ONITY GROUP INC.
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 5, 2026
ONIT$30.44-5.2%Stored close · as of Nov 10, 2026
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Consolidated Statements of Cash Flows for the and
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Nine Months Ended September 30, | ||
|---|---|---|
| 2026 | 2025 | |
| Cash flows from operating activities | ||
| Net income | $0.3 | $62.3 |
| Adjustments to reconcile net income to net cash used in operating activities: | ||
| MSR valuation adjustments, net | 258.0 | 164.0 |
| Provision for bad debts (advances and receivables) | 12.9 | 13.8 |
| Provision for indemnification obligations | 9.7 | 6.3 |
| Depreciation and amortization | 4.3 | 4.0 |
| Amortization of debt issuance costs, discount and premium | 39.6 | 19.4 |
| Equity-based compensation expense | 5.7 | 5.9 |
| Interest capitalized on reverse buyouts | (69.0) | (33.6) |
| Loss on extinguishment of debt | 0.3 | — |
| Deferred income tax expense (benefit) | 1.2 | (0.5) |
| Gain on reverse loans and HMBS-related borrowings, net | (17.9) | (33.6) |
| Gain on loans held for sale, net | (90.2) | (56.3) |
| Changes in assets and liabilities: | ||
| Decrease in advances | 123.6 | 121.3 |
| Decrease in receivables and other assets | 94.7 | 52.9 |
| Increase in derivatives | (97.3) | (18.8) |
| Decrease in other liabilities | (100.9) | (14.5) |
| Cash flows from loans held for sale: | ||
| Origination and purchase of loans held for sale | (24,331.8) | (17,572.2) |
| Proceeds from sale and collections of loans held for sale | 22,605.4 | 16,765.8 |
| Proceeds from sale of reverse loans held for sale, pooled into HMBS, net of associated HMBS-related borrowings | 22.4 | — |
| Other, net | 0.6 | (3.9) |
| Net cash used in operating activities | (1,528.4) | (517.4) |
| Cash flows from investing activities | ||
| Origination of reverse loans held for investment, pooled into HMBS | (45.3) | (794.8) |
| Principal payments received on loans previously held for investment | 1,434.1 | 2,341.6 |
| Proceeds from sale of reverse loans held for sale (previously held for investment), pooled into HMBS, net of associated HMBS-related borrowings | 97.3 | — |
| Purchase of MSRs | (464.1) | (239.4) |
| Proceeds from sale of MSRs | 144.0 | 4.8 |
| Acquisition of advances in connection with MSR transactions | (6.2) | (4.0) |
| Proceeds from sale of advances in connection with MSR transactions | 1.3 | 0.9 |
| Purchase of real estate | (96.4) | (16.1) |
| Proceeds from sale of real estate | 98.2 | 35.7 |
| Additions to premises and equipment | (1.5) | (1.0) |
| Net cash provided by investing activities | 1,161.4 | 1,327.8 |
| Cash flows from financing activities | ||
| Repayment of advance match funded liabilities, net | (82.5) | (96.5) |
| Proceeds from mortgage warehouse facilities, net | 205.5 | 402.0 |
| Proceeds from reverse mortgage securitization notes | 1,496.9 | 309.5 |
| Repayment of reverse mortgage securitization notes | (720.4) | (191.8) |
| Proceeds from MSR financing facilities | 2,929.0 | 2,233.7 |
| Repayment of MSR financing facilities | (2,512.1) | (1,967.1) |
| Proceeds from issuance of Senior notes | 206.5 | — |
| Payment of debt issuance costs | (19.8) | (4.0) |
| Proceeds from MSR related financing liabilities | 35.4 | 36.8 |
| Repayment of MSR related financing liabilities | (72.0) | (52.8) |
| Proceeds from sale of HECM or reverse mortgages, accounted for as a financing (HMBS-related borrowings) | 357.1 | 847.0 |
| Repayment of HMBS-related borrowings | (1,424.2) | (2,314.8) |
| Repurchase of common stock | (18.0) | — |
| Payment of preferred stock dividend | (3.1) | (3.1) |
| Payment on exercise of common stock warrants | — | (3.5) |
| Net cash provided by (used in) financing activities | 378.3 | (804.7) |
| Net increase in cash, cash equivalents and restricted cash | 11.3 | 5.7 |
| Cash, cash equivalents and restricted cash at beginning of year | 264.6 | 265.6 |
| Cash, cash equivalents and restricted cash at end of period | $275.9 | $271.3 |
| Supplemental cash flow information | ||
| Interest paid | $234.6 | $187.6 |
| Income tax payments (refunds), net | ||
| Federal | $0.2 | $(1.7) |
| State | 0.1 | 0.8 |
| Foreign | 1.9 | 2.7 |
| $2.2 | $1.9 | |
| Supplemental non-cash investing and financing activities: | ||
| HECM reverse MSR sale transaction | ||
| Reverse loans held for sale pooled into HMBS, at fair value | $(5,629.8) | $— |
| HMBS-related borrowings, at fair value | (5,503.1) | — |
| Other liabilities | (2.2) | — |
| Less: Receivables, net | 7.0 | — |
| Net cash received | $117.5 | $— |
| Recognition of gross right-of-use asset and lease liability | ||
| Right-of-use asset | $1.1 | $1.1 |
| Lease liability | 1.2 | 1.1 |
| Derecognition of MSRs and MSR related financing liabilities, at fair value: | ||
| MSRs, at fair value | $(249.9) | $(12.2) |
| MSR related financing liability, at fair value - MSR pledged liability | (249.7) | (12.2) |
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited consolidated balance sheets and the unaudited consolidated statements of cash flows:
| September 30, 2026 | September 30, 2025 | |
|---|---|---|
| Cash and cash equivalents | $176.0 | $172.8 |
| Restricted cash and equivalents: | ||
| Debt service accounts | 47.8 | 35.1 |
| Other restricted cash | 52.1 | 63.4 |
| Total cash, cash equivalents and restricted cash reported in the statements of cash flows | $275.9 | $271.3 |
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