Guild (GHLD -0.25%), a nationwide mortgage lender focused on retail purchase originations and servicing, reported its second quarter 2025 results on August 7, 2025. The company announced non-GAAP earnings per share (EPS) of $0.66 for Q2 2025, a sharp outperformance versus the $0.42 consensus estimate (non-GAAP), while revenue (GAAP) was $279.4 million for Q2 2025, missing GAAP revenue estimates of $301.36 million. Adjusted net income marked its highest result since 2021, and Origination volume rose year-over-year, increasing from $6.5 billion in Q2 2024 to $7.5 billion in Q2 2025, highlighting business momentum. The quarter was a mix of notable profitability improvements—including adjusted EBITDA up almost 60% versus Q1 2025—against a backdrop of revenue pressures and ongoing volatility in mortgage servicing rights valuation. Overall, the period featured robust origination, improved operational efficiency, and a significant special cash dividend, with results set against the upcoming acquisition by Bayview Asset Management.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.66 | $0.42 | $0.49 | 34.7% |
| Revenue (GAAP) | $279.4 million | $301.36 million | $285.7 million | -2.3% |
| Adjusted Net Income | $41.4 million | $30.7 million | N/A | |
| Net Income Attributable to Guild | $18.7 million | $37.6 million | (50.3%) | |
| Adjusted EBITDA | $58.0 million | $41.6 million | N/A |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
About Guild: Business and Recent Strategic Focuses
Guild is a mortgage company specializing in helping homebuyers secure loans, with a strong emphasis on originating new mortgages for people purchasing homes, not just refinancing. It also manages a large portfolio of servicing rights, meaning it collects payments and handles the ongoing administration of many loans it originated or acquired from others. This dual focus—servicing and origination—allows Guild to generate revenue whether rates are rising or falling.
In recent years, Guild aimed to expand its national footprint by acquisitions and growing organically, especially by recruiting loan officers and building out local branches. The company's success hinges on maintaining a balance between its origination and servicing operations, keeping a high share of purchase originations, investing in technology to support efficiency, and ensuring strong compliance and employee engagement. Recapture rates—meaning Guild’s ability to regain its customers for future loans—are viewed as a key measure of its long-term market power.
Quarter in Review: Operational and Financial Highlights
This purchase focus helps reduce Guild’s exposure to swings in refinancing trends driven by interest rates.
The origination segment posted $23.4 million net income for Q2 2025, with Origination segment revenue was $242.5 million. Guild leaned into digital investments and coaching programs, contributing to above-average productivity for its loan officers. There was a sequential decline in the gain-on-sale margin, a metric showing the profit on sold loans, from 376 basis points in Q1 2025 to 329 basis points in Q2 2025, but it remained slightly above year-ago levels at 329 basis points. Management attributed this change mainly to timing and seasonality.
Servicing operations remain a key income stream for Guild. The servicing portfolio unpaid principal balance was $96.3 billion as of June 30, 2025, compared to $89.1 billion as of June 30, 2024. About 61% of loans sold during Q2 2025 retained mortgage servicing rights, supporting future recurring revenue. However, servicing profitability fell due to a negative valuation adjustment on servicing rights (a $41.3 million loss versus a $2.1 million gain in the prior year). These fair value swings occur because rising or volatile interest rates change the expected value of future servicing cash flows.
Expenses increased to $258.9 million. Despite this, adjusted profitability improved: adjusted net income was $41.4 million, and adjusted EBITDA reached $58.0 million. Adjusted return on average equity—a capital efficiency measure—rose to 13.7%, notably stronger than in both Q1 2025 and Q2 2024. Recapture rates were 27% for purchasers and 31% for refinances in Q1 2025, indicating ongoing customer retention strength.
The quarter featured a few unique events. Guild declared a special cash dividend of $0.25 per share and Guild repurchased 61,221 shares. The upcoming merger with Bayview Asset Management was acknowledged but has not yet had an operational impact. No regular dividend trend was detailed, and the special dividend for the quarter was highlighted as a discrete event.
Looking Ahead: Guidance and Points to Watch
The company has ceased hosting earnings calls as it moves toward being taken private by Bayview Asset Management.
For those following Guild into the next quarters, key themes to track include the impact of the merger on operations and management, trends in purchase originations versus refis, the stability of servicing profitability amid ongoing servicing rights valuation swings, and the company’s ability to keep expense growth in check. Changes in recapture rates and technology-driven productivity will also be important markers. GHLD does not currently pay a dividend outside the special dividend declared this quarter.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
