Wed, Apr 23, 8:29 PM (19 days ago)
**Mr. Cooper Group Inc. (COOP) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $560 million, down slightly from $564 million in Q1 2024. - **Net Income:** $88 million, down from $181 million in Q1 2024. - **Earnings per Share (EPS):** Basic $1.38, diluted $1.35, down from $2.80 and $2.73 respectively in Q1 2024. - **Profit Margins:** Effective tax rate was 7.0% in Q1 2025, down from 21.9% in Q1 2024. **Cash Flow:** - **Operating Activities:** $227 million, up from $28 million in Q1 2024. - **Investing Activities:** ($24) million, improved from ($715) million in Q1 2024. - **Financing Activities:** ($226) million, down from $682 million in Q1 2024. **Segment Performance:** - **Servicing:** Revenue $403 million, down from $450 million in Q1 2024. Expenses $240 million, up from $185 million. - **Originations:** Revenue $140 million, up from $92 million in Q1 2024. Expenses $95 million, up from $62 million. - **Corporate/Other:** Revenue $17 million, down from $22 million in Q1 2024. Expenses $95 million, up from $70 million. **Trends & Uncertainties:** - **MSR MTM:** Negative in Q1 2025 due to declining mortgage rates, compared to positive in Q1 2024. - **Operational Revenues:** Increased due to a larger servicing portfolio and higher originations volume. - **Total Expenses:** Increased due to higher general and administrative costs. - **Total Other Expense, Net:** Increased due to higher interest expense from warehouse facilities financing and issuances of unsecured senior notes. **Future Operations Impact:** - **Merger with Rocket Companies, Inc.:** Announced on March 31, 2025, expected to close in Q4 2025. - **Acquisition of Flagstar Bank, N.A. Mortgage Operations:** Closed in Q4 2024, added $1.2 billion in MSRs. - **Liquidity and Capital Resources:** Sufficient borrowing capacity to support operations. **Risk Factors:** - **Macroeconomic Conditions:** U.S. residential real estate market conditions and interest rates. - **Servicing Portfolio:** Ability to maintain or grow the size of the servicing portfolio. - **Originations Volume:** Ability to maintain or grow originations volume and profitability. - **Cyber Risks:** Ability to prevent cyber intrusions and mitigate risks. - **Legal and Regulatory:** Ability to manage legal and regulatory examinations and enforcement investigations.