Sign in
UH

UWM Holdings Corp (UWMC)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered the best quarter since 2021: originations $39.7B (+18% YoY), total revenue $758.7M, GAAP net income $314.5M, gain margin 113 bps; adjusted diluted EPS was $0.16 and GAAP diluted EPS $0.11 .
  • Street consensus was EPS $0.0565* and revenue $632.1M*, implying a significant beat; Street focus appeared to be adjusted EPS, consistent with “EPS $0.16 beats by $0.10” noted in third-party summaries .
  • Guidance: Q3 production $33–$40B (lower vs prior $38–$45B) but gain margin raised to 100–125 bps (vs prior 90–115 bps) . Dividend maintained at $0.10 per share (19th consecutive quarter) .
  • Catalysts: Demonstrated AI-driven productivity (Mia, LEO) and in-house servicing strategy (ICE MSP) underpin share gains and margin discipline; stock traded up ~8% on the day per industry press .

What Went Well and What Went Wrong

What Went Well

  • Record performance since 2021 driven by originations $39.7B, revenue $758.7M, net income $314.5M, with gain margin expanding to 113 bps; CEO: “outstanding quarter…best since 2021…not because of any market tailwinds” .
  • AI initiatives delivering measurable results: launch of Mia (AI-powered virtual assistant) and LEO (Loan Estimate optimizer) to help brokers win more loans and improve engagement .
  • Non-GAAP profitability improved: adjusted EBITDA $195.7M vs $57.8M in Q1, despite MSR valuation headwinds, aided by $208.9M gain on other interest rate derivatives .

What Went Wrong

  • MSR valuation headwinds continued: change in fair value of MSRs was a $(111.4)M drag in Q2 (vs $(388.6)M in Q1), reflecting rate/assumption dynamics .
  • Total equity remains below year-ago: $1.75B at 6/30/25 vs $2.33B at 6/30/24; non-funding debt-to-equity ratio at 1.90 (up vs 0.91 YoY) .
  • Q3 outlook implies sequential production moderation ($33–$40B vs Q2’s $39.7B), though margin guidance is higher, highlighting a potential volume trade-off .

Financial Results

Quarter-over-Quarter and Year-over-Year

MetricQ4 2024Q1 2025Q2 2025
Revenues ($USD Millions)$720.6 $613.4 $758.7
Diluted EPS ($USD, GAAP)$0.02 $(0.12) $0.11
Adjusted Diluted EPS ($USD)N/A N/A $0.16
Net Income ($USD Millions)$40.6 $(247.0) $314.5
Total Gain Margin (%)1.05% 0.94% 1.13%
Loan Origination Volume ($USD Billions)$38.7 $32.4 $39.7
Adjusted EBITDA ($USD Millions)$118.2 $57.8 $195.7

Q2 2025 vs Prior Year and vs Estimates

MetricQ2 2024Q2 2025 ReportedS&P Consensus Q2 2025Beat/Miss
Revenues ($USD Millions)$622.4 $758.7 $632.1*Beat (by ~$126.3M)
Diluted EPS (GAAP) ($)$0.03 $0.11 0.0565*Beat (by ~$0.05)
Adjusted Diluted EPS ($)$0.04 $0.16 0.0565*Beat (by ~$0.10)
Total Gain Margin (%)1.06% 1.13% N/A+7 bps YoY
Loan Origination Volume ($USD Billions)$33.6 $39.7 N/A+$6.1B YoY

Note: Consensus values marked with an asterisk (*) are Values retrieved from S&P Global.

Segment/Product Mix – Originations UPB ($USD Millions)

CategoryQ4 2024Q1 2025Q2 2025
Purchase – Conventional$13,841,424 $13,179,468 $16,825,147
Purchase – Government$6,069,761 $6,673,499 $8,358,290
Purchase – Jumbo & Other$1,941,420 $1,894,070 $2,115,964
Total Purchase$21,852,605 $21,747,037 $27,299,401
Refi – Conventional$8,898,500 $4,339,327 $5,082,559
Refi – Government$6,415,421 $4,699,294 $5,688,192
Refi – Jumbo & Other$1,497,831 $1,566,118 $1,674,362
Total Refinance$16,811,752 $10,604,739 $12,445,113
Total Originations$38,664,357 $32,351,776 $39,744,514

KPIs and Balance Sheet Highlights

KPIQ4 2024Q1 2025Q2 2025
MSR UPB ($USD Billions)$242.4 $214.6 $211.2
MSR WAC (%)4.76% 5.44% 5.51%
Weighted Avg MSR Age (months)24 19 19
Total Equity ($USD Millions)$2,053.8 $1,635.3 $1,748.0
Cash & Cash Equivalents ($USD Millions)$507.3 $485.0 $490.0
Non-funding Debt/Equity (x)1.66 1.93 1.90
Gain on Other IR Derivatives ($USD Millions)$(469.5) — $208.9
Change in FV of MSRs ($USD Millions)$309.1 $(388.6) $(111.4)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Production ($USD Billions)Q3 2025N/A$33–$40B New (sequential moderation vs Q2 actual)
Gain Margin (bps)Q3 2025N/A100–125 bps New (higher margin range)
Production ($USD Billions)Q2 2025 (given in Q1)$38–$45B Actual $39.7B Delivered within range
Gain Margin (bps)Q2 2025 (given in Q1)90–115 bps Actual 113 bps At high end
Dividend per shareQ3 2025$0.10 (Q2 declared) $0.10 (19th consecutive) Maintained

