Mortgage servicing company Mr. Cooper Group (NASDAQ: COOP) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 16.8% year on year to $681 million. Its GAAP profit of $3.04 per share was 3.4% below analysts’ consensus estimates.
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Mr. Cooper Group (COOP) Q2 CY2025 Highlights:
- Revenue: $681 million vs analyst estimates of $679.7 million (16.8% year-on-year growth, in line)
- EPS (GAAP): $3.04 vs analyst expectations of $3.15 (3.4% miss)
- Market Capitalization: $10.82 billion
Company Overview
Born from the 2018 merger of Nationstar Mortgage and WMIH Corp, Mr. Cooper Group (NASDAQ: COOP) is a non-bank servicer of residential mortgage loans that collects payments, manages escrow funds, and performs loss mitigation activities for 4.6 million customers.
Sales Growth
In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees.
Unfortunately, Mr. Cooper Group struggled to consistently increase demand as its $2.32 billion of revenue for the trailing 12 months was close to its revenue five years ago. This wasn’t a great result, but there are still things to like about Mr. Cooper Group.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Mr. Cooper Group’s annualized revenue growth of 19.3% over the last two years is above its five-year trend, suggesting its demand recently accelerated. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Mr. Cooper Group’s year-on-year revenue growth was 16.8%, and its $681 million of revenue was in line with Wall Street’s estimates.
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Key Takeaways from Mr. Cooper Group’s Q2 Results
Revenue was in line. On the other hand, EPS missed and its tangible book value per share fell slightly short of Wall Street’s estimates. Overall, this quarter could have been better. Still, the stock traded up 1.5% to $172.42 immediately after reporting.
Should you buy the stock or not? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.
