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

Onity Group (NYSE:ONIT) announced its quarterly earnings results on Thursday. The company reported $1.02 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.46 by ($1.44), Zacks reports. Onity Group had a net margin of 3.41% and a return on equity of 17.81%.

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 Stock Performance

ONIT traded up $3.14 during midday trading on Thursday, reaching $44.29. The company had a trading volume of 76,266 shares, compared to its average volume of 84,801. The business has a 50-day moving average of $46.19 and a two-hundred day moving average of $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. Onity Group has a 1 year low of $25.50 and a 1 year high of $54.10. The company has a market cap of $356.93 million, a P/E ratio of 13.24 and a beta of 1.56.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on ONIT shares. Weiss Ratings restated a “hold (c)” rating on shares of Onity Group in a report on Thursday, January 22nd. Keefe, Bruyette & Woods restated an “outperform” rating on shares of Onity Group in a research note on Thursday, December 18th. Wall Street Zen upgraded Onity Group from a “hold” rating to a “buy” rating in a research report on Saturday, January 17th. Finally, BTIG Research raised their target price on Onity Group from $50.00 to $60.00 and gave the stock a “buy” rating in a research report on Thursday. Three investment 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’s stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $58.33.

Institutional Investors Weigh In On Onity Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. State of Wyoming purchased a new stake in Onity Group in the 2nd quarter worth $119,000. BNP Paribas Financial Markets increased its holdings in shares of 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 last quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main purchased a new stake in shares of Onity Group in the second quarter worth about $184,000. Bank of America Corp DE boosted its stake in Onity Group by 23.2% during the third quarter. Bank of America Corp DE now owns 5,027 shares of the company’s stock valued at $201,000 after buying an additional 945 shares during the last quarter. Finally, Brandywine Global Investment Management LLC purchased a new position in Onity Group during the 4th quarter valued at approximately $209,000. 70.16% of the stock is owned by hedge funds and other institutional investors.

About Onity Group

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.