Mr Cooper Group (COOP) Q4 2024 earnings summary

Executive summary

• Pre-tax operating income reached $235 million in Q4 2024, with net income of $204 million and operating ROTCE at 15.8%.

• Tangible book value per share grew 12% year-over-year to $71.61; book value per share reached $75.70.

• Completed the Flagstar mortgage banking acquisition, onboarding 1.1 million customers and expanding the servicing portfolio by 57% year-over-year to $1.56 trillion.

• Repurchased 0.4 million shares for $38 million in Q4.

• Received Freddie Mac SHARP Gold Award and industry recognition.

Financial highlights

• Q4 revenues reached $654 million, with net income of $204 million and diluted EPS of $3.13.

• Servicing pretax operating income was $318 million, up 39% year-over-year; originations pretax operating income was $47 million, with funded volume up 38% sequentially to $9.3 billion.

• Adjusted EBITDA for Q4 was $404 million.

• Liquidity ended at $3.4 billion post-Flagstar acquisition; TNW/assets was 24.4%.

• MSR portfolio marked at 1.59% of UPB; MSR carrying value at $11,736 million.

Outlook and guidance

• Operating ROTCE guidance raised to 16%-20% for 2025-2026, driven by scale, cost leadership, originations, fee revenues, and technology investments.

• Q1 2025 EBT guidance: servicing $315-$335 million; originations $30-$50 million.

• Management expects continued strong cash flows from low prepayment levels and robust servicing portfolio.

• Focus on customer base growth, technology, and AI investments for further expansion.