Earnings Call Themes & Trends

TopicQ4 2024Q1 2025Q2 2025Trend
AI/TechnologyEnhanced ChatUWM; faster income calc; product recommendations Tools: Sphere LOS, TRAC Lite expansion, Paid Search Accelerator Launch of Mia (AI assistant) and LEO (LE optimizer); “measurable results” Accelerating
In-house ServicingPreparing portfolio; MSP not yet announced—ICE MSP selected to power in-house servicing; deploy Servicing Digital, Loss Mitigation Execution phase
Macro/Interest RatesIndustry lows; margin 105 bps; refi tripled YoY 2024 Rate dips captured refi; gain margin 94 bps Higher margin (113 bps) with strong volumes Improving margin resilience
Broker Channel ShareStrong broker momentum; “dominance” narrative Broker market share grew; agile scaling 6,000+ partners at UWM LIVE; tools to win more loans Strengthening
MSR StrategyLarge UPB; valuation swings; derivative hedges MSR FV declined sharply; liquidity $2.4B Smaller MSR FV drag; UPB at $211.2B; liquidity ~$2.2B Stabilizing
Margin Management105 bps 94 bps 113 bps Uptrend

Management Commentary

  • “The second quarter of 2025 was an outstanding quarter for UWM…best quarter since 2021…we made a series of significant strategic decisions and product launches…Mia and LEO…we are now seeing measurable results…from artificial intelligence” — Mat Ishbia, Chairman, CEO & President .
  • “We are excited to partner with ICE Mortgage Technology to bring our servicing portfolio in-house…better experience for borrowers and a stronger, stickier relationship with their brokers…more repeat business and referrals…cost savings for UWM” — Mat Ishbia on ICE MSP selection .
  • “By combining our mortgage expertise with Google Cloud’s generative AI and cloud capabilities, we will set a new standard…seamless and intelligent lending experience” — Mat Ishbia (Google Cloud partnership) .
  • “Q2 was a great quarter for us,” CFO Rami Hasani, highlighting AI, improved tools, and gains in revenue, income, and originations .

Q&A Highlights

  • Margin guidance rationale: Confidence in maintaining strong volume and margin; management suggests differentiated approach to setting margins, consistent with raised Q3 gain-on-sale guidance .
  • In-house servicing cost timing: Costs to transition are not fully in current OpEx; benefits expected starting 2026 as the transition completes .
  • Processing speed and AI: Ongoing improvements (e.g., BOLT platform and Mia) to drive faster processing within regulatory constraints, supporting scalability without adding fixed costs .
  • MSR sales strategy: Opportunistic approach; robust market capacity even if rates decline, with flexibility to adjust based on conditions .

Estimates Context

  • S&P Global consensus for Q2 2025: EPS $0.0565*, revenue $632.1M*, with 5 EPS estimates and 3 revenue estimates; UWMC reported GAAP diluted EPS $0.11 and revenue $758.7M, implying material beats .
  • Street appears to have focused on adjusted diluted EPS ($0.16), which would imply an even larger beat; third-party summaries noted “EPS $0.16 beats by $0.10” .

Consensus values marked with an asterisk (*) are Values retrieved from S&P Global.

Key Takeaways for Investors

  • Volume/margin combo improved: 113 bps margin with $39.7B originations demonstrates pricing discipline and scale; strong setup for H2 even with Q3 volume moderation .
  • AI is moving the needle: Mia & LEO are tangible broker tools driving win rates and efficiency; expect continued operational gains and potential share capture .
  • Risk management working: Derivative gains offset MSR valuation headwinds, supporting earnings stability through rate cycles .
  • Capital and liquidity adequate: ~$2.2B available liquidity and equity up sequentially to $1.75B; non-funding debt-to-equity 1.90 warrants continued monitoring .
  • Guidance mix: Lower Q3 production range but higher margin range suggests prioritizing profitability over absolute volume; watch execution vs the high end of margin guidance .
  • Dividend consistency: $0.10/share maintained for 19th straight quarter supports yield-focused holders .
  • Trading implications: Positive surprise vs Street (EPS and revenue beat) and stronger margin guide should support near-term sentiment; monitor MSR/derivative impacts and servicing transition costs as medium-term variables .

Source Documents Read

  • Q2 2025 8-K Item 2.02 and Exhibit 99.1 press release and financials .
  • Q2 2025 corporate press release mirroring 8-K content .
  • Q1 2025 press release and 8-K with outlook for Q2 .
  • Q4 2024 press release and detailed tables .
  • Additional Q2-related press releases: ICE MSP servicing agreement , Google Cloud AI partnership , Q2 call announcement .
  • Earnings call summaries and transcript links for themes and Q&A highlights .