UWM Holdings Q2 revenue up 22%, beats estimates
Overview
UWM Holdings Q2 revenue rises 22% yr/yr, beating analyst expectations, per LSEG data
Adjusted EPS for Q2 beats consensus, driven by strategic decisions and product launches
Adjusted net income and EBITDA for Q2 exceed analyst estimates, per LSEG data
Outlook
Company anticipates Q3 production between $33 bln and $40 bln
UWM expects Q3 gain margin of 100 to 125 basis points
Result Drivers
GROWTH IN ORIGINATIONS - UWM's loan origination volume rose 18% year-over-year to $39.7 bln, driven by increased purchase originations, which grew to $27.3 bln from $27.2 bln in 2Q24
AI TECHNOLOGIES - UWM attributes its financial performance to strategic decisions and product launches, including the deployment of new AI technologies, Mia and LEO, which have shown measurable results, per CEO Mat Ishbia
GAIN MARGIN IMPROVEMENT - Total gain margin increased to 113 bps in 2Q25 from 94 bps in 1Q25, attributed to strategic initiatives
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $758.70 mln | $697 mln (2 Analysts) |
Q2 Adjusted EPS | Beat | $0.16 | $0.06 (8 Analysts) |
Q2 EPS |
| $0.11 |
|
Q2 Adjusted Net Income | Beat | $249.43 mln | $93.30 mln (4 Analysts) |
Q2 Net Income |
| $314.48 mln |
|
Q2 Adjusted EBITDA | Beat | $195.68 mln | $151 mln (1 Analyst) |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the consumer lending peer group is "buy."
Wall Street's median 12-month price target for UWM Holdings Corp is $5.25, about 19.6% above its August 6 closing price of $4.22
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago
Press Release: ID:nBw3KHyv6a
