UWM Holdings Reports Preliminary Third-Quarter 2026 Results, Updates Full-Year Outlook and Plans Significant MSR Sales
UWM Holdings Corporation (NYSE: UWMC), the publicly traded indirect parent company of United Wholesale Mortgage (UWM), has announced preliminary operating and financial results for the third quarter ended September 30, 2026. The company also updated its full-year financial outlook, including its expectations for residential mortgage originations, mortgage servicing rights (MSR) portfolio levels, annual revenue and planned asset sales.
The announcement comes ahead of the measurement period used to determine the subscription price under the company’s previously announced rights offering. By providing updated financial information before that period begins, UWM Holdings aims to give investors a more current view of its operating performance and financial position as they evaluate the offering.
The preliminary results indicate that the company expects to report $33.4 billion in loan originations for the third quarter, supported by purchase mortgage activity and refinancing. UWM Holdings also expects total revenue between $800 million and $825 million and net income between $205 million and $220 million. The company’s updated annual outlook reflects the effects of lower mortgage origination volume across the broader U.S. residential mortgage industry.
UWM Holdings Estimates $33.4 Billion in Third-Quarter Originations
Based on preliminary unaudited information, UWM Holdings expects total loan origination volume to reach approximately $33.4 billion for the three months ended September 30, 2026.
Purchase mortgage originations are expected to account for $22.8 billion of the total, while refinancing originations are projected to contribute $10.6 billion. These figures highlight the relative contribution of home purchase financing and refinancing activity to the company’s mortgage production during the quarter.
Purchase mortgages generally arise when borrowers finance the acquisition of residential properties. Refinancing, by comparison, involves replacing an existing mortgage with a new loan, potentially to obtain different loan terms, adjust monthly payments or access home equity.
The balance between these two categories is an important indicator of mortgage market conditions. Purchase activity is influenced by home sales, property prices, borrower affordability and housing inventory, while refinancing demand is particularly sensitive to interest rates and the potential savings available to existing homeowners.
UWM Holdings’ preliminary origination figures provide an indication of its production activity as it approaches the finalization of its third-quarter financial statements. However, the company has emphasized that the reported figures remain estimates and could change as its quarterly closing procedures are completed.
The company also estimates that it will originate approximately 8% of total U.S. residential mortgage production during 2026. This projected market share reflects its anticipated position within the broader mortgage lending industry for the year.
Gain Margin Expected at Approximately 124 Basis Points
UWM Holdings expects its gain margin to reach approximately 124 basis points in the third quarter of 2026.
Gain margin is an important performance indicator for mortgage originators because it reflects the economics associated with originating and selling mortgage loans. The measure helps illustrate the revenue generated from mortgage production relative to the volume of loans originated, although its precise calculation depends on the company’s reporting methodology.
Mortgage originators operate in a market influenced by interest rates, loan pricing, competition among lenders, secondary-market demand and hedging costs. Changes in these factors can affect the revenue generated from each dollar of mortgage production.
For UWM Holdings, the gain margin provides additional context for evaluating its anticipated loan production income and overall quarterly performance. When considered alongside origination volume, it helps investors assess how effectively the company is converting mortgage production into revenue.
The company expects loan production income to range from $410 million to $420 million for the third quarter. This estimate represents a significant component of its anticipated total revenue and reflects the importance of mortgage origination and related activities to its business model.
The final results may differ from these preliminary estimates as the company completes its accounting analyses, valuations and other closing procedures.
Mortgage Servicing Portfolio Remains a Key Financial Component
UWM Holdings expects its mortgage servicing rights portfolio to have an unpaid principal balance of approximately $270 billion as of September 30, 2026.
The portfolio is expected to carry a weighted average coupon of approximately 5.97% and a weighted average servicing fee of approximately 40 basis points.
Mortgage servicing rights represent the contractual rights to service mortgage loans and receive compensation for performing associated administrative and operational functions. These functions can include collecting borrower payments, managing escrow accounts, maintaining loan records and transferring payments to investors or other relevant parties.
