Guild Holdings Company reported a net loss of $23.9 million for the first quarter of 2025, a significant decline from the net income of $28.4 million recorded in the same period last year. This resulted in a diluted loss per share of $0.39, compared to earnings of $0.46 per share in the prior year. The company's total revenue for the quarter was $198.5 million, down 14.4% from $231.8 million in the first quarter of 2024. The decrease in revenue was primarily attributed to a valuation adjustment of mortgage servicing rights (MSRs), which resulted in a loss of $69.9 million, compared to a gain of $20.8 million in the previous year.
In terms of operational performance, Guild originated $5.2 billion in mortgage loans during the first quarter of 2025, a decrease of 22.9% from $6.7 billion in the previous quarter. The company’s servicing portfolio grew to $94.0 billion in unpaid principal balance (UPB), up from $86.3 billion a year earlier. The average size of the servicing portfolio increased by 9.1% year-over-year. The company reported a purchase recapture rate of 26%, a slight increase from 25% in the same quarter last year, indicating a stable ability to retain customers refinancing their loans.
Guild's total expenses for the quarter were $230.1 million, a 19.1% increase from $193.2 million in the first quarter of 2024. The rise in expenses was driven by higher salaries and benefits, which increased by 23.7% to $173.2 million, reflecting the company's efforts to expand its workforce and support its growth strategy. The provision for foreclosure losses also saw a significant increase, rising to $2.4 million from $0.4 million in the prior year, indicating a growing concern over loan defaults.
Looking ahead, Guild Holdings expressed cautious optimism about its future performance, despite the challenging macroeconomic environment characterized by fluctuating interest rates and potential recessionary pressures. The company anticipates that the mortgage origination market will see a modest recovery, with the Mortgage Bankers Association forecasting a 16.7% increase in total origination volume for 2025. Guild aims to leverage its existing infrastructure and strategic partnerships to capture a larger share of this anticipated growth, while also focusing on improving its operational efficiency and managing costs effectively.
About Guild Holdings Co
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