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• Total Originations: Increased 57% year over year to $24 billion.

• Net Revenue: Increased 60% to $1 billion.

• Net Income: $97.1 million compared to a net loss of $39 million in the prior year.

• Adjusted Net Income: $90.2 million, an 88% increase from the previous year.

• Adjusted EBITDA: $134.8 million, up 80% year over year.

• Diluted Adjusted EPS: Grew 86% year over year.

• Purchase Originations: Represented 88% of closed loan volume.

• Servicing Portfolio: Expanded to approximately $93 billion, a 9% increase from the prior year.

• Refinance Capture Rate: 44%, with a total recapture rate of 35%.

• Fourth Quarter Originations: $6.7 billion, an 86% increase year over year.

• Fourth Quarter Net Income: $97.9 million compared to a net loss of $93.1 million in the prior year period.

• Fourth Quarter Adjusted EBITDA: $30.9 million compared to $13.2 million in the prior year period.

• Gain on Sale Margin: 317 basis points in Q4, with a full year margin of 332 basis points.

• Cash and Cash Equivalents: $118 million as of December 31.

• Leverage Ratio: 1.7 times at quarter end.

• Tangible Net Book Value per Share: $16.59.

• Share Repurchase: Approximately 28,000 shares repurchased at an average price of $13.95 per share.

• Special Cash Dividend: $0.50 per share declared, payable on March 31, 2025.

• Warning! GuruFocus has detected 5 Warning Signs with GHLD.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Guild Holdings Co (NYSE:GHLD) reported a 57% increase in total originations year over year, significantly outpacing the industry's 22% growth.

• Net revenue increased by 60% to $1 billion, while expenses rose by only 33%, indicating effective cost management and realization of scale benefits.

• The company achieved an 88% purchase origination rate, outperforming the industry average of 72%, showcasing its strong focus on purchase originations.

• Guild Holdings Co (NYSE:GHLD) expanded its servicing portfolio to approximately $93 billion, a 9% increase from the previous year, maintaining a high-quality portfolio.

• The company received several industry accolades, including being named the top large independent mortgage banker nationwide by Stratmor's MortgageCX best-in-class program.

Negative Points

• Despite strong growth, Guild Holdings Co (NYSE:GHLD) still represents less than 2% of the total market, indicating limited market penetration.

• The company anticipates ongoing rate headwinds, which could impact future growth and profitability.

• The servicing portfolio's unpaid balance has been gradually decreasing year over year, which may affect future cash flow and business opportunities.

• Market conditions remain volatile, with potential fluctuations in interest rates impacting MSR valuations and overall financial performance.

• The company faces challenges in maintaining its high retention rate for mortgage servicing rights, with market conditions influencing retention decisions.