UWM plunges into the red in Q2 after $450m+ net loss
The quarter’s net loss — compared with net income of $170.4 million in the first quarter and $314.5 million in the second quarter of 2025 — was driven primarily by a hedge-related event tied to UWM’s failed bid to acquire Two Harbors Investment Corp. CrossCountry Mortgage ultimately secured that deal.
“It was a quarter-specific mark-to-market impact and does not reflect the underlying strength of UWM’s core business,” a company spokesperson said.
The company’s non-funding debt-to-equity ratio stood at 6.13 at the end of June, up from 3.18 at the end of March, explaining the urgency behind the capital raise.
A strategic partnership takes shape
To address its balance sheet, UWM secured $1.65 billion in preferred equity at closing from Oaktree Capital Management and SFS Group Capital, LLC, a newly formed investment vehicle wholly owned by the Ishbia family.
An additional $400 million is targeted through a rights offering for Class A shareholders, if needed, bringing the total potential raise to $2.05 billion.