The unpaid principal balance, or UPB, represents the remaining principal owed on the underlying mortgage loans. It provides an indication of the scale of the mortgage portfolio being serviced, although it does not represent the market value of the servicing rights themselves.
The weighted average coupon measures the average interest rate on the underlying mortgage loans, weighted according to the relevant loan balances. The weighted average servicing fee reflects the average fee associated with servicing those loans.
For mortgage companies, servicing rights can provide a recurring source of income that differs from revenue generated through loan production. However, MSR valuations can fluctuate with changes in interest rates, borrower prepayment behavior, market assumptions and other factors affecting the expected cash flows from servicing.
The company expects loan servicing income to range from $240 million to $250 million for the third quarter. This anticipated contribution demonstrates the importance of servicing operations alongside mortgage production in UWM Holdings’ overall revenue structure.
The company’s future servicing portfolio will also be influenced by its planned fourth-quarter MSR sales, which are expected to reduce the portfolio’s unpaid principal balance by year-end.
Third-Quarter Revenue Expected Between $800 Million and $825 Million
UWM Holdings estimates that total revenue for the third quarter of 2026 will fall between $800 million and $825 million.
The company expects loan production income to range from $410 million to $420 million, while loan servicing income is projected to reach between $240 million and $250 million.
These revenue categories represent important parts of the company’s mortgage lending and servicing operations. Loan production income is associated with mortgage origination and related activities, while servicing income is generated from administering mortgage loans.
The preliminary figures provide investors with an initial view of the company’s anticipated quarterly financial performance. However, the revenue estimates should not be interpreted as final reported results because the company has not completed its financial closing process.
The difference between total revenue and the two specifically disclosed income categories also reflects the presence of other revenue components. Accordingly, the figures should be considered within the company’s broader financial reporting framework rather than as a complete breakdown of all revenue sources.
UWM Holdings’ final third-quarter financial statements will provide a more comprehensive picture of its results and the contributions of its different operating activities.
Operating Expenses and Net Income Estimates
The company expects operating expenses of between $375 million and $385 million for the third quarter. The stated operating expense measure is defined as total expenses excluding interest expense and servicing costs.
This definition is important when comparing the preliminary estimate with other expense figures in the company’s financial statements. Interest expense and servicing costs are treated separately under the company’s stated calculation.
Mortgage lenders must manage a range of operating costs associated with loan origination, technology, personnel, compliance, customer relationships and business administration. The company’s ability to manage these expenses relative to mortgage production and servicing income can influence its profitability.
UWM Holdings expects third-quarter net income to range from $205 million to $220 million.
Net income reflects the company’s overall financial performance after accounting for applicable expenses, interest, taxes and other items. The preliminary estimate offers investors an indication of anticipated profitability, but it remains subject to adjustments that may arise during the completion of the quarter-end closing process.
The company also expects adjusted EBITDA to range from $170 million to $190 million.
Adjusted EBITDA is a non-GAAP financial measure used by management to evaluate operating performance after excluding certain items that management considers not representative of its underlying operations. Because it differs from net income and other generally accepted accounting principles (GAAP) measures, it should be considered alongside the company’s reported financial statements rather than as a replacement for them.
The company cautions that its adjusted EBITDA calculation has specific limitations and may not be directly comparable with similarly named measures reported by other businesses.
Capital Position and Non-Funding Debt
As of September 30, 2026, UWM Holdings expects total preferred and common equity of approximately $2.8 billion.
The company also estimates that its net non-funding debt to total preferred and common equity ratio will range between 1.75 times and 1.80 times.
This ratio provides an indication of the relationship between the company’s net non-funding debt and its combined preferred and common equity. Investors may use the measure to assess capital structure and leverage, particularly when evaluating the company’s debt management plans.
UWM Holdings distinguishes non-funding debt from debt associated with mortgage funding facilities. Funding facilities support the company’s mortgage lending activities, while non-funding debt relates to its broader capital structure.
