Annual Report Details Significant Dilution Impact on EPS Despite Strong Revenue Growth; Two Harbors Merger Progresses

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UWM Holdings Corp.'s annual report for 2025 reveals a mixed financial picture. While the company achieved substantial growth in total revenue and loan origination volume, and a notable increase in net income attributable to the company, diluted earnings per share (EPS) decreased slightly due to a massive increase in diluted shares outstanding. This significant dilution stems from the conversion of Class D common stock into Class A common stock, which became dilutive in 2025, and the anticipated issuance of approximately 247 million Class A shares for the pending merger with Two Harbors Investment Corp. Investors should carefully consider the impact of this dilution on per-share value, even as the underlying business demonstrates operational strength and strategic expansion into in-house servicing.

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• Strong Annual Financial Performance

  For the year ended December 31, 2025, total revenue increased by 18% to $3.16 billion, and loan origination volume grew by 17.2% to $163.4 billion. Net income attributable to UWM Holdings Corporation rose to $27.4 million from $14.4 million in 2024, and Adjusted EBITDA increased by 51.6% to $697.3 million.

• Significant Dilution Impacts EPS

  Despite increased net income attributable to the company, diluted EPS for 2025 was $0.12, a slight decrease from $0.13 in 2024. This is primarily due to a substantial increase in diluted weighted-average shares outstanding to approximately 1.6 billion in 2025, up from 111.4 million in 2024, as Class D common stock became dilutive under the if-converted method.

• Two Harbors Merger Update

  The company confirmed its agreement to merge with Two Harbors Investment Corp., with Two Harbors common stockholders receiving 2.3328 shares of Class A common stock for each share. The transaction is anticipated to close in the second quarter of 2026 and will involve the issuance of approximately 247 million additional Class A common shares.

• Transition to In-House Servicing

  UWM Holdings Corp. is in the process of transitioning substantially all of its mortgage loan servicing operations in-house by the end of 2026, a strategic move aimed at enhancing borrower satisfaction and supporting client relationships.

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UWM Holdings Corp.'s annual report for 2025 reveals a mixed financial picture. While the company achieved substantial growth in total revenue and loan origination volume, and a notable increase in net income attributable to the company, diluted earnings per share (EPS) decreased slightly due to a massive increase in diluted shares outstanding. This significant dilution stems from the conversion of Class D common stock into Class A common stock, which became dilutive in 2025, and the anticipated issuance of approximately 247 million Class A shares for the pending merger with Two Harbors Investment Corp. Investors should carefully consider the impact of this dilution on per-share value, even as the underlying business demonstrates operational strength and strategic expansion into in-house servicing.