On August 6, 2024, UWM Holdings Corp (UWMC, Financial) released its 8-K filing for the second quarter ended June 30, 2024. UWM Holdings Corp engages in the origination, sale, and servicing of residential mortgage loans, providing independent mortgage advisors across the states and the District of Columbia.
Performance Overview
UWM Holdings Corp (UWMC, Financial) reported a net income of $76.3 million for Q2 2024, a significant decline from $180.5 million in Q1 2024 and $228.8 million in Q2 2023. The company’s diluted earnings per share (EPS) stood at $0.03, falling short of the analyst estimate of $0.08. Total loan origination volume for the quarter was $33.6 billion, with purchase volume accounting for $27.2 billion.
Financial Achievements and Challenges
Despite the decline in net income, UWM Holdings Corp (UWMC, Financial) achieved a total gain margin of 106 basis points (bps) in Q2 2024, compared to 108 bps in Q1 2024 and 88 bps in Q2 2023. The company’s adjusted EBITDA was $133.1 million, up from $101.5 million in Q1 2024 but down from $125.4 million in Q2 2023.
"The second quarter was another strong quarter, by all measures, for UWM and the wholesale channel. We collectively continue to dominate the current purchase market while investing and preparing for lower rates ahead," said Mat Ishbia, Chairman and CEO of UWMC.
Income Statement Highlights
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Loan Origination Volume | $33.6 billion | $27.6 billion | $31.8 billion |
| Total Gain Margin | 1.06% | 1.08% | 0.88% |
| Net Income | $76.3 million | $180.5 million | $228.8 million |
| Diluted EPS | $0.03 | $0.09 | $0.08 |
Balance Sheet and Cash Flow Highlights
As of June 30, 2024, UWM Holdings Corp (UWMC, Financial) reported total equity of $2.3 billion, down from $2.5 billion at the end of Q1 2024 and $2.9 billion at the end of Q2 2023. The company ended the quarter with approximately $2.7 billion of available liquidity, including $680.2 million in cash.
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Cash and Cash Equivalents | $680.2 million | $605.6 million | $634.6 million |
| Mortgage Loans at Fair Value | $8.2 billion | $7.3 billion | $6.3 billion |
| Mortgage Servicing Rights | $2.7 billion | $3.2 billion | $4.2 billion |
| Total Assets | $12.9 billion | $12.8 billion | $12.4 billion |
Analysis and Outlook
UWM Holdings Corp (UWMC, Financial) continues to face challenges with declining net income and EPS, which fell short of analyst estimates. However, the company’s strong loan origination volume and gain margin indicate robust operational performance. The decline in mortgage servicing rights and total equity are areas of concern that may impact future profitability.
Looking ahead, UWM Holdings Corp (UWMC, Financial) anticipates third-quarter production to be in the $31 to $38 billion range, with a gain margin from 85 to 110 basis points. The company’s continued investment in technology and strategic initiatives, such as the launch of TRAC+ and ChatUWM, are expected to support future growth and operational efficiency.
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Explore the complete 8-K earnings release (here) from UWM Holdings Corp for further details.
