Mr Cooper Group (COOP) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $198 million, with operating ROTC/ROTCE of 17.2% and strong, recurring performance.

• Servicing portfolio reached $1.5 trillion UPB, up 25% year-over-year, maintaining the largest residential mortgage servicer position.

• Announced a definitive agreement for a $9.4 billion all-stock acquisition by Rocket Companies, expected to close in Q4 2025.

• Integration of Flagstar Bank's mortgage operations expanded servicing and subservicing portfolios.

• Recognized as one of the Best Workplaces in Texas.

Financial highlights

• Q2 2025 net income was $198 million, with pre-tax operating income of $269 million and adjusted EBITDA of $440 million.

• Servicing segment generated $332 million in pre-tax income; originations produced $64 million in pre-tax income on $9.4 billion funded.

• Q2 2025 total revenues were $608 million, up from $560 million sequentially.

• Liquidity stood at $3.8 billion at quarter end; cash and cash equivalents were $783 million.

• Tangible book value per share rose to $75.90.

Outlook and guidance

• Servicing portfolio expected to remain flat for the remainder of 2025 as integration with Rocket is planned.

• Anticipates MSR acquisitions of approximately $20 billion UPB in 3Q'25 and a new subservicing client to add $40 billion UPB by year-end.

• Continued investment in technology, servicing platform, and correspondent channel, with corporate expenses expected to remain at current levels.

• Management sees opportunities to expand the customer base and focus on cost leadership and fee-based revenue growth.

• Emphasis on scaling the originations platform for sustainable returns.