10-Q · May 11, 2026
UWM Holdings Corporation reported Q1 2026 results with a significant increase in total revenue to $901.4 million, beating estimates of $738.2 million, while EPS reached $0.09, exceeding expectations of $0.06. Positive…
Earnings analysis · 10-Q
UWMC earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
UWMC delivered a significant revenue recovery to $888.003 million, with loan production and servicing income both growing year over year and originations remaining broadly stable. However, a $603.191 million derivative…
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UWMC delivered a significant revenue recovery to $888.003 million, with loan production and servicing income both growing year over year and originations remaining broadly stable. However, a $603.191 million derivative loss drove a $451.902 million net loss, while six-month operating cash flow turned negative at $1.886 billion. Liquidity and covenant compliance remain intact, but the combination of hedging volatility, higher debt-service costs, and reliance on warehouse and MSR financing keeps the risk profile elevated.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Revenue Rebounded Sharply
Total revenue was $888.003 million, an increase of $129.303 million, or 17.0%, from $758.700 million in the prior-year quarter. Revenue also rebounded from $133 million in Q1 2026 based on the quarterly financial history provided.
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Production Economics Improved
Loan production income increased to $527.217 million from $447.882 million, up 17.7% year over year, while gain margin improved to 1.33% from 1.13%. Management attributed the improvement to better pricing and gain margin, higher origination fees, and $1.042 billion of capitalized MSRs.
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Servicing Revenue Expanded
Loan servicing income rose 23.3% to $220.503 million, supported by a serviced-loan portfolio with $247.649 billion of UPB at June 30, 2026 versus $240.814 billion at December 31, 2025. The weighted-average servicing fee increased to 0.40% from 0.36%.
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Refinance Volume Offset Purchases
Loan originations were $39.702 billion, essentially flat with $39.745 billion in the prior-year quarter, while six-month originations increased 17.4% to $84.646 billion from $72.096 billion. Refinance originations increased to $15.930 billion from $12.445 billion, offsetting lower purchase originations of $23.773 billion versus $27.299 billion.
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Core Interest Economics Held Up
Net interest income increased 38.2% to $68.154 million from $49.313 million, driven by $140.283 million of interest income and a 12.8% decrease in funding-facility interest expense to $72.129 million. Adjusted EBITDA remained positive at $185.879 million, compared with $195.683 million a year earlier.
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Liquidity and Covenants Remain Intact
Management reported $498.407 million of cash and stated that liquidity is expected to fund current operations and loan-origination commitments for the next twelve months. The company was also in compliance with warehouse, MSR-facility, and senior-note covenants as of June 30, 2026.
What to watch
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Severe Hedging Losses
Net loss was $451.902 million versus net income of $314.479 million in the prior-year quarter. The deterioration was primarily driven by a $603.191 million loss on other interest-rate derivatives, compared with a $208.904 million gain in the prior-year period.
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Cash Flow and Funding Dependence
Operating cash flow was negative $1.886 billion for the six months ended June 30, 2026, compared with positive $328.022 million a year earlier. Liquidity is dependent on selling or securitizing loans and continued access to financing, and the company had $8.600 billion advanced against principal warehouse lines as of June 30, 2026.
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Higher Debt-Service Burden
Non-funding debt interest expense increased 71.0% to $86.810 million in the quarter, partly reflecting $1.875 billion outstanding under the Conventional MSR Facility and $1.075 billion under the Ginnie Mae MSR Facility. The company also reported $2.950 billion of outstanding senior notes, based on the $700.0 million 2029, $500.0 million 2027, $800.0 million 2030, and $1.0 billion 2031 issuances described in the filing.
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Servicing Cost Inflation
Servicing costs rose 41.8% to $49.745 million, faster than servicing income growth of 23.3%. Management cited higher shortfall interest from increased refinance volume, increased foreclosure expenses, and reserves for uncollectible servicing advances.
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Vendor Cyberattack Litigation
The filing states there were no material changes to the risk factors in the 2025 Form 10-K. However, three complaints were filed against UWM related to the October 9, 2025 cyberattack at vendor Mercadien, creating potential class-action, damages, and injunctive-relief exposure.
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MSR Valuation and Prepayment Risk
The fair value of MSRs declined by $122.683 million in the quarter, including a $168.6 million decline from cash-flow realization, decay, and other factors. Higher refinance activity can accelerate loan payoffs and reduce the expected life and value of retained servicing assets.
Management's outlook
The 10-Q provides no new quantitative forward revenue or EPS guidance. Management states that cash on hand and other liquidity sources are expected to be sufficient to maintain current operations and fund loan-origination capital commitments for the next twelve months.
Earlier filings 4
10-K · February 25, 2026
UWM positions itself as the dominant wholesale mortgage originator, citing a 42.5% share of the wholesale channel through the first nine months of 2025 and ~90% of 2025 originations sold to agency programs. Operational…
10-Q · August 7, 2025
UWM reported strong second-quarter operating results: revenue increased to $758.7M (Q2 2024: $622.4M) and diluted EPS rose to $0.11 (Q2 2024: $0.03). Revenue growth was broad-based across loan production, servicing and…
10-Q · August 6, 2024
UWM reported Q2 revenue of $507,094,000 (down from $587,520,000 in Q2 2023) and diluted EPS of $0.03 for the quarter. Loan origination volume rose to $33.6 billion (up 5.6% YoY) and loan production income increased to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.