Structural margin volatility remains prevalent, with gross margins fluctuating significantly from a low of 40.5% in 2024Q4 to a peak of 93.5% in 2025Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 1.2B | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 798.5M | 1.01B | 495.6M | 584.5M | 459.2M | 521M | 524.8M | 603.84M | 544.37M | 593.66M | 432.06M | 601.35M | 974.29M | 1.11B | 482.19M | 263.94M | 190.82M | -54.17M | -71.88M | -72.67M | -53.37M | -36.99M | -30.32M | -38.72M | -55.76M | -93.33M | -169.09M | -155.54M | -184.89M | -156.3M | -116.16M |
| Gross Margin % | 66.6% | 94.48% | 46.35% | 51.07% | 45.94% | 48.4% | 53.73% | 52.95% | 50.54% | 48.62% | 30.54% | 32.62% | 45.65% | 53.87% | 56.49% | 52.29% | 51.4% | -616.53% | -489.1% | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit Growth % | - | 103.35% | -15.21% | 27.29% | -11.86% | -0.72% | -13.09% | 10.92% | -8.3% | 37.4% | -28.15% | -38.28% | -12.24% | 130.23% | 82.69% | 38.32% | 452.28% | 24.64% | 1.09% | -36.16% | -44.3% | -22% | 21.69% | 30.57% | 40.25% | 44.81% | -8.71% | 15.87% | -18.29% | -34.56% | - |
| Operating Expenses | 480.2M | 418.1M | 247.8M | 357.8M | 188.5M | 296.2M | 524.8M | 372.3M | 503.16M | 498.15M | 653.16M | 718.57M | 898.17M | 373.16M | 898K | 7.59M | 66.92M | -147.43M | -102.86M | -131.05M | -135.6M | -59.67M | -55.94M | -44.24M | -55.76M | -93.33M | -169.09M | -170.36M | -152.53M | -156.3M | -177.46M |
| OpEx % of Revenue | - | 39.2% | 23.17% | 31.26% | 18.86% | 27.52% | 53.73% | 32.64% | 46.72% | 40.8% | 46.17% | 38.98% | 42.08% | 18.11% | 0.11% | 1.5% | 18.02% | -1678% | -699.92% | - | - | - | - | - | - | - | - | - | - | - | - |
| Selling, General & Admin | 278.2M | 418.1M | 136.9M | 106.6M | 149M | 174.4M | 214M | 249.95M | 323.43M | 395.96M | 496.11M | 544.01M | 602.9M | 369.5M | 121.62M | 77.34M | 101.41M | 191.52M | 258.42M | 241.76M | 89.3M | 93.37M | 87.28M | 72.22M | 77.78M | 84.91M | 83.09M | 102.17M | 115.56M | 77.6M | 38.36M |
| SG&A % of Revenue | - | 39.2% | 12.8% | 9.31% | 14.91% | 16.2% | 21.91% | 21.92% | 30.03% | 32.43% | 35.07% | 29.51% | 28.25% | 17.93% | 14.25% | 15.32% | 27.32% | 2179.88% | 1758.44% | - | - | - | - | - | - | - | - | - | - | - | - |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 318.3M | 589.7M | 247.8M | 226.7M | 270.7M | 224.8M | 0 | 231.53M | 41.2M | 95.51M | -221.1M | -117.22M | 76.12M | 736.98M | 481.3M | 256.34M | 123.91M | 93.26M | 30.98M | 58.38M | 82.23M | 22.68M | 25.63M | 5.52M | 0 | 0 | 0 | 14.82M | -32.37M | 0 | 61.3M |
| Operating Margin % | 26.55% | 55.28% | 23.17% | 19.81% | 27.08% | 20.88% | - | 20.3% | 3.83% | 7.82% | -15.63% | -6.36% | 3.57% | 35.76% | 56.39% | 50.78% | 33.38% | 1061.47% | 210.82% | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income Growth % | - | 137.97% | 9.31% | -16.25% | 20.42% | - | -100% | 461.92% | -56.86% | 143.2% | -88.62% | -254% | -89.67% | 53.12% | 87.75% | 106.88% | 32.86% | 201.02% | -46.93% | -29% | 262.54% | -11.49% | 364.24% | - | - | - | -100% | 145.79% | - | -100% | - |
| EBITDA | 323.6M | 595.03M | 256.1M | 238.8M | 285.5M | 235.8M | 175.5M | 263.45M | 68.41M | 122.39M | -195.76M | 1.14M | 348.4M | 1.04B | 559.91M | 303.5M | 162.87M | 131.85M | 95.71M | 169.13M | 205.51M | 132.6M | 133.69M | 115.01M | 127.27M | 127.57M | 197.94M | 28.16M | 71.56M | 230.6M | 80.6M |