The distinction also affects the company’s adjusted EBITDA calculation. Interest expense on funding facilities is included because management considers it a direct operating expense associated with mortgage origination volume. Interest expense on non-funding debt is excluded because management views it primarily as a function of the company’s capital structure.
These distinctions are important when interpreting the company’s leverage measures and non-GAAP performance indicators.
Full-Year 2026 Revenue Outlook Revised
In addition to providing preliminary third-quarter results, UWM Holdings updated its financial expectations for the full year ending December 31, 2026.
The company currently estimates that full-year revenue will range from approximately $3.35 billion to $3.50 billion. This outlook is lower than the company had anticipated earlier in 2026, primarily because of reduced mortgage origination volume across the broader industry.
Mortgage market conditions can affect lenders through several channels, including home purchase demand, refinancing activity, borrower affordability and competition for loan volume. Changes in interest rates and broader economic conditions can influence both the number of mortgages originated and the revenue lenders earn from their production.
The revised revenue outlook reflects the company’s current assessment of these market conditions and their potential impact on its business during the remainder of the year.
The annual estimate remains subject to uncertainty, and actual results could differ from management’s expectations as market conditions evolve and the company completes its financial reporting procedures.
Company Plans Fourth-Quarter Mortgage Servicing Rights Sales
UWM Holdings expects to sell between $70 billion and $80 billion in mortgage servicing rights during the fourth quarter of 2026.
The company anticipates proceeds exceeding $1.8 billion from these planned sales. The proceeds are expected to support the ongoing reduction of non-funding debt, alongside approximately $400 million in gross proceeds from the previously announced rights offering.
The planned MSR transactions represent an important element of the company’s capital management strategy for the remainder of 2026.
Selling mortgage servicing rights can generate cash that a company may use to reduce debt or support other financial priorities. At the same time, these transactions can change the size of the servicing portfolio and the level of future servicing income associated with the assets sold.
UWM Holdings expects to end 2026 with an MSR portfolio ranging from $210 billion to $230 billion in unpaid principal balance. This projected year-end range reflects management’s current expectations, including the anticipated portfolio changes associated with the planned fourth-quarter sales.
The company has not indicated in the supplied disclosure that the projected transactions have already been completed. The anticipated sale volume, proceeds and year-end portfolio level therefore remain forward-looking estimates.
The expected proceeds from MSR sales, combined with the gross proceeds of the rights offering, are intended to support the company’s continued non-funding debt paydown. The effectiveness of this strategy will depend on the completion and terms of the relevant transactions, as well as the company’s financial and operating conditions.
Rights Offering and Investor Disclosure
The preliminary third-quarter announcement was issued before the measurement period used to determine the subscription price under UWM Holdings’ previously announced rights offering.
A rights offering generally provides eligible existing shareholders with an opportunity to purchase additional securities under specified terms. The subscription price and other conditions determine how investors may participate in the offering.
By making updated financial information available before the measurement period begins, UWM Holdings aims to ensure that investors have access to current operating and financial estimates when evaluating the transaction.
The company expects approximately $400 million in gross proceeds from the rights offering, which it plans to use alongside anticipated MSR sale proceeds to support non-funding debt reduction.
The completion of the rights offering and the closing of the related backstop agreement on their anticipated terms are among the factors that could affect the company’s financial outlook.
Investors should review the relevant offering documents and the company’s filings with the U.S. Securities and Exchange Commission for the applicable terms, conditions and risk factors.
Preliminary Estimates Remain Subject to Review
UWM Holdings emphasized that the third-quarter financial and operating information is preliminary, unaudited and based on information currently available to management.
The estimates have been prepared by management and have not been reviewed by the company’s independent registered public accounting firm. They are subject to change as the company completes its financial closing procedures and finalizes its financial statements.
The remaining work may include final accounting analyses, valuations, adjustments and other matters that arise before the company’s third-quarter results are finalized. The independent auditors’ review may also identify items requiring adjustments to the preliminary information.
As a result, actual financial and operating results could differ materially from the estimates included in the announcement.
The company stated that it does not intend to update the preliminary financial information before filing its quarterly report on Form 10-Q with the SEC for the quarter ended September 30, 2026, except as required by law.
