- **Record Performance**: ROTCE 17.2%, up 0.4pts QoQ, driven by operating leverage and AI. Normalized ROTCE would hit upper end of 16%-20% guidance.
- **AI-Driven Efficiency**: AgentiQ AI reduces call center costs, with beta testing of autonomous task execution.
- **$200M MSR Fund Launch**: Pioneers asset-light growth strategy with institutional investors.
- **Home Equity Dominance**: 60% of originations in Q2, $900B total customer equity available for future growth.
- **Rock-Solid Balance Sheet**: 26.6% capital ratio, $3.8B liquidity, 1% delinquencies, and 50% cost-to-serve below industry average.
- **Rocket Integration**: Set to close merger, with post-close plan to launch integrated homeownership platform.

**【CEO Summary Section】**
- **Strong Q2 Performance**: Operating ROTCE of 17.2%, up from 16.8% Q1, within guidance range of 16%-20%. Normalized for stock buyback pause, ROTCE would be at upper end of range.
- **Resilience in Challenging Market**: Achieved double-digit returns for 2.5 years despite high mortgage rates, driven by operating leverage, fee income, and AI adoption.
- **AI and Innovation**: AgentiQ AI tool rolled out, improving customer service efficiency. Beta testing advanced AI features for call center automation.
- **MSR Fund Launch**: Launched $200M MSR fund with blue-chip investors, aiming to scale asset-light strategy.
- **Rocket Merger Excitement**: Preparing for post-close integration to build integrated homeownership platform.

**【President's Remarks】**
- **Servicing Momentum**: $332M pretax income, +15% YoY. Subservicing UPB flat at $1.5T, despite $62B client departure, offset by new $40B client win.
- **Operating Efficiency**: Cost-to-serve 50% below industry average, driven by scale and process improvements.
- **Originations Growth**: $64M pretax income, $9.4B fundings. Home equity loans up 40% sequentially, 60% of mix. Turn times 6 days faster YoY.
- **Correspondent Channel Strength**: Top 5 player, +20B Q3 MSR acquisitions, maintaining margin discipline.

**【CFO Financial Commentary】**
- **Net Income**: $198M, including $269M pretax operating income, offset by $30M mark adjustments and $7M intangible amortization.
- **Asset Quality**: Delinquencies at 1%, lowest in 5 years. MSR portfolio FICO 730+, LTV 65%, with 15% FHA limit and avoidance of 2023-24 vintages.
- **Liquidity and Capital**: $3.8B liquidity, capital ratio 26.6%, up from 24.4% YoY. MSR valuation 156bps UPB, 5.4x base strip.
- **Student Loan Impact**: 16% of customers have student loans, delinquencies peaked at 8.7% in April, now 7.9%. Minimal risk to portfolio.

**【Merger Update】**
- **Rocket Combination**: Post-close integration plan underway, aiming to deliver platform benefits to clients and investors. Stock buyback program paused during merger.


Mr. Cooper Group Inc. (COOP) Q2 2025 Pre Recorded Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

COOP(Delisted)

COOP fundamentals

You can ask Aime