Key facts
- UWM Holdings Corp. reported a $451.9 million net loss in Q2 2026.
- The company secured a $2.05 billion capital raise through preferred equity and warrants.
- The Ishbia family and Oaktree Capital Management are participating in the capital raise.
- A $400 million rights offering is also being pursued.
- UWM has suspended its common dividend to prioritize debt reduction.
UWM Holdings Corp. has announced a record $2.05 billion capital raise, comprising $1.65 billion in preferred equity and warrants from the Ishbia family's SFS Group Capital and Oaktree Capital Management, alongside a targeted $400 million rights offering for Class A shareholders. This strategic move coincides with the company's second-quarter 2026 financial results, which revealed a net loss of $451.9 million, a significant shift from the previous quarter's profit.
Despite the net loss, UWM reported loan origination volume of $39.7 billion for the quarter, with a gain-on-sale margin of 133 basis points. A UWM spokesperson attributed the net loss primarily to a specific hedge-related event tied to an anticipated transaction, stating it does not reflect the underlying strength of the core business.
To bolster its balance sheet and prioritize debt reduction, UWM will suspend its common dividend. The proceeds from the capital raise are earmarked for balance sheet fortification, including debt repayment and support for general corporate purposes. The company's equity has nearly halved over the past year, and non-funding leverage has more than tripled, underscoring the need for this capital infusion.
As part of the agreement, Oaktree Capital Management will have a representative on UWM's board, with the right to nominate an additional independent director. This partnership is seen as a strong endorsement of UWM's market position and future growth potential.