| EBITDA Margin % | 26.99% | 55.78% | 23.95% | 20.86% | 28.56% | 21.9% | 17.97% | 23.1% | 6.35% | 10.02% | -13.84% | 0.06% | 16.32% | 50.66% | 65.6% | 60.13% | 43.87% | 1500.74% | 651.29% | - | - | - | - | - | - | - | - | - | - | - | - |
| EBITDA Growth % | 39.3% | 132.34% | 7.24% | -16.36% | 21.08% | 34.36% | -33.38% | 285.12% | -44.11% | 162.52% | -17347.67% | -99.67% | -66.63% | 86.46% | 84.49% | 86.34% | 23.53% | 37.76% | -43.41% | -17.7% | 54.99% | -0.82% | 16.24% | -9.63% | -0.23% | -35.55% | 602.97% | -60.65% | -68.97% | 186.1% | - |
| D&A (Non-Cash Add-back) | 5.3M | 5.33M | 8.3M | 12.1M | 14.8M | 11M | 19.1M | 31.91M | 27.2M | 26.89M | 25.34M | 118.35M | 272.29M | 307.03M | 78.62M | 47.16M | 38.97M | 38.59M | 64.73M | 110.75M | 123.29M | 109.92M | 108.06M | 109.49M | 71.51M | 34.24M | 28.85M | 13.34M | 103.92M | 74.3M | 19.3M |
| EBIT | 314.2M | 575M | 247.8M | 226.7M | 270.7M | 224.8M | 156.4M | 231.53M | 41.2M | 95.51M | -221.1M | -117.22M | -22.45M | 363.75M | 266.17M | 132.45M | 48.84M | 156.22M | 117.56M | 131.05M | 135.6M | 59.67M | 55.94M | 44.24M | 55.76M | 93.33M | 169.09M | 170.36M | 152.53M | 156.3M | 177.46M |
| Net Interest Income | -268M | -342.7M | 93.3M | 0 | 0 | -117.59M | -93.37M | -97.03M | -89.34M | -110.96M | -393.5M | -464.05M | -518.77M | -373.23M | -215.13M | -123.89M | -85.92M | -54.17M | -71.88M | -72.67M | -53.37M | -36.99M | -30.32M | -38.72M | -55.76M | -93.33M | -169.09M | -155.54M | -184.89M | -156.3M | -116.16M |
| Interest Income | 150.2M | 135.4M | 93.3M | 0 | 0 | 26.37M | 16M | 17.1M | 14.03M | 15.96M | 19.08M | 18.32M | 22.99M | 22.36M | 8.33M | 8.88M | 0 | 8.79M | 14.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 418.1M | 478.1M | 0 | 0 | 0 | 143.97M | 109.37M | 114.13M | 103.37M | 126.93M | 412.58M | 482.37M | 541.76M | 395.59M | 223.46M | 132.77M | 85.92M | 62.95M | 86.57M | 72.67M | 53.37M | 36.99M | 30.32M | 38.72M | 55.76M | 93.33M | 169.09M | 155.54M | 184.89M | 156.3M | 116.16M |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 61.5M | 62.7M | 39.3M | -58.1M | 24.9M | -4.3M | -105.7M | -126.49M | -71.48M | -143.97M | -206.36M | -129.86M | -443.16M | 352.48M | 257.51M | 123M | 39.15M | 93.26M | 30.98M | 58.38M | 82.23M | 22.68M | 25.63M | 5.52M | 0 | 0 | 0 | 14.82M | -32.37M | 0 | 61.3M |
| Pretax Margin % | 5.13% | 5.88% | 3.68% | -5.08% | 2.49% | -0.4% | -10.82% | -11.09% | -6.64% | -11.79% | -14.59% | -7.04% | -20.76% | 17.11% | 30.17% | 24.37% | 10.55% | 1061.47% | 210.82% | - | - | - | - | - | - | - | - | - | - | - | - |
| Income Tax | -113.5M | -126.8M | 5.4M | 5.6M | -800K | -22.4M | -65.5M | 15.63M | 529K | -15.52M | -6.99M | 116.85M | 26.4M | 42.06M | 76.58M | 44.67M | 5.54M | 96.11M | 12.01M | 16.61M | -126.38M | 5.82M | -32.32M | 748K | 2.98M | 83M | -18.95M | 2.61M | -30.7M | 21.3M | 11.16M |
| Effective Tax Rate % | -184.55% | -202.23% | 13.74% | -9.64% | -3.21% | 520.93% | 61.97% | -12.36% | -0.74% | 10.78% | 3.39% | -89.98% | -5.96% | 11.93% | 29.74% | 36.32% | 14.16% | 103.05% | 38.75% | 28.45% | -153.69% | 25.64% | -126.14% | 13.55% | - | - | - | 17.6% | 94.85% | - | 18.2% |
| Net Income | 175M | 189.5M | 33.9M | -63.7M | 25.7M | 18.1M | -40.2M | -142.13M | -70.77M | -127.97M | -199.76M | -247.02M | -469.8M | 310.42M | 180.92M | 78.33M | 37.98M | 297K | 13.25M | 38.6M | 206.51M | 15.06M | 57.72M | 4.77M | -68.78M | -124.78M | 2.19M | 19.83M | -1.2M | 78.9M | 50.14M |
