UWM Holdings stock tumbles as Q1 earnings miss estimates

Published 06/05/2025, 16:08
UWM Holdings stock tumbles as Q1 earnings miss estimates

Investing.com -- UWM Holdings Corporation (NYSE:UWMC), the parent company of United Wholesale Mortgage, reported first-quarter earnings that fell short of analyst expectations, sending its stock down 7.1% in trading.

The mortgage lender posted a net loss of $247 million, or -$0.12 per share, for the quarter ended March 31, 2025, missing the analyst consensus estimate of $0.05 per share. Revenue came in at $613.37 million, surpassing expectations of $545.77 million and rising 4.8% YoY from $585.5 million.

UWM’s loan origination volume reached $32.4 billion in Q1, up 17% YoY but down 16% from the previous quarter. Purchase originations totaled $21.7 billion, relatively flat compared to $22.1 billion in Q1 2024. The company’s total gain margin declined to 94 basis points from 108 basis points a year ago.

Mat Ishbia, Chairman, CEO and President of UWMC, commented, "The first quarter marked another win for UWM. We executed with precision and broker market share grew. When rates briefly dipped, we swiftly capitalized on the refinance opportunity—all while maintaining our best-in-class performance in the purchase market."

The company’s total equity decreased to $1.6 billion as of March 31, 2025, compared to $2.1 billion at the end of 2024 and $2.5 billion a year earlier.

Looking ahead, UWM anticipates second-quarter production to be in the range of $38 billion to $45 billion, with gain margin between 90 and 115 basis points.

The company’s board declared a cash dividend of $0.10 per share, payable on July 10, 2025, to stockholders of record as of June 18, 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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