UWM Holdings Corp (UWMC)

Price$1.47Cached quoteAs of 2026-09-05 08:30 UTC

AI: Undervalued

Price checkMarket pricing looks distressed, while operating earnings remain positive beneath large fair-value swings.

UWM Holdings Corporation, listed on the NYSE under UWMC, is priced as stressed common equity after a steep 2026 decline. The current quote also sits below the planned rights-offering minimum subscription price, showing investors demand a large risk discount. The market is penalizing expensive preferred financing, the suspended dividend and sizeable potential dilution. Yet second-quarter adjusted EBITDA stayed positive despite unusually large derivative and servicing-value swings. That gap supports an Undervalued call if the recapitalization stabilizes leverage without another major trading or hedging loss.

Big pictureThe franchise is large and profitable underneath accounting volatility, but leverage makes results unusually rate-sensitive.

Second-quarter originations were $39.7 billion, revenue was $888.0 million and adjusted EBITDA was $185.9 million, while the reported net loss was $451.9 million. A $603.2 million loss on other interest-rate derivatives drove much of the headline damage. Gain margin improved to 133 basis points, meaning 1.33% of loan volume before other costs. UWM also held $5.31 billion of mortgage servicing rights, which generate servicing cash flows but can change sharply in value when interest-rate expectations move.

Business strengthScale, broker-channel leadership and servicing income provide durability, while liquidity and debt remain the central constraints.

At June 30, UWM reported $498.4 million of cash; separately, its most restrictive regulatory minimum liquidity requirement was $343.9 million, and the company said it was compliant. It also carried $3.0 billion of senior notes and $2.95 billion drawn on mortgage-servicing-rights facilities. Another $8.60 billion of warehouse borrowing mainly financed short-lived mortgage loans, so it is not equivalent to ordinary corporate debt. The August preferred-equity infusion is intended largely to repay debt and servicing facilities, improving near-term durability at a high capital cost.

What could change the storyLower rates and steady margins could unlock upside; renewed losses or dilution could overwhelm common shareholders.

The bull case needs mortgage demand to recover, gain margins to stay around recent levels, servicing cash flows to remain dependable, and management to use earnings plus new capital to reduce debt and the preferred balance. The bear case is continued rate volatility, weaker originations, another large derivative or servicing-value loss, and expensive preferred dividends that compound when unpaid. Common holders also face potential dilution from 330 million warrants and a planned 200 million-share rights offering, so per-share recovery depends on operating gains outrunning those new claims.

AI: News

Q2 loss, operating profitAugust results paired a large net loss with positive adjusted EBITDA and firmer gain margins.

On August 5, UWM reported second-quarter originations of $39.7 billion, total revenue of $888.0 million, adjusted EBITDA of $185.9 million and a $451.9 million net loss. The 133-basis-point gain margin improved from the first quarter and year-earlier period. The loss was heavily affected by interest-rate derivative and mortgage-servicing-rights fair-value movements, showing that reported earnings can swing far more than the core loan-origination engine.

Oaktree recapitalization closesUWM closed a large preferred-equity financing, suspended its common dividend and prioritized deleveraging.

On August 5, UWM closed $1.65 billion of preferred equity from Oaktree-affiliated funds and Ishbia-family interests as the funded portion of a broader capital plan. The preferred stock carries a 10% cash dividend or a 13% rate when unpaid dividends increase its stated value. Investors also received 330 million warrants. UWM suspended the common dividend and outlined a planned $400 million rights offering, with proceeds aimed mainly at debt reduction, servicing-facility repayment and liquidity.

Rocket litigation disclosedA servicing-rights contract dispute adds legal risk, though damages remain contested and unresolved.

Rocket Mortgage filed suit on May 14 alleging UWM breached contractual obligations tied to earlier mortgage-servicing-rights sales and seeking monetary damages and attorneys' fees. UWM disclosed the case in its second-quarter 10-Q and said it filed a motion to dismiss on July 31. The dispute does not define the investment case today, but it adds another potential cash claim while management is already focused on rebuilding liquidity and reducing leverage.

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Revenue

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Net income

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Free cash flow

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Total cash / debt

CashTotal debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$3.16B	$2.67B	$2.17B	$2.37B	$2.97B	$4.94B	$1.28B
Operating expenses	$2.15B	$1.83B	$1.39B	$1.44B	$1.39B	$1.55B	$863.4M
Operating income	—	—	—	—	—	−$6.8M	−$39,002
Operating margin	—	—	—	—	—	−0.14%	−0.00%
EBITDA	—	—	—	—	—	$10.0M	$9.4M
EBITDA margin	—	—	—	—	—	0.20%	0.73%
Net income	$27.4M	$14.4M	−$13.2M	$41.7M	$98.4M	−$5.8M	−$39,002
Net profit margin	0.87%	0.54%	−0.61%	1.76%	3.31%	−0.12%	−0.00%
Basic EPSper basic share	$0.13	$0.13	-$0.14	$0.45	$0.98	-$0.12	$0.00
Diluted EPSper diluted share	$0.12	$0.13	-$0.14	$0.45	$0.66	-$0.12	$0.00

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

8.90%of listed shares

FMR LLC30.46M shares · Jun 30, 2026

View holders

Top 20 reported holders of UWMC
Holder	% owned
FMR LLC	8.90%30.46M shares
BlackRock, Inc.	5.14%17.58M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	4.05%13.86M shares
NORGES BANK	4.02%13.75M shares
VANGUARD CAPITAL MANAGEMENT LLC	3.85%13.17M shares
AMERIPRISE FINANCIAL INC	3.34%11.42M shares
BRANDES INVESTMENT PARTNERS, LP	3.06%10.47M shares
GOLDMAN SACHS GROUP INC	2.96%10.13M shares
BANK OF AMERICA CORP /DE/	2.23%7.63M shares
HRT FINANCIAL LP	2.06%7.06M shares
CITADEL ADVISORS LLC	2.05%7.01M shares
MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd.	1.97%6.73M shares
Freestone Grove Partners LP	1.90%6.49M shares
NORTHERN TRUST CORP	1.69%5.8M shares
Integrated Investment Consultants, LLC	1.57%5.38M shares
GEODE CAPITAL MANAGEMENT, LLC	1.56%5.35M shares
STATE STREET CORP	1.47%5.02M shares
Owl Creek Asset Management, L.P.	1.44%4.91M shares
Invesco Ltd.	1.42%4.87M shares
MORGAN STANLEY	1.40%4.81M shares

Percentages use 342.25M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)227$791.10M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 8, 2026Form 4 · 10b5-1	Mat Ishbia +1President and CEO	SellClass A Common Stock · indirect	1.00M	$3.39	$3.40M	0
May 7, 2026Form 4 · 10b5-1	Mat Ishbia +1President and CEO	SellClass A Common Stock · indirect	1.00M	$3.39	$3.40M	1.00M
May 6, 2026Form 4 · 10b5-1	SFS HOLDING CORP +1TenPercentOwner	SellClass A Common Stock · indirect	1.00M	$3.66	$3.67M	1.99M
May 5, 2026Form 4 · 10b5-1	SFS HOLDING CORP +1TenPercentOwner	SellClass A Common Stock · indirect	1.00M	$3.45	$3.46M	3.00M
May 4, 2026Form 4 · 10b5-1	SFS HOLDING CORP +1TenPercentOwner	SellClass A Common Stock · indirect	1.00M	$3.57	$3.58M	4.00M