| Net Margin % | 14.6% | 17.77% | 3.17% | -5.57% | 2.57% | 1.68% | -4.12% | -12.46% | -6.57% | -10.48% | -14.12% | -13.4% | -22.01% | 15.06% | 21.2% | 15.52% | 10.23% | 3.38% | 90.16% | - | - | - | - | - | - | - | - | - | - | - | - |
| Net Income Growth % | 575.68% | 459% | 153.22% | -347.86% | 41.99% | 145.02% | 71.71% | -100.82% | 44.69% | 35.94% | 19.13% | 47.42% | -251.34% | 71.57% | 130.97% | 106.22% | 12689.23% | -97.76% | -65.67% | -81.31% | 1270.79% | -73.9% | 1109.64% | 106.94% | 44.88% | -5790.01% | -88.94% | 1752.67% | -101.52% | 57.35% | - |
| Net Income (Continuing) | 175M | 189.5M | 33.9M | -63.7M | 25.7M | 18.1M | -40.2M | -142.13M | -72M | -128.46M | -199.38M | -246.71M | -469.56M | 310.42M | 180.92M | 78.32M | 33.61M | -2.85M | 18.98M | 41.77M | 208.6M | 16.87M | 57.95M | 4.77M | -84.94M | -124.78M | 2.19M | 12.85M | -1.2M | 78.9M | 50.14M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.38M | 3.12M | -5.77M | -3.17M | -2.09M | -1.8M | -226K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.83M | 2.33M | 3.08M | 2.77M | 0 | 0 | 0 | 246K | 252K | 406K | 1.98M | 1.79M | 1.85M | 1.53M | 1.28M | 58.03M | 61.16M | 79.53M | 110M | 125.6M | 126M | 0 |
| EPS (Diluted) | 19.48 | 21.46 | 4.13 | -8.34 | 2.85 | 1.93 | -4.59 | -15.90 | -7.95 | -15.15 | -24.17 | -29.55 | -62.70 | 30.30 | 19.65 | 10.65 | 5.40 | 0.06 | 3.15 | 8.70 | 43.65 | 3.60 | 12.30 | 1.05 | -15.30 | -27.90 | 0.45 | 4.65 | -0.30 | 20.85 | 14.10 |
| EPS Growth % | 558.31% | 419.61% | 149.52% | -392.63% | 47.67% | 142.05% | 71.13% | -100% | 47.52% | 37.32% | 18.21% | 52.87% | -306.93% | 54.2% | 84.51% | 97.22% | 9390.33% | -98.19% | -63.79% | -80.07% | 1112.5% | -70.73% | 1071.43% | 106.86% | 45.16% | -6300% | -90.32% | 1650% | -101.44% | 47.87% | - |
| EPS (Basic) | - | 23.07 | 4.28 | -8.34 | 2.97 | 2.00 | -4.59 | -15.90 | -7.95 | -15.15 | -24.17 | -29.55 | -62.70 | 31.20 | 20.25 | 11.25 | 5.70 | 0.06 | 3.15 | 9.30 | 49.20 | 3.60 | 13.20 | 1.05 | -15.30 | -27.90 | 0.45 | 4.65 | -0.30 | 21.00 | 14.10 |
| Diluted Shares Outstanding | 8.98M | 8.63M | 8.09M | 7.64M | 9M | 9.38M | 8.75M | 8.96M | 8.91M | 8.47M | 8.27M | 8.35M | 8.76M | 9.32M | 9.23M | 7.46M | 7.17M | 5.22M | 4.2M | 4.76M | 4.79M | 4.26M | 4.88M | 4.54M | 4.49M | 4.48M | 4.87M | 4.21M | 4M | 3.78M | 3.56M |
| Basic Shares Outstanding | 8.49M | 8.04M | 7.82M | 7.64M | 8.65M | 9.02M | 8.75M | 8.96M | 8.91M | 8.45M | 8.27M | 8.35M | 8.75M | 9.34M | 8.93M | 6.97M | 6.68M | 5.22M | 4.18M | 4.18M | 4.19M | 4.19M | 4.39M | 4.48M | 4.49M | 4.48M | 4.87M | 4.2M | 4M | 3.76M | 3.56M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Regulatory and MSR volatility
As reported in recent financial filings, Onity Group's revenue trajectory remains inconsistent, with quarterly figures fluctuating between $253.6 million and $317.9 million over the last ten quarters, suggesting that growth in the subservicing segment is currently insufficient to overcome the cyclical headwinds facing the broader mortgage originations business.
The lack of a clear upward trend in top-line performance implies that the company is struggling to find a sustainable growth catalyst beyond its existing servicing base. Investors should monitor whether the strategic pivot toward capital-light subservicing can eventually decouple the firm from the volatility inherent in the mortgage origination cycle.
