Mr. Cooper Group Reports Q2 2025 Financial Results with 4.3% Revenue Growth

Mr. Cooper Group Inc. reported its financial results for the second quarter of 2025, revealing total revenues of $608 million, a 4.3% increase from $583 million in the same period last year. For the first half of 2025, revenues reached $1.168 billion, up from $1.147 billion in the prior year. The company's net income for the quarter was $198 million, slightly down from $204 million in Q2 2024, while net income for the first half of 2025 was $286 million, compared to $385 million in the previous year. Earnings per share for the second quarter were $3.09, down from $3.16 a year earlier.

The company experienced notable changes in its financial performance compared to the previous fiscal period. Service-related revenues decreased to $472 million from $485 million year-over-year, while net gains on mortgage loans held for sale increased significantly to $136 million from $98 million. Total expenses rose to $330 million in Q2 2025, up from $300 million in Q2 2024, primarily due to increased salaries and general administrative costs. The effective tax rate for the quarter was 28.6%, compared to 26.3% in the same quarter of 2024.

Strategically, Mr. Cooper Group is in the process of merging with Rocket Companies, Inc., with the transaction valued at $9.4 billion expected to close in the fourth quarter of 2025, pending shareholder and regulatory approvals. Additionally, the company completed the acquisition of certain mortgage operations from Flagstar Bank in late 2024, which has contributed to its servicing portfolio growth. The company reported a servicing portfolio unpaid principal balance (UPB) of $730.5 billion as of June 30, 2025, compared to $736.1 billion at the end of 2024.

Operationally, Mr. Cooper Group's customer base expanded, with the total loan count increasing to approximately 6.44 million from 5.31 million a year earlier. The average loan amount rose to $233,820, up from $226,453. The company also reported a total of 31,966 modifications and workout units in the first half of 2025, reflecting a significant increase in loss mitigation efforts. The company’s liquidity position remained strong, with cash and cash equivalents totaling $783 million as of June 30, 2025, compared to $753 million at the end of 2024.

Looking ahead, Mr. Cooper Group anticipates that its servicing portfolio will remain stable as it integrates operations with Rocket. The company expects continued momentum in its direct-to-consumer channel, particularly in home equity loans and cash-out refinances. The management remains focused on enhancing operational efficiency and customer experience while navigating the evolving market conditions.