The preliminary estimates are not intended to provide a comprehensive statement of the company’s financial or operational results. Investors should therefore avoid placing undue reliance on these figures before the final results are reported.
Forward-Looking Statements and Business Risks
The company’s updated full-year outlook and preliminary third-quarter estimates contain forward-looking statements based on management’s current expectations and assumptions.
These statements include expectations for mortgage origination volume, year-end MSR portfolio levels, non-funding debt, third-quarter financial performance and participation in the rights offering.
Actual results may differ because of a range of risks and uncertainties, many of which are outside the company’s control.
UWM’s business depends significantly on conditions in the U.S. residential real estate and mortgage markets. Changes in monetary policy, mortgage interest rates, housing activity and borrower demand can affect origination volumes and profitability.
The company also relies on warehouse funding facilities and MSR financing arrangements. A decline in the value of collateral supporting certain facilities could trigger unexpected margin calls, creating additional liquidity requirements.
Its ability to sell mortgage loans in the secondary market and its relationships with government-sponsored enterprises, including Fannie Mae and Freddie Mac, are also important to its operating model. Changes to lending guidelines, government guarantees or requirements established by agencies such as the Federal Housing Administration, the U.S. Department of Agriculture and the Department of Veterans Affairs could affect its business.
Other risks include the company’s dependence on independent mortgage advisors and its ability to maintain relationships with mortgage brokers. Its capacity to grow and manage loan production volume, retain business partners and implement technological innovations, including artificial intelligence, may also influence future performance.
Cybersecurity and information security represent additional areas of risk. Data breaches, system failures or security incidents involving the company, its third-party software providers, sub-servicers or other vendors could disrupt operations or expose the company to financial and regulatory consequences.
UWM must also comply with complex federal and state laws and regulations governing mortgage origination and servicing. The introduction or expansion of internal servicing operations may create additional operational and compliance requirements.
The company noted that further risks are described in its SEC filings, including the risk factors discussed in those documents. It does not undertake an obligation to update forward-looking statements to reflect events or circumstances occurring after the announcement date, except where applicable law requires otherwise.
Non-GAAP Financial Measures
UWM Holdings uses adjusted EBITDA, net non-funding debt and total preferred and common equity as non-GAAP financial measures to provide additional information about its operating performance and financial position.
These measures are not calculated in accordance with U.S. GAAP and may differ from similarly titled metrics used by other companies. They should not be considered independently or as substitutes for net income, revenue, other GAAP financial measures or operating cash flow.
The company defines adjusted EBITDA as earnings before interest expense on non-funding debt, income tax provisions, depreciation and amortization, with further adjustments for selected items.
These adjustments include stock-based compensation expense, changes in the fair value of mortgage servicing rights resulting from valuation inputs or assumptions, gains or losses on other interest rate derivatives, non-cash deferred compensation expense, non-cash changes in the Tax Receivable Agreement liability, changes in the fair value of retained investment securities and acquisition-related expenses, net of recoveries.
Management believes these adjustments help provide additional insight into operating performance by excluding certain items it considers less indicative of ongoing results.
Interest expense associated with funding facilities remains included in adjusted EBITDA because management views these costs as directly related to loan origination activity. Interest expense on non-funding debt is excluded because it is associated with the company’s capital structure.
Although management considers these non-GAAP measures useful, they have analytical limitations and should be evaluated together with the company’s GAAP financial results and other relevant financial information.
UWM Holdings enters the final quarter of 2026 with preliminary third-quarter revenue expectations of $800 million to $825 million, projected net income of $205 million to $220 million and anticipated loan originations of $33.4 billion.
Its updated full-year outlook reflects a more cautious revenue expectation amid lower origination volume across the U.S. mortgage industry. At the same time, the company plans to sell $70 billion to $80 billion in mortgage servicing rights during the fourth quarter, with anticipated proceeds exceeding $1.8 billion.
Together with the expected $400 million in gross proceeds from its rights offering, these transactions are intended to support continued non-funding debt reduction.
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