbreviations & Definitions
Abbreviations & Definitions • 9M: First nine months of the fiscal year • FRED: Federal Reserve Economic Data • M&A: Mergers and Acquisitions • pp(s): Percentage Points • Adj / Adjusted: Non-GAAP measure of PTI, ROE, • FRM: Fixed Rate Mortgage • MAM: Mortgage Assets Management, LLC • PTI: Pre-Tax Inc
Slide 48: Customer first. Better together. We say. We do.
Customer first. Better together. We say. We do.