Adjusted diluted EPS of $0.15 beat the API Ninjas estimate of $0.1354. The revenue scorecard shows a beat on a year-to-date basis, total revenue, net of $9,009,000,000 against an estimate of $2,580,471,000; for the quarter, total revenue, net was $3.28 billion and adjusted revenue $2.57 billion.
Q4 2026 guidance calls for adjusted revenue of $2.1 billion to $2.3 billion, below Q3 adjusted revenue of $2,574 million.
Servicing now carries the model: servicing fee income rose to $1,032 million from $413 million, and Mortgage segment contribution margin rose to $1,138 million from $564 million.
Adjusted EBITDA was $748 million against $349 million a year ago, on $43.6 billion of closed origination volume at a 2.54% total gain on sale margin and 3.33% excluding correspondent.
The one thing that matters: the GAAP swing to $709 million of net income is mostly a servicing-rights valuation gain. The cleaner $419 million of adjusted net income is increasingly built on the enlarged servicing book, and a Q4 guide below Q3 leaves open how much of the step-up holds into year-end.
Key metrics
Metric
Reported
Prior year
Change
Adjusted net income
$419 million
$ 158
—
Adjusted EBITDA
$748 million
$ 349
—
Mortgage segment contribution margin
$ 1,138
$ 564
—
Total closed mortgage loan origination volume
$43.6 billion
—
—
Total gain on sale margin
2.54%
—
—
Servicing portfolio unpaid principal balance
$2.0 trillion
—
—
Guidance changes
Item
New guidance
Prior guidance
Q4 2026 adjusted revenue
$2.1 billion to $2.3 billion
—
Quality of earnings
Headline GAAP profit is a valuation mark. Total revenue, net of $3,284 million includes a $710 million favorable change in MSR fair value from valuation assumptions; excluding it, adjusted revenue was $2,574 million and adjusted net income $419 million against GAAP net income of $709 million.
Gain on sale leans on non-cash MSR capitalization. Gain on sale excluding the fair value of originated MSRs fell to $302 million from $641 million, while the fair value of originated MSRs rose to $726 million from $386 million.
Adjusted earnings exclude recurring deal costs. Acquisition-related expenses of $113 million, acquired-intangible amortization of $113 million and share-based compensation of $84 million were all excluded from adjusted net income.
Gotchas & watch items
Per-share growth is diluted by the acquisitions: diluted weighted average shares rose to 2,845,400,003 from 2,106,227,188, so adjusted net income of $419 million against $158 million translated into adjusted EPS of $0.15 against $0.07.
Correspondent volume earns almost nothing: correspondent closed $10.1 billion of loans at a 0.15% gain on sale margin, against 4.31% in Direct to Consumer.
Financing costs are rising: interest expense rose to $359 million from $235 million, including $154 million of bond interest against $111 million.
Servicing assets are being turned into cash: MSR sales totaled $23 billion of UPB for $379 million of proceeds, with subservicing and recapture retained on nearly 70% of the MSRs sold.