Based on the provided income statement data, gross margins have exhibited significant variance, ranging from a low of 40.5% in 2024Q4 to a peak of 93.5% in 2025Q4, indicating that the company's profitability is highly sensitive to non-operating adjustments and the fair value accounting of servicing assets.
The wide swings in gross margin suggest that the underlying service-fee income is frequently obscured by mark-to-market accounting for Mortgage Servicing Rights. This volatility makes it difficult to assess the true underlying pricing power of the subservicing platform without adjusting for these non-cash accounting impacts.
According to historical income statements, Onity Group's net income has been characterized by extreme volatility, including a $127.2 million profit in 2025Q4 followed by a sharp contraction, which highlights the outsized influence of non-operating items and fair value adjustments on the company's bottom-line results.
The disparity between operating income and net income suggests that investors should exercise caution when relying on GAAP EPS as a proxy for operational health. The frequent swings into net losses, such as the -$28.1 million reported in 2024Q4, warrant further investigation into the sustainability of the company's core cash-generating activities.
Analysis of the company's cost structure reveals that SG&A expenses have remained a significant drag on profitability, with quarterly outlays reaching as high as $115.3 million, which suggests that the firm's reliance on specialized personnel for regulatory compliance creates a high fixed-cost floor that limits operating leverage.
The inability to consistently scale operating income relative to gross profit indicates that the company's administrative burden is substantial. Unless management can achieve greater efficiency in its offshore delivery model, the current cost structure may continue to act as a ceiling on potential margin expansion.
While management emphasizes the transition to the Onity brand, the historical data suggests that the company's reliance on complex, high-touch servicing portfolios leaves it uniquely vulnerable to regulatory scrutiny, which could necessitate sudden, non-discretionary increases in compliance spending that would further erode already thin net margins.
Short-term observers may argue that the rebranding effort is merely a cosmetic attempt to distance the firm from legacy Ocwen-era regulatory issues. If the company fails to demonstrate a sustained reduction in compliance-related overhead, the market may continue to apply a valuation discount compared to more stable, forward-mortgage-focused peers.
Quick answers to the most common questions about buying ONIT stock.
Onity Group Inc. (ONIT) is profitable, generating $189.5M in net income for the fiscal year ending 2025 with a net profit margin of 17.8%.
Onity Group Inc. (ONIT) reported an operating income of $589.7M, resulting in an operating profit margin of 55.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Onity Group Inc. (ONIT) generated $1.01B in gross profit for the year, representing a gross profit margin of 94.5%. This demonstrates the company's core pricing power and production efficiency.