UWM (UWMC) Financials

UWM Holdings Corp (NYSE: UWMC) has experienced significant fluctuations in its financial performance over the past four years, as seen from the quarterly financial data through Q1 2025.

Revenue and Income Trends:

• The company reported a consolidated net loss of $247 million in Q1 2025, a sharp decline from a net income of $40.6 million in Q4 2024 and $31.9 million in Q3 2024, reflecting increased challenges in recent quarters.
• Total revenue in Q1 2025 was $225 million, down from $767.5 million in Q4 2024 and $526 million in Q3 2024, primarily due to lower net realized and unrealized capital gains and a large negative impact from other non-interest income.
• Prior to 2025, UWM showed strong profitability in most quarters, for example, posting $325.6 million in net income in Q3 2022 and consistently positive earnings through 2023.
• Net interest income remains positive but dropped to $118 million in Q1 2025 from $347 million in Q4 2024, partly impacted by a zero interest expense recorded in Q1 2025 unlike previous quarters.
• Other non-interest income swung negatively to -$388.6 million in Q1 2025, compared to positive totals in previous periods, significantly affecting total non-interest income.

Expenses Analysis:

• Total non-interest expenses surged to nearly $486 million in Q1 2025, an increase from $725 million in Q4 2024 and $494 million in Q3 2024, with major contributions from other operating expenses that increased substantially in Q1 2025.
• Salaries and employee benefits expense remained high and relatively stable around $190 million per quarter, reflecting steady operational costs.
• Marketing expenses decreased in Q1 2025 ($22.2 million) compared to prior quarters but remain significant.

Cash Flow and Capital Structure:

• Despite the net loss, UWM reported positive net cash from operating activities of approximately $594 million in Q1 2025, a robust recovery from negative cash flows in several previous quarters such as Q4 2024 (-$543 million) and Q3 2024 (-$2.18 billion).
• Net cash from investing activities remained strongly positive at $928 million in Q1 2025, driven by substantial sales or maturities of investments.
• Net cash from financing activities was deeply negative at -$1.54 billion in Q1 2025 due to high debt repayments, compared to positive inflows in some prior quarters, indicating balance sheet deleveraging or refinancing efforts.
• The company's long-term debt increased over time, reaching $11.2 billion as of Q1 2025, up from approximately $6.8 billion in early 2022, reflecting a growing leverage position.
• Total assets fluctuated around $11 billion to $15 billion over recent years, with a decline to $14.05 billion in Q1 2025 from $15.1 billion in Q3 2024.
• Equity attributable to common shareholders has generally been in the range of $113 million to $164 million recently but was comparatively small relative to total liabilities.

Summary:

UWM's financials show a challenging transition entering 2025, with the company moving to sizeable quarterly losses from consistent profits seen in prior years and quarters. The abrupt swing in non-interest income and increased operating expenses mark a period of volatility. However, the company maintains strong cash flow from operations and investing activities, which supports ongoing debt repayments and business operations. Investors should monitor how UWM manages these pressures, particularly around its liabilities and capital structure.